Latest / Black Girls Consult TOO! / Episode 99: Subcontracting in Consulting: Breaking Down the Pros and Cons

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Episode 99: Subcontracting in Consulting: Breaking Down the Pros and Cons · Black Girls Consult TOO!

• 0:00
  Speaker 1: I'll be the first to tell you that if you are trying to grow and scale a consulting business by yourself, with no help, it's gonna be hard.
• 0:09
  Speaker 1: So the idea of partnering with another consultant in subcontracting so that you can take one more work and Landmore business makes sense.
• 0:19
  Speaker 1: I get it, trust me.
• 0:20
  Speaker 1: But there are a lot of things that I think you need to consider before you take that leap, and in this episode we're gonna talk about the pros and the cons of taking on subcontractors For your consulting business and whether or not it's the right time for you to partner up, or maybe wait Just a little bit longer.
• 0:41
  Speaker 1: All right, if you're interested, stay tuned.
• 0:43
  Speaker 1: We're diving in.
• 0:44
  Speaker 1: There's a misconception that we don't exist, that somehow our ability to excel at the highest level of our industry is limited, that overcoming barriers as a woman of color would be insurmountable.
• 1:01
  Speaker 1: But what would happen if we decided to venture out on our own, despite everything we're up against?
• 1:07
  Speaker 1: I'll tell you welcome to the black girls consult to podcast.
• 1:11
  Speaker 1: I'm your host, dr Angelina Davis, a healthcare consultant, consulting coach, high performance fanatic wife and proud girl mom.
• 1:20
  Speaker 1: I helped transform female professionals into thriving solar consultants and, just like you, I'm wearing all the hats and doing all the things.
• 1:29
  Speaker 1: So this podcast is to empower the busy female Professionals to move past fear to start and grow a successful consulting business, despite the obstacles you may encounter, will dive deep into consulting practice, business strategy, mindset and more.
• 1:45
  Speaker 1: So grab your cup of coffee or tea, if that's your thing, and let's get started.
• 1:49
  Speaker 1: Hello, hello, hello.
• 1:59
  Speaker 1: Welcome to the black girls console to podcast.
• 2:02
  Speaker 1: I'm your host, dr Angelina Davis, and we are back again as we are marching closer and closer to the hundredth episode Of the podcast.
• 2:11
  Speaker 1: I cannot believe that time is going by so fast, that we are already At this milestone, and I'm super excited because it has been an amazing journey so far.
• 2:23
  Speaker 1: I feel like we have just only scratched the surface of what we can cover here on the podcast and Many of the conversations that we've been having.
• 2:31
  Speaker 1: The one thing I love to do is chat with you about Just some of the real issues that we come across that many people don't talk about because it doesn't fit as nicely into, maybe, a service package or some other type of offer, or it's not the the sexy topic that will get all the likes and clicks online and linked in or Instagram, but it is extremely important for our business, and one of those is the whole concept or aspect of subcontracting.
• 3:00
  Speaker 1: And just like we are talking about this now as we move forward Into the next year, into, hopefully, the 200th episode and the 300th episode, I want to dive deeper and deeper into some of those things that we really need to know just around the business day today.
• 3:18
  Speaker 1: Right, and those are the things that will move the needle and what I hope will help you to grow and to flourish and to just thrive, because that's the only way that we're going to change the Landscape of the consulting industry is if more of us, as women, especially women of color, are out there rocking it and killing it.
• 3:38
  Speaker 1: So I'm hoping that these podcast episodes are helping you along.
• 3:45
  Speaker 1: I really, really do.
• 3:46
  Speaker 1: And when it comes to this topic of subcontracting, this is a big one, because I do think that is something that many people get into but often Don't think about all of the pros and cons Associated with making that decision.
• 4:05
  Speaker 1: And I'll be the first one to tell you if you are a solo consultant or a small firm and you want to grow, you want to expand, you want to scale, then you're going to get to a point where Subcontracting is more than likely going to be part of your strategy.
• 4:17
  Speaker 1: It's going to be part of your business model and it can be a complete game changer for your business.
