Latest / Black Girls Consult TOO! / Episode 111: Growth Through Wisdom: Prioritizing Return on Investment
Transcript
- 0:00Speaker 1: Whether you know it or not, your clients are thinking about what they're getting from working with you.
- 0:04Speaker 1: Yes, they are looking for a return on their investment.
- 0:09Speaker 1: So if you have been struggling with how you're able to show your value of your services, how you're able to prove that this investment is a no-brainer, then you're going to want to tune in, because in this episode, we're going to talk about how you do just that.
- 0:24Speaker 1: They say the odds are stacked against us as women, especially women of color, trying to thrive in the consulting world.
- 0:33Speaker 1: But rather than wait for a seat at the table that may never come, what if we build our own tables?
- 0:39Speaker 1: What if we channeled our talents into guiding each other towards the success we deserve?
- 0:44Speaker 1: Welcome to the Black Girls Consulting Podcast.
- 0:46Speaker 1: I'm your host, dr Angelina Davis, and I've walked the path from healthcare consultant to a mentor.
- 0:52Speaker 1: For women like you ambitious, unstoppable and ready to make waves in the consulting world, this podcast is your go-to spot for all things entrepreneurial consulting.
- 1:03Speaker 1: For us as women, especially women of color.
- 1:05Speaker 1: Think of it as your weekly coffee date with a friend who's here to dish out real talk on building a solid business, elevating your thought leadership and mastering that all important mindset.
- 1:16Speaker 1: And let's not forget, we're doing all of this while balancing day jobs, family life and running teams.
- 1:22Speaker 1: Yes, we can do it all.
- 1:25Speaker 1: So if you're ready to dive into how you can grow a thriving consultancy or get strategies and insights that actually fit your busy lifestyle, then you're in the right place.
- 1:35Speaker 1: Grab your coffee, tea or, hey, even a glass of wine, I won't judge and let's get started.
- 1:48Speaker 1: Hello, hello, hello.
- 1:49Speaker 1: Welcome to the Black Girls Console 2 podcast.
- 1:51Speaker 1: I'm your host, dr Angelina Davis, and we are going to talk about money in this episode.
- 1:57Speaker 1: I think we don't have this conversation as often as we should because, at the end of the day, our business is in place and is designed to make money.
- 2:08Speaker 1: That's how we keep the doors open, that's how we are able to hire and employ team.
- 2:13Speaker 1: That's how we are able to grow and expand.
- 2:15Speaker 1: We need to be able to bring in more revenue and to become profitable, and in order for us to do that, we also have to show that we are able to become an investment for others, meaning that we need to show a return on investment for the services that we provide, and this is a concept that, in consulting, is somewhat relatively new from the standpoint that many consultants historically were not necessarily asked to show a discrete return on investment.
- 2:49Speaker 1: This has changed.
- 2:50Speaker 1: It's changed a lot over the more recent years, primarily because now businesses, organizations and even consumers can track their outcomes.
- 3:01Speaker 1: They have their own metrics and KPIs that they're following, and some of which are designed solely to make sure that you, as a consultant, are delivering and doing your job.
- 3:13Speaker 1: So, because they are more aware, we need to be more proactive in sharing how we are able to generate change, create more value and show them that they indeed are getting a tremendous return on what they are investing in us as consultants and expert service providers.
- 3:33Speaker 1: So, with that being said, we're going to dive deeper into that today and talk a little bit about what return on investment is in the consulting world and how you can more proactively think about how to show this and to show this in a way that it carries weight and is not questioned, and so this is hopefully going to be an episode that will be helpful for you as you move forward.
- 4:01Speaker 1: So, if you've been tuning into this podcast for a while now and you've been thinking about getting your consulting business started, or maybe you're ready to just fully lean in and get everything going to the point where you can leave your nine to five or grow to the next level, then I have just the thing for you.
- 4:22Speaker 1: The Consulting Mastery Blueprint is a five-day email course that is designed as a roadmap to show you how to get to your next level.
- 4:31Speaker 1: Now, if you want freedom, impact, financial prosperity to be a reality and not just goals, then this is for you.
- 4:38Speaker 1: So, whether you are trying to break free from your nine to five, if you are rapidly transitioning from your career into consulting, or maybe you're just seeking a momentum, a little boost, then this course is going to be a game changer.
