Let’s say you’re a project management consultant. Hopefully a high priced, successful consultant with many clients waiting for your services. Well, maybe not in the current economy, but under more normal circumstances you would be or were. Do you find it hard to let go of your work? Do you want to do everything yourself because you know that no one can do it better? If that’s the case, you’re not alone. I even have trouble delegating simple tasks at home sometimes. I have three able-bodied older kids still at home ages 14-20 besides the toddlers and pre-schoolers and I still have trouble delegating tasks to them that I know they can do so that I have more time to consult. I am getting better at it though – not that they’re happy with that.
Yes, it’s true that we want to maximize the profits that we keep ourselves. Here are a few things to keep in mind when you’re trying to decide if you can use consultants or subcontractors, if you even want to, and how to make it as profitable and productive as possible.
Project implementers shouldn’t be too hard to find
If you need someone to deliver or implement on a project that you are consulting on, you should be able to find someone. The need for this ability is situational and is often in abundant supply. If you’re looking for training help, interviewing help, surveying, coaching, etc. then you should be able to find very capable resources at good prices who are willing to take on the work. This will free you up for the more technical pieces of the engagement – and that’s where you’re going to serve your direct client best.
Look for exponential benefit
Avoid partnering with a consultant with a similar skill set and offering. You really have nothing to offer each other. If each of you can make the same amount of money on a similar engagement, then why partner when the relationship itself will also take time, energy and possibly money.
You could wind up losing money in the process. Rather, partner with others who can do things you can’t and who probably need a partner like yourself as well. Let's say, for example, you need to implement a managed services contract for your client. You can't do that, but you can oversee it and oversee a vendor who offers such services like one I know of named Syntax. In that case you would handle all the planning and billing portion, but implement - with the vendor and client - managed services from Syntax. In the first scenario, 1+1 may equal less than 2. In the second scenario, 1+1 can equal infinity over time.
Target hiring services that will serve your self-interest
When you do get to the point that you want or need to hire a project consultant or even staff to perform tasks for you, make sure it’s your interests they’re targeting. You can ill afford to ‘give’ away your hard earned and hard negotiated consulting fees. If they are looking at you as a cash cow for them and aren’t willing to work on your terms, move on. Look for services that you can take advantage of that will truly clear paths to more productive consulting. If necessary, hire out your bookkeeping part time and your taxes. Hire out some training or coaching expertise. Hang on to what you do best, but make sure what you do hire out makes you look good – especially if they perform any customer-facing activities.
Don’t confuse your ego with a business need. Some consultants find it hard to tell a client that they work out of a home office, not a store front, have no staff, that they don’t own 2 PhDs and 3 MBAs, etc. Get over it. First off, most prospects don’t ask and they actually care far more about what you can do for them then what your back office and degrees look like. They don’t care about how many phone lines you have and how many assistants are there ready to answer their calls. If sounding ‘big’ or like a ‘real business’ is your primary push to hire outside help, don’t bother. You have to do it to fill a real need and to increase your profits, not your ego.