starting a consulting firm business plan pdf

Consulting Business Plan: Complete Consultant Template & PDF

This consulting business plan is a comprehensive copy/paste example that includes an operating and marketing plan for any kind of consulting business. You can download it and make edits to create a plan for your business, whether you’re a startup consultant business or an existing consulting firm that wants to grow faster.

(Estimated reading time: 19 minutes)

Table of Contents

Consulting Business Plan Template

This plan for consultants contains in-depth information to build your own version. Simply modify the examples in this consulting plan to fit your specific line of work and you can quickly create a plan for industries such as (but of course not limited to):

• management consulting business plan
• advertising and marketing agency business plan
• healthcare consulting business plan
• IT consulting business plan
• fintech consultant business plan
• environmental consulting business plan
• security consulting business plan
• software consultant business plan

This business plan for consultants covers the following topics that go into a plan: your service list and descriptions, target market, marketing strategies for consultants, competition, and financial projections. You can download this example plan as a Google Doc for easy editing in Google Docs, Microsoft Word, Apple Pages, or save it as a PDF:

How to Use This Consultant Business Plan to Attract Clients

• Consulting Business Plan Template – This section provides guidance on what to include in each part of your business plan.
• Sample Consulting Business Plan Text – This part includes actual text from a real consulting business plan example that you can use as-is or modify to fit your specific needs.

Since many consulting businesses are established by solo practitioners, this consulting business plan example will focus on one-person firms. However, if you have partners or are part of a larger company, you can easily adapt this plan by replacing singular pronouns (I) with plural forms (we).

To help you chart a revenue course to starting your consulting business, this business plan example also includes a brief overview of a marketing plan. I recommend taking a look at (even downloading) my detailed marketing plan example as a model for yours.

Sample Consulting Business Plan

Let’s begin with the sections that make up your consulting business plan. I include sample text below the description of what to focus on within each section.

The first section of your business plan introduction is critical for framing your consulting practice.

1. Consulting Business Plan Executive Summary

Here are the key topics to focus on in this section of your consultant business plan:

• An introduction to your consulting business and the services you offer
• A summary of your target market and their needs
• Your key differentiators and what sets your consulting business apart from competitors
• Your approach to delivering high-quality consulting services and achieving measurable results
• A summary of your marketing strategy and how you plan to reach your target market

Consultant Business Plan Executive Summary Example

I specialize in strategic planning, market research, and growth strategies for small and medium-sized technology businesses that cater to the financial sector (i.e., fintech). Additionally, I offer consulting resources such as training programs, workshops, and customized solutions tailored to each client’s unique needs.

My consulting business is built on the belief that every business has the potential for growth and success. To achieve this, I work closely with my clients to understand their goals and challenges, and develop customized solutions that help them achieve their objectives.

My target market consists of small and medium-sized businesses in the financial technology industry, a.k.a. fintech, who are looking to make their operations more efficient based on data and methodical research. My management consulting services are tailored to meet their unique needs, and my approach is focused on delivering measurable results that align with their business objectives.

What sets my consulting business apart from competitors is my focus on collaboration and transparency. I believe in working closely with my clients to develop solutions that are customized to their specific needs, and I keep them involved in the process every step of the way.

To reach my target market, I will establish a strong online presence through content marketing and search engine optimization (SEO for consultants). I will leverage social media platforms to engage with potential clients and showcase my expertise in the fintech industry as a top consultant.

My consulting business is committed to helping businesses solve challenging business management problems that require rigorous analysis and careful calculations. With a focus on delivering innovative solutions and building strong relationships with my clients, I am confident in my ability to help businesses succeed and thrive in today’s competitive market.

2. Consulting Business Plan Service Description

Every consulting business description is slightly different. I’ve provided two variations in this section so that you can identify which one resonates best with your goals. Each version provides similar information, but is structured differently. I have also included consulting service description examples for each version.

Version 1: Service Description

Focus on these elements for this section of your business plan:

• The types of consulting services you offer and their value proposition
• A description of the types of clients you serve and the problems you solve for them
• A summary of your consulting methodologies and tools
• An explanation of the benefits your clients can expect to receive from your services

If you are an independent consultant or small group, even in serving in a consulting capacity at a different firm, you can introduce the fact that your years of experience enable you to offer the same caliber of services that larger more expensive firms provide at significantly higher rates.

Sample Consulting Service Description

• Achieving product-market fit
• Improving operational efficiency
• Enhancing strategic planning and decision-making processes
• Implementing change management initiatives
• Developing growth strategies and market expansion plans
• Optimizing financial performance and risk management

My consulting methodologies are based on a data-driven approach that combines qualitative and quantitative analysis to identify and solve business problems. I use a variety of tools and techniques, including process mapping, benchmarking, and SWOT analysis to develop customized solutions for each client.

Working closely with my clients, I help them develop actionable plans and implement them efficiently to achieve measurable results. By leveraging my expertise and experience, my clients can expect to:

• Improve profitability and reduce costs
• Increase efficiency and productivity
• Enhance customer satisfaction and loyalty
• Expand into new markets and drive growth
• Stay ahead of the competition and achieve sustainable success

I will share examples of past projects that provide a detailed framework along with results to show clients what they can achieve by hiring my consulting business.

With my 15 years of niche industry experience and wealth of successfully completed projects, I am able to offer exceptional high caliber service at lower overall rates than larger firms. My management consulting services are designed to help businesses achieve their full potential and thrive in today’s competitive marketplace.

Version2: List of Business Consulting Services

Before you start writing this section, ask yourself the following questions to help define and refine your consulting services. For this consultant business plan example, I’ve included the following prompts to focus on what a management consultant would focus on. Tweak these as needed for your line of consulting.

• Types of consulting services : Describe the different types of management consulting services you offer, such as strategy consulting, organizational design, change management, or project management.
• Delivery methods : Explain how you deliver your consulting services, such as through workshops, one-on-one consultations, or online platforms.
• Benefits : Highlight the benefits of your consulting services for clients, such as increased efficiency, optimized performance, improved profitability, or streamlined operations.
• Unique value proposition : Describe how your consulting services are unique and different from those of competitors. This could include your methodology, tools, experience, or industry knowledge.
• Website URL : Include the URL of your website where clients can learn more about your consulting services and contact you for more information.

Below is my example of a management consulting services write up, including descriptions of each service, the benefits they provide, and your unique approach to delivering them. You can modify this section of your consultant business plan to fit your exact services offered.

This version is a little shorter than the one above and also includes a case study example link, since content like that will help clients understand the value you bring to the table. You can add a link like this in version 1 above as well.

Example: Management Consulting Services Offered

• Strategy consulting : We work with businesses to develop effective strategic plans that align with their mission and vision and drive business growth.
• Organizational design and development : We help businesses optimize their organizational structure and processes to improve performance and efficiency.
• Change management : We assist businesses in managing organizational change effectively to minimize disruption and achieve desired outcomes.
• Project management : We provide project management services to help businesses plan, execute, and deliver projects on time and within budget.
• Performance management : We help businesses implement performance management frameworks that align employee goals with business objectives and drive results.

Our management consulting services are delivered through a combination of workshops, one-on-one consultations, and online platforms. We use a data-driven approach that combines qualitative and quantitative analysis to identify and solve business problems. Our unique value proposition is based on our extensive experience working with businesses in diverse industries, combined with our personalized approach and commitment to delivering results.

Clients can expect to achieve a range of benefits, including improved organizational performance, increased profitability, enhanced employee engagement, and optimized project outcomes. See our go-to-market strategy case study example for details on the types of results clients can expect from our team.

3. Consultancy Business Plan Target Market and Buyer Persona

It is important to focus on a niche rather than offering generic services.

Consulting as an industry is highly competitive, so prospects may not be able to determine who is the best consultant for them. When you focus, your marketing efforts can be customized to the niche you specialize in.

Think of it this way: if you were to implement Salesforce or Hubspot in your business, would you hire a general IT consultant or a specialist in the product? A general IT consultant may have experience with different systems but may not be as familiar with the intricacies of how to set up Salesforce or Hubspot in a way that makes the most sense for your company.  A specialist, however, will have in-depth knowledge and experience and most all will use best practices for your business.

You would pick the Salesforce or Hubspot specialist without question. In my prior companies, I went through this exact exercise and hired specialists for each of these products.

Similarly, your management consulting business plan should focus on a specific target group so that you become known as a specialist for your niche.

Additionally, create a buyer persona – or a few – to get a clear picture of who you plan to target.

What Goes Into a Buyer Persona for a Consultancy

• Sample Name, Job Title and Role : I always like to give each persona a name to make it more real. Then, include the specific job title and role of the individual who is most likely to hire a management consultant, such as a CEO, CFO, or HR Director.
• Industry and Company Size : Add the industry and size of the company that the individual works in, as the challenges and needs of a small startup may be different from those of a large corporation.
• Goals and Objectives : Be sure to list the most common goals and objectives that the individual is trying to achieve, such as improving operational efficiency, increasing revenue, or expanding into new markets. These should tie into your product or service offering.
• Pain Points and Challenges : Know the pain points and challenges that the individual is facing, such as difficulty retaining top talent, ineffective decision-making processes, or lack of innovation.
• Decision-Making Criteria : Identify the factors that the individual considers when making a decision to hire a management consultant, such as experience, reputation, price, or industry expertise. This can include the influences – or rather, influenc ers , that the buyer relies on to make final purchasing decisions.
• Communication Preferences : Add what you believe to be the preferred communication channels and styles of the individual, such as email, phone, text or in-person meetings.
• Personal Characteristics : You can include the personal characteristics of the buyer, such as their values, beliefs, and personality traits, which may impact their decision-making process.

I’ve created several samples that you can download and have also provided one for this consulting business plan below.

Download 5 Free Buyer Persona Examples →

Sample Management Consulting Target Market

Given my strong background in financial technology (fintech), I specialize in working with fintech startups and small to mid-sized financial institutions.

My clients are typically looking for help in implementing new technology solutions, improving their operational efficiency, or expanding into new markets. As a fintech consultant, I help them identify market expansion opportunities where they could increase their total addressable market ( TAM ) and clarify the marketing plan to penetrate deeper into existing accounts, also known as the land-and-expand strategy.

My consulting services are tailored to each client’s specific needs and can include everything from strategic planning to project management. By working with me, my clients gain access to my expertise in fintech, as well as my extensive network of contacts in the industry.

4. Marketing for Consulting Firms

As a consultant starting a new business or growing an existing one, it is crucial to have a well-planned marketing strategy to acquire clients. In the Marketing Strategy section of your consulting business plan, you should outline how you will promote your consulting firm and services to potential clients. This section should also include information on your consulting branding strategy and how you position yourself in the consulting market.

Here are ten marketing ideas to consider when developing your consulting marketing plan, written as tactics that you can copy/paste into a consulting business plan template or PDF. You can even use ChatGPT, Bard, or other AI-writing tools to create a starter outline, but be sure to include your own original content.

Sample Marketing Plan for a Consulting Firms

To acquire new customers and expand deeper within existing clients, I will deploy the following marketing ideas for consultants and leverage partners to expand my brand’s reach:

• Developing an educational website : My website will contain information on my services, but more importantly it will include case studies and thought leadership content. The key to success will be my educational content as part of my long-term content marketing strategy. I will add lead capture forms on each high-intent article to convert website visitors into leads that I can nurture through email marketing and social media.

• Leveraging SEO : I will identify specific high-intent keywords related to my fintech consulting niche and optimize my website content accordingly. This will help my website rank higher on search engines and attract more potential clients through my educational content. Many of my articles and guides will include videos because research shows that content with videos and images enhances SEO. While many firms rely on paid advertising, using long-tail keywords can be an effective and cost-saving approach. By targeting “low keyword difficulty” and “high search volume” phrases, I can tap into organic search traffic that can continue to generate leads even after the initial investment. Therefore, as a consulting firm, I will prioritize SEO as part of my overall marketing strategy to increase my online visibility and attract potential clients. I will use MoreBusiness.com’s SEO Coaching services to accelerate my footprint online to drive sales from organic traffic.
• Podcasting with thought leadership content : I will share my knowledge and expertise by starting a podcast . This way, I can repurpose the content I create into multiple channels, including writing articles, blog posts, and white papers and using clips to sprinkle throughout my social media channels. I will also produce webinars and slide decks from these podcasts to educate my target market. Having experts as guests on the podcasts will allow me to expand my reach when the guests share posts on their social channels as well.
• Attending industry events : I will attend relevant industry events to network with potential clients and showcase my expertise. I will identify 10 unique events every quarter and inquire about speaking to build my reputation and attract new clients. My goal is to speak at least twice each quarter to new audiences.
• Partnering with complementary businesses : Partnering with complementary businesses can help me reach new clients and expand my services. These businesses would provide services such as IT managed services, accounting, legal and HR, which can lead to referral business.

• Building a referral network : I will leverage my existing network to generate referrals by first providing opportunities for others to get more business. This approach builds trust first, which can lead to getting referrals from others.
• Advertising on industry-specific platforms : I will advertise on industry-specific platforms such as trade publications, industry associations, and job boards and look at the cost-benefit of Google and LinkedIn advertising.
• Using email marketing : I will send regular email newsletters with business consulting topics to stay in touch with clients and prospects. I will send newsletters with trending topics, case studies, and other relevant content to keep them engaged and informed about the industry as a whole as well as projects related to my services.

5. Consulting Business Plan Financials

To calculate your projections, your business model needs to consider several factors such as your revenue streams, cost structure, market size, and growth potential. You’ll also need to look at any historical financial data you have to create realistic projections.

It’s important to keep in mind that financial projections are not a guarantee of your business’s future performance, but rather an estimate based on the information you have available. That’s why it’s essential to make sure the assumptions in your business plan are realistic and backed up by data.

Overall, the financial projections section of your consulting business plan is a critical component that helps you understand the financial feasibility of your business and attract investors or lenders. In the example below, I’ve included an outline of what an individual business plan consultant might put into their business plan. If you are operating with partners as part of a larger entity, modify this example to accommodate for your team’s output and productivity. This consulting plan example also includes various sources of revenue, not just billable time.

Sample Financial Projections for Consulting Business Plan

As a consulting firm, I have several sources of revenue aside from billable hours. These include:

• Retainer Fees : Some clients prefer to pay a fixed monthly fee in exchange for a set number of hours or a specific scope of work. This can provide a predictable revenue stream for the firm.
• Project-Based Fees : For larger projects with a defined scope, I may charge a fixed fee based on the work required. This allows clients to budget more effectively and can provide a higher profit margin for the firm.
• Commission Fees : For certain types of work, such as sales, I may earn a commission on the results achieved. This can be a win-win for both the client and the firm, as the client only pays for results achieved and the firm is incentivized to achieve those results.
• Product Sales : I will develop proprietary online courses to share my expertise in fintech consulting and grow advisory services with those who are not yet ready or unable to afford my consulting services. These will provide an additional revenue stream and can also be used as a freebie given to select clients to share with their staff.
• Referral Fees : By referring clients to other businesses or consultants, I may earn a referral fee. This not only provides an additional source of revenue, but can also help to build relationships and expand my firm’s network.

By diversifying revenue streams, my consulting firm can create a more stable and profitable business model. Our expected revenues for the first three years are as follows:

Year 1 Consulting Firm Financial Projections:

• Billable hours: 1,000 hours x $300/hour = $300,000
• Retainer clients: 3 clients x 10 hours/month x $300/hour x 12 months = $108,000
• Product sales: 5 sales x $197 = $985
• Commissions/referral fees: $10,000
• Total revenue: $419,985

Year 2 Consulting Firm Financial Projections:

• Billable hours: 1,400 hours x $300/hour = $420,000
• Retainer clients: 3 clients x 10 hours/month x $350/hour x 12 months = $126,000
• Product sales: 7 sales x $197 = $1,379
• Commissions/referral fees: $15,000
• Total revenue: $562,379

Year 3 Consulting Firm Financial Projections:

• Billable hours: 1,800 hours x $300/hour = $540,000
• Retainer clients: 3 clients x 10 hours/month x $400/hour x 12 months = $144,000
• Product sales: 10 sales x $197 = $1,970
• Commissions/referral fees: $20,000
• Total revenue: $705,970

6. Consultant Business Plan Conclusion

The conclusion section of a consulting business plan should summarize the key points of the plan and reiterate the main goals and objectives as you start your consulting firm. It is similar to your executive summary and should reinforce the value that your consulting firm brings to clients and how it will address their needs and solve their problems.

Your goal is to leave a positive and lasting impression on the reader, highlighting your consulting firm’s strengths and capabilities and conveying a sense of confidence in your ability to build a successful consulting business. Again, as in previous sections, I’ve written the example below for an individual consultant, which you can easily modify as you need.

Consulting Business Plan Conclusion Example

My consulting firm is well-positioned to provide exceptional services to our clients in the fintech industry. I have a highly experienced team through partnerships with individuals who have a track record of success in this fintech consulting, and we are committed to helping our clients achieve their business goals through innovative and effective solutions. I believe that by leveraging our expertise in operations management and technology, we can help our clients optimize their operations, increase efficiency, and ultimately, drive growth and profitability.

Through strategic partnerships, I’m able to offer a comprehensive suite of services to meet our clients’ needs, from project management and process improvement to software implementation and data analytics. My goal is to establish long-term relationships with our clients and become a trusted partner in their success.

I understand the challenges facing the fintech industry and are constantly adapting and evolving to stay ahead of the curve. I am committed to staying up-to-date with the latest trends, technologies, and best practices in my field, and we are excited to bring this knowledge to clients.

Overall, I am confident in my ability to deliver exceptional value to our clients and achieve the business goals outlined in this plan. I am excited to embark on this journey and look forward to the opportunities that lie ahead.

Start Your Consulting Business

Ready to get started? Download this consulting business plan template and save it as a PDF or doc file for future reference as you build out your business model and growth path.

Connect with me at MoreBusiness.com to help you grow faster! I’ve built several businesses and can help you fast-track your marketing and sales, especially through a managed podcast and thought leadership.

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How To Create A Consulting Business Plan (Incl. Free Template)

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Table of contents

Introduction, what is a consulting business plan, how do i write a business plan for a consulting business, what should you include in a consulting business plan, the consulting business plan template, how to build a one-page business plan for your consulting business, common mistakes independent consultants make with their consulting business plan, my three tips for writing a great consulting business plan, additional resources, you made your business plan, now what.

While having a consulting business plan is not required for you as an independent consultant (unless you’re seeking external funding or a loan), the consulting business plan is something you’ll want to require of yourself as a business owner.

This is one of the most common mistakes I see consultants making — the mistake is NOT building a business plan for their consulting businesses.

How do I know creating a business plan for a consulting service is so important?

I made this mistake for the first four or five years in my own consulting business. And, I paid the price for it - by making a lot less money than I was capable (50% to 100% less) and also by working much more than I needed to, to make that money.

I didn’t write a business plan when I first launched my consulting business 10+ years ago because:

• I wasn’t seeking a bank loan.
• I had no idea how to write a business plan. The last time I saw someone write a formal business plan was when my college roommate wrote a business plan for one of her senior projects. She spent months on that plan, got an A on it, and never pulled it out of her files again.
• Underneath it all, even though I thought writing a business plan was a waste of time, the reality was that I didn't want to do it wrong and feel foolish (even if I was the only one reading it).

So, I didn’t write any sort of business plan.

But then, everything changed.

One of my business coaches helped me see the idea of a business plan from a different perspective. The consulting business plan didn’t need to be some type of formal document or a thesis. I was thinking about the consulting business plan much too literally (as we consultants tend to do).

My coach encouraged me to use a business plan as a mechanism to map out plans to hit bigger-picture goals in the next 3-5 years. And, I realized that creating a consulting business plan was the best way to:

• Set a vision I would never have realized was possible.
• Achieve that vision in less time with less re-work along the way.

The business plan I created for my consulting business changed everything for me.

I started improving at marketing and sales. I 10x’d my income. I work less. I increased my impact exponentially.

I want you to have this too.

Whether you’ve been in business for 2 months or 20 years, this is an important step. And, in this article, I’ll walk you through exactly how to create a business plan for your consulting business so you:

• Grow sustainably.
• Increase your revenue without working more hours.
• Grow profitably.
• Make more impact and,
• Feel confident and in control as a business owner.

A consulting business plan is a roadmap that you develop so you know what the big picture is for your business and how you’re going to achieve it.

A consulting business plan is a living document that you’ll want to keep up-to-date as part of your annual and quarterly planning, so it reflects your latest goals and vision.

The consulting business plan serves as a guide for the decisions you make, so you’re running your business intentionally and not inadvertently creating a “Franken-Business.” A “Fraken-Business” is the type of consulting business that forms when you make decisions and set priorities on the fly, without having an overarching consulting business plan in place.

Ultimately, these decisions lead to your business looking more like a “Frankenstein” where you’re earning less than you’re capable of and working so much more than you have to.

To write a business plan for a consulting business, you'll want to think about your short-term, medium-term, and long-term goals.

Do you want to build a small boutique consulting firm, or micro-boutique consulting firm, or stay on the independent consulting path? Based on your big picture, and ultimate exit strategy, you can then reverse engineer your consulting business plan based on this vision.

Writing a business plan for a consulting business is crucial for outlining your goals, strategies, and operations. It serves as a roadmap for your business and can help guide your growth. This is a tool for you to run your business and to be able to see the big picture.

Typically you won't be providing a consulting business plan to get funding. As a result, it doesn't need to be a formal business plan. Instead, you want to write the consulting business plan in such as a way as it gives you a solid plan for growing and sustaining your business, for achieving your own business goals, and sets you up for your longer-term exit strategy whether that's in 5 years or 55 years.

If you’re writing your consulting business plan for potential investors, then you’ll want to follow a more prescriptive approach.

But, that’s most likely not the case for you as an independent consultant.

You get to write the consulting business plan for yourself, as a guide for the decisions and priorities you make for your business.

Here’s a list of topics to include in your consulting business plan:

• 3-Year Business Goals
• Sought-After Service Offerings
• Ideal Clients
• Marketing That Makes You Sought After
• Your Effective Sales Engine
• Sustainable Utilization
• Fueling Your Business Plan
• Quarterly Focus Projects
• Rolling 12-Month Plan

Let’s dive into each of these sections so you know exactly what to put into each section of your business plan for a consulting service.

3-year business goals

First, describe what you want your independent consulting business to look like in the next three years. Answer this question from the perspective of - if anything is possible for me and my business, what do I want my independent consulting business to look like?

Dream big. Don’t constrain based on what’s practical. Don’t play it safe.

Write out everything you want to achieve with your business, even if some of the goals feel like they’re in conflict.

• How much revenue are you generating?
• How much income are you taking home from your business?
• What consulting services are you offering?
• Are you working with anyone else when you sell your services (e.g. referral partners)?
• Are you working with anyone else when you deliver your services (e.g. subcontractors)?
• What’s your work schedule?
• What time off are you taking?

Setting your 3-year business goals is important because you want to know exactly where you want your business to grow in the future, so you make decisions with that direction in mind, as opposed to letting your business happen to you.