- 4:53Speaker 1: Just click the link in the description and register.
- 4:56Speaker 1: I hope to see you in your inbox soon.
- 5:00Speaker 1: I always like to start out making sure we're on the same page and let's just define what return on investment, or ROI, actually is.
- 5:07Speaker 1: Now, return on investment is typically considered a financial term.
- 5:11Speaker 1: It is the return that is actually realized from a financial investment.
- 5:17Speaker 1: So if you are making some type of financial investment, such as buying a house or buying a car, you're thinking about what you are going to get in return from that.
- 5:28Speaker 1: Are you going to gain money?
- 5:30Speaker 1: Are you going to lose money.
- 5:31Speaker 1: That speaks to the quality or level of ROI or return on investment that you receive, and that's pretty much how we consider using this term even in the consulting world.
- 5:43Speaker 1: We're thinking about the investment that our clients are making in us and our services and what we are able to return to them as an outcome based on that investment.
- 5:54Speaker 1: So, in very simple terms, I like to say what is it that you are delivering and is it worth the money?
- 6:02Speaker 1: That's the question.
- 6:04Speaker 1: And, whether or not your client has asked you this directly, they are thinking about it.
- 6:09Speaker 1: They're thinking about whether your services are actually worth the money.
- 6:14Speaker 1: A number of years ago, we had a guy that came to our front door.
- 6:18Speaker 1: They were in our neighborhood and selling something we knew because it was a newer neighborhood at the time and we had a lot of people coming through the neighborhood and they were selling cable services and alarm services I mean, you name it, all the things that happen in a new community.
- 6:33Speaker 1: And when I answered the door, I was surprised to find that this was someone that was actually going door to door selling vacuums.
- 6:41Speaker 1: Now, this is something that I know is going to tell my age somewhat, but it wasn't that long ago, so it was still relatively recent, and I thought it was really strange because I've never had anyone sell a vacuum directly door to door Although I know that this is something that was really, really big in the past and I will tell you this that that was one of the best salespersons I have ever met.
- 7:05Speaker 1: I mean, he was phenomenal.
- 7:07Speaker 1: Not only did he spend in our house, mind you, as a stranger probably at least two hours doing a full-out demo and vacuuming carpets and rugs and just showing us how this device worked, he was able to sell us on buying a $3,000 vacuum.
- 7:28Speaker 1: Right, I did say that.
- 7:29Speaker 1: I'm kind of embarrassed to say that, but I did say that A $3,000 vacuum, mind you.
- 7:33Speaker 1: So one would look at that and say that is a waste of money.
- 7:38Speaker 1: Who in the world would pay that much for a vacuum?
- 7:41Speaker 1: I know, after they left, I was thinking the same thing when I had to make that payment, but I will tell you that that was actually one of the best investments that we ever made, because when I look at the return on the investment of that purchase, we have had that vacuum ever since.
- 8:03Speaker 1: We have had absolutely no problems out of that vacuum ever since, and it doubles as also a carpet cleaner and some other things, so we are able to use it in a lot of different ways, and I will anticipate unless something just goes drastically wrong, that we probably will have it for another few decades.
- 8:24Speaker 1: It was a wonderful investment because, at the end of the day, it not only outperformed other tools that we had used before and we had purchased before, but we have not had to have another purchase of that type within a number of years, and so when you're thinking about return on investment, this may be something that is not quite evident right away.
- 8:47Speaker 1: Sometimes the return on investment may be delayed.
- 8:50Speaker 1: However, at the end of the day, we want to make sure that our clients can look back on what they have spent to work with us, the time they have set aside to work with us and the resources they have dedicated to work with us, and say this was well used and I am pleased and I'm satisfied.
- 9:11Speaker 1: That's the whole concept and premise of return on investment, and that's why we need to keep that at the forefront of our minds, because if we stay focused on how we are going to deliver this return on investment, it's going to ensure number one, that we achieve it, but then, number two, that we are able to do that repeatedly for each client that we work with.
- 9:35Speaker 1: So, when we're thinking about return on investment, I want you to think about what the client is going to get as a result of collaborating and working with you.
