Business growth generally has to do with progressively improving assets of the company. Assets being the things that earn the company money. Consulting businesses are no different except that the key assets are not as clear to see. Two key assets of the firm are
1. Net Skill of the employees in the organization
2. Net worth of the current contacts
The two are deeply inter-connected and growth of the firm is really an iterative increase in each. Investing savings in better people, delivering higher valued services, acquiring better clients and then using that to attract better consulting talent.
In business, one of the significant ways to estimate your progress is by looking at the inclination of your total revenue. Hence, an increment in the revenue is one of the major challenges for any firm’s growth. It deals with a number of problems: to increase your revenue, you have to increase the number of customers, investments and your savings too. The best solution to grow revenue is
- Increase the number of customers
- Aiming for higher valued services to raise the price realization
Getting Access To Better Talent:
The one universal problem that you have to face in any business is hiring better talent which is very difficult to find in today’s world. Generally, employees with talent contain three qualities i.e. intelligence (which is necessary), work ethic (willingness to work and invest) and culture (Will that person fit our environment or not?). Such employees are sought after by everybody and can be expensive. However, the firm needs to keep in mind their productivity and how lucrative they can be in the firm’s growth in the long term by attracting more clients.
Doing The Above Iteratively:
Create a cycle of employing better talent to find better clients which leads to better revenue and which in turn allows you to hire better talent. This continues until a desired goal is achieved. Doing this is a big challenge because if you don’t find good talent you won’t be able to find better clients which would not increase your total revenue and your company might not achieve the growth that it is striving for.
Adopting New Systems/Processes:
Adopting something new in a business is always a challenge because it requires proper planning and strategies that should be kept in mind. It will take time for the staff to learn new system and software. Moreover, you have to keep your budget in mind too. However, through a proper channel and strategy, this can be relatively painless and start benefiting sooner than expectations.
Challenges Of Training New Staff:
Training new staff is not an easy process as it takes a lot of time. It also means that money, time and effort that could have been invested in work are being invested in training new personnel. How to balance this is key and can be quite a challenge.
Dealing With Unexpected Changes In The Market:
In today’s world of unreliable economy you might face some crises and changes that you don’t expect to happen. You might face some unexpected changes like natural disasters, financial, political and socio-economic crises in your country or in your client’s country. For this there should be proper training of risk management e.g. maintaining flexibility, using the best technology and cooperating more.
You need to identify all these problems in order to overcome all these challenges and move towards a bigger, better firm.