How to Start a Consulting Business in 2023: Detailed Guide
Are you a specialist or an expert in your field? Wonder how to start a consulting business? Consulting is an excellent opportunity to share your expertise, help other businesses succeed, and be your own boss. More and more companies turn to consultants to help their organizations increase productivity, generate income, and improve overall efficiency. In this article, Kounselly will guide you through the 7 most crucial steps to provide your own consulting service. Read on to find out!1. What is consulting?
Consulting is the business of providing expert advice to help others solve complex problems and make strategic decisions. It involves a wide range of activities, from problem diagnosis to data collection, feedback, strategy development, and implementation. As a consultant, you’ll use your expertise to provide tangible solutions that deliver results. In business, it’s easy to get bogged down by familiar routines and ways of thinking. That’s why leaders often seek the outside perspective of a consultant to bring a fresh set of eyes and unbiased insights. As a result, consulting services are increasing in demand, as businesses and organizations seek out innovative strategies and ideas to stay ahead of the competition.2. What are the most popular types of consulting?
Before getting to know how to start a consulting business, here are 5 types of consulting that are in the most demand across many industries:2.1. Business Consulting
Business strategy consultants play an important role that help other business owners in making crucial decisions. They can be strategy consultants, management consultants, business advisors, or the like. If you have experience running profitable businesses, you can make a living by guiding fellow entrepreneurs or business owners in launching their startups and expanding their companies. Business consultants may provide a variety of services from strategy, management, change or operation advising, finance allocating to training. While some business consultants work independently as self-employed consultants, others may choose to work for larger consulting firms that provide a broad range of services. These firms usually have teams of people specialized in various issues such as public relations, business processes, and value propositions.2.2. IT Consulting
IT consultants are responsible for the implementation and management of new technologies, including software development, systems integration, cybersecurity design, and enterprise architecture. The IT consulting sector is a highly specialized and lucrative field that is worth nearly twice as much as management consulting at $666 billion. As an IT consultant, you will help companies in identifying which software to invest in and how to use it to accomplish their goals, audit, and design their cybersecurity system or IT system architecture. To be a successful IT consultant, you need to possess extensive technical expertise and be able to communicate complex ideas in a manner that people with non-technical backgrounds can understand. It’s also important to keep up with the latest advances in the tech field so you can give your clients the best solutions for their company.See more: What is IT consultant?
2.3. Branding and Marketing Consulting
Branding and marketing consultants are responsible for auditing, improving, and developing branding, communication, and marketing strategies that help clients meet their goals and increase brand awareness and revenue. To become a successful brand and marketing consultant, you must have an extensive knowledge of branding and marketing principles, strategies, and practical applications in businesses. Additionally, for digital marketing consultants, you should have expertise in digital marketing techniques, including social media marketing, search engine optimization (SEO), content creation, email marketing, etc. In this role, your consulting may include:- Developing effective branding, and marketing strategies and plans.
- Creating brand communication and marketing campaigns to advertise your client’s brand, products, and services.
- Finding trends by analyzing market research data.
- Determining the needs and preferences of the customer.
- Building an effective pricing strategy.
- Positioning your clients’ company in the market.
2.4. Financial Consulting
Financial consultants can work with both corporate clients and individuals. If working with corporations, their job might focus on financial auditing and analysis, budgeting and financial planning, deal advisory or transaction services, risk assessments, and tax advice. Their work requires researching, analyzing, and offering clients advice on financial systems, policy and process, financial reports, mergers and acquisitions, stock purchases, as well as taxation regulation applications. On the other hand, financial consultants who work with individuals often work as personal financial advisors. Here are some services you may provide:- Provide investment guidance.
- Examine clients’ investing portfolios.
- Help clients plan for big life events.
- Evaluate personal investment options.
- Advice on retirement planning.
- Provide personal income tax guidance.
- Carry out risk assessments.
- Provide periodic investment performance updates.
2.5. Human Resources Consulting
HR consultants provide guidance and assistance to businesses of varying sizes, from small businesses that lack a robust internal HR team to large corporations facing particular challenges. In small businesses, HR consultants often focus on implementing and executing projects while in larger companies, they may primarily provide high-level advice. As an HR consultant, you might:- Review and design corporate structure
- Review or build a corporate culture
- Review, and carry out job analysis to develop job descriptions, competency, and KPI
- Deploy new compensation and benefit packages
- Evaluate and develop internal policies, workplace regulations, employee handbooks, and code of conduct, etc.
- Provide support on industry compliance.
- Establish HR processes such as recruitment, training, onboarding, contract termination, performance evaluation, etc.
3. How to start a Consulting Business?
How to start a consulting business? Read on to find out!3.1. How to start a Consulting Business: Assess your strengths and skill set
If you are considering starting a consulting business, it’s crucial to determine your area of expertise beforehand. Consultants who provide value to their clients typically offer advice, resources, and specialized knowledge in specific areas. Most companies are not seeking a generalist consultant who can assist with multiple areas. Instead, they prefer to hire a specialist who can help them address a particular issue. Answer the following questions to find out your expertise:- What marketable skills do you already have?
