Planning for growth is typically the best part of being the business owner or chief executive. And confidence about that needs some rebuilding right now.
We’re working closely to help firms grow by meeting new customer and client needs and wants.
A Growth Mindset is Critical in the Coming Months
One law firm designed a portfolio of more than 50 fixed fee services to help clients resolve immediate problems and prepare for the months ahead. This is a huge departure for this firm which has always billed hourly no matter the issue.
Their clients expressed fear of being on the hook for unknown costs. They’ve been extremely responsive to these fixed fee options.
Growth Starts with Strategy: the Driving Force
Strategy is the driving force of a company. For services firms, the driving force may be: products and services; market needs; technology expertise; method of sale; method of distribution.
We work with services firm owners to formulate and articulate their strategy like this:
“Our company delivers X value to Y market(s).”
The X value is the driving force. It is the one thing that the company revolves around.
Driving Force Examples
Policies are the driving force for insurance companies. They may grow by adding new types of policies as new risks appear that people want to be protected from.
A IT consulting firm’s driving force is their technology expertise. They offer that expertise to customers and clients who need it for various reasons. For comparison’s sake, remember that technology experts are separate from technology manufacturers.
Specific intellectual property is the driving force for professional services firms of all kinds: law, accounting and finance; architects; designers; subject matter experts; sales and marketing experts; customer experience designers; public relations; social media marketing.
Amazon’s driving force is their method of sale: an online marketplace that grows ever broader and deeper. Walmart’s driving force began as a method of distribution: large stores in smaller markets. They and Target have invested heavily in method of sale by building robust online market places.
Change Your Delivery Not Your Driving Force
Turmoil and uncertainty can tempt owners and executives to change strategy. We believe the right approach is to change options and delivery while maintaining your driving force.
Strategic Statements are the Key to Growth
Strategic Statements create extreme clarity about a company’s business. Strategic Statements include profit requirements and they parse the value and the market into detailed pieces. The format for these is:
“We deliver X value to Y buyers for Z profit.
New strategic statements helped our law firm client serve the needs of their anxious clients. Here are a couple of examples:
- “We deliver, for a fixed fee, legally enforceable employment contracts to privately held senior living companies for Z profit.”
- “We deliver, for a fixed fee, the documents and filings needed to create a single-owner limited liability company for Z profit.”
Previously the firm would provide these services using an hourly billing model which left the final cost uncertain. Clients who would avoid uncertainty are now getting the services they need, giving the law firm new revenue.
The Company Benefits
While it may seem that the firm adds risk with a fixed fee, in fact, it benefits in several ways.
1. Created a catalog of fixed fee services. The focus was on those services most frequently requested by clients. 90% of this firm’s clientele are businesses and they have years of experience to determine the most needed services.
2. A high degree of confidence with fixed fee options. Once they had the list, they looked back at their billings in those areas for the past year. A picture emerged of what a typical billing was for each of area. They allowed for complexity and any areas where unexpected obstacles might show up.
3. They can use this catalog to forecast revenue and profit; to forecast workloads for all firm members; and where and how to invest their marketing resources.
What started as a way to relive the anxiety of clients has become a new paradigm for more than 75% of the firm’s work
3 Strategic Steps for Growth in the New Economy
Take these 3 steps to continue growth:
- Confirm your driving force and document the new needs of your market.
- Write Strategic Statements for all options you’re offering to your market. The more detailed these are, the better you’ll be able to measure your achievements.
- Invest in marketing for your updated strategic statements.
Strategic Statements restore your confidence. If your confidence about growth is shaky, give us a call. We’ll take the time to learn about your business and make sure there’s a great fit with Trivers Consulting Group. Every project is customized to the client’s needs and available resources. 703-801-0345