And then, break down your 3-year goals into:

Ideal clients

Next, describe the types of clients you want to work with. This is:

• A list of attributes, behaviors, characteristics, and other identifiers that signify your best, most ideal clients.
• Don’t worry about being too limited here. You want to build your plan around the best clients, and not craft a plan around the mediocre or non-ideal clients.
• Document any changes you plan to make to who your ideal clients are in order to grow into your 3-year vision.

Sought-after service offerings

Then, write out all your independent consulting service offerings. Then, for each current and planned consulting service offering, you’ll describe:

• What client problems the consulting offer solves.
• Why do your ideal clients care about solving these problems.
• The results your consulting offers deliver.
• The value, quantitative and qualitative, that your consulting offer generates.
• Why you’re sought after for what you do.
• Changes you plan to make to your consulting offers to grow into your 3-year vision.

Then, detail your pricing for each of your consulting offers, including:

• The pricing.
• Variables that influence the pricing.
• What questions do you need to be answered in order to determine the pricing?
• Why the pricing is a no-brainer for your ideal clients.
• Changes you plan to make to your pricing to grow into your 3-year vision.

Marketing that makes you sought-after

Next, map out the marketing strategy for your consulting services, so you create awareness and demand for what you offer as an independent consultant.

The elements of the marketing section of your consulting business plan are:

1. Marketing strategy for your independent consulting business

The marketing strategies will resonate with your potential clients:

• Who are the decision makers for your type of services?
• Who are the influencers of those decision-makers?
• Who knows those decision makers and can connect you?
• Who provides related services to the same client base that you do?
• Where do these people (decision makers, influencers, collaborators, and other service providers) congregate (virtually and/or in person)?
• What types of resources do the people you’ve identified leverage?

The type of marketing you want to implement in your business:

• What types of marketing do you think will be most effective for your business?
• What types of marketing do you enjoy most (e.g. speaking, writing articles, talking with people one-on-one, etc)?

Bring these two components together into your marketing strategy - what resonates most with your ideal clients + what you want to do as a business owner = your aligned independent consulting marketing strategy.

2. Marketing metrics

And, your goals for # of leads needed per quarter to hit your sales goals.

For more on this, listen to Episode 067 of the Grow Your Independent Consulting Business podcast.

Your effective sales engine

The next section of your consulting business plan is the “effective sales engine.” In this section, you want to define:

• Convert conversations into opportunities.
• Gather client requirements.
• Formulate approach.
• Validate the value and the results your client expects.
• Gain client buy-in for your approach.
• Pricing options.
• Proposal presentation.
• Proposal finalization.
• Contract execution.
• Number of leads to create an opportunity.
• Average close rate.
• Number of clients needed to reach your revenue and profitability goals.

Sustainable utilization

The next section of the consulting business plan is your utilization plan and your company’s business calendar. Get clear on:

• Your client delivery days and hours.
• Your business owner days and hours.
• Your work weeks.
• Weeks you won’t work.
• The amount of time that’s been allocated to existing clients.
• The amount of time that’s available to sell to clients.
• Any subcontractor time that you want to add to augment your capacity.

Fueling your business plan

The “fueling your business plan” section of the consulting business plan is crucial, and most independent consultants miss this step.

The fuel for your consulting business plan is:

• The way you think about yourself as a business owner.
• The way you think about the service offerings you offer to your ideal consulting clients.
• The way you think about your consulting clients.
• The way you think your ideal consulting clients are thinking about you.

In this section, you want to think about how will you think about all of these topics from the vantage point of already achieving your 3-year goal:

• Ask and answer: How does the version of you who has brought the 3-year vision to life, and accomplished your goals think about you as a CEO, you as a consultant, your clients, and your service offerings?

Quarterly focus projects

Then, break down your 3-year plan into quarterly focus areas. Think about the one result that you want to accomplish in the quarter that will move your business forward toward the 3-year business.

Examples of Quarterly Focus Projects for your independent consulting business are:

• Create a pipeline valued at $750k within 3 months, working on it 30 minutes per day on the pipeline.
• Update your sales process to support value-based pricing, which results in quantified, vetted results in each client proposal.

Learn more about this in Episode 80 of the Grow Your Independent Consulting Business Podcast.

Rolling 12-month plan

Finally, pull all of your components from the consulting business plan together into a prioritized, rolling 12-month plan that results in making the achievement of your 3-year goals inevitable.

After you develop your in-depth consulting business plan, it’s helpful to summarize it into a one-page business plan that serves as your guide for all the decisions, priorities, and actions you take in your business.

Benefits of the one-page consulting business plan

The benefits of a one-page consulting business plan are:

• Easy-to-reference guide for your business goals.
• Playbook for your marketing and sales engine, so you can create momentum through consistent action against your business development metrics.
• Clear breakdown of your focus projects so you constrain to those activities that are highest value for you and your independent consulting business.

Building your one-page consulting business plan step-by-step

Here are the 5 steps to create a one-page consulting business plan that will guide you and your business over the next 12 months:

• Grab the 3-year consulting business plan you developed using the framework I shared above to use as your reference.
• Set your 12-month financial goals and copy them into your one-page consulting business plan.
• Select the type of consulting work you’ll offer over the next 12 months in order to hit your 12-month financial goals.
• Integrate your ideal schedule into the one-page consulting business plan.
• Get clear on who you need to become to achieve your 12-month one-page consulting business plan.

Step 1: Finalize your 3-year consulting business plan using the format I shared in this article

First, look at your big picture and 3-year goal and pull out all the plans you set forth for the first year of that plan.

Step 2: Set your 12-month financial goals and copy them into your one-page consulting business plan

Figure out what you would need to be charging per engagement to hit or even exceed your financial (revenue, profitability, and income) goals within the constraints of your ideal schedule.

This might come out to be a large number, a big increase over what you’re charging now. That’s not a problem.

You can get there if you start.

You can get there if you begin working toward it.

You can get there if you’re committed to it.

For more on how to increase your consulting fees, I recommend checking out our guide on How Independent Consultant Rates and Retainer Fees Work , as well as Episode 066 of the Grow Your Independent Consulting Business podcast, where I walk you through the 3 prerequisites to raising your consulting fees.

Step 3: Select the type of consulting work you’ll offer over the next 12 months in order to hit your 12-month financial goals

In this step of building your one-page consulting business plan for the next 12 months, we will think about your ideal client engagements. These can fall into the following categories:

• Long-term, multi-quarter, or multi-year consulting engagements.
• Ongoing, retainer-based advisory work.
• Strategy work that you hand off for someone else to execute.
• A mix of strategy and execution.

If you are still working on defining your preferred consulting engagement type, it might help to ask yourself what is your ideal client load. For example, is it 5 clients at a time or 1 client at a time?

In this step of building your business plan, I also recommend exploring why you want these types of clients and engagements.

For example, some consultants choose to do longer-term, single-client-at-a-time consulting engagements because they want to feel less worried and nervous about their cash flow, despite their passion being around working with a variety of clients doing shorter-term and less hands-on work.

What I want you to know is that you don’t have to choose between security and following what you’re passionate about doing.

The goal of your business plan is to choose what you want in your business. That gives you a direction to head. You can find out how to create security and peace of mind with the business model you love.

Don’t choose what you think is easy. In my experience, no business model execution is as easy as it seems at first, and on top of that, if your business plan and personal goals are not aligned, you will feel miserable doing whatever you settled for.

Step 4: Integrate your ideal schedule into the one-page consulting business plan

With step number 3, you’ve mapped out what you want to include in your business plan in terms of client type and nature of consulting work.

In step number 4, we will build your ideal schedule into the business plan for the next 12 months. To get started, ask yourself what the ideal consulting year looks like to you. For example:

• Do you take time off your business in December?
• Do you take holidays in both July and December?
• Do you take off the last week of the month?
• Do you take off every Friday?
• Do you work 6-hour days?

Ask yourself: What does the ideal look like for you over the next 12 months, without worrying about how much money you could be leaving on the table or if the plan is realistic?

Step 5: Get clear on who you need to become to achieve your 12-month one-page consulting business plan

The fifth component of your one-page consulting business plan is who you need to become in order to make achieving this business plan inevitable.

Your current business results are a reflection of your current mental models:

• What do you think is possible for you and your business?
• What do you think you’re capable of (and not capable of)?
• What do you think your clients value (and don’t)?
• What do you think your clients think of you?
• What do you think about the value/impact of your offer?

Another major component is how you manage your emotions, especially your ability to redirect doubt, ambivalence, and confusion into confidence, and commitment to your business on a daily basis.

To achieve new, bigger, and different business results, it’s essential to think differently. To accomplish your business model, you’ll need a new, more expanded mental model as a business owner.

Therefore, a crucial piece of your one-page consulting business plan is to get crystal clear about the version of you, your future self, who has achieved this business plan that works on auto-pilot.

Define that future self.

Name that future self.

Visualize that future version of you who has checked off all the boxes on your new consulting business plan, and that these results are a no-brainer for you to achieve every month without doing anything out of the ordinary.

Then take note of the following:

• How are you thinking?
• What have you stopped thinking?
• How are you feeling?
• What are you doing?
• What aren’t you doing?

There are several common mistakes that independent consultants make with their business plan for a consulting service.

Mistake #1: Not creating a consulting business plan

Most independent consultants skip the step of creating a consulting business plan. Independent consultants miss this important step for one (or all) of these reasons:

• You’re not sure how to create a business plan for a consulting service . It feels daunting and so you end up skipping it. This blog article removes that excuse. You have everything you need summarized right here for you in one place.
• You don’t need funding and so you don’t see the value in a business plan for a consulting service . From this blog article, I hope you can see the importance of having a consulting business plan as a roadmap for your business. When you lay out your 3-year goals and what direction you want to take your business in, you’ll be able to proactively steer your business in that direction instead of letting your business cobble itself together through a series of reactionary decisions.
• You think you’re too far along in your business to need a consulting business plan. Consulting business plans aren’t just for new independent consultants. Creating and maintaining a well-thought-out consulting business plan as a matter of practice, at least once a year will ensure you make decisions that are aligned with the bigger picture and also help you make more money in a fulfilling and sustainable way.

Mistake #2: Not using a consulting business plan to guide business decisions and priorities

The second mistake is ont using a consulting business plan to guide your business decisions and priorities. When you make decisions in the moment and one at a time without a bigger picture in mind, you (as a human being) will have a bias toward choosing what’s easier in the moment. And when you make decisions on the fly, it’s common for them to fulfill a short-term need but then steer you off course and/or slow you down from reaching your bigger goals.

Mistake #3: Not maintaining the consulting business plan as a living document, one that is meant to be assessed, evaluated, and iterated until you achieve the result you want as an independent consultant

The third mistake is not referring back to and not maintaining your consulting business plan. Your consulting business plan is meant to be a living plan where you set your goals, vision, and action plans and then put them into motion. Then, periodically (quarterly at a minimum) you assess your progress against the plan and determine whether or not you want to adjust, add or remove anything.

This is a living roadmap for you and your business.

The mistake many consultants make is to treat it as a pass-fail examination and then feel like they’re failing if they don’t get 100% completion. This sets you up for disappointment as a business owner if you look at the consulting business plan this way.

Don’t torture yourself.

Instead, look at the business plan for your consulting service as a living, breathing roadmap that sets you up to achieve a specific set of goals via a planned direction. If you end up taking a little longer to achieve your goals or you choose to pivot slightly, that’s not a problem. Know that you’re setting yourself up to achieve more than you could even imagine if you implement this process over and over again with every 3-year increment.

After writing my own consulting business plans multiple times over the years, and also reviewing 100’s of independent consultants’ business plans, three tips stand out for writing a great consulting business plan.

Tip 1: Think big

Too many independent consultants think they should play it safe and set realistic and practical goals. The result? When you set realistic goals, you end up underachieving relative to what’s possible for you. I love to say that it’s so much better in the long run to achieve 80% of a big goal than 100% of a safe goal. It’s better for two reasons -

(1) 80% of a big goal is almost always much more rewarding (financially and personally) than 100% of a safe goal and

(2) you grow into the next level of yourself as a business owner when you’re pursuing a big goal as opposed to pursuing a realistic goal.

Tip 2: Don’t bring the “shoulds” into your consulting business plan

So many consultants tell me that they plan to change their business model or pricing because it’s what they’ve been told they should do to scale or grow. For example, one of the recommendations that are common in our industry is to switch to value-based pricing. While this might be the next best move for your business, don’t assume that it is just because a guru said so. Instead, decide how you what to run your business based on your own knowledge and skill set.

Tip 3: Believe you can have it all (you don’t have to choose between everything you want)

One of the most common mistakes I see independent consultants making is to assume you have to choose between things like making more money or working less time. Or, choose between taking on fulfilling, impactful work or making more money.

You don’t have to choose.

You can find a way to have whatever you want.

The key is to ask yourself high-quality questions such as “how can I make $1M working 3 days a week?”

Write out your business plan for your consulting service based on everything you want and then work to bring it to life. Don’t limit yourself from the outset because you assume you’ll have to sacrifice too much to get what you want.

1. Podcast Episode #064 : 3 Must-Haves for an Effective Consulting Lead Generation Routine

Episode 064 will help you calculate your lead generation metrics, so you can back into how many leads and opportunities you need to create to hit your revenue goals.

2. Podcast Episode #049 : Consulting Business Guardrails

Episode 048 will help you establish the operating policies for your business so you protect your capacity and avoid burnout. This episode will help you define the “Sustainable Utilization” component of your consulting business plan.

3. Yearly Business Plan Workbook for Independent Consultants

Download the Yearly Business Plan Workbook for Independent Consultants as a companion resource to this article. It will help you define your specific plan for growing your consulting business with more ease and fulfillment.

Now that you have the format and step-by-step process to create your business plan for a consulting servce, here are your next steps to ensure you make the most of this article.

Here are the specific steps for you to put this article into action so that you can be in control of the growth and trajectory of your consulting business:

• Get into your business owner, CEO mindset.
• Build out your 3-year consulting business plan.
• Break your plan into a 12-month, one-page business plan.
• Incorporate your plan into your quarterly, monthly, weekly, and daily business owner routines
• Reach out for expert help in applying this work to you and your business so you can grow your business further and faster with more ease and fulfillment. Click here to apply for your coaching consultation.

Melisa Liberman

Melisa is a private business coach for independent consultants. She helps IC business owners scale their business so they make more money, make more impact, and grow a business working on their own terms. Melisa is the host of the Grow Your Independent Consulting podcast and creator of the scale-IC Method™️.

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• Business plans

Consultant Business Plan Template

Used 4,999 times

An example of a document outlining your strategy for launching or expanding your consulting firm is a Consultant Business Plan Template. The essential elements include a summary of the company, team, sector, rivals, target audience, and an operations and marketing strategy.

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Created by:

​ [Sender.FirstName] [Sender.LastName] ​

​ [Sender.Company] ​

​ [Sender.Title] ​

​ [Sender.Email] ​

​ [Sender.Phone] ​

Prepared for:

​ [Client.FirstName] [Client.LastName] ​

Business Overview

​ [Sender.Company] is led by [Manager.FirstName] [Manager.LastName] who graduated from (add school and educational background if applicable) and has (number) years of experience as a business consultant in the (name) industry.

The business model [Sender.Company] uses is (describe business model, e.g., subscription, flat fees, hourly fees, etc.).

Management Team

In addition to [Manager.FirstName] [Manager.LastName] , [Sender.Company] has a strong management team with extensive experience in the consulting industry.

Chief Financial Officer

(CFO.FirstName) (CFO.LastName) has (number) years of experience in the consulting industry, including work experience with (companies).

Chief Operating Officer

(COO.FirstName) (COO.LastName) graduated from (school name) and has since accumulated (number) years of experience in the consulting industry. Some of his/her most prominent work experience includes stints (companies).

Chief Marketing Officer

(CMO.FirstName) (CMO.LastName) has held leadership positions at companies like (company names) and has spent (number) years achieving positive results like (positive work results).

Customer Analysis

​ [Sender.Company] ’s target market is composed primarily of (describe your ideal client).

The demographics of these clients are as follows:

Businesses in (industry)

An average income of $(XXX,XXX)

Largely owner/operator

In business (XX) years on average

Industry Analysis

After a thorough analysis of the industry, [Sender.Company] has discovered a multitude of trends and statistics that bode well for the business, including:

Share some statistics that illustrate the opportunity for your business, e.g., the size of the consulting industry and your niche, the growth rate, results from surveys of your target market, the average income of consulting practices, etc.)

Competitive Analysis

​ [Sender.Company] will operate in an industry with multiple competitors, and these are some of the most prominent competitors that have been identified:

(Outline 2-3 competitors by describing their business in terms of how long they've been around, how many employees they have, and anything especially distinct about their business.)

Success Factors

​ [Sender.Company] is positioned to overcome its competitors because:

The product/service being offered has unique advantages.

The price point is more attractive than the standard market price.

The operators have extensive experience in this industry.

The company has relationships in place that will generate positive results.

Marketing Plan

​ [Sender.Company] plans to use (type of marketing strategy, e.g., paid advertising, SEO, content marketing, social media, etc.) to generate customers.

Specifically, [Sender.Company] 's marketing plan will involve executing these tasks:

Build a website.

Create SEO-friendly content.

Launch paid advertising campaigns.

Engage prospects with email marketing campaigns.

(Add more tasks as needed)

Operations Plan

​ [Sender.Company] has determined that the following departments and personnel will be essential for the success of the company:

Human Resources

​ [Sender.Company] 's human resources department will be critical in hiring essential talent and maintaining happy employees. The company assesses that a team of (number of full or part-time employees, contractors, etc.) will be needed.

A marketing department consisting of (number of full or part-time employees, contractors, etc.) will be needed to generate buzz and create customers for [Sender.Company] .

Customer Service

​ [Sender.Company] 's business will involve servicing many clients, so a customer service department consisting of (number of full or part-time employees, contractors, etc.) will be important to maintain strong relationships.

Financial Plan

​ [Sender.Company] is seeking funding in the amount of $(amount of money) to launch and scale its business. The capital will be used primarily for (state what funding will be used for, e.g., web design, marketing, hiring employees, etc.)

Specifically, these funds will be appropriated in the following ways:

Web design: approximately $(amount of money)

Marketing: approximately $(amount of money)

Personnel: approximately $(amount of money)

​ [Sender.Company] is projecting the following financial results:

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How to Start a Consulting Business

ON THIS PAGE

• How to Start Your Own Consulting Business
• How To Start a Consulting Business FAQs

Helpful Slideshows, Videos & Images

• Additional Resources in the Consulting Business Market

How to Start a Consulting Company

Starting a consulting business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful consulting business.

Importantly, a critical step in starting a consulting firm is to complete your business plan. To help you out, you should download Growthink’s Ultimate Consulting Business Plan Template

Download our Ultimate Consulting Business Plan Template here

16 Steps To Starting Your Own Consulting Business

• Choose the Name for Your Consulting Business
• Develop Your Consulting Company Business Plan
• Choose the Legal Structure for Your Consulting Business
• Secure Startup Funding For Your Consulting Business (If Needed)
• Secure a Location For Your Consulting Business
• Register Your Consulting Business With the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get the Right Insurance for Your Consulting Business
• Buy or Lease the Right Consulting Business Equipment
• Develop Your Consulting Business Marketing Materials
• Set Prices For Your Consulting Services
• Purchase and Setup the Software Needed To Run Your Consulting Business
• Hire Employees For Your Consulting Business
• Open Your Consulting Business

1. Choose the Name for Your Consulting Business

The first step to starting a successful consulting business is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business.

Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your consulting business:

• Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing. Come up with a name that reflects the desired brand and/or focus of your consulting firm.

2. Develop Your Consulting Company Business Plan

One of the most important steps in starting a consulting business is to develop your consulting business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

To enhance your planning process, incorporating insights from a  sample consulting firm business plan  can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your consulting business.
• Company Overview – this section tells the reader about the history of your consulting business and what type of consulting business you operate. For example, are you a management consulting, technology consulting or strategy consulting business?
• Industry Analysis – here you will document key information about the consulting industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products or services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Product: Determine and document what products/services you will offer
• Prices: Document the prices of your products/services
• Place: Where will your business be located and how will that location help you increase sales?
• Promotions: What promotional methods will you use to attract customers to your consulting business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Consulting Firm Business Plan Template and complete your plan and financial model in hours.

3. Choose the Legal Structure for Your Consulting Business

Next you need to choose a legal business structure for your consulting business and register it and your business name with the Secretary of State in each state where you operate your business. Below are the five most common legal structures:

1) Sole Proprietorship

A sole proprietorship is a business entity in which the owner of the consulting business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a consulting business together. The partners share in the profits and losses of the business. The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a consulting business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a consulting business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your consulting business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding For Your Consulting Business (If Needed)

In developing your consulting business plan, you might have determined that you need to raise funding to launch your business. If so, the main sources of funding for a consulting business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a consulting business that they believe has high potential for growth.

5. Secure a Location for Your Business

Having the right space can be important for your consulting business, particularly if you’d like to meet clients there and do not plan on running your consulting business from home. To find the right office space, consider:

• Driving around to find the right areas while looking for “for lease” signs
• Contacting a commercial real estate agent
• Doing commercial real estate searches online
• Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space

6. Register Your Consulting Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Consulting Business Plan Template and complete your plan and financial model in hours.

7. Open a Business Bank Account

It is important to establish a bank account in your consulting business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your consulting business to help you separate personal and business expenses. You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

Every state, county and city has different business license and permit requirements. Nearly all states, counties and/or cities have license requirements including:

• General Business License : Some states may not require you to obtain a business license if you work as an independent consultant, but you might need one if you have any employees.
• Zoning Permit : You will need this permit if you plan on operating your business from a commercial space.
• Sales Tax Permit : You will need this permit if you plan on selling physical products or taxable services.

Depending on the type of consulting business you launch, you will have to obtain the necessary state, county and/or city licenses.

10. Get Business Insurance for Your Consulting Business

Business insurance policies that you should consider for your consulting business include:

• General Liability Insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Workers’ Compensation Insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial Property Insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business Interruption Insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional Liability Insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy or Lease the Right Consulting Business Equipment

Most consulting companies don’t need much equipment. To start a consulting business, you probably only need a computer, phone and internet access. Make sure to invest in the right webcam if you plan on doing many virtual meetings with clients. You might also need office furniture.  

12. Develop Your Consulting Business Marketing Materials

Marketing materials will also be required to attract prospective clients and retain relationships with existing consulting clients. The key marketing materials you will need are as follows:

• Website : Likewise, a professional consulting business website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : Establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your consulting business.
• Logo : Spend some time developing a good logo for your consulting business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.

13. Set Prices for Your Consulting Services

Your pricing strategy will depend on a variety of factors, including your level of experience and the services you offer. However, you can get an idea of what to charge by looking at the rates of other consultants in your area. You may also want to consider offering a free or discounted consultation to potential clients in order to win their business.  

14. Purchase and Setup the Software Needed To Run Your Consulting Business

There are a few essential types of software that any consultant needs in order to run their business. The first is accounting software such as Quickbooks for managing your finances. You will also need word processing and spreadsheet software. The most popular options are Microsoft Office and Google Workspace. It’s also helpful to have a customer relationship management (CRM) system such as Salesforce to help manage client relationships. Research the software that best suits your needs, purchase it, and set it up.