- What industries have you worked in or are you interested in?
- Which type of work do you like to do?
- What are your financial and professional objectives?
- What certifications/licenses do you have?
3.2. How to start a Consulting Business: Determine your consulting business model
3.2.1. The Solo Consultant Model
The solo consulting model can be ideal for you if you want a flexible, lean, and profitable consulting business. However, it may not be the best fit if you plan to sell it, or if you don’t like the idea that if you stop working, it will be difficult for you to earn money. As a solo consultant, you have the advantage of working directly with your clients and expanding your network while maintaining complete control over project execution. By focusing on your specific area of expertise and cultivating strong relationships with your clients, you can build a successful and rewarding career as a solo consultant. If you want to find your first clients as a solo consultant and build your network, sign up for Kounselly to provide your consulting services!3.2.2. The Consulting Firm Model
In the consulting firm model, you have to not only work on client projects but also be responsible for running the business itself. This model can be an excellent choice if you want to build a business that runs efficiently without your constant involvement. By assigning day-to-day tasks to your team, you’ll have more time to focus on expanding your client base and finding new business opportunities. However, this model may not be suitable if you hate managing people, making payroll, or lower profit margins. For example, John runs a marketing consulting firm that specializes in helping small businesses grow their customer base and brand awareness. Instead of working on client projects, he supervises a team of content writers, designers, and strategic planners who carry out projects for their clients.3.2.3. The Productized Consulting Model
The productized consulting model is a unique approach where you leverage your expertise to create a streamlined and repeatable service that delivers predictable outcomes for your clients. This model is ideal for consultants who want to build a scalable business while removing themselves from the day-to-day work. However, it’s important to note that this model is not for everyone. Consultants who enjoy new and exciting projects may find the productized model too restrictive. Moreover, creating a productized service requires a significant amount of experience and expertise in a particular field, as well as the ability to train and manage others to deliver the service.3.2.4. The Hybrid Consulting Model
The hybrid consulting model combines the best aspects of the previous 3 models to create a unique and personalized business structure. You will pick and tailor your business to suit your preferences and the needs of your clients. This model is ideal for consultants who have been in the industry for many years and have a clear understanding of what works best for them.3.3. How to start a Consulting Business: Find your target market
Choosing your target market is just as important as choosing your area of expertise. Instead of trying to help everyone, focusing on one specific client base can significantly improve your chances of success in your consulting business. When choosing your target market, consider two essential questions:- What industry are you interested in?
- What is your ideal business size?
3.4. How to start a Consulting Business: Build a business plan
Now that you have a clear understanding of your consulting business’s direction and target market, it’s time to organize your thoughts into a comprehensive business plan. A solid business plan is essential to ensure that you have a clear roadmap to follow and to attract potential investors or clients. Here are some important questions your business plan should answer:- What are your goals?
- What are your advantages and disadvantages?
- What is your target market?
- Who are your main competitors?
- What makes you different from your competitors?
- How will your business be structured, financed, launched, and grow as you do?
3.5. How to start a Consulting Business: Create your consultation price
Determining a suitable price for your consulting services can be challenging when starting a new business. It is important to establish a pricing structure that aligns with your level of expertise, the standard consulting rates for your industry, and your financial goals. You can start developing your pricing structure by researching how your competitors charge but remember that being new to consulting doesn’t necessarily mean you have to keep your rates low. Consultants typically use one of three ways: hourly, per project, or on retainer. You can choose the structure that suits you and meets your client’s expectations.3.6. How to start a Consulting Business: Prepare your proposal
If you want to succeed as a consultant, it’s essential to prepare your proposal for your clients. One way to save time and increase your efficiency is to use a consulting proposal template that you can modify and customize to fit the specific needs of each client. This proposal template should include:- The work you aim to do
- The project’s objectives
- Terms of the agreement
- Project duration
- Pricing
3.7. How to start a Consulting Business: Market your consulting services
There are many marketing channels available to promote your consulting business. Marketing across multiple channels can help you increase brand awareness, engage with a broader range of customers, as well as maintain a competitive edge over other consultants.3.7.1. Build your website
Almost everyone looks for consultants on Google so having a website for your new consulting business is critical. Having an online presence not only helps you generate new customers through internet searches, but it also allows you to share your website with other people, just like a digital business card. There are many platforms like Squarespace, Wix, and WordPress… that can help you build a clean and responsive website. At the minimum, your website should include:- An overview of your consulting services
- Prior client testimonials
- Contact information
- A domain name
3.7.2. Blogging
Your website is a great platform to publish a blog, which not only aids in building domain authority but also enhances brand awareness through original content. You can also publish your content on other established websites, particularly in the early stages of your consulting business. This can include:- Guest posts for established websites
- Building a Medium account
- Posting articles on LinkedIn