There are drawbacks to working for yourself as opposed to an employer, such as giving up insurance benefits or a steady paycheck. However, it comes with trade-offs that, for many workers, outweigh the difficulties: the freedom to set your own schedule, select your own projects, design your own career path, and concentrate on objectives that are important to you personally.
Over 10% of Americans choose self-employment as their preferred career path for all these reasons. Start consulting in the industry you have experience in the transition to self-employment. Instead of starting a company from scratch, consulting allows you to use your current professional experience.
This can be a particularly lucrative decision because industries well-suited for consulting, like law, accounting, or management analysis, have the highest earning potential for independent contractors.
Steps to Starting a Consulting Business
As with any business, there are steps you can take to position yourself for success as you launch your consulting practice.
1. Spend time networking.
By networking, you can meet others in your industry, keep in touch with influential figures, introduce yourself to potential customers, and look for introductions to help your business grow. Try to establish a connection with anyone you meet for business purposes.
You can use business networking websites like LinkedIn or trade contact details and send a follow-up email. Online tools make it simple to find people no matter when or where you met them, and you never know who you might want to get in touch with later.
2. Choose Your Niche
Consulting that offers chances to mentor new businesses can be very satisfying. Getty Images/Hero Images
Try not to cater to everyone’s needs. Applying your knowledge to a niche market that needs what you have to offer will make you a much more successful consultant. By doing this, you can customize your services to benefit a particular demographic or industry. Think about it:
- What services are lacking in your sector or region?
- What areas of expertise do you have?
- What issues can you resolve that nobody else can?
- To whom would your knowledge be most beneficial?
You’ll know your ideal client and how to start pitching and marketing your services once you briefly define what you do and who you do it for.
3. Learn how to use talking points
Your talking points should summarise what you do and how you do it. Think of them as sound bites. The key to pitching and promoting your consulting business is to write these down. These talking points should describe what you do but also emphasize how you differ from other consultants in your industry and the value you provide to your clients.
- How can you make your coworkers’ lives better?
- What will they encounter following the use of your services?
- What advantages do your services offer?
Make an effort to speak your points aloud. Colleagues willing to listen and provide insightful criticism can help you improve your message. Keep in mind when you are delivering them that a good consultant listens more than they speak. Always ask a question as you wrap up your pitch to learn more about any potential clients you meet.
4. Develop Systems
Create systems so you can reuse them for all future projects. For instance, you might require data collection forms, a proposal template, a list of standard onboarding questions, or a summary of your services that can be sent to potential customers. Utilizing templates will guarantee that:
- Work as effectively as you can
- All documents and forms should have a consistent, branded appearance.
- Keep the standard of quality constant from one project to the next.
- Don’t overlook crucial forms or documents.
- Use the same strategy when working with each client.
5. Put together a pricing structure.
To determine the amount of time a particular project will take, it may be necessary to conduct some analysis and engage in trial and error. When setting your prices, take into account the following:
- What is customary in your field?
- How long do you anticipate spending on a particular set of tasks
- What you must make to maintain your business and generate income
- Any additional costs or resources you’ll need
The expenses you incur that an employer would typically pay for, like health insurance or retirement matching.
Your knowledge and skill. If you are concerned that you will underprice or overprice a new project, try using a pricing template or time-tracking tool to determine how long it will take.
Once you’ve settled on a price, put your pricing structure in writing and follow it religiously. Remember that people are more likely to value things that cost money. You might have trouble convincing customers to hire you if you undercharge to attract more business.
Conclusion
Like any business, having a plan for the future—both short- and long-term—will help you be a more successful consultant. Before you start working with your first client, have a plan in place for how you will start a project.
Be ready so that when a client agrees to work with you, you can outline a timeline and expectations for how the process will go from beginning to end and provide any necessary materials to get started.
You must have a long-term plan for your company, including how you will position it in the market, how you will market your offerings, and your revenue and growth projections. You can plan and set objectives for the following one, five, and ten years with a business plan.
Once your plan is in place, keep checking it to ensure your decisions align with your market and goals and make any necessary adjustments along the way.