15. Hire Employees for Your Consulting Business

If you are just starting out, you might be working solo or with a very small team. If you have the resources to hire additional employees, consider writing up job descriptions and posting them online with sites such as LinkedIn or in more local places. You might also chat with your existing connections to see if anyone is available or knows someone who might be interested in joining your growing team. As you interview candidates, be sure their skills are a good match for your needs and they seem like a fit with the company culture you want to build.  

16. Open for Business

You are now ready to open your consulting business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How To Open a Consulting Business FAQs

Is it hard to start a consulting business.

There is no one-size-fits-all answer to this question, as the ease or difficulty of starting a consulting business will vary depending on your skills, experience, and resources. 

However, if you follow the steps above, you should be able to start your consulting business without too much difficulty.

This is true for any consulting business, including an IT consulting business, Management consulting, healthcare consulting or any other consulting company.

How Can I Start a Consulting Business With No Experience?

The best way to start your own business in the consulting industry with no experience is to start small. You can offer your services to friends and family members, or to local businesses. Once you have a few clients, you can then start marketing your business more aggressively.

What Type of Consulting Business Is Most Profitable?

The profitability of a consulting business will vary depending on the specific industry and services offered. However, some of the most profitable types of consulting firms include IT consulting, management consulting, and marketing consulting.

How Much Does It Cost To Start a Consulting Business?

There is no set cost to start a consulting business. The amount of money you'll need to get most any new business will vary depending on the services you offer, the size of your business, and other factors. However, you'll likely need to invest in some basic equipment and supplies, such as a computer, printer, phone, and office supplies. You may also want to consider purchasing advertising or marketing materials, or investing in training or certification courses.

What Are the Ongoing Expenses for a Consulting Business?

The ongoing expenses for a consulting business can vary depending on the type of services you offer. Generally, you will need to invest in marketing and advertising to attract clients, as well as office supplies and equipment. You may also need to pay for membership fees to professional organizations or networking groups. The biggest expenses are typically staffing costs and office lease fees.

How Does a Consulting Business Make Money?

A consulting business makes money by charging clients a fee for its services. The amount of the fee depends on the type of service offered, the experience and qualifications of the consultant, and the client's needs. Some consultants charge an hourly rate, while others may charge a flat fee for a specific project. The consulting business model you choose should work for how you want your business to earn money.

Is Owning a Consulting Business Profitable?

Yes, you can certainly own a profitable consulting business. 

The profitability of a consulting business will vary depending on the specific industry, geographical location, and other factors. However, there are a few things you can do to increase the chances of your consulting business being profitable. 

Some of the key things you can do to make your consulting business more profitable include: 

• Narrowing your focus to a specific niche market. This will allow you to become an expert in a specific area, and clients will be more likely to trust your advice and recommendations. 
• Offering add-on services that complement your main offering. For example, if you're a marketing consultant, you could offer to manage clients' social media or design campaigns in addition to your core offering.
• Taking time to understand the needs of your target market. Ask yourself, "What are they trying to achieve? What problems do they face? How can I help them overcome these challenges?" By understanding these key questions, you will be able to identify different client problems you can solve with your consulting service.
• Optimizing your website for SEO to increase online visibility. This will allow you to attract the right kind of client to your business, who are actively searching for a consultant in your niche market.
• Signing up for Google AdWords or Facebook Advertising if appropriate, to target potential clients on their own platforms.
• If appropriate, attend trade shows and networking events to connect with potential clients at these events. 
• Networking on social media channels so you can get in touch with potential clients or even find jobs through word-of-mouth referrals from your existing network of contacts.
• Creating a unique selling proposition. Be clear about what you can do that other consultants in your niche market cannot, and communicate this to potential clients.
• Treating each client relationship like a partnership, so they are more likely to recommend you to their connections or return for additional consulting work in future. 
• Keeping your costs low by using cloud-based software and outsourcing tasks to virtual assistants.
• Targeting a growing niche market that you can expand into in the future. 
• Testing out different strategies with a limited budget, so you can see which methods work best before investing heavily in these areas of your business.
• Building references from clients who are willing to recommend you to their friends. This is more valuable than testimonials on your website, as it builds social proof in the eyes of potential clients that you offer great value for money. 
• Investing in training in order to keep up with industry trends, and increase your knowledge about your niche market.
• Providing outstanding client service

Why Do Consulting Businesses Fail?

Even a good consultant can run into problems that make their company fail. One of the main reasons that consulting businesses fail is a lack of planning. This can include not having a detailed business plan, not doing research on the industry, and not targeting the right customers.

Another reason is a lack of marketing and sales skills. This can include not creating a sales process and not have a clear and strong value proposition.

The last main reason is a lack of financial management skills. This can include not having a realistic budget, not tracking expenses, and not investing in the business.

How Much Do Successful Consulting Business Operators Make?

The average salary for a consulting business operator is $107,553.

What Are the Typical Startup Costs for a Consulting Business?

Startup cost for new consulting companies range from $10,000 to $50,000.

What are the Keys to Launching a Consulting Business?

• Know Your Expertise - Identify the field where you can use your skills and knowledge and study everything that you need to know about it. Maximize your strengths and work on improving your weaknesses so you’ll be sure to provide excellent service to your clients.
• Secure Your Certifications - Consider taking certifications that are related to your specialization. This will build your reputation and increase your client’s trust and confidence in your business. This also gives you an advantage over non-certified consultants.
• Consider Hiring an Employee - Have someone reliable who can work on the administrative tasks that need to get done in your business. This will save you time and effort and keep you focused on taking care of your client’s specific and technical needs.
• Set Your Rates Right - Determine whether you are setting reasonable rates by looking up other consulting companies’ rates before giving your clients a quotation. Make sure to include in your computation all of the expenses that you would incur in a project especially your professional effort’s worth.
• Sell Yourself - Bump up your marketing efforts and let yourself be known by your potential clients. Advertise the services that you offer and your edge over competitors through word of mouth, print ads, and phone, email, and social media marketing.
• Value Relationships - Remember that you are not your own boss so make your client’s needs a priority. Pay attention to their demands and always be ready to offer solutions that work. Most importantly, establish personal connection with your clients by meeting with them as often as needed.
• Be Emotionally Ready - Starting a consulting company also means dealing with a lot of meetings with potential clients that do not end up hiring you. Be prepared on how to deal with such failures professionally. Your target clients will remember you in the way you deal with them and a positive attitude towards an unclosed deal might redeem you the next time they need a service that you offer or meet a friend that needs your expertise.

What Are the Key Costs in the Consulting Industry?

Running a profitable business requires spending some money. Here are the most common expenses in the consulting industry.

• Wages – Over half of the consulting industry’s revenue last year is used for wages. It is expected to drop in the next five years.
• Purchases and depreciation – Purchases make up almost 10% of the consulting companies’ revenue, while depreciation is 0.9%.
• Rent and utilities – Last year, almost 4% of the industry’s revenue is comprised of rent and utilities.
• Other – Marketing costs make up 1.8% of consulting industry.

What are the Key Customer Segments in the Consulting Industry?

The key customer segments in the consulting market are Financial services companies, Consumer products companies, Government organizations, Manufacturing companies, Technology and media companies, Individuals and non-profit organizations, Life science and healthcare companies, and Energy and utilities companies organizations.

Who Are the Key Competitors in the Consulting Industry?

The market leaders, in terms of market share are Accenture PLC (3.3%), McKinsey & Company (2.6%) and Deloitte Touche Tohmatsu (2.7%).

How Big is the Consulting Industry?

There are approximately 779,699 consulting businesses in the US, and $200.6 billion in revenue was been generated by the consulting industry last year. Over the past 5 years, its annual growth rate has reached 5.2%.

What Are the Key Segments of the Consulting Industry?

The two largest segments of the industry are Corporate strategy and Marketing and sales. Organizational design makes up the next largest segment, followed by Process and operations management, Human resources consulting, Financial advisory and IT strategy.

What External Factors Affect the Consulting Industry?

A number of factors affect the performance of the consulting industry. These drivers include:

• Corporate Profit -   An increase in the corporate profit signifies that there is a high demand for consulting services among businesses. This also increases the industry revenue.
• Aggregate Private Investment -  This refers to the value spent by business owners for equipment, properties, and software. When businesses expand their investments, they tend to need more help from consulting companies, so an increase in aggregate private investment is good for the consulting industry.
• Number of Businesses -  An increase in the number of businesses also indicates a high demand for services and provides more prospect clients for consultants.
• Government Consumption and Investment -  As the government expands its investments, the demand for consulting services also increases thus the industry revenue also rises. Government consumption and investment has increased over the last year.

Where Can I Download a Consulting Business Plan PDF?

You can download our consulting business plan PDF template here. This is a business plan template you can use in PDF format.

Best Business Model for Consultants

Consulting Firm Names: How to Choose the Best One

What the Heck Does a Consultant DO, Exactly? – Management Consulting 101

The Economics of Becoming a Consultant

Marketing for Consultants

For additional information on the consulting market, consider these industry resources:

• Top-Consultant’s Consultant-News: www.consultant-news.com
• Institute of Management Consultants USA: www.imcusa.org
• Consulting Magazine: www.consultingmag.com
• How to Start a Consulting Business: www.consultingmavericks.com

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How to write a consulting business plan

If you want to work as a consultant, you'll need a plan. Here's how to create one just for you.

Consultants do things differently

If you’re a self-employed consultant your work isn't like other forms of business. Unlike retailers or manufacturers, you're not making and/or selling tangible products. And unlike service companies, you're not employing a team of people to provide solutions.

Remember you’re not not just selling your time. As a consultant, you will be paid for the skills, knowledge and abilities you've developed over your career.

We have some useful background reading about the benefits of becoming a consultant or contractor , which will help explain how such businesses work. But having decided to become a consultant, what's the next step?

Like all new small businesses, you'll need a plan. That plan will have to cover funding, growth, pay rates, expenses, marketing, equipment costs, training and qualifications. It will also have to cover your goals, and the strategy you'll use to reach them.

Consulting business plans are a little different to other business plans. Here's what you need to know to get your consulting career off the ground.

Who are you writing the plan for?

This is an important question to ask yourself before you start. For most conventional businesses the answer will be "For the bank and investors." That's because small businesses usually need startup funding to get off the ground.

But consultants setting up their own business might not need much funding – if any. It's still important to have a business plan though – not only to clarify the details in your own mind, but also to help you understand the potential risks and rewards.

A good business plan will combine elements of both finance and strategy, but the contents will vary depending on the target audience. We'll take a look at the options next.

A business plan for banks and investors

You may not need funding for capital equipment expenses or office rent. But you might need a loan to tide you over for the first few months, until you have a regular cash flow. The initial period for any new business can be a tough time – money worries will just make it tougher.

You may also decide that you want to make more of an impression by hiring office space, perhaps in a shared office environment. Or you might want funds to spend on marketing and advertising, particularly if you're offering consulting services in a competitive market.

For all of this, you'll need money. You could apply for a bank loan, look for grants, or try other forms of capital-raising such as crowdfunding. Whichever method you choose, any potential investors will want to see the important numbers. That means you'll need to cover the following points in your business plan:

• target market and sector analysis
• business objectives and USP (unique selling proposition)
• startup expenses and assets, including equipment
• overheads and fixed costs
• marketing strategy and budget
• funding requirements, loan collateral and cost of interest
• pay rates, revenue and cash flow projections
• sales forecasts in monthly intervals
• ongoing expenses
• growth projections and strategy

Some of this information will be difficult for you to estimate. It might be even harder for you to present clearly. Use your accounting software to help with figures and to produce professional tables and charts. Then, an accountant can help you include the right information in your plan.

A business plan for you

Of course, you might not need any funding. Perhaps you have enough savings to keep you going for a few months and clients already lined up. Or you may be starting your consulting career after an inheritance or unexpected windfall.

If money isn't an immediate concern, you can afford to be less formal when drafting your plan. That means making sensible predictions and setting goals for yourself, not just financial targets – though you should include those too.

This isn't an exercise in creative writing. The purpose of creating a plan is to help you concentrate on what you want to achieve. Some points to consider include:

Reasons for being a consultant

Why are you doing this? It's important to answer honestly. If the answer is “to make more money” or “because I'm good at what I do” then write that down. Write down all the reasons you can think of, then read them back. Do they sound convincing? Make sure you know your true motivation, as it will help you focus on your goals.

Consulting can mean you have an irregular income. Sometimes you might be busy, other times less so. It makes sense to keep some money in savings accounts, especially if you'll be paying tax at the end of the year instead of while you're earning.

Relationship risks

Think about the impact of consulting on your family or friends. Consultants often work irregular hours, sometimes from home, and they might be working at weekends. That can put a strain on relationships. Be realistic about this and set boundaries around when and where you will work.

Which clients to avoid and which to take on

You will already have an idea of the types of client you don't want to work for, because you know the industry you work in. For example, known late-payers can damage your cash flow so it's sensible to avoid them where possible. Look for clients who are reliable, as they’ll help make your business a success. Know that you can let go of clients who are more trouble than they're worth.

Training and certification

In many industries, especially IT, it's important to keep your skills up to date. But your clients are unlikely to pay for you to go on training courses – that's an expense you'll have to cover yourself. How will you stay up to date? Think about industry magazines, websites, forums, news feeds, conferences, courses, distance learning, peer groups and self-teaching strategies.

Personal goals

Perhaps you're planning to be a consultant for the rest of your working life. Maybe you want to do it for a couple of years and then move back in-house as an employee. Or you might want to start employing other consultants at some stage and build up an agency – maybe even sell it. It doesn't matter what your personal goals are, as long as you have some. Write them down and bear them in mind when making big decisions.

What to do with your profits

This is a good opportunity to think about how much money you want to make . Consider how much you will charge and what you will do with your commission. For example you may decide to use 50% to cover costs, pay yourself with 30% and put 20% back into your business.

Some of this information would be inappropriate to include in a financial business plan for banks or investors. But it can be very helpful in guiding you through the early part of your consulting career.

Five top tips for writing a good consulting business plan

Business plans can be difficult documents to write. If you've never done it before, thinking clearly and logically about your business strategy may not be easy. Here are some tips to help you succeed:

1. Write the first draft

Don't worry about grammar, structure or neatness. Just get the thoughts out of your head and onto the paper or screen. Some people find this easier to do in an informal setting, such as a library or café.

2. Do your research

Understand the market you're going to be working in. Get to know all the details, as it'll help you write a more effective consulting business plan.

3. Identify your USP

That's your unique selling proposition. Why should companies hire you and not one of your competitors? Think carefully about what you're particularly good at, then use that as a basis for marketing yourself.

4. Get feedback

Talk to your peers, friends, previous business associates and potential customers. Show them your plan and listen to their feedback.

5. Keep it simple

Don't write dozens of pages. You'll bore the investors and your plan will end up on a pile where nobody will ever look at it again – including you. Stick to the important points.

Update your business plan regularly

A business plan isn't a static document. It should change and evolve over time as your business grows. You will learn a great deal in your first few months working as a consultant, and that knowledge should be applied to your business plan. It's a good idea to review your plan every month.

You may find that some of what you initially wrote turns out to have been misguided, inaccurate or just plain wrong. That's normal. Nobody can predict every step a business will take. The important thing is to learn as you go along – and make use of that knowledge to improve your plan.

Plan for consulting success

A consulting business plan is written as much for you, the consultant, as for anyone else. The point of writing it is to concentrate on what's important. That clarity is what will help you succeed.

So don't look at a business plan as just another box to be ticked. It's a fundamental process when starting any business, particularly a consulting business where you will need initiative and drive to succeed.

Take the time to write a proper business plan, and keep it regularly updated as your business grows. You can use our free business plan template . You'll find it an invaluable guide to becoming a successful consultant.

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

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Consulting Firm Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Consulting Firm Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Consulting Firm Plan Here

Consulting Business Plan

If you need a business plan for your consulting business, you’ve come to the right place. Our consulting business plan template below has been used by countless entrepreneurs and business owners to create business plans to start or grow their consulting businesses.

Important note: If you are looking for a business plan consultant , specifically, a consultant to help you write your business plan, we recommend Growthink who offers a business plan consultation service here.

Sample Consultant Business Plan & Template

Below are links to each section of your consulting business plan template:

• Executive Summary
• Company Overview
• Industry Analysis
• Customer Analysis
• Competitive Analysis
• Marketing Plan
• Operations Plan
• Management Team
• Financial Plan

Next Section: Executive Summary >

Consulting Business Plan FAQs

What is a consulting business plan.

A consulting business plan is a plan to start and/or grow your consulting firm. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan, and details your financial projections.

You can  easily complete your consulting firm business plan using our Consulting Firm Business Plan Template here .

What Are the Main Types of Consulting Firms?

There are many types of consulting firms. Most consultant companies are in business concentrations such as Management, Strategy, Operations, IT, Human Resources, Financial Advisory, and Marketing/Sales. There are also firms that are singularly focused such as those that offer business plan consulting.

What Are the Main Sources of Revenue and Expenses for a Consulting Business?

The primary source of revenue for consulting firms are fees paid by the client. The client will either sign a contract or agreement of the services it will choose and the pricing for those services beforehand.

The key expenses for a consulting business are the cost of leasing the office, employee cost, marketing/advertising costs, and any office technology or software.

How Do You Get Funding for Your Consulting Business?

Consulting businesses are most likely to receive funding from banks. Typically you will find a local bank and present your consulting business plan to them. Angel investors and other types of capital-raising such as crowdfunding are other common funding sources.

What are the Steps To Start a Consulting Business?

Starting a consulting business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Consulting Business Plan - The first step in starting a business is to create a detailed consulting business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your consulting business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your consulting business is in compliance with local laws.

3. Register Your Consulting Business - Once you have chosen a legal structure, the next step is to register your consulting business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your consulting business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Consulting Equipment & Supplies - In order to start your consulting business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your consulting business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful consulting business:

• How to Start a Consulting Business

Where Can I Get a Consulting Business Plan PDF?

You can download our free consulting business plan template PDF here . This is a sample consulting business plan template you can use in PDF format.

BUSINESS STRATEGIES

How to create a consultant business plan

• Nirit Braun
• Oct 30, 2023
• 13 min read

When launching your consulting business, one of the essential first steps is crafting a well-structured and detailed business plan. Your consulting business plan is like a strategic playbook that lays out your goals, tactics and financial projections. It not only steers you toward success but also equips you to adapt and thrive in the dynamic world of consulting.

Keep reading for tips on how to build a strong business plan for your business. Use the template provided at the end to get started on your own plan.

Looking to kick off your consultancy business? Create a business website today with Wix.

Why create a consultant business plan? Top benefits to consider

A business plan forces entrepreneurs to thoroughly evaluate their business idea, target audience and competitive landscape. This process clarifies their vision and mission, ensuring that they have a clear understanding of how their consultancy will provide value to clients. A business plan helps you in the following ways:

Create a business blueprint : With a business plan in place, entrepreneurs looking to start a business can make informed decisions based on a solid foundation of research and analysis. They can choose the most effective strategies for marketing, pricing and service delivery, enhancing their chances of success. Your business plan can also be used to explain what type of business you'll start - whether that's an LLC, Corporation or something else. Learn more about how to start an LLC .

Secure funding : The cost to start a consultancy business can range from around $60 to several thousand dollars . For those seeking external funding, a well-developed business plan demonstrates credibility and professionalism. Investors and lenders are more likely to support a venture with a thought-out plan that showcases its potential for growth and profitability.

Set measurable goals : A business plan sets measurable goals and performance metrics, which is vital with this type of business . This allows entrepreneurs to track their progress, adapt strategies as needed and celebrate milestones along the way.

Want to remind yourself of the basics? Learn more about how to start a service business .

How to create a successful consultant business plan in 6 steps

In this section, we'll break down the key components involved in crafting a successful consultant business plan in six steps.

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

An executive summary serves as a concise overview of the consultant's business plan, providing a snapshot of the key components and the business' essence. It's usually the first section investors, lenders and stakeholders read, so it must encapsulate the business' value proposition, objectives, strategies and projected growth. To write a clear executive summary for a consultant business make sure to keep it succinct yet informative. Clearly state the purpose of the business, the services offered, the target market and the unique value proposition. Avoid technical jargon that may confuse readers.

Then you can mention the business' strengths, such as the expertise of the consultants, unique methodologies or specialized services. Emphasize factors that set your consultancy apart from competitors.

Briefly discuss the market need for your services and how your consultancy plans to fulfill it. It’s worth noting that strategy and management consulting, as well as technology consulting, financial consulting and HR consulting are in high demand . Highlight any trends or changes in the industry that your business can capitalize on.

Remember to include a snapshot of your financial projections, indicating expected revenue, costs and profitability. This provides a glimpse into the business' potential financial success.

Example of an executive summary for a consultant business

"XYZ Consulting is a boutique consultancy firm specializing in digital transformation for small and medium-sized enterprises (SMEs). With a team of seasoned professionals, we offer tailored solutions to help businesses harness the power of technology for growth. Our unique approach blends strategic consulting with hands-on implementation, ensuring tangible results. In a rapidly evolving tech landscape, XYZ Consulting is poised to be the partner SMEs need to thrive. Our financial projections forecast a steady growth trajectory, with a focus on achieving profitability within the first two years. With a proven track record and a finger on the pulse of industry trends, XYZ Consulting is well-equipped to guide businesses toward digital success."

02. Business and domain names

Knowing how to name a business is crucial for a consultancy venture and a key step before you register your business . It's the foundation of your brand and influences how clients perceive your services. With Wix , you can use a free business name generator or consulting company name generator as helpful tools for brainstorming unique and memorable names. Ensure the name reflects your expertise and the services you offer.

Similarly, the domain name for your business website is vital. It should be easy to remember, relevant to your services and ideally, match your company name. Check the domain's availability using domain registration platforms. Ensure the domain name aligns with your consultancy's focus and services. Generally, this means keeping it short and easy to spell and pronounce.

Learn more: How to make a consulting website

03. Market analysis and research

Incorporating a thorough market analysis within your consultant business plan is essential. Understand the competitive landscape, target audience and market trends. Research your competitors' strengths and weaknesses, pricing strategies and client base. This information will shape your business strategies and help you identify gaps in the market that your consultancy can fill.

04. Operations plan

The operations plan outlines the logistical aspects of your consultancy. It covers location, premises, equipment and staffing requirements. Determine whether your consultancy will be home-based, have a physical office or operate virtually. Define the equipment and software needed to deliver services effectively. Outline your staffing needs, including the roles and expertise required.

05. Marketing and advertising plan

Your marketing and advertising plan outlines how you will promote your consultant business. Identify the most effective strategies to reach your target audience. Consider content marketing, social media campaigns, networking events and speaking engagements to showcase your expertise. Emphasize how your marketing efforts will build brand awareness and attract clients.

You’ll need to develop a suite of brand assets to use in your marketing as well, starting with a company logo. You can use a free logo maker to get a professional logo in minutes.

