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March 8, 2009

Magic Formula Consulting

The news industry will not start to become profitable again until it delivers products that are both scarce and valuable. 

In the media boom times News was very scarce. A few of the journalistic priesthood had the keys to the golden gate and they wrote pieces that not only informed people of the news - they actually decided what the news was.

The 9/11 disaster spurred Google to create the first of the mega aggregation services in the news. And all of a sudden we see that the news is not so scarce. In fact, within 10 minutes of a story breaking there are several dozen, if not several hundred, news sources reporting on it. 

Would you pay for that? I don't. I pay for scarce news and information. Things like ResourceStocks , Aberdeen Group and thats about it. 

Why? Because it is scarce and it is valuable. I make decisions in my consulting and investing careers based on what I read there. (Among other things)

I have written before on the vital importance of scarcity and value  to any consulting career. 

You can be the 128th person to speak to your client about your services in business processes, or you can be the first to speak to them about harvesting value through reducing inefficiency. You could be the last in a long line of people to talk to clients about surviving the present economic crisis - or the first to speak to them about how they can thrive.

If you are going to be just like everyone else then, as Godin says, you had better be cheap. Normal is abundant, that's why it's normal. Scarce services and products, with a proven track record of value is where we need to be focusing. 

Combine that with trust  in your character and your ability to deliver services and you have a winning formula. Nothing flash, nothing new. Just relationship management nourished with valuable hard to find services and products. 

Without it you are just a gas pump attendant...