Why Are Business Models So Important In The Consulting World?

To keep it simple, your business model is a representation of how you create, deliver, and capture value. If you don't know how your consultancy will do this - or the plan is simply unfeasible or not profitable - how the hell do you expect to survive and thrive in the market?

Here are just a few reasons why having a strong business model matters for your consultancy:

• It gives you clarity on what kind of business you want to build, and what you need to prioritize to make it happen.
• It helps you create a plan to win and keep the right kind of clients, for the right kind of work.
• It pushes you to look at the future, explore what threats and opportunities you will likely face, and think about how you can prepare for and leverage them.
• If done right, it's highly practical. The consultancy needs to make money, so your decisions on what (and how) to market and deliver your services can't only come from your gut feeling. No space for wishful thinking here.
• And most importantly, it forces you to find ways to make the best out of your current resources. And be more resourceful.

Even if you never discussed, reviewed, and documented your business model, as long as your consultancy is operating you have one. Chances are, however, you have given little to no thought to different ways to structure the business, and how they could better fit into the vision and aspirations you have for your practice. That's why investing some time into analyzing your business model might be the most critical activity you can perform to unlock growth.