06. Financial plan

The financial plan is a critical component of any business plan. It outlines how you will raise money for your business initially and provides a timeline for reaching profitability. Detail your startup costs, including equipment, marketing expenses and personnel. Present your revenue projections, taking into account different pricing models and growth scenarios. Highlight your break-even point and the strategies you'll employ to achieve profitability.

By addressing each part of their plan, entrepreneurs can create a robust business plan that guides them toward achieving their business goals and building a reputable consulting brand.

Consultant business plan examples

These templates illustrate two hypothetical consultant business plans, each tailored to a specific niche. These are just templates and should be adapted to your specific business goals and industry dynamics.

Consultant business plan template 1: XYZ Digital Consultants

XYZ Digital Consultants is a pioneering consultancy firm focused on digital transformation for businesses seeking to thrive in the digital age. Our team of experienced professionals offers strategic guidance and hands-on implementation to drive growth through technology adoption. With projected profitability within two years and a commitment to excellence, XYZ Digital Consultants is poised to lead businesses into a successful digital future.

Company and domain name

Company name: XYZ Digital Consultants

Domain name: xyzdigitalconsultants.com

Market opportunity: The rapid shift toward digital operations has created a substantial demand for expert guidance. Our analysis reveals a gap in the market for holistic digital transformation solutions tailored to the needs of SMEs.

Competitor research: We've identified key competitors and their strengths, which informs our strategy to emphasize personalized service and comprehensive implementation.

Location: Primarily virtual, with occasional in-person consultations as needed.

Premises: Home-based setup with access to modern communication tools.

Equipment: High-speed internet, latest software tools and virtual meeting platforms.

Staffing: Founder and lead consultant, supported by contract specialists as projects demand.

Content marketing: Regular blog posts on digital transformation trends, case studies and client success stories.

Social media campaigns: Active presence on LinkedIn and X to engage with potential clients and share valuable insights.

Networking events: Participation in industry webinars, seminars and local business events to showcase expertise.

Speaking engagements: Leveraging speaking opportunities at conferences and workshops to establish authority in the field.

Startup costs (equipment, website development, marketing materials): $15,000

Revenue projections (year one): $150,000

Revenue projections (year two) : $300,000

Break-even point: Achieved by the end of year one

Funding: Initial investment and savings from the founder

Consultant business plan template 2: LeadersEdge Consultants

LeadersEdge Consultants is a dynamic consultancy dedicated to leadership development and organizational excellence. Our experienced team offers customized programs that empower leaders to drive positive change. With a projected growth trajectory and a commitment to fostering impactful leadership, LeadersEdge Consultants is poised to transform organizations and elevate their success.

Company name: LeadersEdge Consultants

Domain name: leadersedgeconsultants.com

Market opportunity: Our analysis reveals a growing need for leadership development programs in diverse industries.

Competitor research: We've identified competitors' offerings and recognized an opportunity to provide a unique blend of coaching, training and strategy implementation.

Location: Virtual consultations, with the option for on-site workshops

Premises: Virtual office setup with video conferencing capabilities

Equipment: High-quality audiovisual tools, assessment software and learning platforms

Staffing : Founder will serve as the lead consultant, supported by certified leadership coaches

Customized workshops: Designing tailored leadership development programs for individual organizations.

Webinars: Hosting webinars on leadership best practices to showcase expertise and engage potential clients.

Thought leadership content: Publishing whitepapers, eBooks and video content on leadership topics.

Collaborations: Partnering with HR and talent development professionals to expand reach.

Startup costs ( making a website , training materials) : $10,000

Revenue projections (year one): $120,000

Revenue projections (year two): $250,000

Break-even point: Achieved within the first six months

Funding: Initial investment from the founder.

How much should you be charging as a consultant?

The amount you charge as a consultant will depend on a number of factors, including:

Your experience and expertise

The type of consulting services you offer

The value you provide to your clients

The market rate for consulting services in your field

In general, consultants charge between $100 and $500 per hour. However, some experienced and highly specialized consultants can charge upwards of $1,000 per hour.

To determine your consulting rate, you can use the following formula:

Consulting rate = Hourly rate * Value multiplier

Your hourly rate should reflect your experience and expertise, as well as the type of consulting services you offer. For example, if you have 10 years of experience and you offer specialized consulting services, you can charge a higher hourly rate than a consultant with less experience and who offers more general consulting services.

Your value multiplier should reflect the value you provide to your clients. For example, if you can help your clients to achieve significant results, you can charge a higher value multiplier.

Here is an example of how to use the formula:

Consultant: Experienced consultant with 10 years of experience offering specialized consulting services

Hourly rate: $200 per hour

Value multiplier: 2

Consulting rate: $200 per hour * 2 = $400 per hour

Can a consulting business be profitable?

Yes, a consulting business can be profitable. In fact, consulting is one of the most profitable industries in the world. According to a report by IBISWorld, the average profit margin for consulting businesses is 20%. This means that for every $100 in revenue, consulting businesses generate $20 in profit.

There are a number of factors that contribute to the profitability of consulting businesses. First, consultants are able to charge high fees for their services. Second, consulting businesses have relatively low overhead costs. Third, the demand for consulting services is high, and it's only expected to grow in the coming years.

Of course, not all consulting businesses are successful. Some consultants struggle to find clients or to charge high enough fees. Others may not be able to deliver the results that their clients expect. However, for consultants who are able to overcome these challenges, the potential rewards are great.

Here are some tips for increasing your chances of success as a consultant:

Specialize in a high-demand area of consulting. This will allow you to charge higher fees and attract more clients.

Build a strong reputation and network of clients. This will help you to generate word-of-mouth referrals and land new clients.

Market your services effectively. Make sure that potential clients know about your services and how you can help them.

Deliver high-quality results. This is the most important thing you can do to ensure that your clients are satisfied and that they continue to use your services in the future.

How much does it cost to start a consulting business?

The cost to start a consulting business can vary depending on a number of factors, such as the type of consulting services you offer, the size of your business and your location. However, in general, you can expect to spend between $10,000 and $50,000 to start a consulting business.

Here is a breakdown of some of the typical start-up costs for a consulting business:

Business formation: $100 to $1,000

Website and domain name: $100 to $2,500

Marketing and advertising: $500 to $5,000

Office equipment and supplies: $500 to $5,000

Professional liability insurance: $500 to $1,000

Other miscellaneous expenses: $500 to $5,000

Total start-up costs: $10,000 to $50,000

You can reduce your start-up costs by working from home, using free or low-cost marketing tools and purchasing used equipment. You can also start your consulting business part-time while you continue to work your full-time job. This will give you a chance to generate revenue and build a client base before you leave your full-time job.

If you need financial assistance to start your consulting business, you may be able to qualify for a loan from a bank or credit union. You may also be able to find investors who are willing to invest in your business.

Which clients to avoid and which to take on?

Here are some tips on which clients to avoid and which to take on in a consulting business:

Clients to avoid

Clients who aren't willing to pay your rates. If a client isn't willing to pay your rates, it's a sign that they don't value your services.

Clients who are unrealistic about their expectations. If a client has unrealistic expectations about what you can achieve, you're likely to set yourself up for failure.

Clients who are difficult to work with. If a client is demanding, rude or disrespectful, it's best to avoid them.

Clients who aren't a good fit for your business. If a client isn't in your target market or if their business isn't aligned with your values, it's best to decline working with them.

Clients to take on

Clients who are willing to pay your rates. This shows that they value your services and are committed to working with you.

Clients who have realistic expectations. This makes it more likely that you will be able to meet their needs and exceed their expectations.

Clients who are easy to work with. This will make the consulting process more enjoyable and productive for both of you.

Clients who are a good fit for your business. This means that they're in your target market and that their business is aligned with your values.

In addition to the above, here are some other factors to consider when deciding which clients to take on:

Your own skills and experience. Make sure that you have the skills and experience to help the client achieve their goals.

The client's budget. Make sure that the client has a budget that's sufficient to cover your fees.

The client's timeline. Make sure that you have the time and resources to meet the client's timeline.

Your gut feeling. If you have a bad feeling about a client, it's best to trust your gut and decline working with them.

It's important to be selective about the clients you take on. By avoiding difficult clients and focusing on good-fit clients, you can set yourself up for success in your consulting business.

Consultant business plan FAQ

What qualifies you as a consultant.

To qualify as a consultant, you need to have the expertise and experience in the area that you're consulting in. You also need to be able to communicate your ideas effectively and build relationships with clients.

How do you start off as a consultant?

How to make 6 figures as a consultant, how do you pay yourself as a consultant, do consultants pay their own taxes, want to create another business plan.

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How to Start a Consulting Business

The world of consulting is constantly changing. With the advent of technology, it’s easier than ever to start a small business and offer your expertise as an outside consultant to companies that need it. The best part is that the process of setting up a consulting practice requires little start-up capital. It can be done in your spare time, with minimal fees to set up.

Here are 11 steps you can take to get started on building your very own consulting business.

Download the Ultimate Consulting Business Plan Template

11 Steps to Launching a New Consulting Business

1. choose your type of consulting firm.

Identify the consulting field where you can use your skills and knowledge to solve problems. In other words, what type of consulting business do you want to start? Consulting fields include accounting, legal matters, writing and editing, human resources, marketing/advertising, project management, computer or technology-based expertise, and many more.

Learn more about the types of consulting firms .

2. Name Your Consulting Business

Give your consulting business an identity so people will think of it as a well-known and respected brand. You can take the name of your consulting business from your industry, focus on a geographical location, or use your own name among other options.

The main goal for naming your consulting business is to make it sound appealing and trustworthy so people will contact you whenever they need professional help with their problems.

Read our article about choosing the right business name .

3. Determine Your Consulting Business Model

There are four main types of business models for consulting firms:

• Consulting Firm Model : This is the most common type of business model and it involves hiring other consultants and employees to provide services to clients.
• Solo Consultant Model : This is when a consultant offers their services to clients on their own.
• Productized Consulting Model : This is when a consultant offers a fixed set of products to their clients.
• Hybrid Consulting Model : This type of consulting firm would offer a selection of business consulting services and products. 

No matter which model you choose, make sure that it aligns with your business goals and the services you offer.

Read more about choosing the right business model for your consulting business.

4. Choose a Legal Form for Your Business

By incorporating your consulting firm, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp).

The business structure you choose for your consulting business will determine the amount of taxes you pay and which state or federal tax forms you need to file.

Read our article comparing the most common  consulting business structures .

5. Write a Consulting Business Plan

Regardless of the type of consulting business you run, all business owners should write a business plan. 

A business plan involves outlining your plans for your company in detail. It is a comprehensive document that explains not only your services, but also your market and the competitive advantage you’ll have in your business. You’ll create financial projections and make plans for your growth. This document might take some time to do, but it’s important to complete. It’ll help you focus your business and run efficiently out of the gate.

Read our article about   how to write a consulting business plan .

6. Apply for the Necessary Permits and Licenses

Depending on your type of consulting business, there may be required licenses and permits you need to obtain to begin working. Look into the requirements in your state and locality.

For example, if you plan on offering accounting consulting services, you need to contact your state’s Board of Accountancy to inquire about the requirements for obtaining a CPA license in your state.

You must also register your consulting business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.

Registering with the federal government is also essential so you can properly pay taxes for your business. The first step is to get an Employer Identification Number (EIN), which you can apply for at the IRS website.

Read our article about obtaining the proper consulting business licenses .

7. Determine Your Budget & Apply for Funding as Needed

If you’re just getting started in your consulting career, you may not have a lot of money to invest in the business. There are several capitalization options available to help with your startup costs.

If you do have your own funds to invest in your consulting business, then take advantage of that. In addition to using your personal funds, you can also research loans for small businesses through lending institutions. , And don’t be afraid to ask for funding from family and friends as needed.

Read our article about the costs associated with starting a consulting business to help you determine if funding is needed. 

Read our article about how to fund your consulting business . 

8. Get the Technology & Software Needed to Run Your Business Efficiently

When you start your consulting business, it’s essential to have the right technology in place to maximize efficiency. You don’t need anything fancy or expensive, but you do need the basics. This includes a computer with Internet access, software for billing clients and creating quotes/estimates, an accounting program for tracking expenses and money coming in, a good printer, and possibly a high-quality desktop scanner.

You may also want project management software to help with collaboration and communication. You may also want to consider using Google Docs and Microsoft PowerPoint among other programs.

You can also invest in a virtual phone system so you can handle calls efficiently without needing an actual office location for your business.

Read our article about the technology and software you need to run a consulting business .

9. Practice Your Elevator Pitch

You should develop an  elevator pitch for networking events and introducing yourself at social gatherings. If you’re not sure what this is, it’s an informal 30-second summary of who you are and the services you offer. 

Practice your pitch with friends, family members, or even coworkers so you’re ready to deliver it when necessary.

10. Market Your Consulting Business to Potential Clients

Before you start selling your services as a consultant, you have to let the world know you exist. The first step is to create a website so people can learn more about your services and how they benefit them.

After you have a website up, start promoting it through social media channels. In addition to Facebook, LinkedIn and Twitter, consider using networks that are specific to the type of consulting business you run. For example, if you’re a website designer, use networks like Dribbble and Behance to gain exposure.

Network with other people in the consulting industry through social media and blogs so they can help share your business. You also want to establish yourself as an expert in your field by writing articles for publications and guest blogging on your site and those of others.

Read our article about   how to market your consulting business for more tips.

11. Get New Clients & Grow Your Business

When you promote your services, you’ll start to get interest from potential clients. Some may contact you directly based on their research, while others will want to hire you because other consulting industry experts have endorsed your work.

Either way, you need to be ready with proposals and quotes for your new clients. This is where having a proposal template comes in handy. Having these documents on hand will help you respond quickly when someone wants to hire you, which can lead to more business.

Read our article about how to effectively grow your consulting business to learn more.

Starting a Consulting Business FAQs

Why start a consulting business.

There are many reasons why you may want to start your own consulting business. You may have skills that are in demand, or perhaps you have a specific type of knowledge that other companies find valuable.

Sometimes it's just about having more control over your work environment. As an entrepreneur, you're the boss and can set the terms for how you want to work. You also have the ability to change those terms as your business grows and changes.

Consulting can be a rewarding career choice because you're your own boss and get to help other companies succeed. If you do well, you'll receive financial compensation for your efforts.

What is Needed to Start a Successful Consulting Business?

To start a consulting business, you need little more than an idea and business knowledge. If you have skills that are in demand, those can be a big asset as well. In addition to your expertise, here are the minimum requirements to launch a new business:

• A phone system, such as a hosted VoIP provider, to make and receive calls from your business location.
• A website with a clear explanation of your services and how they benefit clients.
• A way to get in touch with current and potential clients, such as email or social media marketing campaigns. You can use LinkedIn groups for this purpose.
• An office area where you're comfortable working, which could be a dedicated room within your house if you work mostly from home. This is not required, but it will make you feel more like a professional and help you separate work life from personal life.
• You'll need a template for client proposals and quotes to have them ready when someone wants to hire you.

How Can I Start a Consulting Business From Home?

Starting a consulting business from home is much the same as the steps listed above. However, there are some additional factors that you need to take into account.

First, you'll need an office area where you can work without distractions. This could be a spare room in your house, but it should be relatively quiet and free of clutter. It's also important to have a door to close when you need complete focus on your work.

You'll also want to separate your work life from your personal life. If you constantly have business materials lying around the house, then it could impact your family or friends if they need something while you're working.

This is especially important if you live with children or other adults that aren't part of your work. You don't want them bringing you messages or asking you questions while you're working.

Finally, you should set time limits for how long you work each day and stick to them. Work can be a great thing if it's done in moderation, so do your best to avoid getting so caught up in your work that you forget about the rest of your life.

How Can I Start a Consulting Business Online?

The steps to starting a consulting business online are the same as the steps listed above, but there are some additional factors that you need to take into account.

First, consider whether your consulting business will be entirely online or if there is any aspect of it that requires in-person meetings with clients. If you will have face-to-face meetings with clients, then running an online consulting business may not be right for you.

If you want to start an online consulting business, then you'll need a website where clients can go to learn about your services. This is essential for getting their contact information so you can follow up with them and send them proposals.

You should also have a way to get in touch with clients. This could be email, social media, IM bots, or something else. You can also use LinkedIn groups for this purpose.

Finally, you'll need a way to accept payment from clients so they can hire your company. This could be PayPal, credit cards, ACH and wire transfers, or another payment service.

What are Some Tips for Starting a Consulting Business?

There are a lot of tips you can follow to make starting a consulting business easier for yourself. Here are some of the best ones:

• Work on time management . This is very important if you're working from home and have family members that might disturb or distract you during work hours. You'll need to learn how much work you can get done in a certain amount of time, and make sure that your clients are aware of this, as well. If you're not meeting deadlines, then consider hiring an assistant.
• Be honest with yourself about what you can accomplish in a day . You don't want to promise too much or set unrealistic expectations for yourself or your clients. Remember that the quality of your work is more important than meeting a deadline.
• Find a niche in which you are an expert . This will make it easier to find clients, as well as help them understand the types of client projects in which you excel. You want to try and stand out from other consultants, so finding something that sets you apart from the crowd would be ideal.
• Find a way to track your progress . You'll want to know how much money you're making, as well as what types of projects your clients are seeking. There are many tools on the web that can help with this task.

Finally, learn from other people who have excellent time management skills and use their expertise and expert advice to become better yourself.

Where Can I Find a Simple Checklist for Starting a Consulting Business?

A simple checklist to use when starting a consulting business is as follows:

• Choose Your Type of Consulting Firm : This should be based on what you are best at and how much experience you have. Remember to keep your interests, skills, and experience in mind at all times.
• Name Your Consulting Business : This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
• Choose a Legal Form for Your Business : Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
• Write a Consulting Business Plan : A strategy should be created and maintained for you to follow as you begin your business. This should include at least a mission statement, market research, and competitive analysis.
• Apply for the Necessary Permits and Licenses : In most locations, you will be required to apply for some kind of business license before you can begin operations.
• Determine Your Budget & Apply for Funding as Needed : You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan.
• Get the Technology & Software Needed to Run Your Business Efficiently : You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
• Practice Your Elevator Pitch : If you're going to be pitching your services to clients, then you need to ensure that you can deliver a concise and relevant pitch. The best time to hone your skills is before you start seeking clients.
• Market Your Consulting Business to Potential Clients : A solid marketing plan will be the most important aspect of your business. It should focus on attracting the right customers so that you can provide them with the services they truly need. It should also be a regular part of your business operations.
• Get Clients & Grow Your Business : Once you have a solid marketing plan, it's time to actively pursue those who could benefit the most from your services. It will also be up to you to keep up the momentum and convince them that you are their best choice.

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Starting a Consulting Business Checklist with PDF

No pilot would fly, and surely no surgeon would operate before going through a checklist of critical items. 

As a new or aspiring consultant, you should ensure you are starting your consulting business with this checklist.

Consultants who prepare for the business side of consulting have a much better chance of reaching greater income, independence, satisfaction, and contribution.

For example, new consultants who have not prepared before starting their business face a much greater risk. If you choose the wrong niche or fail to develop a prospect pipeline your income will go through the infamous feast-or-famine cycle. Your independence and satisfaction may disappear as you scramble to recover.

To help you create a firm foundation for starting and building a thriving consulting business, here’s one of the best startup checklists on the internet.

Click to download the Start Consulting Checklist  PDF.

Critical Steps to Consulting Success

There are critical stages and steps to starting a consulting success. Some you can catch up on later. Some are so critical and part of a solid foundation, such as finding the perfect niche and defining the ideal client, that if you do it wrong, you can waste years of time and money and lose opportunities you can't regain.

The free ebook, The Ultimate Guide to Starting and Building a Thriving Independent Consulting Business, describes these basic stages and some of the steps in each stage. You can read and download a condensed online version here.  

Critical to Success Courses, Coaching, Mentoring Courses, coaching, and mentoring in Critical to Success guide you with strategies, tactics, systems, and skills to quickly build a highly successful consulting business. Our members have said our courses and coaching have saved them 5 to 10 years in building their independent consulting businesses. We guide you step-by-step through all the stages.

Finding Your Perfect Niche

Consultants who are “experts at everything” and “market to everyone” reach and serve no one. They waste time and opportunity by trying to be everything to everyone. Choosing the right niche (industry, consulting offering, and differentiation) is key to success as an independent consultant.

• Identify an industry
• Identify your core consulting services 
• Identify your micro niche – the domain where you are unique and sole expert
• Identify the niche’s high-value opportunities, problems, and trends
• Confirm and review your same-size competitors
• Define your Consulting Value Proposition (CVP)
• Create a Minimum Viable Consulting Service (MVS)
• Validate a need for your services with the MVS
• Identify potential adjacent industries and specialties

Click to Learn More

Click to download the   Start Consulting Checklist  PDF.

Finding Your Ideal Clients

Finding clients is no longer a case of joining the right country club, schmoozing, or making a zillion cold calls. To compete and grow, you must find the exact people who need your services and nurture a relationship with them until the time is right and they need you. You can’t force a sale and turn it into a trusting, long-term relationship.

• Create a list of potential contacts and referrals you already know
• Create a client profile with data-searchable characteristics
• Test the profile validity on LinkedIn (free)
• Test the size of the client base using LinkedIn Navigator
• Find industry associations for networking and speaking
• Develop your Prospect Problem to Client Solution matrix

Setup Your Consulting Business Model

As an independent consultant, you work both in and on your business. You must set up a solid legal, insurance, and tax foundation. You also must automate or simplify every business system you can. Getting this foundation, which is important to any business, is critical to relieving you of basic business, accounting, and tax work.

• Create a revenue forecast v budget model (If your niche and client profile are valid, you will need 3 to 6 months' financial reserve.)
• Choose a consulting business name
• Choose and file a legal structure
• File a Doing Business As (DBA) report with local governments
• Obtain an Employee Tax Identification Number
• Open a business checking and credit card account
• File with national, state, and local tax agencies
• Buy appropriate insurance (liability and/or errors and omissions)
• Setup accounting software with a chart of accounts for professional services

Promoting Your Consulting Services

Promoting your consulting services has multiple parts. First, build your foundation, a LinkedIn profile, and a simple professional website to validate your identity. Second, begin promotion and marketing with two marketing channels from those below.

Creating all of this can take weeks, but keep moving forward and build it. If you are in our courses and coaching we guide you through this step-by-step.

Marketing Planning and Preparation

• Write and memorize your one-line Magnetic Marketing Message
• Write a Cornerstone outline of your services and benefits
• Identify marketing channels that match for you and your clients
• Use SEO analytics to discover your competitor’s top blog topics and keywords
• Create an editorial calendar using your Cornerstone and top competitive blog topics to align and leverage content for speeches, blogs, and articles
• Build an Authority Proof Platform using the following...