- 9:44Speaker 1: Now, one of the first things that we need to do as consultants is to determine what it is that we're going to deliver as a return on their investment.
- 9:55Speaker 1: What is the outcome?
- 9:57Speaker 1: Because we need to identify this first and foremost, so that we can center all of our messaging, all of our marketing, all of our promises around what we plan to deliver.
- 10:08Speaker 1: One of the biggest mistakes that I see many consultants making, especially in the early stages of growth, is that we often focus on selling a lot of things, and so it sets a very high expectation by the client for our services, and that can be problematic if we're not going to deliver on that.
- 10:28Speaker 1: One of the best things that we can do for ourselves, and then also the fairest thing that we can do for our client, is to be extremely clear on what we plan to deliver, because if we're very clear on communicating that piece, then the client is going to be clear on what to expect from you, and so when they go to judge whether or not this has been a great experience or whether or not this investment was something that they were proud of, they're going to base that on what you told them they would be able to achieve or what the outcome would be as a result of them investing in your services.
- 11:04Speaker 1: So we want to be clear and reiterate that outcome over and over again.
- 11:10Speaker 1: So we set expectations.
- 11:11Speaker 1: So if the client is expecting to have increased brand awareness as a result of working with you, then we need to make sure that's the case.
- 11:21Speaker 1: If you are in social media consulting, or maybe if you're focusing on some other aspect of growing their brand, you may wanna focus on cost savings or some cost avoidance associated with having more structured and effective and efficient systems, so that you can show them that the result of your work in helping them has led to them being able to save money or them being able to avoid the cost of having to hire more people.
- 11:49Speaker 1: Or maybe you can improve the client or the customer satisfaction so that whenever someone makes a purchase from that particular client or their business, that they are going to be happy with what they receive, and it's gonna be consistent with what they have seen in social media, as well as the messages that have been communicated.
- 12:09Speaker 1: Whatever it is that you plan to deliver, what I want you to focus on first and foremost is streamlining that promise and then making sure that everything that we do as we move forward surrounds that promise, and that you use that promise and that outcome that you're stating that you're going to deliver as a guide.
- 12:27Speaker 1: That is going to be the core of your work.
- 12:30Speaker 1: This is how we ensure that we, inherently in our offer, have built in the return on investment.
- 12:38Speaker 1: We don't have to think about how we're going to prove the outcome or how we're going to show that we've been a benefit.
- 12:43Speaker 1: What we are going to rely on is that how we have created the offer will naturally do this repeatedly, over and over again.
- 12:51Speaker 1: So this is one of the first things that I want you to do and steps I want you to take is to think about what is the outcome that you plan to deliver, and I want you to make that the center focus of everything that you do.
- 13:06Speaker 1: Now the second thing I want you to do, after you've determined what that outcome of promise is that you are making and that you're going to deliver on.
- 13:14Speaker 1: I want you to create a pathway or a framework to ensure that you're able to deliver it, work to ensure that you're able to deliver it.
- 13:25Speaker 1: So this is how you ensure that you have that repeatability aspect that creates a trust in your brand right.
- 13:31Speaker 1: This is going to help you build your reputation, because if you can generate these outcomes time and time again for different clients in different circumstances, then that is going to solidify your place in the market as the go-to expert for that thing, because people can trust that if they work with you, they're going to get the outcome because you're able to deliver it.
- 13:52Speaker 1: You've been able to deliver it for multiple clients.
- 13:54Speaker 1: They're going to see validation of that in the market.
- 13:57Speaker 1: So this is where you want to think about the exact methodology that you use in order to get that client or your client, the outcome.
- 14:07Speaker 1: You want the methods that you use, the processes, the frameworks that you use, to be multidimensional and to look at a number of ways for you to get the client the end result.
- 14:22Speaker 1: Often we put all of our eggs in one basket, and if we put all of our eggs in one basket.
- 14:29Speaker 1: It can be difficult if something does not align perfectly with how we planned it out.
- 14:35Speaker 1: So I want you to think about how you can be more creative and ensure that if, by chance, there is some type of fall through or a break in your system, how you can still generate the result or the outcome.
- 14:48Speaker 1: So this is a matter of having a safe path, a set framework, but then also understanding how to navigate the client back on the right path if they happen to somehow deter from that, because often this happens in real life.
