Three Circles of Influence

Strategic Network Cultivation for a Successful Solo Consulting Practice

The belief that you need an enormous network to have a thriving solo consulting practice is not accurate. My approach challenges conventional wisdom - it is the concept of having three concentric circles of networks. This method divides your network into three distinct, interconnected layers: an inner circle, a secondary circle, and an outer circle. Each circle serves a unique purpose and contributes differently to your practice.

The inner circle consists of your core clientele who drive your revenue and inform your offerings. The second circle is a larger group that provides sporadic business opportunities and amplifies your reputation, while the outer circle helps showcase your expertise and generate potential leads.

This approach emphasizes the the essence of a successful consulting practices doesn’t lie in the quantity, but the quality and strategic composition of your network. It's about cultivating meaningful relationships and making effective use of each connection, rather than amassing a large, unengaged following.

Revenue: The Core Network

The inner circle represents the bedrock of your network. This small yet impactful group typically consists of around around a dozen clients who receive your undivided attention. These are the buyers who consistently invest in your services, contributing to the majority of your revenue. The core circle should be your priority, and their needs and preferences significantly influence the development of your service offerings. You are building for them.

In terms of revenue, if each of your core clients contracts you at an average of $40k per engagement every two years, you can achieve annual sales of around $250k without much effort. Hence, these core clients not only provide a steady income stream but also help stabilize your consulting practice financially.

Cultivating your inner circle requires intentionality and a deep understanding of your clients' needs. Regularly engaging with these clients, investing time in understanding their businesses, and proactively identifying ways to provide value are critical in this process. Being responsive, reliable, and demonstrating genuine care for their success strengthens these relationships further.

By focusing on these clients, understanding their challenges, and tailoring services accordingly, you are able to build deep trust, leading to repeat engagements and substantial revenue growth. Your circle is instrumental in providing the insights that shape your service offerings, making you an indispensable resource for these companies. This exemplifies the power and potential of a well-cultivated inner circle in a solo consulting practice.

Amplification: The Secondary Network

The second circle forms the next layer of your network, consisting of a larger group of around 100-200 contacts. While not as intimately involved as your inner circle, these contacts are still integral to your consulting practice. They may occasionally purchase your services, stay informed about your updates, and provide a wider pool of opportunities. Importantly, they also serve as multipliers of your reputation, as they're likely to recommend your services to others.

These contacts can generate sporadic yet valuable business opportunities, such as project-based work, referrals, or collaborations. Moreover, they contribute to your practice's growth by amplifying your reputation within their own networks and on social media. Even a single positive recommendation from this circle can result in a cascade of new opportunities.

Cultivating these relationships requires strategic nurturing. Regular but non-invasive communication—such as sharing helpful articles or sending out newsletters about your latest offerings or updates—can keep you in their minds. Over time, these interactions may deepen the relationship, leading to some of these contacts moving into your inner circle.

Maintaining engagement with your secondary network circle requires a balance of consistency and relevance. Keep the communication frequent enough to stay present but ensure your content is relevant and adds value. Make use of tools like email and social media to share updates and insights that resonate with their needs. The key is to engage them meaningfully without overwhelming them, thereby nurturing these relationships for long-term benefits to your solo consulting practice.

Expansion: The Outer Network

The outer circle forms the broadest layer of your network, primarily consisting of connections on professional platforms like LinkedIn. This group, which can number into the thousands, may not be directly tied to your immediate business activities but plays a vital role in expanding your reach and influence.

This expansive network provides an excellent platform to showcase your expertise. By regularly posting insightful articles, sharing relevant content, and participating in discussions, you're able to demonstrate your thought leadership and professional acumen. This not only enhances your visibility but also generates potential leads and collaboration opportunities. Your outer circle can become a source of new contacts for your email list and future additions to your secondary circle.

Cultivating these connections involves active engagement on the platform. Regularly sharing insights, commenting on relevant posts, and participating in professional groups increases your visibility. Offering valuable content such as long form writing can also help transition these connections into your email list.

The outer circle also keeps you informed about the latest developments in your field. Seeing the challenges and questions posted by these connections can provide insights into current industry trends and emerging client needs. Additionally, the diverse range of professionals in this circle opens up numerous opportunities for learning, collaboration, and broadening your horizons.

Strategic Cultivation of the Circles

The beauty of this approach is that is insures you against potential shocks when a client stops working with you for whatever reason. Instead of having your pipeline become a flat-line, this approach ensures that there is a slow but gradual shift of new clients from your outer circle into your secondary circle, and from there into your inner circle.

Strategically cultivating and balancing these three circles is the cornerstone of a successful solo consulting practice. Each circle plays a distinct role, and it's crucial to devote appropriate attention and effort to each. Neglecting any circle could mean missed opportunities, while focusing too heavily on one could result in underutilizing the others, which will increase the likelihood of future dips in client engagements.

Effectively moving connections from the outer circles to the inner circles is an art. It involves understanding each contact's current value, potential, and engagement level. A passive outer circle contact might become a more engaged secondary circle member through consistent, valuable communication. Similarly, a secondary circle member may move into the inner circle after a successful project or increased collaboration.

Each circle has a unique role in sustaining and growing your consulting business. The inner circle is essential for steady revenue and providing valuable insights to shape your services. The secondary circle offers sporadic business opportunities and aids in reputation building. The outer circle showcases your expertise to a broader audience and generates potential leads.

Practitioner Insights

The secret sauce to a successful solo consulting practice lies not in the size of your network, but in the strategic cultivation of your relationships. By effectively managing your three network circles, you can generate leads, secure projects, nurture long-term client relationships, and ultimately drive your consulting success.

Understanding and strategically applying the concept of the three network circles is pivotal for any successful solo consulting practice. Rather than solely focusing on expanding your network, putting emphasis on the quality and strategic cultivation of your connections can lead to more significant outcomes. Each of these circles – the inner, secondary, and outer – serves a distinct yet interconnected role, contributing to the richness and sustainability of your consulting practice.

I recommend you critically evaluate and strategically cultivate your existing networks into these three circles. By recognizing and harnessing the potential in each relationship, you can create a stable and robust foundation for your business. Be mindful of the dynamic nature of these circles; a connection from your outer circle today may very well be a part of your inner circle tomorrow.