Proof of Authority: Testimonials and Case Studies

• Capture detailed testimonials from clients or past employers
• Write two or three two-page case studies (clients or prior work as an employee)

  LinkedIn

• Create a client-oriented LinkedIn profile and picture
• Use your name in the LinkedIn URL

  Website and Lead Generator

• Register your web and email domain name
• Subscribe to a web host that has site templates, email services, and CRM (customer list)
• Create a minimal professional consulting website

  Email/Blog/Newsletter/Publishing

• Create an email and newsletter template
• Create an editorial calendar to leverage topics

Getting Consulting Clients Quickly

Once you have a foundation to prove your authority and build trust, you need magnets to attract and value to nurture prospects. You want to keep them around to prove your value so that when they need help, you are the first person that comes to mind.

Connecting, engaging, nurturing, and closing clients is an ongoing process. Start with methods that give short-term results, then build long-term automated marketing and lead generation machines.

• Reach out to referral sources with a proven request script
• Create an email referral template for others to use when they refer you
• Thank people who refer to you
• Create a high-authority LinkedIn profile
• Create high-value LinkedIn posts that show the value you bring to clients
• Target high-value LinkedIn contacts with high-value content and engage them with a discovery session
• Leverage editorial content through newsletter/blog/post
• Leverage content by republishing to association/trade publications

Social Media to Direct Outreach

• Use LinkedIn Navigator to build highly focused lists of high-potential prospects (we devote a module to this in our courses)
• Use proven scripts and offers to contact, engage, and nurture
• Engage contacts in Discovery and Strategy Sessions that can lead to Proposals

Speaking and Webinars

• Contact association chapters for speaking opportunities
• Create offers and Calls to Action for speaking/webinar lead generation
• Post case studies and testimonials to your website
• Write and post high-traffic, high-value blogs weekly or bi-weekly
• Post a short (1-2 page) high-value lead opt-in offer to capture visitor’s emails

Calculating and Setting Fees

Most independent consultants initially charge hourly or daily fees that are too low. If you are going to thrive and grow you must move as quickly as possible to project-based fees that cover all income, costs, and profit margin.

• Comparable employee method
• Market rate method
• Cost + margin method
• Know your minimum rate for the negotiations
• Create a project-fee estimator worksheet
• Develop a network of trusted sub-contractors
• Work up to the ROI-based business model

Selling Consulting Services

Most people do not like to sell. But as consultants, we must think of ourselves as doctors.

We have an ethical duty to help people improve their businesses and lives. It is a moral imperative to help prospects with problems become your clients so you can help them find a solution. Consultants who use the Discovery and Strategy session we teach easily convert prospects to clients usually use a conversation process that comes naturally.

• Research the individual prospect’s situation
• Know this specific Prospect Problem to Client Solution matrix
• Agree on meeting agendas
• Offer a Discovery Session to develop empathy and gain insights into issues
• Know the Questions Script that converts prospects to clients

Learn More in the eBook on this Topic:

How to Start and Build an Independent Consulting Business

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How To Start A Consulting Business In 2024 (6 Steps & Study)

This is the ultimate guide — with data — on how to start a consulting business in 2024.

By the end of this guide, you’ll know how to turn your skills and expertise into a profitable and successful consulting business .

Let’s dive right in.

(If you want to read our “ How To Start A Consulting Business Study “, click here to scroll down to that section)

Step 1: Choose Your Consulting Business Model

First, let’s define the term consulting.

Consulting is “the business of giving expert advice to people working in a professional or technical field.”

For example, I’ve spent over 21 years being a consultant.

I’ve spent 10,000+ hours on marketing , sales , fees , proposals — and everything else that consultants do.

So, I’ve accrued experience that enables me to give expert advice to people in the consulting field.

If you can provide advice that helps business-to-business (B2B) or non-profit organizations based on your past experience, you can consult.

People and organizations will pay you for your advice to help them get results.

Results like more sales, a lower employee turnover rate, a risk-free software project, help with executive decision making — the list goes on.

But before you start consulting, it’s important that you choose your consulting business model first.

Why should you do this first?

At Consulting Success®, we believe that your consulting business should support your lifestyle — and not the other way around.

That means that you should build the type of business that helps you live the lifestyle you want to live.

I’ve seen too many people end up building consulting businesses that trap them into a lifestyle that’s just like their 9-5 job…or worse.

To avoid that, you’ll aim at the type of consulting business you want by choosing the right model for you.

Watch the video below for an introduction to the 4 proven consulting business models :

Let’s talk about each model.

The Solo Consultant Model

As a solo consultant, you work closely with your clients and complete the project work yourself.

For example: Martin Krumbein is a strategy consultant who helps companies implement the right strategy for growth, enabling them to scale.

The solo consulting model is great for you if you want a lean, profitable, and flexible consulting business — a “lifestyle” business.

The solo consulting model is not right for you if you intend to sell your business (because you are the face of it), and if you don’t like the fact that if you stop working, it will be challenging for you to generate revenue.

Six-Figure Blueprint

The consulting firm model.

In the consulting firm model, you are responsible for running the firm instead of just working on client projects.

For example: Amanda runs an HR consulting firm , where she helps technology companies with culture, hiring, and talent retention. Instead of working on client projects, she manages a team of consultants who are implementing projects for their clients.

The consulting firm model is great for you if you don’t want to be focused on the “day-to-day” work, want to build a business that runs without you, and would like to sell it one day.

The consulting firm model may not be the right fit for you if you don’t like managing people, don’t like the idea of a lower profit margin, and if you would feel stressed about making payroll.

The Productized Consulting Model

The productized consulting model is where you turn your expertise into a “ productized service ” — a repeatable series of steps that deliver a predictable outcome for clients.

For example: Kristen’s provides brand consulting for food and beverage brands. After years of delivering custom branding projects, she’s turned her expertise into a process. She’s branded this process, has put a fixed price on it, and delivers that instead of custom branded projects.

The productized consulting model is great for you if you want to build a business that scales , you want to create a saleable asset, and you want to remove yourself from the day-to-day work.

The productized consulting model might not be a great fit for you if you want to work on new projects or you don’t like managing or training people to deliver your productized service.

It also takes years of experience and delivering custom projects before you’re ready to turn it into a repeatable process that delivers a predictable result.

The Hybrid Consulting Model

The hybrid consulting model is a mixture of the previous 3 models.

You pick and choose what you like about the other models and combine them into your own unique hybrid.

For example: Our business, Consulting Success®, is a hybrid consulting business. We offer a digital course, Momentum , and a training program, the Clarity Coaching Program that includes personalized coaching and consulting with it.

The hybrid model is ideal once you’ve been running your consulting business for a few years. After a few years, you’ll know what you like, what you don’t like, and can start to customize your business model into what works best for you and your clients.

After reading those descriptions, examples, and pros & cons, which model excites you the most?

Remember: you can always change your consulting business model later.

But it helps to get clear on the type of consulting business you’d like to build from the start.

With that, let’s move on to the next step and think about your ideal client.

Step 2: Get Clear On Your Ideal Client

Who will your consulting business serve?

This is one of the most important questions you’ll answer to start a consulting business.

And it’s one that many people skip over.

As a result, it’s very hard for them to attract clients, price their services, and win consulting projects.

Pay particular attention to this step and take the time to get it right.

Watch the video below to learn why being crystal clear on your ideal client is critical to your consulting business:

Here’s how to think about choosing your ideal client.

The “Big Fish In A Small Pond” Mindset

Imagine that you’re dealing with severe back pain.

You’re looking for a physiotherapist who can help get rid of your back pain — so you can get back to living a healthy, active lifestyle.

So, you begin searching for physiotherapists to help solve your problem.

You find one clinic called “ActiveFit Physiotherapy.” They’re a generalist physiotherapy clinic that helps people with all types of pain.

After that, you find a clinic called “SpineExperts Back Pain Specialists.” They’re a clinic that specializes in helping people with their back pain.

Given your specific problem — your back pain — which clinic draws your attention?

Which one are you most likely to attend?

You’re more likely to go with SpineExperts because they speak to your exact problem.

It feels like they are talking directly to you — your pain, your problem, and the results that you want.

This example shows how important it is to get specific on who your ideal client is.

As a consulting business, you provide your expert advice to people or organizations.

Who are those people or organizations, exactly?

The more specific this “who” is, the more your business will stand out to them.

Without standing out, your ideal clients won’t pay attention to your messaging and content (which is marketing).

They’ll be less receptive to having a call with you about how you can help them (which is sales).

To start a consulting business, you want to start by being the big fish in a small pond.

You’ll stand out more, garner more attention, and become an expert faster.

It will make it much, much easier to get clients. And clients are what you need to start a consulting business.

So how do you actually figure out who your ideal client should be?

Brainstorm & Write About Your Ideal Client

The next step is to brainstorm about the niche that you’d like to serve in your business.

A niche is an industry or type of client.

For example, Nic Campbell works with nonprofit and philanthropic organizations.

Jason Fearnow of Prime Contract Solutions works with mining companies.

Husain Shekhani of Ultrasonic Advisors works with companies in the ultrasonic device industry.

None of these consultants target “businesses” or even “small businesses.” These are far too general.

Instead, they serve a specific niche.

To start a consulting business, you must pick your niche.

How do you actually do that?

In our Clarity Coaching Program , we instruct clients to use the Niche Scoring Method.

Here’s how it works.

Pick a couple of niches that you’re interested in serving.

If you can’t think of any, pick the industries that you’ve worked with before. What industry does the company you work for now belong to? What about companies you’ve worked with in the past? Or, how about companies you applied to work at?

Once you’ve picked out a few of these industries, score them on the following factors on a scale of 1-5 — with 1 being weak, and 5 being very strong:

• Experience : How would you rate your experience with this niche?
• Expertise : How would you rate your status as an expert within this niche?
• Results : How would you rate your confidence that you can deliver results for this niche?
• Potential : How would you rate this niche’s growth and how willing they are to hire consultants?
• Interest : How would you rate your interest in this niche?
• Access : How would you rate your ability to speak with ideal clients in this niche?

Then, you add up the total scores for each niche.

Pick the one with the highest score to start with.

And pay attention to the “Interest” score.

You’ll enjoy your work more if it’s an industry or niche you are passionate about helping.

You can always change your niche later. But if you want to start a consulting business, you must pick a niche, and then go on to the next step.

Once you’ve made your selection, you’ll start talking to people about the potential of this niche.

Validate Your Ideal Client Potential

Picking your niche is the first step.

And now, it’s crucial that you validate your niche.

By validate, I mean going out and talking to people in that niche and learning about their problems and results that they desire in their organization.

People pay consultants to solve their problems and help them get their desired results.

Instead of guessing what those are, you validate your niche’s potential by asking them about these problems and desired results.

Use a tool like LinkedIn Sales Navigator to make a list of 10-20 ideal clients — people in the industry you’d like to serve.

Then, send them a connection request. In your connection request, send a message that introduces yourself, and that you’re connecting with people in your niche.

For example, if your niche is “Financial Services”, and you are connecting with Andrew, a CFO at a financial services company, you might say:

“Hi Andrew, you do great work at COMPANY NAME — would be great to connect with another person in the INDUSTRY NAME space.”

Notice how you’re not pitching anything like most people do.

You’re simply mentioning the person’s company, and that you’d like to connect with people in a similar space.

Tweak this example so that it suits your style.

The next step is to ask them a question. What are they working on? What’s new with their company?

Ask them something you are genuinely curious about.

If they are receptive and open to talking, you can ask them for a 5-10 minute call to learn more about that.

What you’re trying to do on this call is to learn about the industry — the problems they have, the type of projects they work on, and the results that they are working towards.

And if they have the types of problems that you’re interested in, can solve (or have solved before), then that is evidence that you’ve found a good niche to target.

Go and set-up these short, introductory calls with 10 ideal clients. Take notes on the call and record their feedback.

After you’ve done 10 calls, review your feedback.

Is this a niche that has problems that you have experience solving?

Is this a niche that works on the types of projects that you can deliver?

Would you enjoy working with this niche?

You want to select a niche where you can answer “Yes” to the questions above.

Now, reaching out to connect with ideal clients and then asking them for a call might scare you or make you uncomfortable.

If starting a consulting business was easy, everyone would do it.

To start a consulting business, you’ll have to embrace this discomfort.

You’ll have to take imperfect action.

Reaching out to prospects and calling them is a big part of marketing and sales, which we’ll get to later on in this article.

If you can’t do that, then you might be more comfortable sticking with a 9-5 job.

However, if you make your outreach more about your prospect instead of about you or your services, you’ll be surprised about how willing they are to connect and speak with you.

So, who’s your ideal client?

What industry are they in?

What’s their job title?

How big is their company, and where are they located?

By brainstorming and validating your ideal client, you’ll write specific answers to these questions.

Your ideal client — who you serve and add value to — is the foundation of your consulting business.

Once you’ve got that foundation down, you’re ready for the next step.

You’ll write messaging that attracts these ideal clients to you.

Step 3: Write Messaging That Attracts Clients

I once had a friend who was looking into joining a weekly yoga class to work on his flexibility.

He worked a desk job, and outside of some running, he didn’t do a lot of stretching.

However, he was intimidated by most yoga studios.

They looked as though they were all for experienced yoga practitioners.

On their website and their advertisements, they showed off impossible-looking poses, ridiculously fit instructors, and all kinds of spiritual mumbo-jumbo.

He almost gave up his search.

But then, he came across one Yoga studio that spoke to him:

“Yoga For Stiff Guys — Get More Fit & Flexible With Our Relaxed Classes For Beginners”

This message attracted him like a magnet.

It spoke to what he wanted — yoga for beginners — but also who he was: a stiff guy.

That’s what good messaging does.

It makes your ideal client feel as though your marketing is speaking specifically to them.

It makes them take interest in your business and want to learn more.

Watch the video below to learn more about creating a magnetic message that attracts clients :

In this step, you’ll learn how to put together your magnetic message — and how to put it on display so that your ideal client starts to notice you.

Problems/Action/Results

Your ideal clients have problems they want to solve.

You, as the consultant, take actions to solve those problems.

As a result of those actions, your expertise creates results for your clients.

Problems, Actions, and Results are essential components of a magnetic message.

For example, let’s say you’re a sales consultant who helps enterprise software technology companies.

• Problem : Your ideal client’s sales team is performing poorly.
• Action : You offer a 6-week sales training program.
• Result : On average, your program increases the sales team’s performance by 33%.

Consultants — especially beginners — tend to focus too much on the actions.

But if you really want to get the attention of your ideal clients, focus on results.

Your ideal client wants results, not just actions.

Do this exercise now.

Write down 10 problems that your ideal client has.

Write down 10 actions you can take to solve those problems.

And then write the result of each of those actions.

If you’re unsure of what problems they have, then you haven’t done enough validation from the previous step. That’s where you learn about the problems your ideal client is facing.

By writing down problems, actions, and results, you have the building blocks of a magnetic message.

Now, we’ll put these blocks into a formula.

The “Magnetic Messaging Formula

We designed the “Magnetic Message Formula” to help you write a simple, effective message to draw the attention of your ideal client.

Here’s how it looks:

I help [WHO] to [solve WHAT problem] so they can [see WHAT result]. My [WHY choose me]…

Inside the square brackets are your “variables.”

You fill them in with the right words to match who your ideal client is, the problem you solve for them, the results you create for them, and why they should choose you.

For example: I help enterprise software companies with underperforming sales teams so that they can boost sales and revenue. My 10 years of experience and 6-step program has helped over 20 clients boost their sales by an average of 33% in 6 months.

• WHO : Your ideal client (ex: enterprise software companies).
• Solve WHAT problem : The problem that you solve for your ideal client (their sales team’s underperformance).
• See WHAT result : The result you create for your ideal client (ex: boost sales and revenue).
• WHY choose me : Why your ideal client should choose you (ex: 10 years of experience and 6-week program has helped over 20 clients boost their sales by an average of 33% in 6 months).

The Magnetic Message has everything you need to draw the attention of your ideal client.

Its purpose isn’t to win the sale. It’s to simply get them interested in you and want to learn more.

Use the example above to write your own Magnetic Message.

Your first message won’t be perfect. Instead, aim for “good enough.”

You’ll make it better once you make it public and start gathering feedback.

Applying Your Magnetic Messaging

Once you’ve written your Magnetic Message, it’s time to make it public.

It won’t draw the attention of your ideal clients unless you’ve put it in places where they can see it.

First, put it in your email signature.

That way, everyone you email will be aware of what you’re doing, who you’re serving, and how you can help them.

This is great for when you reach out to your ideal clients. It’s also great for creating referral opportunities.

You’ll interact with many people who don’t need your consulting service — but they know someone who might.

Second, put it in your LinkedIn profile.

Make your magnetic message your tagline.

Unlike your job title or the type of consultant you are, your magnetic message is more about your ideal client.

It’s about what you can do for them and the results you can create for them.

If ideal clients see your tagline, you want them to take interest and click to read your profile.

Finally, you want to put your magnetic messaging into your consulting website .

It should be one of the first things your ideal clients read when they visit your consulting website’s homepage.

And throughout the website, you back up your magnetic message with articles, testimonials, case studies, and other forms of content that demonstrates your expertise.

Your magnetic message won’t do you any good if it’s on a piece of paper in your drawer.

Put it out there and make it work for you.

Ask people to give you feedback.

Keep making it better and better until your ideal clients can’t help but want to learn more.

Once you start getting the attention of your ideal clients, you’re ready for the next step, creating your strategic offer — and pricing it.

Step 4: Create & Price Your Consulting Offer

By this point, you’ve chosen your consulting business model, gotten clear on who your ideal client is, and have written messaging that attracts that ideal client to you.

Now, you need to create and price your strategic consulting offer.

Remember: Your ideal client has a series of problems.

You, the consultant, have the expertise and experience to carry out actions to solve those problems.

As a result of your actions, you’re able to create your client’s desired results.

Your strategic offer is those actions you take to create your client’s desired results.

And your consulting fees are what your ideal clients must invest for you to work with them and achieve their desired result.

Creating and pricing your offers is a very nuanced topic. There are strategies for beginners and for more advanced consultants.

We’ll focus on beginner and intermediate strategies for now.

If you want to learn more about advanced strategies like value-based pricing , discovery offers , and retainers , check out our Momentum or Clarity Coaching Program .

Let’s start with a popular topic: setting your consulting fee .

Set Your Consulting Fees

Why do you pay for products or services?

Because you want to get a result.

If you purchase a massage session, you want your body to feel better.

If you purchase accounting software, you want an easier time managing your money.

Now, how much you invest depends on many factors.

• How painful is the problem?
• How reliable is the product or service?
• How will getting this result impact your life?
• How much money do you have to invest in it?

Your clients are paying for your service because they want a result.

And much they are willing to pay depends on these factors.

Consultants in our programs regularly charge $25K, $50K, or even $100K+ for a single project.

That might sound crazy to you.

But if you think about the results their clients are getting, these prices become much more understandable.

As a beginner, the easiest way to set your consulting fee is by using the hourly method or the project-based method.

(See our consulting fees guide for a more in-depth tutorial on how to set your fees using these methods.)

With the hourly method, you charge your client by the hour.

It’s a good option for your first few consulting projects.

For example, let’s say you earn $80 dollars per hour in your day job.

Take your hourly fee and double it for your consulting projects.

You’ll charge at least $160 for consulting.

As a new consultant, you’re not working 40-hour weeks with your clients.

You have to spend just as much time (if not more) to actually go out and win business.

Your fee must account for this.

If it doesn’t, you won’t be able to do your best consulting work.

Clients are happy to invest higher fees if it means working with an expert and feel certainty about getting the results they want.

With the project-based method, you charge your client a fixed price.

It’s a better option than hourly because your clients know exactly how much they are paying upfront.

With the hourly method, they don’t have this same certainty.

For example, let’s say your consulting service will take 30 hours to deliver.

Take your hourly rate, and times it by 30.

$160 x 30: $4800.

Then, times that by 1.5.

Projects will take longer than estimated when starting out.

This multiplier helps account for revisions, scope creep, and any add-ons.

Once you’ve chosen a pricing strategy and set your fee, you’ll begin to create some options for your clients.

Create Three Options

Buyers like options for getting their desired results.

And when you offer them options, their thinking shifts from “Should I use you” to “How do I use you.”

So now, you’ll create three options to help your clients get their desired result.

NOTE: You will customize these options after speaking with each ideal client. You design your options to help your client get the specific results they want.

By having some stock options, you have a foundation.

It will be much easier for you to craft and customize your offers when you aren’t working from scratch.

Here’s how to think about your three consulting offers.

Option 1 – $

• Basic offer
• Minimum effort required
• Provides value
• Lowest investment

Option 2 – $$

• Helps them get their result quicker than option 1
• Provides more value than option 1 (ideally, without having to spend more time)
• Highest investment

Option 3 – $$$

• If money isn’t an issue
• Best results
• Shortest time to result

For example, let’s say you’re a marketing consultant who serves accounting businesses.

Your client, Acme Financial Services, wants to win 3 new clients per month.

Each client is worth $500 per month recurring revenue to the client.

You offer her client 3 options:

Option 1 – $6000

• Brand positioning overhaul
• Website messaging audit
• Direct outreach sequence

Option 2 – $15,000

• Website content strategy
• LinkedIn content + outreach plan

Option 3 – $30,000

• Search engine optimization
• Lead-magnet development & implementation
• Direct mail campaign

Notice how as the options increase in price, the value for the client increases.

The more they invest, the quicker they get their desired results, and the more certainty they get about achieving those results.

Think about it this way: your offer is a series of actions you take to deliver your client their desired result.

By offering multiple offers, you give the client about how they’d like to get their desired result.

Next, we’ll “brand” your offers and make them more intriguing to your ideal client.

Brand Your Offer

You don’t just offer “consulting.’

You offer more sales, increased efficiency, cost savings, stress reduction, etc.

So it’s important that your consulting services reflect that.

Branding your offer means to make them more memorable, unique, intriguing — and easier to sell.

No clients will be excited about a “sales workshop.”

But a 1-Day Sales Revolution Workshop?

That’s going to get people’s attention.

But how do you come up with a branded name for your offer?

Start by looking at your Problems/Actions/Results — specifically, your results.

Like a good headline, you want to include the result your clients want in the title of your offer.

For example, if your consulting services increase sales, then you want to incorporate that into the name of your offer.

Then, think about the format in which you deliver your consulting service.

Is it a workshop? Ongoing consulting? A bootcamp? One-off?

Add the format to the title as well.

Then, you’ll want to add a power verb to it.

Power verbs are action words that add color and force to your offer.

So, if you help your clients increase their sales by 33%, then use a word like “revolution” instead of “increase.”

With these three steps in mind, you’re ready to start brainstorming your offer’s name.

Here’s the formula: result you create + power verb + how you deliver it.

Example: 1-Day Sales Revolution Workshop.

Have some fun with this one.

Make it eye-catching. Make it original. Make it reflect your personality and style.

That’s what branding is all about — attracting the right people for you and your business.

Once you’ve created a few consulting offers, you’re ready to begin the marketing process.

It’s time to tell the world what you’re up to, and how you can help your ideal clients.

Step 5: Rev Up Your Marketing Engine

Early on in your consulting business, you can’t expect your ideal to come knocking on your door and asking to work with you.

You’ll have to find and approach them.

This is what marketing is for consultants: getting your ideal clients to know you, like you, and trust you.

When they know you, like you, and trust you, they’ll want to have a conversation with you about how you can help them.

