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Confidential © Equiteq 2015 equiteq.com Growing equity, realizing value 8 Levers Webinar Series Quality of Fees Webinar
Confidential© Equiteq 2015 equiteq.com
Growing equity, realizing value
8 Levers Webinar Series
Quality of Fees Webinar
Confidential© Equiteq 2015 equiteq.com
Reduce your risk in fee income and make it predictable
Confidential© Equiteq 2015 equiteq.com 3
When we look at a consulting firm we use our Equity Growth Wheel
Market Proposition
IntellectualProperty
Quality ofFee Income
Sales &MarketingProcess
ConsultantLoyalty
ClientRelationships
Sales &Profit Growth
ManagementQuality
EquityGrowthWheel
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1. Reduce risk to revenue forecast• Focus your services on a limited number of
sectors• Engage with a balanced portfolio of clients• Sell more of what you currently do to people you
already know• Turn short-term, one-off projects into integrated
programmes
2. Manage cash so that growth is not constrained
3. Ensure you have a process in place to balance capacity with demand so that you maintain good margins
Increase fee income predictability to reduce the risk to profit growth
Market Proposition
IntellectualProperty
Quality ofFee Income
Sales &MarketingProcess
ConsultantLoyalty
ClientRelationships
Sales &Profit Growth
ManagementQuality
EquityGrowthWheel
Quality of Fees lever elements:
Confidential© Equiteq 2015 equiteq.com 5
1.1 Focus your services on a limited number of sectors
Service-Market MatrixService
Market SectorService 1 Service 2 Service 3 Service 4 Service 5 Service 6 Grand Total
Pharmaceutical 21,000 120,000 580,000 721,000
Financial Services 150,000 250000 50,000 20,000 470,000
Technology 100,000 150,000 250,000
Public Sector 150,000 20,000 170,000
Manufacturing 150,000 150,000
Retail 100,000 100,000
Defence 20,000 20,000
Law 20,000 20,000
Leisure 20,000 20,000
Education 9,000 9,000
Grand Total 171,000 120,000 250,000 300,000 299,000 710,000 1,930,000
Confidential© Equiteq 2015 equiteq.com 6
1.2 Engage with a balanced portfolio of clients
1 2 3 4 5 6 7 8 9 10 -
25,000
50,000
75,000
100,000
125,000
150,000
175,000
200,000 20%
18%
15%
13%
10%
8% 7%
5%
3% 3%
1 2 3 4 5 6 7 8 9 10 -
40,000
80,000
120,000
160,000
200,000
240,000
280,000
320,000
360,000
400,000 40%
13%10%
7%5% 5% 5% 5% 5% 5%
Client Revenue – High Risk Client Revenue – Low Risk
Confidential© Equiteq 2015 equiteq.com
Service
ClientService 1 Service 2 Service 3 Service 4 Service 5 Service 6 Grand Total
Client 1 250,000 250,000
Client 2 240,000 240,000
Client 3 200,000 200,000
Client 4 200,000 200,000
Client 5 120,000 120,000
Client 6 115,000 115,000
Client 7 100,000 100,000
Client 8 100,000 100,000
Client 9 100,000 100,000
Client 10 75,000 75,000
Grand Total 75,000 200,000 250,000 300,000 200,000 475,000 1,500,000
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1.3 Selling more of what you currently do to people you already know de-risks your future revenue
Service-Client Matrix
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1.4 Turn short-term, one-off projects into integrated programmes that ensure you stick with the client
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 -
50
100
150
200
250
300
350
Project Revenue Pareto
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2. Manage cash so that growth is not constrained
1. Ensure you have 3 months of cost as cash in the bank
2. Implement favourable terms and conditions
3. Measure your debtor days
4. Use project managers to collect cash
Average Debtor Days
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3. Ensure you have a process in place to balance capacity with demand so that you maintain good margins
Discounted Sales Pipeline Delivery Capacity at Full Sales Value
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Booked Hot Good
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0
200000400000600000800000
10000001200000140000016000001800000
Undiscounted DiscountedBooked Budget
1 2 3 4 5 6 7 8 9 10 11 12 13 14 150%
10%20%30%40%50%60%70%80%90%
100%
0%10%20%30%40%50%60%70%80%90%100%
Utilisation Target
Monthly Revenue Pipeline
Cumulative Revenue Pipeline
Capacity
Utilisation
Pipeline Index =
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For your Quality of Fees homework try these Start, Stop, Continue strategies
Start getting better, monthly visibility of your future pipeline and matching it with capacityStart
Stop
ContinueContinue to work within your existing sectors in order to grow new clients and avoid having all your eggs in too few baskets
Stop trying to sell everything to everyone
Confidential© Equiteq 2015 equiteq.com
Please make use of our free thought leadership material
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Confidential© Equiteq 2015 equiteq.com
Growing equity, realizing value
UK +44 (0)203 651 0600USA +1 (212) 256 1120Singapore +65 6352 7482Email [email protected]
www.equiteq.com
