Four Ways for You to Thrive in Uncertain Times

1. Build a Solid Competitive Strategy

A solid competitive strategy is necessary, as a firm's proposal must surpass the quality of its competitors if it desires to win business. Therefore, firms must first ask: Who are my current competitors, and, what types of firms do I want to be competing against in the future? Firms must analyze their strengths and weaknesses (and those of their competitors) and develop a winning strategy based on a unique advantage.

At the regional strategy / interactive firm where I worked, our current competitors were mid-tier consulting firms; middle-of-the-road firms but not top-level consulting firms like Accenture and McKinsey. We wanted to begin competing against top-tier firms, so we looked at the strengths and weaknesses of our firm and our competing firms and developed a winning strategy.

To analyze the strengths and weaknesses of those we wanted to compete against, we conducted interviews of previous employees at competitor firms and analyzed the offerings and marketing messages of competitors. We then analyzed our own strengths and weaknesses. At my firm, we were able to determine that a major strength we had was having a local presence in many cities in the Southeastern United States.

Therefore, potential clients that hired us only paid for our services, and did not need to pay for daily food and lodging for our consultants. This allowed our firm to offer quality services at a much lower daily rate than other firms. We then compiled all of the information gathered about ourselves and our competitors and developed an effective competitive strategy.

Where previously we competed against the likes of mid-tier firms, we now started competing against top-tier firms—and we're winning business! If your firm has a solid offering, strategy and message, there is no reason it cannot compete against top-tier firms; present yourself as a top-tier firm and clients will view you that way, as well.

2. Focus on Targeted Business Development Leads

Lead conversion will take much less effort if your firm focuses its efforts on its target market. To develop targeted leads, first determine who your target market is, and ensure you focus on a narrow enough target market. "All executives" is too broad of a target, but "new CEOs" or "Safety Directors" represent a narrower target.

A consulting firm that I worked for was casting too wide of a net in their business development efforts. Those who contracted with them for engagements tended to be HR Managers and CEO's in a particular industry. However, they would cast a wide net and market their services to, for example, all women executives located in Alabama. Business development efforts would prove to be more efficient by focusing on a narrower target.

After identifying your target market, determine the best way to reach them. The consulting firm mentioned above asked me to identify associations with which their target market interacted. The firm then arranged to have their consultants speak at targeted association meetings. Targeted video media kits and case studies could be created and posted on YouTube. Those on membership lists at the associations could be sent targeted media kits. Databases with targeted leads represent another avenue to pursue. Lastly, we conducted article searches that identified events and relayed information to us about potential targets.

By placing their business development efforts into reaching their target market, the consulting firm should expect to reach more potential clients who have a need for their services. Likewise, as you target your business development efforts, you should see more traction with your sales efforts.

3. Conduct Research Before Business Development Meetings

Once you develop an effective competitive strategy and obtain targeted sales leads, it's time to SHINE and come across as the knowledgeable expert at the first prospective client meeting. Before the first meeting, conduct research to ensure you come across as a knowledgeable expert that the client needs in order to solve his or her problems.

At the consulting firm, I conducted thorough analysis and developed a summary document covering the prospective client's company, competitor dynamics and customers / suppliers. If there was a particular problem to solve, such as streamlining the supply chain, I researched best practices on the issue. Therefore, from the start our firm was positioned as the expert who could lead the client to the desired outcome and solve their problems.

With upfront research, your consultants will come across as "experts" and demonstrate a deep understanding of the client's industry, and have the ability to rapidly diagnose problems and develop solutions.

4. Make Strategic Research and Analysis a Critical Element of Client Engagements

Research must become a critical element of high-quality client engagements. Research can be conducted to identify best practices, case studies, industry and economic trends, and pitfalls to avoid in new ventures. Research can also be used to verify clients' business plans, select the proper strategic direction, answer strategic questions and solve almost any strategic problem. Often, research hours can be billed directly into the proposal and therefore directly boost revenues for the consulting firm.

Research and analysis will enhance the work of the project consulting team and result in a higher quality deliverable. Strong deliverables on current engagements will assist in generating referral business.

Conclusion

When these four tactics are used together consulting firms will thrive, even during tough economic times like we currently face. As a firm builds a solid competitive strategy, it is able to win business not only from current competitors, but also from top-tier competitors in its market niche.

As a firm focuses on targeted business development leads, it'll find that it takes less effort to reach those who need—and have an interest in—its services. When research is conducted on prospective clients before business development meetings, consultants will be perceived as experts and increase their propensity to be chosen as the winning firm. Lastly, as strategic research and analysis is added to actual client engagements, a higher quality deliverable will result.

When all four tactics are used in unison, a consulting firm will compete for and win business in this difficult economic environment against higher quality consulting firms. I've seen it happen and it's exciting to win at a higher level. Get started today, and we anticipate that soon your revenues soar as a result!

Rebecca Bosl is the founder of The Research Advantage, a firm that offers information gathering, research and analysis to facilitate better business decision-making and the development of insightful strategies. The firm strives to help clients avoid expensive mistakes, grow their businesses and become more profitable. The Research Advantage specializes in partnering with consulting firms to win business and develop higher quality deliverables for their clients.