This is the point where an informal advisory conversation needs to become a clearly defined piece of work.

That does not necessarily require a lengthy engagement process or complicated proposal. For many smaller advisory assignments, clarity is more important than complexity.

Start with the client’s problem

The proposal should begin with what the client wants to achieve, rather than a description of your services.

For example:

“During our meeting, we identified that your gross profit margin has fallen from 34% to 29% over the past 12 months. You would like to understand why this has happened and identify practical steps that could improve profitability.”

That immediately connects the proposed work with something the client recognises as important.

Define what you will do

Next, explain the work you propose undertaking.

You might analyse margins by product or service, review changes in selling prices and direct costs, identify loss-making areas and discuss possible corrective action with the client.

Be specific enough for the client to understand what they are buying.

It is equally useful to make clear what is outside the assignment. A focused profitability review, for example, is not necessarily a complete strategic review of the business.

Explain the outcome

Clients are generally more interested in what they will receive than in the amount of work involved.

The outcome might therefore be described as:

“A short report identifying the principal reasons for the reduction in margins, followed by a meeting to agree three or four actions that could improve profitability.”

This turns an abstract advisory service into something tangible.

Agree the fee before starting

Where possible, agree the fee in advance.

A fixed fee can work particularly well for clearly defined advisory assignments because both sides know the cost before work begins.

The fee should reflect the expertise and value involved, not simply the number of hours required to complete the work.

Keep the first assignment manageable

An advisory relationship does not have to begin with a major strategic project.

A relatively small assignment that addresses a genuine client problem can demonstrate the value of advice beyond the traditional compliance service.

If the client sees worthwhile results, further advisory opportunities often emerge naturally.

The important step is converting the initial conversation into a defined problem, an agreed outcome and a piece of work for which the client is happy to pay.

That is where an advisory opportunity starts becoming an advisory service.