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What To Do After Consulting: How To Become An Entrepreneurial Consultant

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If you’ve been working at a consulting firm, and are now ready to strike out on your own, you might be wondering what you should do with all of your consulting experience.

Maybe you’re feeling tired of being a road warrior, traveling to and from client sites at the expense of time with your family? Had enough of sleeping in hotel rooms and eating out while you can feel your health is being impacted?

Or maybe you’re tired of not getting paid what you’re worth? You’re getting a fraction of what your firm is charging clients — and despite doing most of the work, are making just a small slice of what you know you deserve.

Is it possible you’re feeling stuck working with clients or on projects you don’t truly enjoy? Are you ready to realize your true potential: to earn more freedom and an unlimited income potential doing work you enjoy with hand-picked clients?

If any of these ring true for you, leaving your firm to start your own consulting business is likely the best move you can make right now.

We’ve helped consultants from many of the top professional services firms — like McKinsey, BCG, Accenture, Bain, KPMG, and more — go from consultants working at firms to consulting business owners.

And in this article, we’ll show you how to transition from employed consultant to entrepreneurial consultant.

Let’s dive in.

We’ve helped consultants from many of the top professional services firms — like McKinsey, BCG, Accenture, Bain, KPMG, and more — go from consultants working at firms to consulting business owners.

What Is An Entrepreneurial Consultant?

An entrepreneurial consultant is a business owner who provides expert advice in a particular field or industry.

A consultant…

  • Provides expert advice professionally;
  • Works in a specific field or industry;
  • Diagnoses problems, recommends actions and solutions.

An entrepreneur…

  • Owns & operates a business;
  • Solves problems and makes the most of opportunities;
  • Attempts to make a profit through selling their products or services.

An entrepreneurial consultant is one who runs a business where they provide expert advice in a particular field or industry.

what to do after consulting: consultant vs entrepreneur

So, an entrepreneurial consultant is one who runs a business where they provide expert advice in a particular field or industry.

More on this in our article: What Is An Entrepreneurial Consultant? (Examples & Stories)

If you’re reading this, you don’t want to just consult. You want to start and operate a consulting business.

If you’re a consultant who’s employed at a firm —and you want to become an entrepreneur — then entrepreneurial consulting is the quickest path.

Your Advantages & Challenges

As a consultant coming from an established consulting firm, you have many advantages for starting a consulting business.

However, you also have some disadvantages and face certain challenges.

I’ll cover those in this section.

Your Advantages

  • Frameworks & Tools: You have the skills, methodologies, and tools to engage with your clients — and most importantly, get them results. You know how to deliver projects.
  • Best Practices: You understand the best practices of the consulting process. You know how to understand the client’s problems, analyze their situation, give them advice, and solve their problems.
  • Network: You have a network of other consultants and former clients you can access. You can potentially reach out to past clients and win them as your first client. (NOTE: Make sure that you check your employment agreement before you do this)
  • Global Access: If you’re coming from a larger firm, you can access people from around the world. Even if you relocate, you won’t have an issue getting in touch with valuable contacts.
  • Insider Knowledge: You understand the pros and cons of working at a bigger firm. You know what bigger firms are really good at, and where they are lacking. That enables you to “fill the gap” and turn your previous firm’s weaknesses into your strengths.

Your Disadvantages

  • Branding: You don’t have a big name behind you. When you say you’re with McKinsey or BCG, you leverage that in your marketing. But now, you no longer have that same credibility. You aren’t your previous employer, so you’ll have to establish your own brand from scratch.
  • Reliance On Infrastructure & Systems: At a larger firm, you have access to whatever resource you need. The company provides it for you. However, just because you had that same infrastructure before doesn’t mean you’ll need it when you start your own consulting business. When you’re employed at a firm, you’re trained to focus immediately on systems. But on day one of starting a consulting business, your job is to land your first 3-4 clients.
  • Business Development: You had a firm that helped you do business development and get clients. When you’re on your own, marketing and sales are all up to you. When you’re working inside a large firm, you’re selling that large firm. That’s easier than promoting yourself. When you start your own consulting business, you’re highlighting yourself: your accomplishments, track record, and expertise.

Once you know how to market yourself and win clients, you’ll never have to work for anyone else again.

6 Steps To Transition From Employed Consultant To Consulting Business Owner

The bottom line is this: if you want to become a consulting business owner, ditch the business plan. Go out and land your first 3-4 clients. That’s “service-market fit” — validation that there is demand for your expertise and that you can build a profitable business around that. Here are 6 steps to help you do that.

