Why do high achievers often thrive in this environment?
First, they are always proactive and client focused. So, they use the economic times as a reason to get even closer to their clients and help them navigate the rough waters, they know that their clients and contacts are hurting and need their help.
Secondly, they are always adding business value to their clients in excess of the fees they charge – and they are open to arrangements that may save the client costs.
Finally, they know that many of their competitors are either complacent or more passive. Many professional services firms who are reliant on transactions or single matters often don’t stay connected or build relationships when there is no active work. So, when work dries up; they are nowhere to be found.
High achievers look at things differently than the average professional. Certainly, clients are looking to cut costs and save money in a downturn – they may not be pursuing the number and range of activities as they do in good times.
But, there are also positive aspects you should consider.
1. Economic pain is acute: Clients buy services to avoid or alleviate a point of business “pain”. The economic downturn brings a lot of business pain to the surface.
2. Change is the norm: Tough times don’t allow the status quo to prevail. Changes in the business – reducing the work force, re-negotiating contracts or selling assets all create opportunities for the go-to business advisor. Advice around government subsidies and taking advantage of rising infrastructure investments may be rich sources of work for others.
3. Costs must be reduced: Professionals can be an asset in reducing costs well in excess of their fees.
4. Relationships are solidified: Professionals are in the relationship business. People remember those people who were there, shoulder to shoulder, working through the tough times. Even if you aren’t doing any active work, just being a sounding board or source of informal advice will be highly valued.
5. Alternatives are considered: Some clients must be open to making changes. For example, clients who may have paid the top rates of larger firms may now be looking for lower cost alternatives.
6. Current providers may be inattentive or distant: Again, many clients are served by individuals who may have historically taken the client for granted. If there is no current work, the provider may be missing in action. Now is a good time to court clients in this circumstance.
7. People are displaced: Losing a job is devastating. So, make a point to be a good business friend to your contacts and clients who are displaced. Make time for coffee, offer to make introductions and be an empathetic listener. When they start a new venture, they will remember your help.
8. You may have more time: Some people will have less billable time, especially in cyclical businesses such as corporate finance and those affected by legislation such as liquidators. Use this time to make more contacts and become more prominent in the organisations you target.
OK. So, there are possibilities and opportunities out there. So, what do you do?
Your business development plan should be more pro-active, relationship-focused, selective and contact-based than ever before. Here are the critical to-dos:
1. Prioritise your business relationships and intensify your "A" relationships: Your business relationships with clients, colleagues, referrers and contacts are your most important career assets; and a business downturn can help to improve the depth, quality and breadth of these relationships. People remember and value how you help them in tough times. For each A, think through how you can best help them right now and in the months ahead.
2. Get even closer to your top clients. Have a specific client action plan to routinely meet with clients to understand their business priorities and management agenda. Conduct a relationship review to find out what's working and where improvements can be made. Meet with staff across the board and at different levels. Emphasize face time and one-on-one marketing. Remember that your best clients are your competitor's best prospective clients. And, if they're having trouble, you want to be the one to help them out of it.
3. Develop a downturn plan with your top clients: Meet with your top clients and conduct a "how's business" dialogue. Use the downturn as a reason to dig even deeper into their management agenda. Come up with an action plan to address their challenges. Be more pro-active and forward thinking than your competitors. Consider having the client conduct a “reverse seminar” where they educate you and your team on their current business goals and challenges.
4. Adopt a "helping" mindset: Don't just focus on business development. Instead, concentrate on how you can help your A and B contacts to make it through the business downturn. Can you make introductions for them? Can you simply listen and empathize with them? Can you get them some value-added resources or ideas to address their current priorities? Can you help those who are being displaced?
5. Focus even more selectively on market niches: Don't be too generic in your business development: it is even more likely than usual to fall on deaf ears. Focus more precisely on a discrete set of ideal potential clients in small segments. For the list of clients, identify the specific business trauma they are facing and the results they seek. Then, focus all of your business development energy and effort on landing these specific clients…so that you are clearly relevant, valuable and differentiated from the average practice.
6. Pick 1-2 business problems/service areas and market them intently: Based on your thinking and analysis in step 5, pick the 1 or 2 services areas that have some immediate relevance. Define all the different ways that you can promote these specific services to your target niche. Write up case studies. Deliver webinars and podcasts. Create client briefings and videos. Invest in sector research? Be the expert.
7. Go to market with joint venture partners: Don't go through a business downturn by yourself. Recruit referral partners and build your practices together. Find a like-minded service provider in a related professional field (solicitor, banker, accountant, insurance broker, consultant, engineer). Define mutual goals and a co-marketing plan. Introduce each other to your clients and contacts. Meet monthly and re-commit to your shared goals and action plan.
8. Embrace alternative fee arrangements: Clients want fee certainty. Think about creative ways for clients to consolidate work with you. This can range from outsourcing to fixed fee arrangements. Clients are demanding these changes; so figure out how to make it work.
As ever, if you need help prioritizing your activities, do get in touch.
And remember, winners make it happen, losers let it happen. Over to you.