Performance-based consulting has a lot of advantages – no upfront payment, no unfulfilled promises, and no risk to the business owner. In fact, until there are results, the business owner doesn’t pay a dime. That’s what makes performance-based consulting so appealing.
That being said, performance-based consulting doesn’t just magically erase all of the risk within a consulting engagement. It simply transfers the bulk of that risk to the business consultant, requiring them to produce results in order to get paid.
A performance-based consultant must therefore be very selective when deciding which businesses to help, in order to increase the odds of success for both parties. To do so, they often have a particularly thorough screening process to identify businesses that are a great fit for them. Naturally, some businesses will check all of a consultant’s boxes and become clients. Most, on the other hand, won’t, and that all depends on a business consultant’s target market and chosen field of expertise.
For any business owner, here are the three steps to get started with performance-based consulting.
Step 1: Submit a Brief Questionnaire
The first step is to fill out and submit a brief questionnaire, also known as an intake form. This will give the performance-based consultant a lot of qualitative information about one’s business and help the consultant understand exactly where the business owner wants it to go.
After it’s completed, the consultant will get back to the business owner in about one business day with their decision to move forward, and they’ll also hop on a quick call to go over any further questions either party might have at that time.
Step 2: Schedule a Meeting
The second step to get started with performance-based consulting is to schedule a meeting at one’s place of business, where the consultant will go over the company’s financials and learn the ins and outs of its daily operations. Of course, they’ll also answer any questions or concerns that the business owner might have.
After the meeting and over the next couple of days, the consultant will thoroughly review all of the information they’ve received about the business, including its financials, and come to a decision about whether or not they can help.
Step 3: Sign an Engagement Agreement
Because these types of consultants are 100% performance-based, nothing is more critical than selecting the businesses that they believe they can help grow dramatically.
If a business is a great fit, the third and final step is to sign an Engagement Agreement, which will outline all of the details. These details often include each party’s respective share of the additional monetary value (e.g. additional net profit), the number of months that the performance-based consultant will receive their share, and the timeframe that they’ll be working together.
At last, it’s time to get to work!
For performance-based business consulting, contact The Business Turnaround Group.