additional consulting income from the tab opportunity

Additional Consulting Income from the TAB

Opportunity

Current Reality

How many of you have non-coaching,

non-TAB, consulting business?

Today’s Session

Objective: Gain ideas for leveraging TAB opportunity

for strategic, lucrative engagements

Method: Case studies

Every TAB Coach Can Do It

In a unique position Minimum 2 contacts per month Builds on most trusted relationship Can spot and leverage opportunities

Benefits: You The Member The TAB Community

Every TAB Coach Can Do It

Consulting is coaching on steroids

Consulting occurs to some extent during coaching sessions

Members often not aware you are willing and can do this type of work

Patience is the key “Consulting services are purchased, never

sold”

Case Studies: Process

2 case studies

Review details of each case study

Tables discuss questions and write ideas on Feedback Form

Report back on approach and pricing

Review actual consulting agreement

Case Study #1: Messaging & Branding Consulting, Inc.

MBC Key Facts PR and Communications firm: Public relations |

Create design | Communications strategy | Messaging & brand development | Target market and audience research

$2.5 M Revenue: COGS 52% : G&A 46%: EBITDA 2%

Average Engagement: $6k per month

Employees: 11

TAB Business Vantage shows: relative alignment about poor performance against critical categories, especially in sales


The Opportunity MBC value proposition currently diffused &

incoherent

MBC clients from friends, family and referrals

The President and The COO Relationship is excellent : In business together 10+ years Both come from political arena Recognize anemic Gross Margin & EBITDA is function of

transactional engagements that are bulk of their revenue Not doing the type of work they want to do

=> working with large company strategic issues at the C level

Want to normalize the pipeline & increase more strategic work


Leveraging TAB Business Vantage to build the bottom line and increase cash flow:

1. Increase the volume of transactional work =more of same=

2. Shift the firm’s focus to more strategic engagements =addresses TAB Business Vantage weaknesses =

Value proposition / Development of a new pursuit strategy

Sales management process / Internal communications

Consultative selling techniques Employee development / Cash flow Strategic planning


Any clarification questions?


Group Discussion

10 minutes

Feedback Form with questions to guide discussion

One person scribe ideas on form

Report Back Less than 2 minutes Best approach How much you can charge


Discussion Questions Sense of urgency issues

Income statement implications of both options

Elements to support the option selected

Gap analysis of vision versus reality

Capabilities needs to support option selected

What can we sell

How to sell it

Pricing considerations


Report Back: < 2 Minutes

1. What’s your approach?

2. How much can you charge?


Developing the Consulting Engagement

SBL used to clarify the disparity between the principals’ vision and ability to accomplish 2011 goals based on current relationship (4-hour board meetings and 1-hour coaching)

Led to discussion about a retainer-based engagement model

Led to $6,000 per month consulting contract for 24 additional hours per month


The Consulting Proposal:Project Scope:

Sales Consulting Sales Forecast development Pursuit strategy development and

assessment Sales Process Development (Methodology

and Forms) Participation in meetings (external & internal) Travel, lodging and per diem will be billed in

addition to retainer with pre-approval


The Consulting Proposal:Value Proposition for MBC Annual Objective: $600,000 in add. new consulting

Expect Gross Sales: $599,928Less COS: 52%Gross Profit: $287,965Increm. Cost: $ 72,000Net MBC Cash: $215,985

Consulting Retainer: $6,000/Month

Case Study #2: Gray Jenkins Contractors & Supply Inc.

GJCS Key Facts Commercial GC in 3 vertical markets Premier reputation for quality and execution 2ND generation family business $22 M Revenue [ 50+%] with EBITDA – 8 to10% Range of Project Values: $250k to $5M 175 core employees [400 +/- with subs] Hit by economic impact on construction business

Survived by moving quickly and not accepting projects with no possibility of success

Stress across company and industry severe


The GJCS Opportunity Company supports founder’s multiple generation

families and many top notch professionals

Communication strained during the down turn

CEO (TAB Member) enjoyed support & collaboration of TAB Board & Coach in stark contrast to company stress

TAB Coach served as a sounding board on many key decisions; interacted with or as a team member / peer within the company

At tough meeting on team’s unreal expectations, a division VP expressed a wish for the Coach to be available onsite for advise on a routine basis


Leveraging the TAB Process Building on VP’s comment, CEO and Coach

brainstormed possible “extra help” from the Coach:

Project-by-project contacts

Team building sessions

TABenos with Operating Committee [OpCom]

TAB Business Vantage with OpCom members

Finance for non-financial managers training

On call for OpCom members for development support

Work on multiple M&A bargain possibilities


Leveraging the TAB Process (continued) Potential fixing areas of weakness obvious

to CEO

Internal communications

Improvement of project management process

Improve business development

Employee development

Strategic planning

Any clarification questions?



Group Discussion

10 minutes

Feedback Form with questions to guide discussion

One person scribe ideas on form

Report Back Less than 2 minutes Best approach How much you can charge


Discussion Questions Prioritizations of issues – what needs fixing first?

What choices are there to be “more present” in their business?

Does the client understand the value of the elements?

What does a successful engagement look like to the client?

What capabilities are needed to support the option selected?

What can we sell? - How to sell it?

Pricing considerations?


Report Back: < 2 Minutes

1. What’s your approach?

2. How much can you charge?


Developing the Consulting Engagement

The conflict of needing extra help, the time commitment needed to reach long-term goals led to realization of needed investment of more executive time.

Led to discussion about a retainer-based “rented exec” (consultant) engagement model

Result: $4,000 per month consulting


Developing the Consulting Engagement One page proposal presented & signed =>

Engagement is holistic in nature across 2 stages

Stage 1 - 20 hours/month, billed in advance: General strategic business and organizational

consulting; participating in monthly OpCom meetings, and face or phone reviews of any OpCom member

Hour variations adjusted in next month’s billing

Stage 2: beyond Stage 1 - separate agreement(s)

Additional Consulting Income

Summary Members need and want this type of

help

More than 1 way to achieve your aim – Your approach is not cookie cutter

Sometimes you don’t know how to solve what’s going on, but you see the issueYour best resources are in the room with

you

SAC Request: Need more case studies

Session Wrap Up

Please:

Fill out evaluation

Put evaluation AND your table’s Group Discussion Forms in the box by the door

additional consulting income from the tab opportunity

Documents