Starting a business of any kind is difficult, but creating one to assist others in running there more successfully is even more difficult.
Whether your area of expertise is HR (managing a company’s workforce, including sourcing, selection, hiring, and ensuring compliance), strategy (improving performance, perhaps through workflow management), technology (delivering and implementing new software solutions), or any other consulting service that will assist other businesses in improving and growing, a niche is typically an excellent place to start.
The client wants advice but does not want to hire the advisor full-time in any of these situations. Here is where you step in. You might be about to launch your own consulting business if you have skills and knowledge to share and enjoy the idea of working for yourself.
Nine steps to launching a consulting business
There has never been a greater need for competent consultants than there is now, as work processes become more complex and our economy becomes more globally integrated. IBISWorld predicts that the consulting sector will generate more than $261 billion in revenue by 2020.
According to Christy Hopkins, the CEO of Chicago-based 4 Point Consulting, “it’s cool right now to say you’re an independent consultant.” “I provide a range of services that vary depending on the client while consulting on human resources for numerous small businesses across the nation. If the needs and cultural differences, the same can be done in various ways.
Consider taking the following actions to position yourself as an influential voice in the industry once you’ve determined a niche for the consulting you provide.
Step 1: Assess your strengths and skill set
Businesses frequently use consultants to address issues they cannot handle independently. Otherwise, why would they pay you—someone who does not know their business—to enter and instruct them? To add value to your clients when starting a consulting firm, it’s critical to possess extensive knowledge in a particular field.
You can think about a variety of consulting options for your company. For instance, if you have extensive computer knowledge, you could start a business as an IT Consulting Firm NYC.
There are numerous opportunities for public relations, accounting, digital marketing, and business strategy experts.
Consider your strengths to determine how you can be of assistance. It’s essential to take an honest inventory of your strengths and weaknesses, so you can work on bridging any gaps. Also, remember that you might need special certifications or licenses before becoming a consultant, depending on your area of expertise. For instance, having a certificate from the National Society of FundRaising Executives is beneficial if you work as a fundraising consultant.
Step 2: Determine the requirements of your market
Consider the questions, issues, and pain points businesses in your chosen field of expertise have once you’ve determined your niche. Simply having a solid skill set and a wealth of knowledge in your area is insufficient. You’ll find yourself floundering if companies don’t have problems that your consulting firm can help them with.
Asking is the best way to learn what your market wants and needs. Begin by searching online for blogs in your niche. On what topics do the thought leaders write? Where does it appear to be very confusing? Is there a contentious discussion about a specific topic in forums or comment sections?
By using your network, you can also identify market pain points. Who can you think of, for instance, who owns their own company, collaborates with digital marketers, or is a digital marketer themselves if you want to launch a digital marketing consultancy? You probably know a lot of people. Inquire about their difficulties in achieving their short- and long-term objectives. Then determine how you and your company can assist.
Step 3: Get on board the organic marketing bus.
As a freelance consultant, it will be entirely up to you to increase your clientele and maintain a steady workflow. The best way to do this is through marketing, but organic marketing is always the best.
Hopkins claims that Upwork was less well-known and had more lucrative contracts a few years ago. Hopkins used Upwork to launch her business. Hopkins claims that her first client is still her client today and that she has grown primarily without using advertising.
“I consider it a great blessing that my company has grown naturally. I’m not sure if that’s typical, but from my own experience, I always try my hardest. I have a lot of organic referrals because I’m very honest, ethical, don’t overcharge, and am willing to work within budgets,” she says.
Organic marketing offers two distinct benefits to business owners. First, business owners frequently know and can recommend other businesses to you. If you get along with someone, you’ll probably get along with one of their friends because like tends to attract like.
The absence of costs is the second benefit of organic marketing. Hopkins chuckles, “I’m biassed on how well it works for business because it’s free.
Step 4: Invest in the necessary equipment.
Hopkins established her company using industry-standard technological tools that allowed her to develop and maintain relationships with customers, potential employees, and her assistant.
She states, “I use three different kinds of web-based software for posting jobs.” MightyRecruiter has a system that feeds to Indeed, Monster, LinkedIn, and all the job sites you can think of, saving you time and consolidating candidates in one location. For entry-level jobs, ZipRecruiter is a good option. A two-tiered recruiter service is available on LinkedIn for proposing candidates or referrals.
While ZipRecruiter costs $1,000 per year, MightyRecruiter costs $300 per month. RecruiterLite from LinkedIn costs $150, while Corporate costs $700. Hopkins spends a total of $500 per month on these hiring tools, which give her access to job seekers looking for anything from data scientists to culinary jobs.
To strengthen customer relationships, Hopkins also advises investing in video conferencing software, which costs about $200 a year.
She claims they “click in” and “feel like they know me.” “They understand me because I’m 5’2″, have a big personality, blue eyes, and talk with my hands—even though I don’t have an office space.”
