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Momentum Financial Group

February 17, 2013
Business Advisory

Using a Business Advisor to help you with your business 

Evaluating your own value as a business operator can be a challenge.  Basically there are three things, no matter what business or profession you are in, that you need to be aware of. They are objectives, measures and value.

If you’re a consultant it’s about self belief and intellectual fire power. That means you have to understand clearly what your value is. It means you have to realise what it is you are bringing to the client. Your value has to be stated in client outcomes; not what you do.

Most people cite what they do; they cite tasks rather than results. You have to be clear on the value you deliver.  For example, if you are helping someone to become better organised, that’s not really the result you are providing. The result you are providing them with is more discretionary time.  This is the outcome, the value.   There is a huge difference between those two things. If you are coaching someone to make better presentations, that’s not the value of what you are doing . The value is to be able to influence people to sell more or influence people to support the corporate strategy or influence the media to report favourably on your company.

So what you really need to do here is start with the client’s objectives and work backwards. You don’t start with what you do to the client; you start with how the client will be better off.

How do you do it?

1. What are the objectives to be accomplished?
That is, how is the client’s condition to be improved? It’s never improved by a deliverable. It’s never improved by technology. It’s not improved by methodology. How will the condition be improved? What is the condition to be improved? That should be something you arrive at jointly with the client. This should be a partnership. This is not something you are doing to the client, this is a partnership. The client is determining whether you are appropriate; you are determining whether the clientis appropriate. But by getting the client to speak, you can make decisions as to whether this business makes sense. So the first thing you want from the client are the objectives: what is to be accomplished.

2. What are the clients' measures of success.
How will we know we – not I, we – how will we know we are successful? By what indicator? By what metric? Will it be increased sales? Will it be less stress? If so how will we know that?

3. What value is being delivered to the client?
“If we do this what does that mean to your organisation?”  This is a powerful tool as the client is stipulating what it’s worth to him or her. If the client states what it’s worth, then your fees for your value are academic. But it has to be the client's statement. You do this through intelligent questioning.

It’s all about objectives, measures, value.  Before pricing any project you need to think about the value that the client will receive as a result of your intellectual property.  From there you can price accordingly and articulate the job value to your client.

Could your business benefit from some business coaching or advice?  Contact us at Momentum Financial Group or call Geelong on 5221 9133 or Horsham on 5381 1122.

Mark Ainsworth

Email Mark or connect with Mark on Linkedin