1. Choose Your Transition Strategy

You can either start consulting on the side while you’re still employed (the side transition), or you can go all-in: quit your job and start a consulting business (the all-in transition). 65% of consultants use side transition. 35% choose the all-in transition. Which one you choose depends on your relationship with your employer, your level of risk tolerance, and your financial runway.

READ MORE HERE: Transition Strategies For Becoming A Consultant

2. Get Clear On Your Ideal Client

The quickest and fastest way to get your first few clients is to be a specialist. And that means narrowing down and achieving “Ideal Client Clarity.” Ask yourself: what clients do you like working with best? What industry are they in? What size is their company? Where are they located? What’s their level of seniority? What’s their job title? This is one of the most difficult parts of starting a consulting business. And that’s why it’s one of the first modules we teach in our Clarity Coaching Program.

READ MORE HERE: The Key to Developing Clarity On Your Ideal Clients

3. Articulate Your Unique Advantage

When Richard Koch left Bain to start his own consulting business, he found himself in a bind.

How was he supposed to compete with his former firm? He didn’t have the brand, authority, or credibility. He had to figure out why prospects would work with him instead of Bain — or any other established firm, for that matter.

Richard created shareholder valuation and advisory services because the big firms weren’t offering them at the time. And as a result, he found a place in the market for his new firm: LEK Consulting.

As a new entrepreneurial consultant, you have to analyze your market. What’s not being offered by other firms? Where are the value-creation opportunities that they aren’t taking advantage of? Or, how can you take an existing service and offer it to a different target market?

You’ll need to get clear on what you bring to the market that is different or unique. For example, you’re an IT consultant who brings systems to the cloud. Perhaps Fortune 500 companies go to McKinsey for that. But what about the mid-market companies who can’t afford McKinsey? That’s your target market.

READ MORE HERE: Consulting Offers: How To Create, Sell, & Improve Your Offers

4. Create Your Magnetic Message

Now, you’ll write your “elevator pitch.” It’s also frequently known as the “unique sales proposition” or “unique value proposition.” For consultants, we call this your Magnetic Message. Here’s the formula: I help [WHO] to [solve WHAT problem] so they can [see WHAT results]. My [WHY choose me. This message attracts the attention of your ideal client like a magnet. And it helps start conversations with them. Think of it as the foundation of your marketing: the communication you do to attract the attention of prospective buyers.

READ MORE HERE: 8 Powerful Value Proposition Examples (& How To Write Yours)

5. (Re)Active Your Network

The easiest marketing you will ever do is reach out to your network. First, make a list of everyone you know (you never know who will provide a referral). Second, send each of them an email asking about them, and updating them with what you’re doing (your magnetic message). Third, for those who respond, catch up with them on a call. With a targeted message, your colleagues will naturally think of people they can introduce to you. There’s a good chance that this “Network Reactivation Campaign” will lead you to your first consulting client.

READ MORE HERE: Use This Sales Follow-Up Email To Get More Clients

6. Create & Share Compelling Content

As an entrepreneurial consultant, content is an excellent way to market yourself. It allows you to develop your expertise, positions you as a thought leader, and offers value to your market. By creating and sharing content, you’re also creating an asset that markets your business for you. But it only works if you commit to it. That being said, we’ve worked with clients who don’t do much content. Instead, they focus on networking and direct outreach to generate conversations with buyers. Use both methods, and you’ll create a powerful Marketing Engine — one where you’re generating multiple calls with your ideal clients per week.

READ MORE HERE: Thought Leadership Marketing For Consultants: Quick-Start Guide

Get Expert Help Making The Transition

If you’re looking for your next career move — and you want control over your schedule, an unlimited income ceiling, and to reach your full potential — then becoming an entrepreneurial consultant is your best bet.

We’ve laid out the path for you in this article. These are the same steps that we’ve taught consultants from the top firms on how to start their own boutique firms.

Once you know how to market yourself and win clients, you’ll never have to work for anyone else again.

You’ll run the show.

Your clients.

Your pricing.

Your schedule.

Your team.

Your life.

In our Clarity Coaching Program, we’ll teach you how to do that step-by-step: helping you make the transition smooth and seamless.

We’ll work hands on with you to develop a strategic plan and then dive deep and work through your ideal client clarity, strategic messaging, consulting offers, fees and pricing, business model optimization, and help you to setup your marketing engine and lead generation system to consistently attract ideal clients.

Learn more about Clarity Coaching and get in touch to talk about your situation and goals.

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