10 Tips on Starting a Consulting Business
Considering starting your own consulting business?
I’ve been there. In fact, I left a vice president position at a market research firm to become a planning and market research consultant. After some rocky months at the beginning, I made it work.
I worked as a consultant for 12 years, between leaving Creative Strategies International and starting the product business for Palo Alto Software.
Here are 10 tips for aspiring consultants:
Contents
- 1 1. Take it seriously
- 2 2. Never apologize for being on your own
- 3 3. Start with a consulting contract from your previous employer
- 4 4. Plan for late payments
- 5 5. Under promise and over deliver
- 6 6. Start small to demonstrate your skill
- 7 7. Clearly define and document your schedule and deliverables
- 8 8. Use a boilerplate proposal
- 9 9. Avoid lengthy legal contracts
- 10 10. Let go of unhappy, unprofitable, or unproductive clients
- 11 Plan for success
1. Take it seriously
Establish credibility. Have a website, business cards, and a social media presence for your consulting business. Don’t let clients doubt you.
2. Never apologize for being on your own
If you work from home or a small office, be genuine. Take meetings at your clients’ offices.
A powerful manager once told me, “I like working with individual consultants because I don’t want to pay for overhead. I want to work directly with the person who does the work.”
3. Start with a consulting contract from your previous employer
Most successful consultants begin with a reliable client, often their former employer. If that doesn’t work out, find one big client to reduce your risk.
4. Plan for late payments
If big companies pay late, have a bank line of credit to survive. Don’t hassle your clients for prompt payment. Keep informed about payment schedules.
5. Under promise and over deliver
Repeat business is key. Deliver your best work even when it’s challenging, as it’s four times harder to find new clients than to retain existing ones.
6. Start small to demonstrate your skill
Showcase your abilities with quick, small jobs for new clients. A small commitment is easier to sell and gives you time to build trust.
7. Clearly define and document your schedule and deliverables
Expect scope creep and handle it diplomatically. If additional work arises, suggest additional fees.
8. Use a boilerplate proposal
Include pre-written text about your background and qualifications in your proposal. Provide clients with the formality of a comprehensive proposal.
9. Avoid lengthy legal contracts
Offer a simple commitment letter. Negotiate terms related to intellectual property and work product, but try to minimize contract complexities.
10. Let go of unhappy, unprofitable, or unproductive clients
If there is constant pressure and complaints, propose significantly higher fees for follow-on jobs. Handle late payments and explore the root of the problem. Write off debts and move on.
Plan for success
I hope these tips help. I enjoyed relying on consulting for my livelihood for 13 years. I liked most of my clients and the ever-changing nature of the job. I wish you the same success.
To prepare for your consulting business, write a business plan. Check out our business consulting business plan example and free template to get started.
Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.
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