• 4:23
  Speaker 1: But if you don't think about this in a very smart and intentional way, it can also be something that can lead to a lot of difficulty and, I would say, challenges as you move ahead.
• 4:39
  Speaker 1: So we're going to break that all down on this episode and, as always, make sure that you are subscribing, sharing this podcast with a friend.
• 4:48
  Speaker 1: Just get the word out, because as we move on into the future, I just see us growing the biggest and most amazing community because look, hey, you rock, so I know that your friends do too, so definitely share that along.
• 5:04
  Speaker 1: Okay, so you know, I like to start by getting us on the same page Now, when I'm talking about subcontracting with another consultant, this is where you are working with someone else who is a consultant, maybe in an adjacent industry, it can actually be even in your same industry, but they have a specific expertise that may not be in your wheelhouse and you are working with them to deliver a project or services to other clients.
• 5:37
  Speaker 1: So this is someone who is not directly often working with clients although sometimes they can they are going to be under your umbrella and you are working with them, oftentimes in somewhat of a partnership, so that you can expand the business that you're able to do in the services that you're able to offer.
• 6:01
  Speaker 1: So when you're thinking about subcontracting, just know that this is a mutual relationship.
• 6:07
  Speaker 1: It's going to be one that is going to benefit both parties, especially when you're working as two consultants that have this type of arrangement.
• 6:16
  Speaker 1: So this is very different from someone who you may be subcontracting with that may be a service provider, so maybe they are providing a specific service to you that you are going to port then to the clients that you serve.
• 6:30
  Speaker 1: So this is going to be somewhat different than you working with a consultant who is also working as a subcontractor for your business.
• 6:38
  Speaker 1: So one of the things I just wanna stress is that this is, in essence, a collaboration of someone that you would see as a colleague, as someone who is also likely doing other consulting work, but need to either diversify their income or maybe they are working in this capacity so that they can learn new skills or new techniques.
• 7:02
  Speaker 1: Also, it's much easier oftentimes for someone to work as a subcontractor because they don't have to worry about landing the client.
• 7:10
  Speaker 1: They are providing their expertise and their services directly to you.
• 7:14
  Speaker 1: You're doing all the work in terms of being able to secure the business.
• 7:19
  Speaker 1: So this is something that, once again, should be mutually beneficial for both parties, and that's typically one of the best ways to set up this arrangement.
• 7:29
  Speaker 1: So that's what we mean when we're talking about subcontracting other consultants in this particular episode.
• 7:37
  Speaker 1: Now, I've already hinted to this, but one of the major advantages of subcontracting is the fact that you are able to broaden the specialized skills that you can offer.
• 7:49
  Speaker 1: So the skills and the expertise that you're providing to your client expands.
• 7:54
  Speaker 1: The breadth of your knowledge expands because you have someone else, who may be an expert or a specialist in their area, that's joining with you to provide this elevated level of service, and this can be of extreme value to the clients that you serve.
• 8:13
  Speaker 1: I mean, really think about this.
• 8:14
  Speaker 1: Imagine if you are juggling multiple roles in your consulting business.
• 8:18
  Speaker 1: You are split, your energy is split, your thoughts are split, you are not able to work at your full capacity in your area, your zone of expertise, but by subcontracting, what you can do is offload some of that higher important work that still requires a specialist to cater to, to serve and to provide guidance and advice for, but you will save your mental capacity to focus on those areas that you do best, and this is one of the reasons why it can be a huge win for your business.
• 8:57
  Speaker 1: As a matter of fact, according to a study by consultingus, firms that utilize subcontractors in subcontract consultants can increase their project capacity by up to 30%, and that's up to 30% without having the overhead of full-time staff.
• 9:18
  Speaker 1: So instead of you bringing someone on that, you have to provide a full-time salary, benefits, all of those things.
• 9:25
  Speaker 1: You have the opportunity to work with someone who is going to provide the specialized help in a specific area of need, so that you can increase your efficiency and your scalability.
