Who here has worked in a (strategy) consulting firm? How do they get their clients?

[BlueMoon]

It amazes me more each and every day how many consulting firms there are - and absolutely killing it. The whole irony is that many recruit people fresh out of college, with no experience, pay them decently, and then 3x their hourly rate to advise major corporations. All in all, I find the business model fascinating and have some ideas around it.

However, what still puzzles me is, how do these firms get their clients? I understand a McKinsey has a reputation so companies flock to them, but what about the 25-100 people sized consultancy firms? How does that work? Do you pitch for projects? Is it all about networking? Something else? Would love to learn more about it.

 

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[ZCP]

which ones have you researched and called? what did they say?
what are the top 100 firms? what do their sites say?
what marketing is going out from them? who would it be targeted toward based on the way it was structured?
which ones have job openings you could go interview to ask more?

 

[BlueMoon]

Hey thanks for the reply. I made a thorough list of companies and am in talks with a couple. The problem is the vast majority of them are essentially a dinosaur and have built up their name and clientele a decade ago or longer than that.

 

[Andy Black]

The problem is the vast majority of them ... built up their name and clientele a decade ago or longer than that.

I’m curious. What’s wrong with that?

Work backwards from there. How did they build up their reputation over decades or more?

I don’t find it ironic or strange at all that they have processes in place that can take smart youngsters and have them delivering value by following those processes. Kinda like how McDonalds can take someone off the street and use them to profitably deliver value almost immediately.

 

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[Stargazer]

They do everything.

Just like the top lot do.

Small firms will generally have started as one man or two man bands (or women I hasten to add) in not just one industry but one sector within that industry - usually with some background success.

eg A friend of mine is Global Strategic Operations Director for Vodafone. Prior to that was EMEA and prior to that was UK and prior to that was Strategy Manager for xyz Dept you get the drift.

So if he went solo one day think what he would do.

Same as you right?

Make a well targeted list of potential clients and approach them using any and all means possible. So in this case small to midsize Telecoms companies.

Get the results and leverage off of them for more business.

Expand staff then spread to horizontals/verticals within the sector. (To use some industry waffle)

And only then go into different industries.

As a kid David Beckham wanted to play for Man Utd.

Laser focus on football, football, football.

Kids teams , youth teams then Man Utd then Captain then England then Captain of England.

Rock solid foundation and reputation boxes ticked.

Then move to US to help grow soccer there, build training centers there and around the world and only then move into other things like hotels, restaurants, merchandising etc etc

Dan

 

[Thoelk]

I'm currently a manager @ one of the Big Four, focused on Data Science/Analytics.
As already has been said:

• Urgent need -> client needs 'bodies' no matter the cost
• They pay for the framework, not the person itself (say as you want about consulting companies, but atleast you know upfront the way-of-working)
• Networking, mainly alumni networking... in the spirit of the slow-lane, consulting is a top-notch career path (both money & exposure-ways.. with the biggest hit given to your freedom & work-life).. If people leave, they mostlikely leave due to a shift in their private life and/or a great offer at a client. All (strategic) consulting companies threat their alumni really well, as they often are the next gatekeeper to get in the client's company if a competitor was there earlier.

Coming out of 'the industry', I never understood why companies would pay so much... Still have my doubts about the actual costs, but TBH it resonates with a corporate version of 'CENTS' on an executive level most of the time.

The reason I joined is to learn financial/business 'stuff', besides my technical expertise... I'm learning a lot, yet the biggest learning I get is in: A) efficiency (work-overload) B) becoming more strict (saying 'no') C) increasing my pitch.

 

[Tiago]

Each firm has their own way of creating clients. I can tell what works for me as a coach which is similar to consulting:

Reach out to ideal clients. Invite them to a quick chat, see if there's a fit, and serve them.

Practice client astonishment. Your current clients are the best source of repeat business and referrals. Practically 80% of my clients renew our work engagements and 60-70% of my clients are referrals because of how much focus I spend on better serving current clients.

Implement a referral system.

 

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[maverick]

Nobody gets fired for buying IBM.

 

[MattR82]

Have a look at Consulting success podcast by Michael Zipursky. It's really good.

 

[Andy Black]

Your current clients are the best source of repeat business and referrals.

There it is again. R + R = Profit

 

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[BlueMoon]

They do everything.

Just like the top lot do.

Small firms will generally have started as one man or two man bands (or women I hasten to add) in not just one industry but one sector within that industry - usually with some background success.

eg A friend of mine is Global Strategic Operations Director for Vodafone. Prior to that was EMEA and prior to that was UK and prior to that was Strategy Manager for xyz Dept you get the drift.

So if he went solo one day think what he would do.

Same as you right?

Make a well targeted list of potential clients and approach them using any and all means possible. So in this case small to midsize Telecoms companies.

Get the results and leverage off of them for more business.

Expand staff then spread to horizontals/verticals within the sector. (To use some industry waffle)

And only then go into different industries.

As a kid David Beckham wanted to play for Man Utd.

Laser focus on football, football, football.

Kids teams , youth teams then Man Utd then Captain then England then Captain of England.

Rock solid foundation and reputation boxes ticked.

Then move to US to help grow soccer there, build training centers there and around the world and only then move into other things like hotels, restaurants, merchandising etc etc

Dan

Great post thanks for taking the time to write this up.

 

[BlueMoon]

Have a look at Consulting success podcast by Michael Zipursky. It's really good.

I will. thanks.

 

[Tiago]

I will. thanks.

One of my mentors actually is Sam Zipursky's coach. If you want I can connect you both, he definitely can help you with those questions.

 

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