At this point, you’ll start putting all of your work to the test.

Marketing is a complex topic — but in this step, we’ll make it easy for you to start reaching out and generating conversations with your ideal clients.

The Marketing Engine Mindset

Should you be on Instagram?

Is YouTube the way to go?

What about paid Google or Facebook ads?

There are thousands of ways to get the attention of your ideal clients.

However, most of these are shiny objects and tactics.

Some of them work, some of them don’t.

But if you don’t focus on what actually creates conversations with your ideal clients, you’re stuck in “no-mans land.”

Here’s what you want to focus on with your marketing:

1. Outreach : reaching out directly to start having meaningful conversations with your ideal clients.

For example, a direct LinkedIn message or email sharing valuable content with an ideal client to add value to their lives — and to get them interested in what you offer.

2. Follow-up : following up with ideal clients and adding more value.

For example, sending a direct mail to them — something they would find interesting, meaningful, unique (like a case study or white paper), and prompts them to reach out to you to learn more.

3. Authority-building : Publishing content to position yourself as an authority and to support your outreach/follow-up efforts.

For example, using your consulting website to publish articles that help your ideal clients.

If you combine outreach, follow-up, and authority-building, your marketing will be effective and fulfill its purpose: to build relationships with your ideal clients and to create conversations with them.

Now, reaching out to ideal clients might sound intimidating to you.

But this exercise will help.

Magic Number Exercise

People who write down their goals are much more likely to achieve them.

If you know your monthly revenue target, how much your average project is worth, and how many conversations with ideal clients it takes to win a project, you can be VERY specific on what it would take to reach your monthly goals.

For example, let’s say you want to make $50K per month in your consulting business.

Your average project is worth $25K.

And 1 out of every 4 conversations with an ideal client leads to a project.

That means you need to win 2 projects per month.

That’s 8 conversations with ideal clients per month — or, 2 conversations per week.

Now, the question is…

What are you doing TODAY to have 8 conversations this month?

We’ve created a simple spreadsheet for you to do this exercise and plug in your numbers:

Magic # Exercise Spreadsheet

Click File > Make a copy to save a copy of the spreadsheet for yourself so you can adjust the numbers.

This exercise makes it crystal clear as to what you need to be doing to reach your monthly revenue target.

It’s all about having more meaningful conversations with your ideal clients.

Now, how do you actually reach that number of conversations?

That’s what we’ll cover next.

Daily/Weekly/Monthly Plan

You need a plan — a daily list of activities — that will help you create X number of conversations with your ideal clients.

Remember your three key marketing activities: Outreach, Follow-Up, and Authority-Building.

You should be doing Outreach, Follow-Up, and Authority-Building EVERY DAY.

Early-stage consultants will spend more time reaching out to clients and following up with them.

Writing content to build authority is a longer-term strategy, whereas outreach and follow-up can create conversations very quickly.

You need to wake up each day and know exactly what to do every day in order to hit your numbers.

Doug Nelson , one of our Clarity Coaching clients, put his magic # everywhere around his home.

His day wasn’t finished until he had his required number of conversations with ideal clients.

As a result, he grew his consulting business to over $2M dollars.

Here’s a sample daily plan you can use to start your Marketing Engine:

• 8:00 AM: Start your Marketing Engine outreach in the morning
• 8:30 AM: Follow up with any potential clients from the previous day
• 9:00 AM: Make warm follow-up calls
• 10:00 AM to 2:00 PM: Client work
• 2:00 PM: Marketing Engine conversations/Authority Building
• 3:00 PM to 4:00 PM: Client calls and meetings
• 4:00: Daily review (focus on the most direct path and stage of your marketing maturity)

If you follow this plan, you’ll be reaching out to ideal clients, following up with ideal clients, and creating content for your ideal clients — every day.

This is what it takes to reach your magic # and hit your revenue goals.

With your marketing engine up and running, ideal clients will start scheduling calls with you.

They’ll want to learn more about your offers and how you can help get them results.

This brings us to the final step of starting your consulting business:

Having meaningful conversations with ideal clients — and winning consulting projects.

Step 6: Generate Meaningful Conversations (& Win Your First Consulting Project)

You’ve created your consulting offers .

You’ve started up your marketing engine.

What’s the sign that it’s all working?

Your ideal clients are receptive. They want to learn more about how you can help them.

Of course, you help them through your strategic offers.

But how do you bridge the gap?

How do you take someone who’s interested in your services to say “yes” to your offer and send you the check?

That’s where sales come in.

Just the word “sales” might make you feel icky.

But in consulting, “sales” take on an entirely different meaning.

The Truth About Consulting Sales

When people who are uncomfortable with selling think about sales, they think about the loud, aggressive car-salesman who doesn’t care about the customer.

They just want to “close.”

The good news is that effective selling in consulting takes the opposite approach.

As a consultant, sales is about having a meaningful conversation with a buyer to learn about their situation and needs.

If you help improve their situation and add value, then you can tell them about your offer.

You’re not trying to “close.”

Instead, you’re trying to help the client get clear on their desired situation, what’s holding them back — and then (and only then) if you can help, you make them an offer.

So, what do you ask a client to have a meaningful, valuable conversation that leads to the sale if the fit is right?

Meaningful Conversation Sales Framework

To figure out if there’s a fit between you and an ideal client, you have a conversation with your ideal client that’s about their business, their goals, and their challenges.

This conversation is meaningful but it prompts the client to get crystal clear about the problem they are facing, where they want to be, and what’s holding them back.

If your expertise can help solve those problems and get them to where they want to be, then you introduce your offer.

We’ve created the Consulting Sales Conversation Framework, which is designed to create three outcomes:

• The client accepts your offer on the call
• The client says they will review your proposal at an assigned future date
• The client says no to your offer.

Here’s a loose outline of the framework.

• Part 1: Establish rapport. Ask your client a few questions about where they are from and what they are up to this week.
• Part 2: Set the agenda. Give them an outline of the meeting, that you’ll explain your offer if there is a fit, and confirm that it sounds good to them.
• Part 3: Learn about their current business and important details. Ask them questions about their problems, why it’s important to fix, and the impact it’s having on their life.
• Part 4: Ask where they want to be. Ask them about their key goals in the next 6-12 months and what they want their future to look like.
• Part 5: Uncover the main challenges . Ask them where they need the most help.
• Part 6: Discovery “why now?” Ask them why it’s important for them to fix this now.
• Part 7: Make your offer. If you feel as though your offer can help get them to where they want to be, explain how it helps solve their problems — and present your investment options.

After you finish guiding a client through this framework, they’ll often have questions — or “objections.”

When clients ask you questions about your service, it’s a good sign.

Objections just mean they’re interested.

Objection handling is all about answering truthfully which minimizes the risk the client is feeling.

After you hear an objection, write it down. Then, after the call, write your best answer to it.

After many calls, you’ll know all the objections your ideal clients have, and you’ll be able to handle them with ease.

Now that you’re having these calls with your clients, it’s important to track each one with the consulting sales pipeline.

The Simple Consulting Sales Pipeline

There is a very clear progression to take a prospect and turn them into a paying client.

The consulting sales pipeline is a series of stages that outlines this progression.

By using a CRM and pipeline to track this progression, you’ll have a much easier time understanding your “lead flow” — the amount of consulting business you have in the works.

What gets measured gets managed. Manage your pipeline, and you’ll have an easier time closing consulting business.

You can break the consulting sales pipeline down into 5 columns:

• LEAD . You’ve identified the prospective client and have begun reaching out to them to set-up a conversation.
• CONVERSATION . You’ve had a sales conversation with the prospective client.
• PROPOSAL . You’ve sent a proposal to the prospective client.
• WIN . The prospective client has accepted your proposal and you won the business.
• LOSS . The prospective client has declined your proposal and you lost the business.
• NURTURE . Most people you reach out to won’t be ready to buy or make a decision right away. In fact, even people who say ‘No’ to a proposal now, may buy from you later as long as you stay top of mind through your nurture process.

By having your leads organized in these columns, you’ll understand what aspect of your marketing or sales you need to work on most.

Remember: consulting is a long-term sales cycle.

That nurture column is very important.

We’ve had clients who have followed us for years before they were ready to invest in our programs.

If you consistently nurture and follow-up with your leads, then you create top-of-mind awareness. So when the need for your service arises, they’ll think of you.

Selling is an integral part of starting a consulting business.

If you can’t sell your consulting projects, you can’t earn revenue.

If you don’t have revenue, you don’t have a business.

But by following this 6-step guide, you know how to identify, message, market, and sell your ideal clients.

And that’s how you start a consulting business: by winning your first few clients.

Once you can do that, the logistics of starting will be easier.

What Comes Next? Start A Consulting Business Checklist

Getting clients is where consultants — especially new ones — struggle the most.

If you start your business by mastering this crucial skill, you’ll be in much better shape.

That said, there are some other considerations for starting your consulting business.

We’ve put together a simple checklist to walk you through the logistics.

Remember: focusing on your office or accounting before you can win clients is a bad idea.

Your ability to win new business comes first.

Start A Consulting Business Checklist

There are a few things you’ll need to set up a professional consulting business.

5 factors you must consider:

• Incorporation

We’ve put together a checklist to help you start a consulting business and cover these 6 areas.

Equipment For A New Consulting Business

You don’t need much equipment to start a consulting business, but you’ll need a few logistical things.

• An office space (can be a home office)
• Telephone with voicemail
• Mailing address
• Computer/laptop with high-speed internet

Do You Need To Incorporate A Consulting Business?

In most cases, you don’t have to incorporate a brand new consulting business. But you should consider it.

• I’ve incorporated my consulting business (recommended only if you are making far more than you need to live on — or if you’re at risk of litigation)

Accounting For Your Consulting Business

Trying to do my own accounting was one of my biggest mistakes as a young consultant.

Make sure you hire an accountant and set up a separate business account for your consulting business.

The return on your investment in time saved and with regards to your taxes will be worth it.

• I’ve hired an accountant to do my invoicing and taxes
• I’ve set up a bank account for my business

Legal Considerations

As a newfound consulting business owner, connect with a lawyer who understands small businesses. Then, if you have any questions, you can call them for help.

• I know a lawyer who can help me with any legal questions I might have

Your Consulting Office

You don’t need a fancy office — but you do need a quiet space where you can do deep work.

My office space is distraction-free: where I can think, work, and make calls.

My temporary consulting office while in Japan. You can run a million-dollar consulting business from an office space like this

Now, you know everything you need on how to start a consulting business.

Follow these steps in order and get started!

Get Help To Start Your Consulting Business

Feeling a bit overwhelmed?

I get it. There’s a lot to this article.

If you’ve been excited about starting your own consulting business, you might even be feeling a little discouraged at this point.

That’s OK. There’s a lot of work ahead of you.

But now, you know how to start a consulting business the right way.

You now have a guide that gives you the process of building a profitable consulting business.

And if you’re still reading, taking notes, and not discouraged by the work ahead, then you’re serious about becoming a successful consultant.

If you’d like our help to guide you through this process so you can avoid spinning your wheels and hoping that you’re going about it the right way, get in touch.

Our Coaching Program For Consultants

We’ve helped over 500 consultants from all around the world in all different industries grow their consulting businesses and add six and seven figures to their annual revenues along the way.

Coaching has been the single best investment for our consulting business — and it’s the same for our clients.

So, are you ready to accelerate your success and realize your true potential as a consultant?

If you’re interested in learning more about our coaching program for consultants go here now: Clarity Coaching Program .

Why are you interested in starting a consulting business and becoming a consultant?

What are the biggest challenges you’re facing right now in getting your business off the ground?

Let us know and join the discussion in the comments below.

And if you enjoyed this guide, please take a minute right now to share it with others through social media!

How To Start A Consulting Business Study (2024)

Want to see the data on how to start a consulting business?

We sent out a survey to consultants asking how they started their consulting business — and over 500 people responded.

We analyzed the data and used it to help inform our 6 steps to start a consulting business.

If you want to learn how to start a consulting business based on data from real consultants, this study is for you.

QUICK LINKS

• Key Findings

Reasons To Start A Consulting Business

Transitioning from corporate to entrepreneurial consultant, consulting business operations, consulting fees, marketing, & proposals, consulting demographics, key findings from our “how to start a consulting business” survey.

Let’s start with our 12 key findings from the survey data.

1. For 60% of consultants, their first consulting client is a referral from their network .

2. Consultants find mentorship/coaching more helpful than any other form of learning.

3. 63% of consultants cite networking and referrals as their most powerful marketing channel , followed by social media (25%).

4. Marketing, sales , and fees are what consultants feel the least prepared for before starting their consulting business — and are the most challenging part of the business.

5. 63% of consultants win less than 60% of their consulting proposals . Consultants who discuss their proposals with the client on Zoom are twice as likely to win 60%+ of their proposals .

6. Over 50% of consultants reach their previous income level as employees within 2 years of starting their consulting business .

7. The most common average dollar value (in USD) for consulting projects is $5000-$15K and $15K-$50K . 33% of consultants’ average project value is in the $15K-$50K range. 6% of consultants’ average project value is over $100K. In North America, $15K-$50K+ projects are much more common.

8. The majority of consultants (63%) state this as their long-term goal: “ I want a profitable business to provide a great lifestyle for me (and my family) ”

9. The most popular pricing models for consultants are project rate (36%), followed by value pricing (26%) and hourly fees (23%). In our previous 2022 study, the breakdown was project rate (37%), value pricing (26%), and hourly (21%).

10. When compared to male consultants, female consultants were more than twice as likely to answer “ Fees : figuring out what to charge and why” as their biggest challenge in consulting .

11. Consultants who have invested in mentorship or coaching are more than twice as likely to use value pricing .

12. Over 50% of consultants quit their jobs and then started their consulting business compared to 25% who started their business while still at their job.

Now let’s take a closer look at the data.

We began the survey by asking respondents WHY they decided to start a consulting business.

The #1 Reason People Start A Consulting Business

People decide to start a consulting business for many different reasons:

• Realize my potential (26%)
• Be my own boss (22%)
• Flexible schedule (14%)
• Was laid off from my job (12%)
• Other (10%)
• Unlimited income potential (9%)
• Ability to work from anywhere (7%)

Starting a consulting business offers you the opportunity to create more freedom, wealth, and impact than traditional employment.

Were Consultants Unhappy With Their Former Careers?

42% of consultants were dissatisfied with their former job.

25% of them were very dissatisfied.

However, 33% liked their jobs.

Upon further analysis of the data for this survey question, here’s what we found:

• Of consultants who were dissatisfied with their jobs, the most popular answer for why they started their consulting business was “Be my own boss.”
• Of consultants who were not dissatisfied with their jobs, the most popular answer for why they started their consulting business was “Realize my potential.”

How Long Consultants Thought About Starting Their Consulting Business

45% of consultants had thought about starting their business for a few years.

26% had been thinking about starting their own business for more than 5 years.

And 29% had been thinking about starting their own business for less than a year.

In 2024, starting a consulting business has never been easier.

• Consultants who had been thinking about starting a consulting business for more than 5 years were more than twice as likely to start their business while still employed compared to those who had thought about starting a consulting business for less than a year.

What Consultants Felt MOST Prepared For Before Starting A Consulting Business

We asked consultants what they felt most prepared for before starting their business:

• Project Delivery : delivering on projects for my clients (49%)
• Operations : setting up and running the business (accounting, legal, etc) (12%)
• Sales : turning conversations with prospective clients into paid projects (10%)
• Prioritization : Knowing what to focus on and when (9%)
• Marketing : generating conversations with prospective clients (8%)
• Time Management & Organization : getting everything on my to-do list done (7%)
• Emotional : loneliness and frustration with starting a new business (3%)
• Fees : figuring out what to charge for my services and why (1%)

When starting a consulting business, the biggest challenge isn’t delivering projects.

It’s winning those projects.

What Consultants Felt LEAST Prepared For Before Starting A Consulting Business

Here’s what consultants felt least prepared for:

• Marketing : generating conversations with prospective clients (31%)
• Sales : turning conversations with prospective clients into paid projects (22%)
• Fees : figuring out what to charge for my services and why (16%)
• Prioritization : Knowing what to focus on and when (7%)
• Emotional : loneliness and frustration with starting a new business (6%)
• Project Delivery : delivering on projects for my clients (3%)
• Time Management & Organization : getting everything on my to-do list done (2%)

Marketing and sales are the hardest part of starting a consulting business.

That’s why they are a major focus in our Clarity Coaching Program (get in touch if you’d like help taking your marketing and sales to the next level so you can see greater growth in your consulting business).

How Families Feel Before You Start A Consulting Business

If you decide to start a consulting business, how will your partner/family feel?

For 46% of consultants, their partners were very confident and happy to support their decision.

42% said their partner was somewhat confident and happy to support their decision.

11% said their partners were somewhat unconfident and unhappy to support their decision.

And 1% said their partners were very unconfident and unhappy to support their decision.

Support from your partner or family is important to your level of success as a consultant.

• For consultants whose partners were very supportive of their decision to start a consulting business, 38% of them reached their previous level of income as an employee within 1 year (compared to 14% of those whose partners were unconfident and unhappy to support their decision).
• For consultants whose partners were somewhat unconfident and unhappy to support their decision, 61% of them are still working on reaching their previous level of income as an employee after 3 years (compared to 30% of consultants whose partners were very confident and happy to support their decision).

So, you’re in a corporate job and want to start a consulting business.

How do consultants actually make this transition?

Here’s what they had to say.

Did Consultants Start Consulting On The Side Or Quit Their Job?

51% of consultants quit their job and then started their consulting business.

24% started their business while they were still at their job.

Both of these are valid transition strategies.

Which one you choose depends on your risk tolerance, financial runway, and network

(25% of consultants selected “Other” on whether they started consulting on the side or quit their job and went all in)

Upon a deeper analysis of this question’s survey data, we found that…

• Consultants who quit their jobs and then start a consulting business reported a higher level of income than those who started their consulting business on the size.
• Consultants who quit their jobs and then start a consulting business reported a higher average revenue per engagement than those who started their consulting business on the side.

How Consultants Get Their First Consulting Client

Getting your first consulting client is a critical first step.

• 60% of consultants get their first client as a referral from their network.
• For 12% of consultants, their first client is their previous employer.
• 7% of consultants also get their first client from an outbound marketing method.
• 7% of consultants’ first client is a previous employer.
• 2% of consultants get their first client via an inbound marketing method .

(12% of consultants selected “Other” for how they got their first consulting client)

Consulting is a relationship business.

Getting your first client by tapping into your network is a powerful approach that has worked well for hundreds of consultants and it’s what we teach in our programs.

Do The Skills You Learn In Your Career Help As A Consultant?

84% of consultants say that the skills they learned in their former career helped “a lot” as a consulting business owner.

13% said these skills “helped a bit.”

And only 2% said the skills “didn’t help at all.”

Sharpening up your consulting skills is a high-ROI move. You’ll need more than what you learned in your corporate role.

The Biggest Challenge For New Consultants

Here are the biggest challenges for new consultants:

• Marketing : generating conversations with prospective clients (36%)
• Sales : turning conversations with prospective clients into paid projects (26%)
• Fees : figuring out what to charge for my services and why (13%)
• Operations : setting up and running the business (accounting, legal, etc) (9%)
• Prioritization : Knowing what to focus on and when (5%)
• Emotional : loneliness and frustration with starting a new business (4%)
• Time Management & Organization : getting everything on my to-do list done (3%)

Consultants accurately predicted what would be their biggest struggles once they’ve started their business: marketing, sales, and pricing.

Do Solo Consultants Ever Feel Lonely?

If you’re transitioning from corporate to consultant, you might find yourself dealing with newfound feelings of loneliness.

36% of consultants have felt lonely and still do at times.

21% of consultants felt lonely in the past, but no longer do.

And 43% of consultants never felt lonely as solopreneurs.

Upon a deeper analysis of this question’s survey data, we also found that…

• Consultants who feel lonely running a consulting business are more likely to have been dissatisfied with their former jobs.
• Consultants who don’t feel lonely running a consulting business reach their previous income level faster compared to those who do feel lonely. For consultants who don’t feel lonely, 40% of them reached their previous level of income within 1 year. For consultants who do feel lonely, 48% of them are still working to reach their previous level of income after 3 years of consulting.

How Long Does It Take Consulting Business Owners To Exceed Their Previous Income?

32% of consultants reached their previous income in less than 1 year.

21% reached their previous income within 2 years, and 10% within 3 years.

But 37% of consultants are still working on reaching their previous income level as an employee after 3 years.

The quickest shortcut to replacing (and exceeding) your previous income level is to invest in a program by consultants, for consultants .

Do Consulting Business Owners Invest In Courses, Coaching, Or Mentoring?

42% of consultants invested in courses, coaching, or mentoring and found it very helpful.

21% of consultants found these resources somewhat helpful.

37% of consultants have not invested in courses, coaching, or mentoring.

Upon a further look at the survey data for this question, we also found that…

• For consultants who have invested in mentorship and coaching, the most popular answer for what form of learning they found was most helpful was “mentorship.”
• For consultants who have not invested in mentorship or coaching, the most popular answer for what form of learning they found most helpful was “free online content.”
• Consultants who have invested in mentorship or coaching are more than twice as likely to use value-based pricing.

How do consultants run their business — and what are their goals?

Here are a few questions we asked about their current stage

Consultant Annual Income

How much money do consulting business owners make?

• 27% make less than $50,000
• 21% make $50K-$99K.
• 18% make $100K-$149K.
• 16% make $150K-$249K.
• 14% make $250K-$499K.
• 1% make $500K-$999K.
• 2% make $1M-$3M.

We have many high-six and seven-figure consultants in our consulting community.

Of consultants who are earning mid-six figures or more…

• 60% of them quit their jobs and then became a consultant instead of starting their business while still at their jobs.
• Over 50% invested in courses, coaching, or mentorship.
• Over 50% of them have at least an admin/assistant on their team (or more team members).
• The most helpful form of learning/resource was mentorship and coaching.
• 66% of them get on Zoom (or the equivalent) to review their proposals with the client.

Do Consultants Have Teams

As a consultant, there are a few different consulting business models to choose from.

63% of consultants do not have a team and do everything alone.

22% of consultants have a team of 2-9 employees or contractors.

10% of consultants have an assistant/admin to help them stay organized.

4% of consultant business owners have 10 or more employees or contractors.

Resources Most Helpful For Consultants

What form of learning do consultants find most helpful?

• 29% said that mentorship and coaching is most helpful .
• 25% said free online content .
• 18% said books .
• 12% said courses .
• 12% said communities .
• And 6% said “other.”

There is an endless amount of information on the web about consulting.

But it can be challenging to find actionable information.

That’s where we focus on our content and programs: helping you implement the information and get the results you desire.

Primary Consulting Goals

What are the primary goals of consulting business owners?

52% want growth : to build a team, get systems in place, and grow the business.

29% want productization : to earn more while working less.

11% want maintenance: they’re happy with where they’re at.

7% have an “other” goal.

And 1% want to sell their consulting business .

Long-Term Goals For Consultants

So, what do consulting business owners want in the long term?

63% want a profitable business to provide a great lifestyle for them and their families.

