Being a business consultant is one of the most challenging and rewarding jobs you can have. Each and every day you are setting out to help other businesses succeed.
The path to becoming a successful business consultant is not going to be the same for everyone. Some people know that they want to be a consultant at an early stage and make sure to take appropriate steps such as going to business school, joining a consulting club, and matriculating into a top consulting firm upon graduation. Many others find their way into consulting as a part-time “side-hustle”.
If you have been using consulting as a side job and want to turn it into your full-time gig, then keep reading along. This post will share 5 tips on how to get started.
1. Find Your Niche
In some ways, a consulting business is one of the easiest businesses to start since people often get into consulting after working in a specific industry for a number of years. Consulting is a way to capitalise on your expertise, gain greater ownership over your work, and potentially improve your work-life balance. Although this is a common approach to getting into consulting, there is way more to it than just having a few contacts and knowing about a certain sector.
In reality, the consulting industry is extremely oversaturated, and it can be difficult to build and maintain success in a crowded market. In order to increase your chances of not merely surviving but thriving, you need to find a niche where you can excel and offer value.
There are many different business consulting niches, and so you should choose one that is right for you based on your own skills and experience. Some types to consider include sales, marketing, tech, and HR & diversity consulting.
Although “diversity” is to some extent a political buzzword, it is clear that young people care about the culture of the organisations they are joining. While on one level it is counterproductive to constantly change the culture of a firm to suit prospective employees, it is also true that top graduates receive many offers and often decide to reject firms that are not aligned with their values. As a result, companies can avoid scaring away the brightest young minds by spending money to understand the issues that are important to them.
2. Create a Plan
Like any other business, a consulting business needs to have a plan. To get started, think critically about key aspects of your strategy and business model. What is your short term goal? What is your long term goal? What products and services will you offer? Can you function successfully as a freelancer or do you need to assemble a team?
As you address the big questions, write down your plan. You can do this the traditional way by preparing a detailed and formal business plan, or you can explore the nine core components of your business model using the business model canvas.
3. Take the Leap
If you want to use business consulting as your primary job, then you will need to take a “leap of faith” and dedicate yourself to this new role.
While it is a good idea to keep your regular job for as long as possible in order to save up some cash for your prospective business, there will come a point when you need to commit to your new venture. A decision that every prospective business owner must eventually make is when to quit the day job. It is a big risk to take, financially, emotionally, and socially, but it can’t be avoided indefinitely. A good time to do this is after you have created your business plan or business model canvas, and are confident that you have the resources you need to successfully execute your plan.
When you walk away from your job, leave on good terms. Consulting success is driven by the strength of your relationships, and you never know who may need your help.
As a new business owner, you will likely find that all of your time is eaten up by your new business. That is a good thing! The initial set-up of your business will be extremely time consuming because it involves building the systems and infrastructure that you will rely on going forwards. Your initial income may be lower than what you received as an employee. As a result, you will need to focus not only on serving your clients but also on saving money and limiting unnecessary expenses.
4. Invest in the Business
As an employee, you earn a salary and resources are provided for you by your firm. As a business owner, the onus is on you to invest in the business. This can require a change in mindset.
Investing in a venture can be expensive, especially in the early stages, but if you do it in the right way then it will help to aid the growth and success of your venture down the line.
To create a business budget plan, you need to think about the details of your business. You cannot create a budget without knowing your costs (things like rent, equipment, business licences, certifications, salaries, and marketing) or having a reasonable forecast of your projected income. In the beginning, it may be difficult to pin down these numbers, but having a ballpark figure will give you an idea of how much funding you need.
The best and easiest way to fund your new venture is with the savings you accumulated during your time as an employee. A second best option is to convince your deep pocketed father-in-law to back the initiative. However, even if you think that will be enough, it is prudent to have additional sources of funding available. If your consulting business is generating revenue, and you want to accelerate your growth, then you might consider taking out a personal loan. Although many former employees view a business loan as risky, not having access to the funds you need to grow your venture could be even more costly. A bank loan also acts as a life boat. You may never need it, but if your business hits an iceberg, you will be glad that you have access to it.
5. Get Out There
The world of business consulting can be difficult to break into, so you need to get out there and network with business people in your chosen sector and in your local area.
Consider hiring a local advisor to help you identify opportunities and discover events, workshops, and groups that you can join to raise your visibility. Attend networking events and volunteer as a speaker. Join relevant social media groups and be generous in sharing your insights. Develop a marketing campaign to launch your new business.
You should also create a business website that details your products and services. Your website does not have to be cutting edge, just a page that showcases the most important details about your business. If you need help starting one, you can use a site building service, create a simple WordPress based website, or hire a developer.
Final thoughts
Getting started is tough, but once you take the leap into consulting and land your first few clients, your confidence and future prospects will start to improve!
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