- 15:05Speaker 1: Right, we don't typically walk a straight line in order to get to the end goal.
- 15:10Speaker 1: We tend to detour, we make a lot of mistakes, we do a lot of things that may be wrong, and especially when it comes to consulting, where you're not actually doing the work and you're relying on the client to follow through on your recommendations, it can be super important to just have some idea of as to how you can get them back on track, and you'll find over time that most clients are going to deviate at upcoming points.
- 15:36Speaker 1: There are going to be certain parts of the process where you see people having more and more difficulty, and then it's up to us to build into our framework ways to guard against that derailment.
- 15:47Speaker 1: Right, we want to make sure that we keep them on track, but this is important because if they happen to deter and take a detour off of this path, then we are going to be looked at as not having delivered on our promise, and this is what we want to avoid.
- 16:06Speaker 1: So there's a lot that is at play here in terms of effectively communicating what needs to be done, but then also creating the best environment for our clients to succeed.
- 16:19Speaker 1: What I always like to remind my clients of and those I work with, is that even if you systems set up to keep them on track, or check-ins to ensure that they are following the proper direction and path, then it's going to put our reputations at risk, because then you'll have someone that's going out and they are saying they work with you, they're not generating the outcomes or they're making mistakes, and people are looking at that thinking I can't trust their services because they don't know how to deliver on the outcome of the promise.
- 17:10Speaker 1: It doesn't work.
- 17:12Speaker 1: We don't want them to think that we are the problem, and one way of doing that is being able to help our clients get to that end result, and so how we do this is by beginning with the end result and then mapping back and figuring out what it's going to take in order to get them there.
- 17:31Speaker 1: That is one of the easiest ways to kind of work through this process, and so I don't want to make it sound so sterile or so scientific.
- 17:41Speaker 1: It is rather simple, especially when we're dealing with clients who are focused on very big and broad outcomes.
- 17:52Speaker 1: There are a lot of ways that you can get to that end result.
- 17:55Speaker 1: I want you to just think and consider how your ideal client, your average client, can get there easily.
- 18:05Speaker 1: What are some of the obstacles that you have seen clients in the past face?
- 18:09Speaker 1: How can you guard against that?
- 18:11Speaker 1: How can you redirect them if they make that same mistake in the future?
- 18:15Speaker 1: And if we do this effectively, then this is going to ensure that we are going to generate the outcome that we promised.
- 18:23Speaker 1: Going to ensure that we are going to generate the outcome that we promised.
- 18:27Speaker 1: And so, after we've set and determined what the outcome is going to be, we need to make sure that we've done our best to help them get there.
- 18:33Speaker 1: So that's one of the second things for us to consider, because we need them to get that outcome, so we can prove the return on investment.
- 18:40Speaker 1: And this is going to be extremely important, especially if you're working in the business to business and corporate space.
- 18:46Speaker 1: I want you to know that there will be metrics and dashboards and KPIs that are followed.
- 18:56Speaker 1: There will be meetings you're sitting down and people are pouring through Tableau and other tools that they're looking at their numbers and they're monitoring your work from initiative to initiative, from month to month, from year to year.
- 19:11Speaker 1: We have to be extremely mindful of that and we have to make sure that our numbers match what we have promised.
- 19:18Speaker 1: And if you can kind of catch a theme here, you can see that it doesn't have to be overwhelming.
- 19:23Speaker 1: Right, it's all.
- 19:24Speaker 1: The ball is in our court, it's all in our hands.
- 19:26Speaker 1: It's about what we have decided to make as a promise because that's what the client is agreeing to and then ensuring that, based on what we have promised, we are going to help them get to that end result.
- 19:40Speaker 1: All of this is in our hands.
- 19:43Speaker 1: We have the power, we have the ability to make this as close to 100% as we possibly can.
- 19:51Speaker 1: So I hope you're finding that more empowering than fearful, because it's not about trying to prove something after the fact.
- 20:00Speaker 1: We're being proactive and what we're doing is we're designing our offer to automatically deliver the outcome, so we don't have to do anything but sell our offer right.
