NOT ALL MONEY IS GOOD MONEY!

Have you ever heard the saying, “Not all money is good money?” It is a very true distinction for many, especially in the business of consulting.

At VEC, we know how exciting it can be, initially, meeting that one client who gets you and “why you started this business.” But we’ve also learned that that excitement needs to be curbed with a good ‘ole fashion set of questions or a questionnaire template for potential clients to complete to see if they are indeed a good fit for your business.

VEC is in the business of helping clients bring their startup, nonprofit, or entertainment professional business into reality. Though we are in the business of consulting, please note that there is a great deal of coaching that goes into helping our clients bring their vision, whatever it is, to life. Yet too much coaching, and not enough completing the work necessary to bring a client’s vision into fruition, can be detrimental to both consultant and client, no matter how much money can be earned from the project, as VEC would soon learn.

Project Background:

XYZ (i.e., client) wanted to create a marketing and promotional plan to provide workshops to raise the necessary capital needed to work for themselves full-time.

Situation/Problem:

XYZ did not have enough time to create its own marketing and promotional plan and sought the services of VEC to bring its plan to completion.

Evaluation of Case

• XYZ wanted to know how they could just get started.
• VEC reviewed XYZ’s mindset and processes on their business idea, on what was and was not working:
  • XYZ had no business plan.
  • XYZ felt people in a specific geographical region would not pay for the services they wanted to offer, and the people the XYZ knew could afford their services, XYZ did not want to deal with them. Also, XYZ felt the people who needed their services could not afford what they were offering.
  •  XYZ also had an overall negative view of why they were stuck, and a negative view of people or consultants whom they had worked with in the past.

Proposed Solution/Changes

• VEC suggested XYZ release negative thoughts about their business idea.
• VEC suggested XYZ use their negative thoughts about their business idea in the swot analysis of their marketing plan, and also use it to create a risk contingency plan.
• VEC suggested XYZ simply get started completing the tasks assigned so that a draft of the marketing plan could get underway.
• VEC provided an engagement agreement, which XYZ executed to complete the marketing plan.
• VEC listed the following statement of work/milestones to work on business development, marketing, and branding image with XYZ:
  • Ensure a clear Mission Statement and Service
  • Create and Develop a Strategic Marketing Plan 
  • Create Marketing Awareness
  • Complete a Company Event (i.e., Launch) designed to showcase company services at the end of the consultation
• VEC created weekly/monthly Tasks to break down the statement of work.

Successes or Lessons Learned

Lesson Learned:

• This engagement was a lesson learned.
  • XYZ did not fully complete the engagement contract, though they paid their down payment.
  • XYZ was not fully invested in creating the plan. 
  • XYZ cited that the processes created to complete their Marketing Plan Prototype were not working for them and that they did not have time to complete the tasks designed to complete their plan.
• VEC refunded XYZ’s down payment as a courtesy. Not all money is good money.

Recommendations

• Be sure to create clear processes for potential clients to evaluate if a client is a good fit for your company.
• Check all engagement agreements for signatures, even if clients jump the gun and send a deposit, partial, or full payment upfront.
• If a client complains about 25% within the first initial conversation, know they are going to complain throughout the project. 
• Beware of clients who do not want to put in ANY work into completing their own marketing or business plan.

Conclusion

It is VEC’s policy, as listed in all its engagement agreements, that THIS IS YOUR BUSINESS. The services we provide help to facilitate the client’s goals, as per executed engagement agreements, for them to run their own business or put out their own brand with oversight and guidance. Be careful in the selection of your clientele and be sure your own company is following these three P’s: people, process, and product. No matter how good a project or client seems to be, not all money is good money.

Due to the nature of our business and confidentiality, all names, characters, and incidents portrayed in any VEC Case Study are fictitious. Any resemblance to actual persons or businesses, living or dead, is purely coincidental, nor is identification intended or should be inferred. To make our Case Studies more accessible, VEC will provide important lessons in business design development and management based on real first and secondhand accounts experienced by authors. The goal is to share our successes or lessons learned to facilitate forward growth. Our business is to assist our clients and business management consultants in doing the same.

VEC Insights Disclaimer

Due to the nature of our business and our commitment to confidentiality, all names, characters, businesses, and incidents portrayed in any VEC Case Study are fictitious, and any resemblance to actual persons, entities, or events, whether living or deceased, is purely coincidental; no identification of any individual or business is intended, nor should any such identification be inferred.

To make our Case Studies accessible, relevant, and instructive, VEC shares lessons in business design, development, and management based on real first- and secondhand experiences of the authors, to highlight both successes and lessons learned to support strategic thinking, informed decision-making, and forward growth for our clients and fellow business management consultants.