• 9:38
  Speaker 1: It can actually be a very, very lucrative and a very positive setup, a very good model to use, and I like to have clients think about this in particular when they are trying to move from maybe a limited space that they have been in and, instead of going back and trying to build their skillset to the point that there are, as specialists are mastering in a given area, that's not going to be the main bread and butter of their business.
• 10:11
  Speaker 1: The smartest thing to do is just to find someone else who you can partner with that can provide that level of expertise that may not be needed all of the time.
• 10:23
  Speaker 1: It may best be needed for certain projects.
• 10:25
  Speaker 1: It may just be needed for a small part of the project.
• 10:28
  Speaker 1: There are ways that you can bring in that help without having to carry the full financial load of bringing someone on full-time.
• 10:36
  Speaker 1: And often people jump to hiring Instead of thinking about these other arrangements such as subcontracting, and there are many reasons why the subcontractor would want to partner with you.
• 10:49
  Speaker 1: Like I said before, it means that they don't have to go out searching for business.
• 10:52
  Speaker 1: They have another stream of income.
• 10:55
  Speaker 1: Yes, they may not necessarily make the same amount of money as if they landed that business themselves, but there is always going to be some give and take when you are simplifying that process for yourself to make this extra money and if you do it right, it still can be very, very lucrative.
• 11:11
  Speaker 1: So this is one of the major advantages of some contracting with other consultants it allows you to increase your efficiency, expand your capacity, expand the breadth of the work and expertise that you can provide, and it allows you to scale.
• 11:31
  Speaker 1: It increases your scalability.
• 11:33
  Speaker 1: Know that it can be beneficial, but I would not be doing my job if I did not let you know that it's not always sunshine and rainbows.
• 11:44
  Speaker 1: Now, subcontracting actually comes with its own set of challenges, and if we're not careful in terms of how we navigate those challenges, it can lead to some problems.
• 11:55
  Speaker 1: But I think we can do this.
• 11:57
  Speaker 1: A thriving consulting business is built on a solid business foundation and a consulting code that leads you toward your ideal business and your ideal lifestyle.
• 12:07
  Speaker 1: And the great thing about this code is that it works for any type of consulting practice, whether you help clients with professional development, business management, grant writing, it or something entirely different.
• 12:19
  Speaker 1: This consulting code is not rocket science and is not beyond your reach, and when you crack the code, it can jumpstart the growth of your solo consulting practice and is what you need to know to get started and lend your first clients, and nothing more.
• 12:34
  Speaker 1: This is a step-by-step process I wish I had so many years ago, and that's why I wanted to share this with you and how you can do this too.
• 12:43
  Speaker 1: So if you're interested in starting your consulting business and creating a desirable offer to generate leads for your offer and to make sales, then the consulting code is your solution.
• 12:55
  Speaker 1: Visit wwwexcelatconsultingcom for more information.
• 13:05
  Speaker 1: Okay, one of the first things that you need to be mindful of is quality control.
• 13:10
  Speaker 1: Now, when you're bringing in somebody else into the business they're on the back end, yes, but they are often handling a major component of the work you have to make sure that the work that they are doing and what they are offering aligns with your standards.
• 13:28
  Speaker 1: You don't want to provide a service to clients that you think is expanded but compromises the quality, because then it's not of any benefit or, when necessary, say any benefit, but it's not of the same value that they held before, because the standard has changed.
• 13:48
  Speaker 1: And not only is this problematic in terms of reflecting poorly on the work that you do or your brand is going to cost you business in the long run.
• 13:58
  Speaker 1: You cannot let your quality drop.
• 14:02
  Speaker 1: So one of the crucial parts of this arrangement in having a subcontractor work with you is the fact that you have to ensure that you are maintaining the level of quality that you have before or you are improving it.
• 14:18
  Speaker 1: It needs to get better.
• 14:20
  Speaker 1: Either you're elevating or you are at least staying the same, but we do not need to have a drop in the level of quality that you're providing, and I was reading an article in the Harvard Business Review that talked about managing different projects, and one of the things that it was stating is that when you have multiple subcontractors, there's actually a 35% higher chance of encountering quality discrepancies.
