Fewer than 3% of applicants pass Toptal Finance’s rigorous screening process, making its consultants some of the industry’s best. But what sets these experts apart from the rest? What makes them so effective?
Keys to Success as a Financial Consultant
To be a truly exceptional financial consultant, you need more than technical skills or industry knowledge. Success comes from understanding what your clients need, delivering tailored solutions, and constantly improving your processes. Below are insights shared by Jeffrey Fidelman on how he consistently ensures success for his clients.
Expanding the Scope of Services: “Oh, You Can Help Me with This, Too?”
When Jeffrey first joined Toptal, his engagements were primarily grouped into three categories:
- Financial Modeling: Creating or improving financial models.
- Presentations and Pitch Materials: Building decks, advising on narratives, and supporting fundraising efforts.
- Business Advisory: Offering guidance on growth strategies, financing options, and transaction structuring (e.g., equity vs. convertible debt).
Over time, both the nature of projects and Jeffrey’s scope of services evolved. Today, he describes his consultancy as a blend of advising, reviewing, and refining. For instance, a client seeking help with a pitch deck now benefits from a comprehensive package, including narrative structuring, financial modeling, and broader business insights.
Pro Tip: Financial consultants can remain competitive by offering diverse services, tailoring their assistance to the needs of mid- or late-stage companies as their demands become more complex.
Preparing Clients for Success: Stress-Test Everything
One hallmark of a great consultant is asking tough questions to stress-test assumptions and ideas. Jeffrey emphasizes the importance of preparing clients for every possible scenario, particularly when they’re pitching to investors or making key decisions.
Key Strategies:
- Before diving into engagements, take 30-40 minutes to deeply understand the client’s business model. This involves analyzing market size, competitive positioning, and scalability.
- Be willing to challenge unrealistic claims. For example, if a company predicts selling to “one billion people in Year 1,” ask pointed questions like, “What’s the market size?” or “What’s your strategy to capture that market?”
By thoroughly pressure-testing clients’ assumptions, you ensure they’re ready to confidently handle questions from investors and other stakeholders.
Equipping Clients with Research-Backed Deliverables
A key element of Jeffrey’s approach lies in arming executives with curated assets built on robust research, especially when preparing for fundraising efforts. The goal? To ensure clients can confidently answer any questions with well-substantiated evidence.
Example: Crafting a Defensible Valuation
Many CEOs initially base their company’s valuation on intuition or vague comparisons—but Jeffrey helps them substantiate these numbers with a robust top-down and bottom-up methodology:
- Top-Down Analysis:
Research industry benchmarks for similar businesses, analyzing transaction multiples (e.g., revenue or EBITDA) and recent market trends. - Bottom-Up Analysis:
Gather granular data—such as competitor valuations, prior investment rounds, IPOs, or acquisitions—and calculate relevant multiples.
Clients leave engagements with a detailed, data-driven explanation of their valuation, showing investors that their ask is grounded in research rather than guesswork.
Creating Winning Pitch Decks: Collaboration Is Key
When it comes to fundraising presentations, Jeffrey employs two distinct approaches based on client preferences:
- Full Service: Jeffrey develops the pitch deck from scratch, reviewing all collateral and assembling a professional presentation in about a week.
- Collaborative Approach: Jeffrey provides the client with a customized outline and allows them to draft the presentation. He then reviews the final version, refining it line by line.
Why the Collaborative Approach Often Wins:
Clients who actively engage in creating their pitch decks are more confident when presenting. They know the deck’s content inside and out, which leads to smoother, more natural discussions with investors.
Three Key Slides Every Pitch Deck Needs:
- The Problem: Start by introducing a compelling issue, prompting investors to acknowledge its significance.
- The Market Size: Quantify the problem, showing the depth of the opportunity.
- The Solution: Present your company as the solution that aligns with the investor’s vision.
With these three slides, you take investors on a psychological journey: identifying a problem, seeing its magnitude, and believing in your company as the answer.
Pro Tip: Ensure your pitch deck’s aesthetic matches your company’s branding (e.g., website design) to establish credibility.
Building a Thriving Consulting Practice
Beyond delivering results, an amazing financial consultant must focus on growing their client base. According to Jeffrey, scalability and repeatable processes are key to long-term success.
Steps to Grow Your Book of Business:
- Streamline Processes: Create a structured, repeatable system for handling similar client needs. For example, develop a template for pitch deck creation or financial model reviews.
- Go the Extra Mile During Client Meetings: Spend extra time on introductory calls to fully understand the client’s goals. Providing value upfront builds trust early on.
- Build a Reputation for Honesty: If a project isn’t the right fit, don’t take it. Potential clients will appreciate your integrity and may refer you to others for future needs.
Avoiding Misaligned Client Engagements
Jeffrey credits his success not just to delivering results, but also to identifying when a client isn’t the right fit. He prioritizes engagements where he can add meaningful value and avoids situations where ambiguity or unrealistic goals might lead to dissatisfaction.
Red Flags to Watch Out For:
- Lack of Clarity: Clients who lack direction often require more time and deliver fewer results. Jeffrey recommends clarity of goals before engagement.
- Scatterbrained Clients: While lucrative in the short term due to frequent pivots, these engagements may not yield meaningful outcomes. It’s better to identify this misalignment early on.
Mastering the Client Interview Process
The ability to lead a strong initial conversation often determines whether a consultant wins the engagement. Jeffrey’s approach involves studying the client’s business thoroughly and using the interview as an opportunity to showcase understanding.
Preparation Is Key:
- Research the company and its industry. Study the client’s website, prior presentations, and relevant market trends to build credibility.
- Lead the discussion by asking insightful questions about the client’s goals and challenges. When clients see that you truly understand their business, they’ll trust your ability to guide them.
Final Thoughts: The Formula for an Amazing Consultant
Becoming an exceptional financial consultant is about more than technical expertise. It requires preparation, honesty, adaptability, and a genuine desire to help clients achieve success. Jeffrey Fidelman’s approach—built on pressure-testing ideas, using research-based insights, and creating collaborative workflows—is a great starting point for aspiring consultants.
Whether it’s developing precise financial models, crafting persuasive pitch decks, or coaching clients for high-stakes investor meetings, the best consultants don’t just deliver services—they become trusted strategic partners.