- 20:11Speaker 1: That's why I preach so much about the core offer, because if you build all of these things in and there's much more to that that I teach in my programs and courses but if you build this stuff in ahead of time, before you start working with clients, before you start pitching your services, before you start selling, you don't have to worry about everything that happens down the line.
- 20:32Speaker 1: You don't have to worry about the reports that need to be generated.
- 20:35Speaker 1: You don't have to worry about someone doing some type of audit and figuring out whether or not you are generating a significant financial return or impact on their organization to renew your contract.
- 20:46Speaker 1: You don't have to worry about those things because you have already built it into your offer and so it becomes smooth selling.
- 20:54Speaker 1: So think about it.
- 20:56Speaker 1: Think about how you get them from point A to point B.
- 20:59Speaker 1: We're using that as consultants, but think about it for yourself and also consider, if my client gets off track, what are the coming points at which they have difficulty?
- 21:09Speaker 1: How can I improve my processes or safeguards so that I can ensure that they get to the outcome that I have promised and the outcome that they desire?
- 21:18Speaker 1: So that's the second thing.
- 21:20Speaker 1: Now the third is I want you to be proactive in tracking data.
- 21:24Speaker 1: Don't just let them keep and manage their numbers.
- 21:28Speaker 1: I want you to focus on the numbers.
- 21:31Speaker 1: I want you to look at the hard data.
- 21:33Speaker 1: That's stuff like cost or time or even quality.
- 21:39Speaker 1: If you're going to look at cost measures and I really think that this is always a big one you want to focus on the numbers and, like I stated before, maybe some of that is cost savings associated with certain recommendations or initiatives or projects that you start, or maybe it's cost avoidance, meaning that you're preventing them from spending a lot of excess money.
- 22:00Speaker 1: And if you're looking at time being saved, track that time.
- 22:12Speaker 1: How can you account for this time specifically, in more detail?
- 22:14Speaker 1: These are measures and data that can often be pulled from some type of data system Many times.
- 22:17Speaker 1: It's often in place.
- 22:18Speaker 1: Especially if you're working with a larger business or corporate entity, they already have many of these reports in place.
- 22:25Speaker 1: How can you tap into those ahead of time?
- 22:27Speaker 1: Define those as the methods and the systems that you're going to use to track this data moving forward.
- 22:34Speaker 1: And if those are not in place, and if you're working even on a consumer level, how can you have these built-in checkpoints so that you're able to track outcomes and metrics on an ongoing basis to determine whether you're on the right track?
- 22:48Speaker 1: The more that you can do this, the more validity you give to the entire process.
- 22:54Speaker 1: It's going to make it easier for your client to trust you, because they see the numbers, they see the progress, they understand also when they make the mistake and it's not you.
- 23:05Speaker 1: But this is relying on hard and fast data.
- 23:09Speaker 1: We need data because it's the concrete data, or hard data, that we are able to translate into a greater outcome and we can begin to tell stories around that.
- 23:21Speaker 1: So, for instance, if we are focusing on increasing, let's say, on the I'm just going to use social media, for example, because I'm staring at my screen right now for Instagram but if you're going to use an increase in the number of followers on your site or an increase in engagement as an outcome, then focus on how you're going to measure those things and track them.
- 23:46Speaker 1: You want to track the data and feed this data back, and the more you do this at more frequent intervals.
- 23:55Speaker 1: So if you're having these touch points whether they are monthly or quarterly, sometimes weekly it's going to help you stay on top of what's actually occurring and to be able to study the impact of your work before you get to the end, so you can see whether or not you're on track to hit the target and if you're far off, you have the ability to adjust a pivot to make a big change.
- 24:22Speaker 1: Data offers us that safety net only if we can use it to our advantage.
- 24:29Speaker 1: So that's why it's so important for us to properly measure, track and monitor our data and when we're able to do this, the data that we do find and the results that we do get we get to paint a picture and tell a story with that data.
- 24:46Speaker 1: So not only do you need to just rely on the person understanding what these numbers mean and just looking at hard and fast numbers, but you can share how saving three hours on a task equates to the ability to do so much more in their business.
- 25:07Speaker 1: Tell the full story, because if we're using the data to tell a fuller story, it also begins to overemphasize the value that they are receiving as a result of the services that we offer.