18% want to keep growing and making more money, but they haven’t thought about selling their firm.

12% plan to sell their business one day.

And 7% haven’t given their long-term plan much thought.

Consulting fees, marketing, and proposals are always hot topics.

Here are some specific questions we asked about these topics.

How Consultants Set Their Consulting Fees

There are a few different ways you can set your consulting fees .

Here’s how consultants do it:

• 36% use a project rate.
• 26% use a value-based rate .
• 23% use an hourly rate.
• 14% use monthly retainers .
• 2% use a performance-based model.

Over 50% of consultants use a pricing method we DON’T recommend: project rate and hourly.

One of the highest ROI moves you can make is to switch to value-based fees .

• Consultants who use a value-based fee report a higher consulting proposal win percentage over those who use an hourly rate.
• Consultants who use a value-based fee are much more likely to review their proposal with their client on Zoom instead of emailing their proposal to the client.
• Strategy consultants are the type of consultants most likely to use value-based fees.
• Management consultants are the type of consultants most likely to use an hourly rate.
• A higher percentage of men (68%) use value-based fees compared to women (32%).

What Marketing Channel Works Best For Consultants

How do consulting businesses get their clients?

• For 63%, networking/referrals is their best marketing channel.
• 25% said social media is their best marketing channel.
• 9% said speaking/presentations are their best marketing channel.
• 3% said cold email/cold calling.
• 1% said Blog/SEO.
• 0% said either paid advertising, videos/youtube, or podcasting.

A good marketing strategy for consultants will have you doing a bit of each.

But, it’s important to put your energy into the channels that are working best for your particular business.

How Many Clients Do Consultants Get Through Their Website?

70% of consultants get 0 leads/calls per month from their consulting website .

16% of consultants get 1-3 leads/calls per month from their website.

9% of consultants get 3-7  leads/calls per month from their website.

And 5% of consultants get 8+ leads/calls per month from their website.

If you’re one of the 70% of consultants getting 0 leads from your website, check out our Consulting Website Template Kit .

What % Of Proposals Do Consultants Win

24% of consultants win less than 20% of their proposals.

22% of consultants win 40-59% of their proposals.

21% of consultants win more than 80% of their proposals.

17% win 20-39% of their proposals.

And 16% win 60-79% of their proposals.

Consulting proposals are a critical part of winning consulting projects.

Here’s our consulting proposal template to help you win more proposals.

At the very least, you should be winning 60%+ of your proposals.

• Of consultants who win 80% of their proposals, 43% of them reached their previous income level within a year.
• Of consultants who win less than 20% of their proposals, 54% of them are still trying to reach their previous income level after 3 years.
• There is virtually no difference in the pricing model used by consultants who win 80%+ of their proposals versus those who win 20% or less (which suggests it’s about sales skills, not the pricing method).
• For consultants who win 80% of their proposals, 53% of them review their proposal live with the client on Zoom (as opposed to 29% of consultants who win less than 20% of their proposals).

How Consultants Deliver Their Proposals

49% of consultants review their proposals with the client on Zoom (or equivalent).

34% of consultants email their proposal to the client.

And 17% of consultants meet the buyer in person to review the proposal.

We recommend that you get on a call with buyers to review the proposal together. This will drastically increase your win rate.

Upon further analysis of this data, we also found that consultants who get on Zoom to deliver proposals are…

• 104% as likely to win 60%+ of their proposals.
• 133% more likely to use value-based fees.
• Have a higher average dollar value of typical client projects.

Average Consulting Project Value ($USD)

How much do consulting business owners make per project?

• 33% make $15K-$50K per project.
• 29% make $5000-$15K per project.
• 18% make less than $5K per project.
• 14% make $50K-$100K per project.
• 5% make $100K-$500K per project.
• And 1% make $500K per project.

Upon further analysis of the survey data for this question, we also found that…

• Consultants with an average project value of $50K-$100K have a much higher annual income than those charging $15K or less.
• For consultants who are charging $50K-$100K+ per project, the most popular answer for what form of learning they found most helpful was mentorship (43%).

We also asked consultants some basic demographic questions.

Here are their answers:

Types Of Consultants

There are many different types of consultants . Here is a breakdown of the type of consulting that people who took part in this study identify as…

• Management consultant (24%)
• Strategy consultant (21%)
• Other (16%)
• Operations consultant (10%)
• IT/Tech consultant (5%)
• Marketing consultant (4%)
• HR consultant (4%)
• Non-profit consultant (4%)
• Sales consultant (4%)
• Financial advisory consultant (4%)
• Science/Pharma Consultant (2%)
• Data consultant (2%)
• Design/branding consultant (0%)
• E-commerce Consultant (0%)

On our client results page , we have stories about helping ALL types of consultants start, grow, and scale their businesses.

How Many Years Have You Been In The Consulting Business?

We saw everyone from consulting business “newbies” to consulting business veterans.

• 26% of consultants have been in the business for 1-3 years.
• 21% have been consultants for 15+ years.
• 19% have been consultants for 4-6 years.
• 15% have been consultants for less than 1 year.
• 11% have been consultants for 7-10 years.
• And 8% have been in the business for 11-14 years.

Age of Consultants

There are consulting business owners within every generation.

• 37% of consulting business owners are 50-59.
• 29% of consulting business owners are 60+.
• 25% of consulting business owners are 40-49.
• 8% of consulting business owners are 30-39.
• And 1% of consulting business owners are 20-29.

You can be a successful consultant at any age.

Consulting Gender Demographics

63% of consultants we surveyed are male.

37% are female.

Here are some additional insights on the gender differences in consulting:

• Female consultants were twice as likely to say that they were very dissatisfied with their former jobs when compared to male consultants.
• When compared to male consultants, female consultants were more than twice as likely to answer “Fees: figuring out what to charge and why” as their biggest challenge in consulting.
• Female consultants were nearly twice as likely to list “Productization” as their primary goal as a consultant compared to male consultants.

Where Consultants Live

You can start a successful consulting business from anywhere in the world. Here are where the 500+ respondents of this study live…

• 64% of consulting business owners are in North America.
• 11% are in Western Europe, and 2% are in Eastern Europe.
• 7% are in Africa, and 7% are also in Asia.
• 5% are in Australia/New Zealand.
• 4% are in South America.

As a consultant, your demographics don’t matter.

As long as you can solve problems and create results for your clients, you can be successful in this business.

31 thoughts on “ How To Start A Consulting Business In 2024 (6 Steps & Study) ”

Great article Mr Michael, truly to establish a successful consulting business requires strategy, tactics and a proven mindset. I have been fortunate to be part of your mailing list, following your blog post and listening to your podcast for quite some time and it has truly helped me. Thank you so much for what you do. I will like to ask, how do one create a discovery offer? Is creating a discovery offer possible for all consulting practices?

Otobele, you’re very welcome and glad you’ve been finding value. Yes, every business can develop a discovery offer. We go deep into this in the Clarity program: https://www.consultingsuccess.com/coaching-for-consultants

Thank you Michael, as one new to the consulting business, I look forward to registering with your program once am able to raise the fee. I appreciate you

Really enjoying all of your articles and podcast. So helpful in getting my consulting business off the ground. Thank you Michael.

Appreciate the comment Janice and glad to hear you’ve found the resources here helpful. Wish you great success!

This is super helpful. Did you really have a consulting practice for 18 years?

Hi Andrea, glad you found it helpful. I’ve been consulting and building consulting businesses for going on 19 years and have been working with consultants to help them grow their businesses for the last 10 years. Wish you great success with yours.

This is very nice information. Thanks for sharing this informative information.

You are very welcome glad it’s helpful.

Hello Mr.Michael, I am a 25yr old student pursuing my masters, i have experience of a year in the field of finance and accountancy and i am very much driven to start a consulting business, as i am excited towards helping a business grow and be profitable,so i just wanted to ask you that am I in a position to start a consulting business with this much experience or do i have to wait some more years to go ahead with consulting? Awaiting your reply. Thanks.

Huzefa, don’t wait for anything. Go after what you desire. I started my first consulting business my first year in university. I had a lot to learn and still do. Focus on your strengths and where you can provide value. That’s your starting point. From there work on developing your skills and expertise. Keep at it.

Your article shows the best practical way to start a consulting business. Novice will gain more knowledge from this.

Thanks for your comment Anthony.

I’ve been in the restaurant business since I was five. I’ve continued to expand in a food service Industry in different areas. I’d like to further my career by becoming a consultant. Not only to help others but to learn more.My question is what is my first step to get started?

Hi Andrew! That’s great you’ve been in the industry since age 5! Here’s where to start: Identify your ideal client and who you want to serve that you can bring value to. Then go and have conversations with them to validate what they want and how you can help. If you’d like a proven guide to follow step by step to launch your consulting business use this: https://www.consultingsuccess.com/momentum

Loved the information as I am in the process of forming a consultancy. Please feel free to send further guidance in particular regarding financials as I require assistance in that area.

Glad you loved it. Appreciate the comment Leighton

To start any business, it is very essential to make proper planning, set the budget, check out various issues that can happen later, risks involved while opening a business, etc.

Glad this helps Kartik

My former supervisor sent me this when I shared my intention of starting an HR consultancy outfit with him. He mentioned he wished he had come across this before he started off his and now I know why! Thank you so much this is very useful since I am just starting!

Glad to see this is helpful Femi – wish you great success!

Very Nice content

Glad it resonates Aman!

Very much helpful Michael. I hope to start consulting in refugee camps in Uganda. I’ve always helped some local CBOs and refugees on finance and business respectively. Though not much paying, but its worth helping.

I’m glad it’s helpful Alison. Wishing you great success!

I appreciate the story of you and your cousin … particularly the “dark period” and having relinquished the “dream job”, to come out on the other side.

I just taught a workshop with a segment about being world class. Your story resonates with those principles.

Appreciate the thoughtful comment Kent and nice to hear the story resonates. Great to have you in the community here.

Really nice article! Thanks for that. I’m a web developer working for companies for 10 years (began to code 20 years ago) and I’ve worked quite a lot with CMS. I was thinking being a remote and international consultant, helping non-profit with their content (strategy and technical). Of course I’m afraid, I feel I don’t have enough expertise; so many things I don’t know… I’m definitely considering momentum though, it looks great!

Glad to hear that Matthieu and welcome to the community!

Is it possible to start as a side business to eventually wean out the current employee status? If so, how?

Hi Stuart, it is very possible and we’ve helped many people do exactly this. Take a look at our Momentum course for a self-study option or our Clarity Coaching program if you want to be coached through the process. Happy to help.

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How to Write a Business Plan for a Consulting Business

There are four key areas that you should focus on when developing a business plan for your consulting business..

If you've found yourself holding a pink slip from your corporate employer or perhaps are just tired of the old 9 to 5 grind, one of the best ways to get back on your feet might be turning your experience and skills into a consulting gig since just about anyone who possesses specialized skills can hang out a shingle of their own. But before you do, you might want to consider taking the time to create a business plan for your new venture, which will not only help you map out the opportunities before you, but also the threats. While business plans doesn't appeal to everyone, especially if you don't ever expect to raise capital for your business, it can be a critical factor in getting your business off the ground, says Jennifer Leake, a certified management consultant and founder of Consultants Gold , an online community dedicated to helping consultants run their ventures successfully. That's why, as you get started, Leake offers the following tips for developing a plan:

• Write it! "Putting it on paper requires far more thought than just having it in your head," says Leake.
• Keep it simple so that you revisit it often—so don't make it too long or too complex, she warns.
• Spend the lion's share of your time defining your niche and why you are uniquely situated to serve it. "If you can't succinctly articulate what your business is selling, you'll never get people to buy," says Leake. 
• Don't create your plan in a vacuum. "You'll develop a better business plan if you have feedback, and you'll be more likely to take action if you have accountability from mentors, coaches, or success partners," she says.

But crafting a business plan for your new consulting company doesn't mean you should stick to the average template you can find online, as you should spend your time focusing on the elements that most often make or break companies in your industry. "Writing a business plan for a consulting firm sounds fairly straightforward because there are so many who call themselves 'consultants,' but it can be quite difficult for many reasons," says Michael Hermens, president of Finance Forward , a financial advisory firm in Dallas. That's why Hermens says that you should focus on four key areas when fleshing out your business plan: 1. Value Proposition Answer this question: What is your specific value proposition? "Thousands of ex-IT programmers are now 'Social Media Consultants,' " says Hermens. "What do you do that thousands of other people don't?" The keys to building a solid value proposition are to give decision makers solace that they made the right decision, he says, which can be done in three ways: 1. Offer a service guarantee, 2. Build and take prospects through a well-defined methodology, or 3. Specialize so narrowly that it is easier to increase your stature. "The challenge with a guarantee is that larger firms don't normally purchase on that basis and smaller firms generally take a service guarantee as a tacit admittance of being mistake prone," says Hermens. "A well defined methodology or approach takes a while to build, but is well worth it for prospects who do not know you. Narrow focus helps potential consultants gain exposure, increased stature helps clients be satisfied with their hiring decision."

Dig Deeper : Nobody Buys a Value Proposition 2. Target Market Answer this question: What is the best target market for you, or do you hunt every potential client that might possibly need your services? "Understanding your target market is the most difficult planning activity," says Hermens. But developing an understanding of the competitive landscape is crucial, particularly go-to-market and pricing strategies, as well as the specific problems that the industry or market segment is trying to solve. "Gaining insight into how companies in your industry go to market, the basis on which consulting firms compete, matters," he says. "In strategy consulting, it might be references of former clients or the published knowledge share that gets clients interested. In large IT deployments, it is probably the strength of the methodology. With forensic consulting, your name and personal credibility is a huge selling point." In other words, determining how you should go to market, how (or how much) you charge your clients, and your familiarity with specific industry jargon and problems the industry is trying to solve, are crucial in planning your consulting business, according to Hermens. One approach offered by Beth Corson, founder of Your FundingKey Advisors , is to choose a few industries and then outline the size and type of businesses that you'd like to work within those industries. "Rather than the desperate approach of taking any client that comes along, be selective and create a clear road map of where you want to go," she says. "Several years from now, your client roster should be fairly close to the plan that you make now. By working with similar clients in a specific industry, your company creates a level of expertise that makes it easier to perform well and get new clients because you understand their unique challenges and how to overcome them."

Dig Deeper : How to Define Your Target Market 3. Marketing Answer these questions: How do you market your consulting business? What tactics do you employ to get in front of decision makers to evaluate your offering? There's no question that in order to get your new consulting venture off the ground, you'll need to market your skills and experience to potential clients. That can be difficult, though, when you're a sole proprietor, since time spent marketing is time you're not billing for. While you can always hire an outside firm to help, your fledgling business might find the cost prohibitive. The answer, then, is to be creative in finding ways to promote your offering. One way to do that could be through landing public speaking engagements, which can be very effective at promoting your knowledge and point of view on your industry's challenges, says Hermens. Another option can be to partner with other companies that might offer complementary services to your own, a tact that may also help you build experience in new areas. But, at some point, you must develop your own client relationships independently if you want to keep your company growing.

Dig Deeper : How to Promote Your Consulting Business 4. Employees Answer these questions: If you have employees, what is the best way to deploy them, given the reality of project work? Do you plan to pay them hourly, by confirmed project, or salaried? "The issue here is how do you leverage yourself to grow revenue?" says Hermens. "Consultants who develop their brand can write books and charge an hourly rate, but they still cannot serve two clients simultaneously. Leverage allows your consultancy to flourish as your company takes on more projects." The key, then, is to think about how you align revenue arrangements with employee compensation and how to pay employees to ensure they are available when you need them by asking yourself questions like: Do you pay a salary and risk a lull in projects? Or, perhaps you pay employees on a project basis, only when they work, risking their availability when you get a new contract? "The goal here is to align revenue with employees compensation in the beginning as your consultancy grows," says Hermens. "Once your business becomes large enough, put key people on a salary, with performance bonuses. They will stick with you, have learned your go-to-market strategy, and know your methodology inside and out."

Dig Deeper : The New Rules of Employee Compensation

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Subscribe for exclusive access, checklist for starting a consulting business: 9 steps to set yourself up for success.

Written by Ivan Kreimer | August 31, 2020

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If you’re thinking about starting your own consulting business, you need to start with a strong foundation.

There’s a lot you should do before you even consider starting your consulting business or closing your first client. The key is to focus on the things that matter the most and ignore the rest.

If you spend too much time working on the foundation, you may never start building the business itself. So, what should you spend most of your time on?

Here’s our checklist of nine things you need to do before starting your consulting business:

• Define your target audience and offer
• Set up a domain, hosting, and website
• Set up a marketing channel
• Craft a basic sales script
• Create a strategy for responding to typical sales objections
• Put operational systems and procedures in place
• Ensure that you have incorporated your business
• Hire an accountant or bookkeeping service
• Rent or buy an office or specific place of work

1. Define Your Target Audience and Offer

If you’re serious about starting a consulting business, you need to start thinking like a successful business owner.

Business owners must have the ability to define a specific offer that’s relevant to a specific audience.

In order to guarantee success, you need to clearly outline and define your target audience. The way to do this is to start by defining your area of specialization . Think about your existing skills, your past results, your work experience, and your interests.

READ MORE: Psychographics 101: Everything You Need to Know; How It’s Used in Marketing

You need to ask yourself these questions:

• What specific skills do you have that you can use to help other people? For inspiration, research other comparable consultants and check to see how they present themselves and how much they charge.
• What type of results have you brought to previous clients or companies using your skills? Focus on tangible business results you can use to sell yourself and prove you are worth the price.
• What do your clients want? What are they willing to pay for? Talk to potential clients and explore the challenges that they experience.
• What do you enjoy doing? Passion isn’t all that matters when you’re figuring out how to start a consulting business, but it is important.

By the end of your exploration, you should have a positioning statement that clearly summarizes what you want to do, who you want to help, and how to do it.

In his book Crossing the Chasm , Geoffrey Moore offers the following template for a positioning statement:

“For (target customer) who (statement of the need or opportunity), the (product name) is a (product category) that (statement of key benefit – that is, compelling reason to buy). Unlike (primary competitive alternative), our product (statement of primary differentiation).”

2. Set Up a Domain, Hosting, and Website

If you are going to start an online business, you should ideally have a strong online presence.

You need to have a domain that represents your brand, hosting that will give it a home, and a website that highlights what you can offer.

Start by picking a domain that’s representative of your brand. If your company is called “John Doe Enterprises,” ideally, your domain should be “johndoeenterprises.com.”

If you can’t find a .com for your exact company name, then use a variation with the help of a prefix “the” or suffix “agency”. If you need, you can get an alternative top-level domain like a .org or .co.

Then, you’ll need to set up web hosting. While budget web hosting services might seem attractive price-wise, stick to a premium VPS host like WPengine if you’re serious about your online business. Speed and load times are ranking factors that can either make or break your online business.

READ MORE: The 3 Best Low-Cost Businesses to Start with $1,000 or Less (Even $0!)

After this is done, and depending on the nature of your online business, you may need to install WordPress on your site. All of the largest hosting companies, including the ones mentioned above, come with a feature called “1-click WordPress installation,” which does exactly what it says on the tin.

Next, get a premium theme, which you can purchase from companies like ThemeForest and StudioPress . If you can afford it, get a front-end developer to custom design your theme to fit your company.

Now you have all the technical stuff set up, you need to write some basic copy.

Start by explaining what you do and who it serves. This information is known as your value proposition. Make sure to include some examples of past work, recommendations, or previous clients as evidence of your skill.

If you have no past clients, consider your past employers. If you have a day job doing work similar to what you plan on offering as a consultant, ask your former bosses and co-workers for some testimonials.

3. Set Up a Marketing Channel

Word-of-mouth is a great way to get started, and it works even better if you have at least one other clear marketing channel that you can trust (and control) to bring you a sustainable stream of leads every month. These channels include:

• Social media: LinkedIn, Twitter, Instagram.
• Paid ads: Google Adwords, Facebook ads, retargeting.
• Organic search: Google.
• Content marketing: Blogging, guest blogging, webinars, podcasts.

Each of these channels represents a world unto itself, so think carefully before picking one. The key is to focus on just one channel, and master it until you start to get a steady volume of leads.

READ MORE: The Complete Guide to Getting Clients for Your Consulting Business

If you are going to utilize podcasts, round up a few dozen podcast interviews or topics as a backup.

You may not see results right away, most marketing channels take time to gain traction and then to kick in. That’s exactly why you want to start this work before you need the leads. After six months to a year, you should start to attract interest and that’s when your business will start to grow.

A survey by Nielsen on consumer trust on advertising reveal that 84 percent of the people surveyed said they still relied on word-of-mouth recommendations from family and friends. That’s because most consumers trust the recommendations of others over advertising or marketing but this does not mean that other marketing channels should be ignored.

Social media is a particularly critical tool when it comes to communicating with current and potential clients, and the use of social media among e-commerce brands won’t be going away any time soon.

The problem with relying on referrals is that it is not a sustainable or consistent stream for any consulting business. Some months you may have too many clients, and other months you may have none.

In other words, you won’t be in control of your destiny . Setting up and maintaining at least one marketing channel gives you the best chance of securing new clients sustainably and consistently.

4. Craft a Basic Sales Script

Steven Pink, author of the book To Sell Is Human , said,

To sell well is to convince someone else to part with resources — not to deprive that person, but to leave him better off in the end.

Often sales are seen as a zero-sum game, where the salesperson tries to close a deal at all costs.

In the case of a smaller business, it’s often the business owner who is responsible for the sales. For them, it’s all about building trust and delivering on the needs of their leads.

Sales can be a tricky skill to master. Amateur salespeople often fall into the “What-I-Can-Do” pitch, where they talk about the things they can do, rather of focusing on the problems their prospects have.

READ MORE: How Much Should I Charge as a Consultant? A Consultation Fee Breakdown

Instead, you want to lead the conversation and make sure that you identify the client’s needs to see if they align with your skills. After, and only after, you’ve figured out there’s a fit between their company and yours, you can start talking about your services and prices.

A sales script brings structure to this often messy process. It will help you how to start, what to ask, when to ask it, and how to gather up valuable information that you can then use to sell yourself.

Here is an example of a basic sales script:

A sales script doesn’t have to outline the conversation; rather, it should guide you . Some questions you can ask include:

• What do you do?
• What challenges do you currently face?
• If you had a magic wand, what would you change in your business?
• How much money does it cost you?
• How much money are you willing to invest as a solution to this?

The script should be flexible, and some questions may not be required at all. At the end of the day, your intention should be to understand the client.

6. Create a Strategy for Responding to Typical Sales Objections

Throughout the sales process, you will run into objections.

The prospect may think you’re too expensive, they may struggle to grasp what you can deliver or they may think they can solve their problems on their own.

Assuming you want to work with that client and you think you can indeed help them, your job is to overcome their objections.

Among the many sales objections that will arise, your prospect will want you to justify how much you charge for your services. This objection, common among new consultants without proven track records, often drives people to undersell themselves.

READ MORE: How to Write the Perfect Consulting Proposal With The Best Tools and Templates

You may think that because you need a client, you need to lower your price. The problem is that you often end up with less money than you should have, and underselling yourself has the tendency to establish a bad business relationship.

