Avoiding Loss-Leading Consulting

One of the most important lessons I learned running my previous company is the risk of undervaluing specialized expertise. Early on, our industry-leading product—renowned for its speed, stability, and ease of use—opened doors with major enterprise clients. Yet, over time, I saw how much of our team’s energy shifted toward what I now call “loss-leading consulting.” Despite providing tremendous ongoing value, we often undercharged for our services relative to the impact we delivered.

The result? Consulting, which should have been a value-add, instead turned into a drain on our resources—especially when working with prospects who never committed as full clients. The problem became clear when we partnered with an external consulting firm whose rates actually exceeded what we were charging our own clients. Unsurprisingly, this led to unsustainable margins.

Recognizing and addressing these challenges was crucial. Now, as a sole proprietor, I have far greater flexibility to ensure all of my work is aligned with my values and the realities of a sustainable business. With only so many productive hours in a day—and consistent demand—I prioritize mutually beneficial partnerships. If a prospective client needs more time and attention than I can provide, I’m happy to refer them to a trusted affiliate who can better serve their needs. And if a project’s budget doesn’t match the level of expertise, effort, or value required, I’ll be upfront: premium results require a premium investment.

Alignment is key. The goal is always to deliver outstanding value while safeguarding the health and sustainability of both my business and my clients’ organizations.

To be very clear:

• If you’re expecting me to essentially finance your business by deeply discounting my expertise or time, the answer is no.
• If your hospital or enterprise clients impose unnecessary costs through bureaucracy or poorly considered compliance processes, those additional expenses will either be billed for or—if they make the partnership unworkable—lead me to decline the business entirely.

Time is valuable, and competent affiliates are even rarer. Neither I nor the professionals I recommend are interested in subsidizing inefficiency or dealing with unnecessary obstacles.

Rather than spreading myself thin or enabling unsustainable arrangements, my focus is on forming relationships where everyone benefits and where our effort is compensated fairly. That’s the only way to create lasting, high-quality outcomes for all involved.

I am wary of CEOs who spread themselves too thin promising too much for too little to too many clients.

See the plan.