Beyond these tools that are specific to consultants, new consultants should also spend money on things that almost all new small business owners buy: a website ($2,000 for a great, navigable site plus around $200 for hosting), business cards, setting up an LLC (costs vary by state), opening a business checking account and business credit card, and hiring an accountant to review the books and file taxes (about $700 annually for a small business).
Step 5: Choose your employees carefully.
The amount of work you must do will determine whether you need (or want) staff to assist you. No matter how zen you may be, working seven days a week and 12-hour days isn’t sustainable, though it is undoubtedly possible if you successfully expand your business.
For Hopkins, there is no benefit to taking on more work than she can handle now. However, she hired an on-call assistant who lives abroad and works part-time doing the grunt work of consulting.
She says, “I can work with the client to put together the job spec, and he can find the résumés, the people, and the LinkedIn profiles, which is an arduous uphill battle, and I can outsource those hours to him. We have a business-to-business relationship, and he also owns his own company. He records 50 hours for me in some months and none in others.
Since her assistant is an American living in Budapest, they communicate via Skype. Since “there’s a tonne of talent right here,” she wouldn’t ordinarily hire someone from outside the United States, but the two clicked right away on Skype. If not, she might employ a few interns from her previous graduate program to assist with sourcing.
Step 6: Practice your elevator pitch
If you can’t make and close the sale, having a solid marketing strategy, cutting-edge tools, and an impressive skill set are all for naught. Your elevator pitch is the first step in persuading potential customers to choose your consulting firm.
Your elevator pitch should be a concise summary of the issues facing your target audience, the solutions you have to offer, and how you stand out from the competition. Keep your pitch to a maximum of three sentences even though you may be extremely passionate about the services you provide and the problems in the industry.
To put it in a broad perspective, your value proposition is your elevator pitch. When a potential client is interested in learning more after hearing your value proposition in its simplest form, you can continue to tell your story and go into greater detail about your consulting services.
Step 7: Write client proposals
Writing a client proposal is frequently the last step in gaining a new client. This typically happens before the customer signs on, effectively closing the deal. Writing proposals is a crucial component of generating business for your consultancy.
Your opportunity to demonstrate how you can help your client and address their issue is through client proposals. As a result, it’s essential to be clear about the project’s purpose, the reason you’re providing consulting support, and the timeline for completion. Additionally, it’s crucial to be clear about all the project’s components, including deliverables, the budget, and the metrics you’ll use to gauge success. Be specific, persuading, and close to the client.
Step 8: Establish your prices
Proposals must include costs. When you first start, it cannot be easy to price your consulting services. Hopkins’ formula is simple.
“First, I converted my HR manager salary to an hourly rate. That’s consultant underpayment. I’ve doubled that hourly rate “says
I told them my hourly rate was increasing by 25%, and they all objected, “Done. I ran their numbers. Even though I’ve only pitched clients at the new rate, no one has said I’m overpriced. I’m probably undercharging, but I enjoy working with startups and small businesses.
Step 9: Maintain organization and produce results
Once your consulting business runs smoothly, you must maintain organization and produce results to attract repeat business and referrals. See where you can automate some processes first. Perhaps you can switch to an online bookkeeping program like QuickBooks or get paid electronically rather than by check. You can manage your clients with the help of software like Infusionsoft. Consider using a virtual assistant if all else fails.
Considerable consulting specialties
How do you choose a field to specialize in if your knowledge applies to several industries? When you first start, you might want to think about concentrating in an area with steady demand. Instead, you might spot a budding industry and cultivate a reputation as a subject-matter authority. Here are some ideas for consulting specialties to take into account:
Accounting
Indeed, working as a freelance accountant is a form of consulting. You’ll assist businesses in managing their books and financial requirements as accountants. Anyone with a background in bookkeeping is qualified to work as an accounting consultant, though it helps to be a CPA if you’re thinking about going independent.
Branding
Businesses can hire you as a brand consultant to help them improve their brand voice and image. As a brand consultant, you’ll work to understand a company’s customers before creating a brand that will help it connect with its target audience. A background in marketing is advantageous if you want to work as a brand consultant.
Internet site
Web design is a further area where many businesses are in need. As a web design consultant, you will work with companies to develop a website consistent with their brand and meet their functional requirements. An understanding of computer engineering is advantageous.
People resources
Like Hopkins, you can work as an HR consultant, advising companies on the best ways to keep their workforces happy and engaged and helping them with their staffing and employee management responsibilities. Everything from job descriptions to assisting with onboarding could be part of this position.
The conclusion
You must have the knowledge, tools, and self-assurance to assist other business owners in getting back on track regardless of how big or small, expensive or inexpensive, locally based or solely online, or brick and mortar your consulting business will be. Everything else revolves around controlling expectations and workflow. Further you can also take help of some best IT Consulting Companies in Dallas which can guide you about your business.
