Working With Clients With Quantum Leap Projects

Have you come across consulting prospects who are seeking your help to achieve some quantum leaps in their success, but right now they can’t pay you the kind of fees the value of your help would justify?

Imagine a start-up client that projects $20 million in next year’s sale, and hires you to help to pull it off. The buyer wants you to help to design and build a sales system that is capable of achieving the $20 million, and is scalable as the company grows.

If, as an advanced consultant, you do value-pricing, what do you base your value contribution on?

Your value is clearly $20 million because this is the goal the client wants to achieve with your help. So, you’re addressing the seizure of a $20 million opportunity.

But if you try to charge a fair $2 million for the work, you have a problem.

This company is not making money right now, and can’t pay you. Not even $20. And most owners of such companies would never get a loan to pay you. No. They would expect you to work for future money.

And here opinions differ. Some people would jump in and work for free for future money.

But the problem is that the client has no skin in the deal, and while you’re working hard, the client, unbeknownst to you, may just change direction, leaving you high and dry.

While it’s tempting and exciting to work with “quantum leap” clients, I think we’re better off by working with clients that plan incremental improvements and are able to pay us for our help and support to achieve that increment.

Let’s say, you have a client with $10 million annual sales, and, with your help, the executives plan $13 million for the next year.

Great.

Your value is $3 million, so, within five years, this will be an estimated $15 million. This is vital because clients benefit from your help even after your disengagement. During your engagement you start a process of improvement, which can be maintained after your disengagement.

So, if your lowest option of contribution is an annual retainer for $150-250,000, then both you’re well compensated and your client gets great value for a fair investment.

I compare this situation to shooting. Helping a novice to shoot 9 bull’s-eyes out of 10 shots is hard. But the situation is drastically different with someone who can shoot three bull’s-eyes and six 9s out of 10 shots, and want to move up to five bull’s-eyes and four 9s.

The former is a quantum leap and the latter is incremental improvement.

What I’ve also found is that clients that are seeking incremental improvements are better grounded in reality, whereas quantum leap seekers and often “pie in the sky” organisations.

What is your experience in this area?