• 14:48
  Speaker 1: So that means that when you're bringing on other people, there's a chance that they may not necessarily care as much about that client or your business as much as you do the customers at the time.
• 14:58
  Speaker 1: They probably don't.
• 14:59
  Speaker 1: So you have to be very mindful of this and then have very strict and stringent quality control measures when it comes to the work that's being produced.
• 15:11
  Speaker 1: You can't just hand this off to somebody because they are very talented or they're an expert in their space and think that they're going to provide the same level of quality that they may do for their clients or that may have done for you in the past, because there is this level of attention that needs to be paid to the work that we're doing.
• 15:32
  Speaker 1: This is intimate work.
• 15:33
  Speaker 1: This is work with people who are trusting you with their business, with their livelihood.
• 15:40
  Speaker 1: So we, as business owners, have a level of attachment to the quality that we're putting out that others may not necessarily have, and we cannot get comfortable and allow that to slip.
• 15:53
  Speaker 1: So that's one of the first things is that you have to have standards that are outlined and you have to have a quality control process in place that helps you to make sure that the work that's being developed and the work that's going out meets the level of quality that is your, aligns with your expectation and aligns with the client's expectation I would actually say exceeds the client expectation.
• 16:20
  Speaker 1: So that's one of the first things is making sure that we have the quality control there.
• 16:24
  Speaker 1: Now the next thing that can be a challenge is communication.
• 16:27
  Speaker 1: I don't know about you, but when I was in school, I used to hate group projects, right.
• 16:33
  Speaker 1: One of the reasons why I hated group projects is because I found myself doing a lot of the work, especially if you were in a group with someone that really didn't pull their load or do their fair share, or either they did it, but their work was just not good, right?
• 16:49
  Speaker 1: You didn't want it to go out and look bad, or you didn't want to get a bad grade.
• 16:53
  Speaker 1: So you're sitting there and you're tying up whatever they sent to you because maybe they were comfortable getting that C, but you wanted an A.
• 17:00
  Speaker 1: You look, I have not been a fan of group projects over the years, but when you're working in this capacity and you're doing subcontracting or you're having a subcontractor work with you, this is turning into a group project, because you are going to be dependent on one another in order to generate the end result.
• 17:22
  Speaker 1: There has to be communication there.
• 17:25
  Speaker 1: If there is a communication breakdown, that project is going to go to crap.
• 17:30
  Speaker 1: It's the same thing in our businesses.
• 17:33
  Speaker 1: Because we have to be able to communicate, we need to know what the timelines are, what are our deadlines, how do we need to present the work, what needs to be accomplished, what our objectives are and what we are trying to generate as an end product or end result.
• 17:53
  Speaker 1: All of those things need to be seamless when it comes to the work that we're doing, and not just on the front end, but you got to be able to communicate about the backend stuff too.
• 18:04
  Speaker 1: It's about communicating expectations in terms of pay, in terms of the scope of the work.
• 18:10
  Speaker 1: There is just so much that goes into communication and making this type of arrangement successful If you are unable to communicate effectively and you have communication breakdowns or you're not communicating as frequently as you should, you are putting your business at risk.
• 18:29
  Speaker 1: Communication needs to be a priority.
• 18:30
  Speaker 1: Whenever you're thinking you're communicating enough, I'm going to tell you right now to go ahead and multiply that by two.
• 18:37
  Speaker 1: Multiply that by two because you are likely not communicating as much as you think.
• 18:43
  Speaker 1: The average person is not communicating the details of what needs to be done as much as they think, as frequently as they think this is.
• 18:53
  Speaker 1: The second thing is that we have to make sure that we are doing our part in terms of communicating well.
• 18:59
  Speaker 1: That also means that the person you work with, that you subcontract with, needs to be a good communicator too, because communication is not a one-way street.
• 19:09
  Speaker 1: When you are setting up these types of arrangements, make sure that it's someone that you can work well with.
• 19:14
  Speaker 1: Make sure that this is something that resonates for both of you, that you both communicate in a way where you understand each other.
