When it comes to growing a successful consulting firm what you don’t do is as important (maybe even more important) than what you do.
Here’s a List of Don’ts every consulting firm President should know:
1. Don’t spend your surplus. Most firms fail for one simple reason – they run out of cash. As tempting as it may be, don’t reinvest all of your profits or blow the money on say, that shiny new Lexus you’ve had your eye on. If your goal is growth, you must have cash on-hand at all times. Because lean times are ahead. But a fat piggy bank can help see you through.
2. Don’t start another business. Focus on what you already have and do it well. Don’t fall into the trap so many entrepreneurs find themselves in: biting off more than they can chew. Resist the temptation of “shiny new objects.”
3. Don’t fall for the “Rainmaker.” So you had an interview with an awesome business developer who promised they will bring their big clients and big sales skills with them. Nine times out of ten, these types have sold for big brands and aren’t used to fighting for clients. So save that fat salary they are asking for, and pass. (Contact Bill McCabe to recruit the best fit for your firm).
4. Don’t open an over-seas office until you’ve made it in your home country. Unless you’ve already made millions (many millions) in your homeland, forget about the sexy idea of opening an office in an exotic locale. This almost never works as a growth strategy.
5. Don’t get a big head. So you’ve made some money. Landed some big clients. Can finally afford that cosmetic dental work…don’t let it go to your head. Quite often it’s after a little taste of success firms fail. Remember how hard you worked to get where you are? Well, slacking off now isn’t going to get you any further. Keep your ego, and your wallet, in check. Facebook founder, Mark Zuckerberg, drives a modest $30,000 Acura TSX. And Warren Buffet still lives in the house he bought for about $135,000 back in 1958.