Three Tips to Leverage Your Expertise and Increase Your Cash Flow

posted in: Business Consulting | 0

section1_2Most people under utilize their expertise and waste this powerful resource.  Here are three quick tips to follow to help you get more revenue from what you have worked so hard to cultivate in your business–your expertise.

Rule Number One:  Stop Giving Your Expertise Away for Free!

Many businesses give away their expertise for free.  What’s more, they give it away in such a manner that their clients don’t even value it.

For example, take the consulting company that spends 2 weeks working up a “proposal” for a consulting contract with a client.  How much does the company get paid to do all the work to identify the problem areas, lay out the scope of work and action plan, and give a clear timeline to solve this problem?

Nothing.  Zip. Nada.

Instead, if the consulting company turns that “proposal” (value: $0) into a “3-Step Diagnostic Process” wherein they take the client through a distinct and highly valuable process that leaves the client with a high value report and action plan that they can take to implement themselves, hire someone else to implement, or (what’s most likely) hire your company to implement in a later step.  Ideally you would name that process and each step along the way, and have the developed collateral materials to make the process and the experience of working through it, incredibly valuable for your clients.

This later way of setting the relationship up not only gives the client more value (you’ll have to work harder to create the process you use in such a way that your client gets more value) but this process is replicable and more scalable.  It also is now possible for you to CHARGE for what you used to do for free.

Remember it probably took you years to hone your diagnostic process down so that you could meet with a new client and ask them the questions you needed to determine which services they needed or which steps they need to take to get a specific outcome.  So charge for this value.  And in order to do this you’ve got to help your client see and experience the value you are providing for them.

As a side benefit you’ll find that when they pay for your up-front process that more of them will actually buy your other “implementation” solutions!  Both of these mean you’ll be earning more money.  Look for ways that you are giving away your expertise in your business and develop ways to charge for this expertise.

Rule Number Two:  Get Full Credit for Giving Away Free Stuff!

If you do choose to give away your expertise for free, at least create a real value for it in the minds of your clients so they both appreciate the value more AND they are more likely to do more business with you as a result.

This means putting clear labels on things and having clean processes you use with clients.  This means that you put prices on things, even if you intend to later give them away for free.

If you don’t, your clients will discount the value of what you are giving them.  This hurts them and you.

Rule Number Three:  Constantly Look for Who Else Could Benefit from Your Expertise

What have you figured out how to do in your business that really makes a big impact on your business?  What other businesses struggle with this same thing?

Now here comes the $64 million question:  How could you SELL these other types of businesses your expertise in such a way that you create tremendous value for them and still have your advantage with your own business?

How could you do the same thing in your business?

First you’ve got to identify what your business does that is exceptional.   (If you don’t spot anything this is a real spark for you to create something!)  For example, you can sell the use of a process that you have developed to another company and receive royalties on their use.  Or you can sell a license to a software solution that you have developed to other companies in the industry.

Next you’ve got to determine who in the world would pay for your solutions.  Your competitors?  Other similar businesses outside of your competitive area (either geographically or niche-wise).  Finally, you need to approach these other businesses with how you can help them earn more, save more, grow more.  What would they be willing to pay for the expertise you’ve already invested in so heavily to create?

I hope these three rules for leveraging your expertise to create more cash flow have sparked some ideas for you.