The Cure for a Recession: Sales, Relationships, and Work Ethic.
It’s not difficult to understand why small companies fold. There are so many reasons that you can chose any one of them and blame your failure on it. A company I worked for is in bad shape right now because failed to realize that the business model they adopted was not efficient or optimal for the current market.
The business model for a consulting company should be varied. Take a large consulting house such Accenture. Their business model consists of solving real problems for companies. They do this by bringing in their specialists and augmenting those specialists with consultants. They recruit these consultants either through their staffing partners or directly. They do not depend on other companies to do their business development for them.
This is a critical flaw observed in many H1-B bench companies that bring talent from other countries and market it upstream to staffing agencies who then market these candidates to their direct clients. If the staffing agencies have a dearth of business or the economy in general takes a hit, the H1-B houses feel this most.
The solution is to have a vertically integrated business model that places you in control of the primary client relationship. This is accomplished through business development that is commonly referred to as sales. Sales people need to be tenacious and creative. They need to know how to research leads and how to convert these leads to sales. And most importantly, they need to have Spartan work ethic.
