Wednesday, April 27, 2011

Make more money from your practice!

A million-dollar expert is someone who has successfully built a specialist infopreneurial practice.

A practice is based on the expertise of the principal. In the case of brain surgery, the practice is based on the expertise of the brain surgeon. While there would be other people in the practice supporting the surgeon, she is the one who does all the delivery (in this case the brain surgery). If she is sick, the receptionist isn't going to fill in for her. Without the brain surgeon the practice is not worth anything.

In the case of the infopreneurial practice it is based on the subject-matter expertise - or the ideas - of the principal. The expert is typically a consultant, speaker, author, trainer, mentor, facilitator or coach (ideally a combination of these). Practices (as opposed to businesses) generally have low start-up costs and continue to be funded from the cash flow created in the practice. For example, you get a website when you can afford one. Businesses, on the other hand, have an initial investment focus and even if you build one with a low budget, at some point it still takes raising funds or capital investment to get it to the next level.

There is absolutely no doubt that investing early and funding a practice as if it was a business will accelerate its growth. But these early investments can also be applied to the practice too soon. A $5000 brochure describing a service that you quickly evolve out of is a complete waste of time and money. The early investment made in a practice is usually in the learning and growing that the expert has done in the years leading up to launching. Read more...

P.S. The above table was an extract from the book Thought Leaders, written by Matt Church, Michael Henderson and Scott Stein.

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