Getting Business Is Easier Than Getting Paid
NEW YORK (TheStreet) -- Eavesdropping is not intentional, but some days you just can't help but overhear a conversation in a restaurant. I recently had one of those days. As I was sitting on the terrace of one of my favorite restaurants, carving out some time for uninterrupted writing, two women were discussing consulting. One woman was advising the other to become a consultant.
"It's easy," she said. "All you have to do is generate leads and contacts by networking. That's all it takes."
(Ha! So simple she made it seem.)
The next statement was perhaps the most disturbing: "I'm able to do that all the time. It is so easy." She then paused -- a long pause --"But I haven't gotten anyone to pay me yet. But I have been able to get lots of leads this past year."
If you're in business, you know that while leads are good, paying clients are the goal. Somewhere in this woman's thought process the connection just did not seem to be made. You want (and need) paying customers! Fortunately, I think the second woman understood what her friend didn't. "If I am going to be in business as a consultant, I need to know how to take a lead and convert it to a paying, profitable customer," she said.
As a consultant, you understand you have to find paying clients, however the missing link in the chain that turns a lead into a customer isn't always easy to find. Mistakenly, consultants often focus on what activities they are going to do to generate leads, without a plan for converting them to profit. Consultants must shift from "activity focused" work to "outcome focused" work.
The activity focus doesn't give us a direction or a meaningful measurement to know if what we are doing is working. Are we doing enough, or too little? The outcome focus enables us to know what our measurable metrics are, what the deadline is and where we are going to put our efforts. When we know what we will be measuring and how much we need to accomplish, we know what to work toward. Then we figure out what activities are needed to achieve the outcome we've targeted.
So if we go back to the discussion of leads, a key question to ask yourself is "Are you setting your goal to get lots of leads, or lots of customers?" Check your top and bottom-line and you will have the answer.