• 19:22
  Speaker 1: You're on the same page.
• 19:23
  Speaker 1: You have some of the same goals.
• 19:25
  Speaker 1: You have the same values.
• 19:26
  Speaker 1: Those things are important.
• 19:27
  Speaker 1: Communication is key.
• 19:29
  Speaker 1: That's one of the second things I want you to watch out for.
• 19:31
  Speaker 1: You got to make sure that you are communicating.
• 19:34
  Speaker 1: All right, guys, let's roll this in.
• 19:37
  Speaker 1: I'm so glad you are staying with me on this one, but listen, this is going to help in the long run, trust me, it's going to save a lot of headaches, especially this next one is I saved it for last because it is key.
• 19:55
  Speaker 1: Before you start any of this, before you even think about subcontracting, this is actually where your mind needs to be.
• 20:01
  Speaker 1: That is, striking the perfect agreement.
• 20:05
  Speaker 1: You have to strike the perfect agreement.
• 20:09
  Speaker 1: Listen, when you're going into any type of arrangement or partnership where you're providing a service and you have multiple contributors to that service, it's different when you have someone that you are contracting with and you're paying them to provide a set service as a standalone, but this is someone who you are subcontracting to work with you to provide, more than likely, a very significant portion of the intellectual property that is going to be shared.
• 20:40
  Speaker 1: So, with that being the case, it can get a little tricky in terms of payment.
• 20:47
  Speaker 1: It can get a little tricky in terms of scope of work All these things if they're not clearly outlined, if there is not a perfect arrangement or agreement.
• 20:57
  Speaker 1: When I say perfect, I'm just saying, you know, make sure that it is one that's very solid and has a lawyer behind it.
• 21:03
  Speaker 1: I don't know how many times I can stress that, but one of the things that you will hear me say over and, over and over again, and definitely if you are a client of mine, if you have taken the consulting code course, you know that I don't step into the realm of legal advice, but I am going to tell you that you need a lawyer to help you in your negotiation process.
• 21:27
  Speaker 1: That should definitely be the case.
• 21:29
  Speaker 1: If you're working with other businesses, even if you're working in the consumer space, you need some iron clad contracts.
• 21:36
  Speaker 1: Okay, so that's my little segment on that, but the key here is that you want to make sure that you have an agreement that is clear on both ends of football parties, because if you don't, that just leads to a lot of difficulty, and not only can it cause a rift between you and that person personally, especially if you were colleagues or you had a strong business relationship.
• 22:03
  Speaker 1: You don't want to damage that, and definitely not handling these agreements appropriately can lead to that type of split, that type of separation.
• 22:12
  Speaker 1: You also want to make sure that you are protecting the thing that you have been working to build.
• 22:18
  Speaker 1: There are a lot of horror stories.
• 22:20
  Speaker 1: I'm sure you can hear about someone stealing clients or taking business away.
• 22:26
  Speaker 1: I don't want you to fear any of that, but know that it does happen.
• 22:29
  Speaker 1: If these agreements are not in place.
• 22:31
  Speaker 1: You want to make sure that there is clarity with regards to how that subcontractor is interacting with the client if they are at all and then also making sure that the scope of the work is outlined clearly and that you are not crossing the lines when it comes to all of those things, so that when you are compensating that subcontractor for their assistance, that you're doing that in a way that is fair, that is consistent with what you agreed upon and what the contract state.
• 23:04
  Speaker 1: All of those things will just reduce all the headache that comes from trying to create the subcontractor agreements without thinking it through, without planning for all of the potential issues or obstacles that you may face, because no matter how close you are in terms of your business relationship, things happen.
• 23:25
  Speaker 1: Life is messy and things happen unintentionally.
• 23:30
  Speaker 1: It's not like people go out, at least in my belief, that they try to be difficult or create problems or challenges.
• 23:38
  Speaker 1: It's just the fact that when you have different viewpoints, if you're not communicating like we talked about, if you're not on the same page with regards to the quality of work and the values and the way that you're showing up, then all of those things create problems that, if they're not resolved, can lead to a lot of headache for you down the road.
