5 Tips for Starting and Growing a Consulting Business

So, you think that consulting might be your ticket to success? It certainly is for many.

Obviously, there are consulting entrepreneurs who are making it. According to a report from the career resource center of the University of Buffalo, the consulting industry has been on a “sustained binge growth over the past decade.” In fact, in 2016, the global consulting industry was worth more than $250 billion.

On the other hand, there is a concerning statistic about service industries as a whole. The current failure rate is 55%. Obviously, you want to be in the 45% that achieve success.

Here are six tips that may move you onto that path to success.

1. Marry Your Expertise and a Gap

“Companies have one reason for needing consultants,” said Lisa McClung, Managing Principal at Lismore International, a global advisory firm that is pioneering new ways to accelerate business growth. “There is some gap between what they need and the ability to mobilize internal resources to be successful. Outsourcing to a consulting firm rapidly brings talent and outside perspective to the table – much faster than hiring.”

That’s a powerful pointer for any consultant. Your job is to determine how many organizations or businesses have a gap in your area of expertise. If there are many, then you have good potential.

2. Before You “Put Out Your Shingle”

Ask yourself:

• Is your knowledge totally current? If not, get thee to some education/training pronto.
• Do you need any licensing or certifications? Certifications can be especially important in IT, for example. Tax accounting, real estate, etc. do require licenses.
• How organized are you? Consulting is a business – it’s about meeting client needs and deadlines, marketing, preparing proposals, accounting, scheduling, etc.
• Are you a “people person?” consulting relies on relationship building

3. Craft a Business Plan with Goals

Are you diving in full force or are you going to begin part-time while you keep your current employment?

• Who is your target market? How will you reach them?
• Who is your competition – can you offer something better or more unique?
• What are your pricing points? Hourly or by project rate?
• What is your financial plan and goals – start with short-term. Where do you want to be in 12 months?

4. Set Up a Workplace

Home is great if you have the space. This saves you on office rental and gives you flexibility. Barring that, consider shared office space with other entrepreneurs – it’s much cheaper.

5. Think About Marketing

This is your biggest challenge. Nothing happens until you have that first client. Consider all of these options:

• Networking – Join local and online networking groups. Join as many as you can and get to every meeting
• Consider traditional methods for local targets – calls, ads
• Spend the money to get an amazing website and a blog. If you don’t have this expertise, hire it.
• Research where your potential clients are on social media. Get onto those platforms and be extremely active.
• Contact business associates you know and ask for referrals.
• Join online forums and groups of related niches – become active in discussion groups
• Advertise in niche professional journals

Getting that first client is huge. Do an amazing job, and you have a great reference and the start of a portfolio.

Making yourself more attractive to potential clients and ensuring that current and past clients are thrilled. Here are some other things to consider:

• Be Flexible: Do not have “carved in stone” packages that are not amendable. Offer options, a variety of packages, and work with a potential client’s budget.
• Consider a partner in a related niche: you can expand offerings and grow the business faster
• Never promise what you cannot deliver. Relationships require honesty and trust. Be that honest, trustworthy person.