- 25:24Speaker 1: You want them to take all of that into consideration, not just the one number, but the impact of that number on everything else.
- 25:34Speaker 1: Take it into consideration, calculate the costs of your services and then show the difference.
- 25:40Speaker 1: Show that what they've invested in you is only a fraction of what you've brought.
- 25:43Speaker 1: Show the difference.
- 25:43Speaker 1: Show that what they've invested in you is only a fraction of what you've brought to the table.
- 25:45Speaker 1: That's how you retain clients.
- 25:49Speaker 1: That's how you get more clients.
- 25:51Speaker 1: That's how you have extended contracts that go on and on and on, if you desire.
- 25:58Speaker 1: So it's not about just showing that they can get the money back that they invested in you.
- 26:08Speaker 1: Yes, people do want that piece of the puzzle automatically, because, of course, that makes it more of a no-brainer if they feel like they're going to get something out of it.
- 26:18Speaker 1: But when you 10x that and that's always my rule of thumb is that your return on investment, if at all possible, should be 10 times what they have invested in you you should be able to translate that into an outcome that is worth 10 times the investment that they've made in you.
- 26:37Speaker 1: So think about the level of value that you need to provide in order to get to that number.
- 26:45Speaker 1: Think about the level of value that you need to offer in order to get to that outcome.
- 26:51Speaker 1: That's equivalent to that 10 times value.
- 26:54Speaker 1: It's a lot, it's a lot, and so I think that's important because if we think about this early on, it's going to be easy for us to deliver.
- 27:06Speaker 1: So, just to recap, we're talking about return on investment, which is what our client is going to get as a result of working with us, and I want you to focus on three things.
- 27:16Speaker 1: I want you to focus on clarifying and outlining what that outcome or promise is going to be to the client, making sure we're clear on that from the start.
- 27:26Speaker 1: The second is that we're going to build our processes, our frameworks, the way that we do things, the way that we get our clients to the end result, from point A to point B.
- 27:35Speaker 1: We're going to build that around the outcome that we have promised.
- 27:40Speaker 1: So we're going to ensure that, based upon the work that we do, it's going to naturally take them to the goal that they want to achieve and the result that we have promised that we're going to deliver.
- 27:51Speaker 1: And then the third thing is that we are going to track our data.
- 27:55Speaker 1: We're going to track our data and report that at frequent intervals so that our clients can see their progress, so they can see the value and so that you can tell a bigger story that is more comprehensive, of the result of the work that you've done and how that investment translates into their business.
- 28:17Speaker 1: So those are the three things that we're going to do in order to show our return on investment, whether our client asks or not, because whether they say it, whether they mention it, whether or not this ever comes up in conversation if you work in corporate, it will come up in conversation.
- 28:32Speaker 1: But whether or not this ever comes to the table, you're going to proactively show and share how you have been such a great benefit to them and to their bottom line, all right, been such a great benefit to them and to their bottom line, all right.
- 28:46Speaker 1: I hope this episode helped you think about how you can move forward with building in these whole aspect of return on investment and ensuring that you're able to generate a substantial return on investment for your clients' businesses.
- 28:58Speaker 1: And if you enjoyed this episode, make sure that you share with a friend.
- 29:01Speaker 1: Don't forget to leave your five-star rating and review on Apple Podcasts and Spotify and, as always, connect with me on LinkedIn or Instagram.
- 29:11Speaker 1: I love to kind of keep up with you guys there.
- 29:14Speaker 1: I think that's it Until next time, take care, bye, guys.
- 29:19Speaker 1: Thank you for tuning in to the Black Girls Console 2 podcast.
- 29:23Speaker 1: If you enjoyed today's episode, be sure to leave your review on Apple Podcasts, subscribe and share it with a friend.
- 29:31Speaker 1: We're on a mission to increase the success and longevity of women in consulting, and you can help us do just that.
- 29:37Speaker 1: Also, I'd love to hear from you.
- 29:39Speaker 1: So let's connect at Dr Angelina Davis on Instagram or LinkedIn and don't forget to visit excel at consultingcom for more information to support your consulting journey.
- 29:50Speaker 1: Until next time, keep breaking glass ceiling.
- 29:53Speaker 1: All right, take care, I wanna go.