• 24:00
  Speaker 1: So one way of getting around that is just to take time and map out a strong agreement before you enter into these types of these types of work and business relationships.
• 24:13
  Speaker 1: I think that subcontracting and bringing someone on, like I said before, to expand the services that you're able to offer it's going to be key.
• 24:21
  Speaker 1: As you grow, you're going to have to be able to do more than what you are doing by yourself, depending upon how far you want to take your business or how you want to grow over time If you are wanting to get to a new level and take on larger projects.
• 24:39
  Speaker 1: You are not trying to be the Jane of all trades.
• 24:42
  Speaker 1: You need to remain a specialist and an expert in your area, which means that you're more than likely going to have to bring in another expert, another specialist, another consultant who can help you really expand your presence and the role you play within your industry.
• 24:58
  Speaker 1: So these are great arrangements that you can make.
• 25:02
  Speaker 1: But I just want you to be a smart when it comes to setting them up and making sure that you're maintaining the quality, that you're communicating well and that you're making sure that your agreements are solid.
• 25:14
  Speaker 1: But if you do all that, I think that you will find that subcontracting with other consultants can be a way for you to grow your business and for you to do that with a lot of overhead.
• 25:25
  Speaker 1: And I want you to make sure too, before you even get to this point, that you're taking your time getting there.
• 25:31
  Speaker 1: There is no need to start out subcontracting in your business before you have a steady cash flow, before you have a steady income stream in a steady sales pipeline, because then you're bringing in overhead still.
• 25:46
  Speaker 1: That is going to eat into your profits and it's going to really strain your profitability, which is going to be very dangerous or somewhat risky when you're starting out.
• 25:55
  Speaker 1: So I always recommend to just wait a bit before you get to that point and make sure you have a solid business foundation and then you can think about expanding to bring on more people.
• 26:08
  Speaker 1: But without a solid process, without a solid pipeline of leads and being able to convert them at higher conversion rates effectively and knowing your sales cycle and windows and things of that nature, then bringing in a subcontractor can be somewhat difficult, and I want to reassure you that if you are in your earlier years of consulting or you're just starting out, all you have to do to control this need is to create the right offer.
• 26:35
  Speaker 1: If you create your offer to focus on your area of strength and your specialization, you're reducing the need to have a subcontractor come in.
• 26:42
  Speaker 1: And most people make the mistake of creating an offer based upon what the client is saying that they want as a service, instead of focusing on what they're able to offer effectively and then pitching that as the solution.
• 27:00
  Speaker 1: Because what you'll find is that, depending upon how you construct your offer and how you structure your pitch and how you are building and nurturing the clients that you want to serve, they more than likely are going to be fine with what you're able to provide.
• 27:15
  Speaker 1: As long as you clear about the outcome that is going to be generated and the return on investment that they're going to get, they will buy into that and not focus heavily on just buying into a number of different people to work with, because, in all honesty, most often people just want to know that they have that trusted go-to person.
• 27:37
  Speaker 1: They're not worried about having the team.
• 27:39
  Speaker 1: You are focused on having the resources and the manpower behind you so that you can work more effectively, but don't think that that's going to hinder you if you wait a little while to move into this subcontracting space.
• 27:55
  Speaker 1: All right, guys, I hope you enjoyed this episode.
• 27:56
  Speaker 1: I hope it has been helpful and, as always, if you have any questions or concerns or you want to continue this conversation, don't hesitate to reach out to me on LinkedIn, instagram.
• 28:08
  Speaker 1: I love when I get DMs and messages from you guys and I can't wait to talk to you again soon.
• 28:13
  Speaker 1: Guess what?
• 28:14
  Speaker 1: It's going to be the 100th episode next time, and we are going to have a good one.
• 28:18
  Speaker 1: All right, guys, take care.
• 28:21
  Speaker 1: Bye, and don't forget to visit excelatconsultingcom for more information to support your consulting journey.
• 28:54
  Speaker 1: Until next time, take care.