Founder of sales software tool Close Steli Efti says that “When someone tells you your product is too expensive… you simply haven’t communicated enough value.”

If you do good work, identify your client’s needs and fulfill them, ask good questions, and know how to justify your value then you should never underprice yourself.

An often overlooked part of consulting as a business, operations are made up of systems and procedures that allow you to systematize the work as needed. Operations allow consultants to separate themselves from the work and instead focus on making sure their clients can get the desired results.

6. Put Operational Systems and Procedures in Place

For the purpose of your business operations, a system is an interconnected set of tasks that work together in order to achieve a certain goal.

A procedure (also known as SOP, or standard operating procedure) is a set of exact steps needed to achieve a goal. For instance, invoices for your clients, creating reports, carrying out a specific analysis, running of software, etc.

Here is an example of a standard operating procedure:

Many systems can be automated. For example, you can have a system for handling incoming leads, similar to the one Brennan Dunn recommends. Here is a snippet from an automation flow he’s developed:

This automation takes a lead through an automated email sequence that starts by asking them some basic questions that you can use in a sales call.

After filling out this questionnaire, the lead gets an automated link to schedule a call with the consultant, and a follow-up email.

All the consultant needs to do is encourage the lead to complete the questionnaire, the rest is done automatically. This system reduces back and forth associated with scheduling calls, and it helps to reduce the time spent on non-essential tasks.

You can use similar systems using a marketing automation software tool or an all-in-one automation suite like Zapier.

Procedures, similarly, allow you to systematize a specific task (or set of tasks) so you have more time to focus your attention on providing high-quality service. You can write the tasks needed to achieve the goal of the procedure, document everything in detail, and outsource it to someone, to lower your costs, your time, or both. Otherwise, you can carry out the procedure yourself, only with greater ease.

Anything that can be documented and/or delegated can be turned into a procedure, Ryan Stewart, the founder of Florida-based SEO agency Webris, says that procedures have been one of the keys he’s used to growing his agency to over seven figures.

Here’s an Stewart explaining an SOP for his SEO services:

You don’t need to get too caught up with getting your systems 100 percent correct at this stage. Your systems and procedures will change as your business grows. You can adapt as you get clients and you realize what works best for you.

What’s important is that systems and procedures bring discipline and uniformity to your service. Having everything running smoothly also helps you to establish a good reputation and encourages business growth.

7. Ensure That You Have Incorporated Your Business

In theory, you could start generating income from your consulting business quickly. But the risks involved in doing business on your own are high, and it is advised to consider setting up a legal entity that backs you up.

E.J. Dealy, CEO of The Company Corporation, explains that incorporating such a business has many benefits:

• Personal asset protection : A business gives you limited liability, your personal assets are separate from your business, so if you lose a suit, you won’t lose a dime except for the money you’ve invested in your business.
• Additional credibility and name protection : Consumers, vendors, and partners frequently prefer to do business with an incorporated business.
• Perpetual existence : The business can continue existing after you change it or sell it.
• Tax flexibility : Depending on your jurisdiction (the country, state, and county where you incorporate), you can lower your taxes by incorporating in special low-tax jurisdictions.
• Deductible expenses: Both corporations and LLCs may deduct normal business expenses including salaries before they allocate income to owners.

READ MORE: FREE TRAINING: Learn the secrets of starting a business from entrepreneurs who have actually done it!

8. Hire an Accountant or Bookkeeping Service

As an entrepreneur, your energy should be focused on running your business and less focus on administrative tasks like accounting.

Having an accountant that keeps your books organized is a great decision for any new consultant.

A study by Xero found that 53 percent of small business owners don’t use an accountant at all. Even more shockingly, 27 percent use pen and paper to keep track of their finances.

The truth is, there’s no hard rule on how to handle your accounting. As long as you keep your books in good shape and avoid any tax liabilities, you’re good.

But consider the benefits that having an accountant can bring to your business.

Accountants aren’t just experts at tax filing. They give you a complete overview of your finances, identifying oversights, helping you manage expenses and revenues, or suggesting potential tax deductions.

If you feel you’re not ready to work with an accountant, you can still make your own bookkeeping easier with a tool like Xero or Wave. Still, you should definitely make sure you get an accountant’s help before filing your taxes (at least the first time) so you avoid any potential penalties.

9. Rent or Buy an Office or Specific Place of Work

Last but not least, you need an office where you can work. You don’t need a fancy office to run a business, you only need a quiet space where you focus on your work.

Your office should have a fast and reliable internet connection, space for a work desk, and an environment that allows you to concentrate. This can be a quiet place, a coffee shop, your bedroom, or any place that suits you.

As Inc report, the average person spends a third of their life at work, it is important to feel comfortable and relaxed in your surroundings if you want to be able to produce your best work.

You can consider working from home, from a co-working space, or a mixture of both. As long as you can work to the best of your abilities, you can call that place your office.’

Complete Your Checklist, and Blast Off!

Before you start your consulting business, run through this checklist, and make sure you cover all of your bases. Here’s a summary of all of the points we covered above:

Starting Your Consulting Business Checklist

• Develop your target audience and offer
• Set up a domain, hosting and website
• Set up at least one marketing channel

Sales Generation

Operational

Administrative

If there’s anything you need help with or don’t understand, let us know and we’ll be happy to help.

Now it’s time to hear from you:

Are you looking to start your own consulting business? Did your checklist help? Let us know in the comments below!

About Ivan Kreimer

Ivan Kreimer is a freelance content marketer who helps SaaS business create content that commands attention, builds authority, and drives action. His advice has been featured in Entrepreneur , MarketingProfs , KISSmetrics , among others.

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Consulting Company Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » B2B Sector

Are you about starting a consulting business online ? If YES, here is a complete sample business consulting firm business plan template & feasibility report you can use for FREE .

One of the reasons why the consulting business wouldn’t be too saturated no matter how much people delve into it is the fact that the sky is too large for two birds to collide. This means that there are a myriad of people who want to venture into businesses and other unknown fields, and will require the services of a consultant.

If you are looking to start a consulting business, it is very expedient that you master the areas in which you would want to be known as a veteran. There are several fields which one can look to start out from. From the sports angle, to events management, and to other areas.

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It is however no doubt that you will need to first of all have a rich knowledge of the area that you are looking to commence business from. After that has been done, then you have got to make it mandatory to draw up a business plan that you will follow. Below is a sample consulting business plan template.

A Sample Business Consulting Firm Business Plan Template

1. industry overview.

When we talk about consulting services, we are perhaps talking about getting practical advice from expects. The consulting industry is indeed a broad industry that covers a wide range of services such as management consulting, strategy consulting technological consulting, marketing consulting, human resource consulting, training consulting, tax consulting, and any other business activities that involves giving advice et al.

In essence, consulting firms are hired to proffer solutions to the challenges that organizations faces. Organizations don’t just hire consultants for the sake of hiring consultants, but they do so simply because they expect them to help tackle their business challenges and deliver solutions as required.

As a consulting firm, if you are good at developing coaching skills, process analysis, technology implementation, strategy development, or operational improvement services, then with little push, you will have more jobs than you can handle.

From a recently released statistics, the united states market for management consulting grew 8.5% last year; it translates to about $39.3 billion. Management consulting is growing at a steady rate and the growth rate of the industry far exceeds previous years’ growth.

Although the consulting industry struggled during the 2001–2003 period, but of course it is evident that the industry grew steadily after then except for the period (2009) when we experienced economic downturn. Of course the industry is stable and enjoying steady growth.

The United States companies are spending much less on strategy consulting but the sector is expected to grow just 3.7 percent in the coming year.

The consulting industry is a high-paying industry especially if you have been able to cut your teeth in a particular area of specialization. It gives you the opportunity to work with high and low profile clients and if you are able to proffer solutions to business challenges you will be greatly rewarded.

In most cases, if you are lucky to be among the few experts in the industry, you will have the privilege of choosing who to work for and the amount you want to charge.

Generally, consultants are skilled at conducting research and of course analyzing the results they got from the research. Consultants go as far as gathering any related data that will help them come up with workable solutions for the organization they are working for; they ensure that they identify behavioral patterns, production bottlenecks, the market trends and of course customers preference.

With that and other factors, they will be able to create standard operating processes that can help the organization achieve its goals and objectives.

As a consulting firm, your core responsibility is to improve your client’s business by effecting changes in response to your analysis; you should be able to change the fortune of the business within an agreed time – line. Corporations are willing to pay expensive fees as long as they are going to get results.

No business person will be willing to pay you for a consulting service if you don’t have a track record that shows that you know what you are doing. It is one thing to convince a client to patronize your consulting services and it another thing for you to deliver solutions as agreed.

Lastly, one good thing about the consulting industry is that there are readily available markets for their services simply because organizations naturally would want to improve their performance annually; corporations always seem to want more success. So, if you are well positioned and you know how to deliver results, you will always smile to the bank.

2. Executive Summary

Denzel and McPherson Consulting, LLP is a Human Resource and Capital Development Consulting firm that will be located in New York City, New York. The company will be operated as a standard consulting firm with bias in business consulting and also handle other related aspect of human resources and capital development aspect of consulting as requested by our clients.

We are aware that businesses these days require diverse and sophisticated approaches. This is why we will position our consulting firm to offer a wide range of consulting services as requested by our clients. Denzel and McPherson Consulting, LLP is a client-focused and result driven business consulting firm that provides broad-based experience at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer a complete range of business consulting services to our local, state, national, and multi-national clients and we will ensure that we work hard to provide the required services and business solutions needed by our clients to accomplish their business goals and objectives.

At Denzel and McPherson Consulting, LLP, our client’s best interest come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire consultants who are well experienced in a wide variety of business consulting and trainings et al.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Denzel and McPherson Consulting, LLP will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

• Our Founder

Denzel and McPherson Consulting, LLP is founded by Dr. Denzel Graham – Douglas and his son McPherson Graham – Douglas. The organization will be managed by Dr. Denzel Graham – Douglas, he graduated from University of California – Berkley (First Degree), Brock School of Business at Stamford University (MBA), and University of Harvard (PhD.).

He has extensive experience in a diverse range of business consulting, and his consulting practice is concentrated in the areas of helping both big corporations and start – ups position their business for growth, sustainability and expansion.

3. Our Products and Services

Denzel and McPherson Consulting, LLP is going to offer varieties of services within the scope of the consulting industry in the United States of America. Our intention of starting our consulting firm is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.

Our business offering are listed below;

• Recruitment and Training Consulting
• Business Formation and Business Strategies for corporate organization
• Management Consulting
• Strategy Consulting
• Technological Consulting
• Marketing and Sales Consulting
• Human Resource and Capital Development Consulting
• Brand Consulting
• Accounting and Financial Services Consulting
• Tax Consulting
• Insurance Consulting

4. Our Mission and Vision Statement

• Our vision is to provide our clients with skilled consulting and training solutions in a timely and efficient manner.
• We strive to handle each client with accountability and responsiveness, as if we were building our own business.
• We focus our attention on the providing workable business solutions for our clients so that our clients can focus their attention on the success of their business.
• Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission is to provide professional and trusted consulting services that assist businesses and non-profit organizations in operating sustainably.
• We provide workable business solutions in combination with our own business backgrounds, and deliver valuable services in a timely and cost-effective way.

Our Business Structure

Denzel and McPherson Consulting, LLP will build a solid business structure that can support the growth of our business. We will ensure that we hire competent hands to help us build the business of our dream. Below is the business structure that we will build Denzel and McPherson Consulting, LLP;

• Chief Executive Officer / Lead Consultant
• Business Consultants
• Training and Development Executive

Legal Secretary

Admin and HR Manager

Business Developer

Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office / Lead Consultant:

• Responsible for providing direction for the firm
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for handling high profile clients and deals
• Responsible for fixing prices and signing business deals
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board
• Responsible for drawing up contracts and other legal documents for the company
• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Produces information by transcribing, formatting, inputting, editing, retrieving, copying, and transmitting text, data, and graphics; coordinating case preparation.
• Provides historical reference by developing and utilizing filing and retrieval systems; recording meeting discussions; maintaining transcripts; documenting and maintaining evidence.
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.

Business Consultant

• Responsible for providing business solutions for clients
• Works with the Business analyst to design workable business plan document for clients
• Works with the Training and Development Consultant to develop training solutions for clients
• Tracks hours and bills to clients.
• Handles any other responsibility as assigned by the Lead Consultant

Training and Development Consultant

• Coordinates training programs facilitated by Denzel and McPherson Consulting, LLP
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Identifies training and development needs for staff through job analysis, appraisals and consultation
• Collects briefs from clients in respect of Recruitment exercise, Learning and Development and Advisory services
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Facilitates and coordinate strategic sessions.
• Works directly with clients in a non-advising capacity, such as answering questions, scheduling appointments and making sure all training concerns are properly taken care off
• Responsible for handling all trainings both internal and external trainings

Business Analyst

• Responsible for handling business research, marker surveys and feasibility studies for clients
• Works with the Business consultant in helping clients develop workable business plan documents
• Handles any other duty as assigned by the business consultant or the lead consultant
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Receives Visitors / clients on behalf of the organization
• Receives parcels / documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distribute mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

Denzel and McPherson Consulting, LLP engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a solid consulting firm that can favorably compete in the highly competitive consulting industry.

Part of what our team of business consultant did was to work with the management of the firm in conducting a SWOT analysis for Denzel and McPherson Consulting, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Denzel and McPherson Consulting, LLP;

Our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

As a new business consulting firm, it might take some time for our organization to break into the market; that is perhaps our major weakness.

• Opportunities:

The opportunities in the consulting industry are massive and we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely going to face as a consulting firm operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing power.

There is hardly anything we could do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

Quite a number of distinct trends have emerged in recent times in the consulting industry which is why consulting firms are positioning their organizations to survive the peaks and troughs of an ailing economy.

As a matter of fact, most of these trends aid consulting firms and organizations to become more creative, competitive, efficient, and productive in a global market. Some other trends in the consulting industry could be attributed to changing demographics, attitudes and work styles.

No doubt, as the cost of consulting services continues to increase and as corporate spending falls, new consulting delivery methods will continue to emerge and gain momentum going forward. In addition, the market for consulting services has shifted from a sellers’ market to a buyers’ market. A market where consultants provide software solutions that will make it easier for their clients to run their businesses.

Lastly, it is now becoming trendy in the consulting industry for smaller consulting firms to merge with bigger consulting firms and for bigger consulting firms to acquire smaller consulting firms; mergers and acquisitions. Many consulting firms all over the United States are coming to the conclusion that the bigger the better for them.

8. Our Target Market

Although Denzel and McPherson Consulting, LLP will initially serve small to medium sized business, from new ventures to well established businesses, but that does not in any way stop us from growing to be able to compete with the leading consulting firms in the United States.

We hope to someday merge or acquire other smaller consulting firms and expand our consulting services beyond the shores of the United States of America. As a full service business consulting firm, Denzel and McPherson Consulting, LLP have a variety of practice areas to help startups grow.

While we works with a variety of organizations and industries, Denzel and McPherson Consulting, LLP will also specialize in working with startups, real estate investors, and contractors, manufacturers and distributors, banks, lending and financial institutions.

Our target market cuts across people of different class and people from all walks of life, local and international organizations as well. We are coming into the industry with a business concept that will enable us work with the highly placed people and companies in the country and at the same with the lowly placed people and smaller businesses.

In other words, our target market is the whole of the United States of America and subsequently other parts of the world. Below is a list of the people and organizations that we have specifically design our products and services for;

• Banks, Insurance Companies and other related Financial Institutions
• Businesses and Entrepreneurs
• Blue Chips Companies
• Corporate Organizations
• Manufacturers and Distributors
• Real Estate Owners, Developers, and Contractors
• Research and Development Companies
• The Government (Public Sector)
• Schools (High Schools, Colleges and Universities)
• Sport Organizations
• Entrepreneurs and Start – Ups

Our competitive advantage

A close study of the business consulting and advisory industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, the supply of business consultancy and advisory services has significantly exceeded demand.

In other to position to take on the market, most consulting firms have begun to diversify their services as against restricting their services to just a niche in the industry

Denzel and McPherson Consulting, LLP might be a new entrant into the business consulting industry in the United States of America, but the management staffs and board members are considered gurus. They are people who are core professionals and licensed and highly qualified consultants in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups consulting firm) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Denzel and McPherson Consulting, LLP is established with the aim of maximizing profits in the consulting industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign retainer – ship with most of our clients.

Denzel and McPherson Consulting, LLP will generate income by offering the following consulting services for individuals and for organizations;

10. Sales Forecast

As long as there are people living in the United States of America and business starting and growing in the U.S., the services of consulting firms will always be needed.

We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond New York City, New York to other states in the U.S. and even the global market.

We have been able to critically examine the business consulting market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in New York.

Below is the sales projection for Denzel and McPherson Consulting, LLP, it is based on the location of our business consulting firm and the wide range of consulting services that we will be offering;

• First Year-: $100,000
• Second Year-: $500,000
• Third Year-: $1,000,000

N.B : This projection is done based on what is obtainable in the industry.

• Marketing Strategy and Sales Strategy

We mindful of the fact that there are stiffer competition amongst consulting firms in the United States of America, hence we have been able to hire some of the best business developer to handle our sales and marketing. Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent job deliveries speak for us in the marketplace; we want to build a standard consulting business that will leverage on word of mouth advertisement from satisfied clients (both individuals and organizations).

Our goal is to grow our consulting firm to become one of the top 20 consulting firms in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the U.S but in the world stage as well.

Denzel and McPherson Consulting, LLP is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to organizations and key stake holders in New York and other parts of the U.S.
• Promptness in bidding for consulting contracts from the government and other cooperate organizations
• Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver quality consulting services to them
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our in house consultants and other brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the consulting industry by storm which is why we have made provisions for effective publicity and advertisement of our consulting firm.

Below are the platforms we intend to leverage on to promote and advertise our consulting business;

• Place adverts our consulting firm on both print and electronic media platforms
• Sponsor relevant TV shows and radio programs
• Maximize our firm’s website to promote our business
• Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn, Badoo, Google+ and other platforms (real estate online forums) to promote our business.
• Offer Pro Bono services as part of our community social responsibility
• Brand all our official cars

12. Our Pricing Strategy

Hourly billing for consulting services is a long – time tradition in the industry. However, for some types of consultancy services, flat fees make more sense because they allow clients to better predict consultancy costs. As a result of this, Denzel and McPherson Consulting, LLP will charge our clients a flat fee for many basic services such as business advisory services and tax consulting et al.

At Denzel and McPherson Consulting, LLP we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises.

We are aware that there are some clients that would need regular access to consultancy and advisory services and assistance, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.

• Payment Options

Denzel and McPherson Consulting, LLP, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

Starting a consulting firm can be cost effective; this is so because on the average, you are not expected to acquire expensive machines and equipment.

Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furniture and equip the office, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications. Basically, this is the area we are looking towards spending our start – up capital on;

• The Total Fee for incorporating the Business in New York – $750.
• The budget for Liability insurance, permits and license – $2,500
• The Amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
• The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $2,000
• The Cost of Launching your official Website – $600
• Budget for paying at least two employees for 3 months and utility bills – $30,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous – $1,000

Going by the report from the research and feasibility studies, we will need about $150,000 to set up a small scale but standard consulting firm in the United States of America.

Generating Funding / Startup Capital for Denzel and McPherson Consulting, LLP

Denzel and McPherson Consulting, LLP is going to start as a private business that will be solely owned by Dr. Denzel Sander and family. He will be the sole financial of the firm, but may likely welcome partners later which is why he has decided to restrict the sourcing of his start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is easier for businesses to survive when they have steady flow of business deals / customers patronizing their products and services. We are aware of this which is why we have decided to offer a wide range of consulting and advisory services to both big and small clients.

We know that if we continue to deliver excellent consulting and advisory services, there will be steady flow of income for the organization. Our key sustainability and expansion strategy is to ensure that we only hire competent employees, create a conducive working environment and employee benefits for our staff members.

In the nearest future, we will explore the options of either merging with other consulting firms or acquire one or more consulting firms in order for us to increase our market share. We know that if we implement our business strategies, we will grow our consulting and advisory business beyond New York City, New York to other states in the U.S in record time.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry: In Progress

How To Start A Consulting Business In 2024

Published: Aug 22, 2024, 5:34pm

Reviewed By

Table of Contents

1. outline your plan, 2. register your consulting business, 3. determine services and pricing, 4. build your website, 5. market your consulting business.

Those with a high degree of expertise in a particular field can leverage their knowledge to build a profitable consulting business. Whether you’re in between jobs or looking to make a change, learning how to start a consulting business is the first step to making great use of your skills. In return, you can create a lucrative business and can charge upwards of around INR 25,000 per hour–all for sharing your expertise with others. Here’s everything you need to know.

To get started, you’ll want to put together a strong business plan . While you don’t have to stick to every single thing, it’s a good idea to have guidance for your business.

The first choice to make is your business name. Since you’re starting an individual consulting business, your business name can be your personal name as a trade name or a business name. If you have a name that you want to use that feels more recognizable and eye-catching, make sure you factor the registration costs into your original budget.

If you need to design a logo, you can do that yourself or reach out to designers. The logo will help you start marketing to your target audience, whether that’s business owners or companies or individuals. If you want to consult in a certain industry, you should start building a list of contacts to reach out to when you’re ready to launch and take on new clients.

With all of this information ready to go, you can start on the administrative side of your business.

Before you start doing official business, you’ll need to register with the Ministry of Corporate Affairs as a sole proprietorship or as an LLC. You should also check to see if there are other legal requirements for small businesses in your state. If you are planning to grow the business, registering as an LLC will make it easier to track your business expenses for taxes. It can cost about INR 3,000 to INR 10,000 to register your business online, depending on the state.

If you’re starting a consulting business as a side hustle, it might be worth it to invest in a business to register your LLC for you.

Determining your rates also means determining what kind of services you want to offer. Consultants offer a variety of services. You can offer a wide range of support for a business, but do less of a deep dive. Alternatively, you can be hyper-specific in your expertise and go deep on a certain aspect of a company’s business. For example, if you’re an HR consultant, you can take a larger view of a company’s HR operations, or focus on their hiring practices for a specific department.

You should also consider if you want to take on short-term or long-term clients. Doing one-off consulting sessions is still a lot of work, even compared to long-term consulting. Your pricing strategy should reflect the amount of preparation you have to do. It also may depend on your industry to decide how you want to price your services: either a one-time payment, hourly rate or monthly retainer.

A consulting business needs a website so clients can find you easily. If a business is doing research into finding a consultant in your industry, you want your website to pop up for them. If you are familiar with SEO best practices , you can do this yourself, or hire someone to optimize your website.

Here are the best platforms for building a professional website:

• Squarespace : This platform is very user-friendly and has plenty of award-winning templates. In addition to great designs, it’s also affordable with all-inclusive plans starting at around INR 1,355 per month. However, it does lack more robust customization options for more experienced coders.
• Wix : This all-in-one website builder offers a drag-and-drop site editor, making web design both easy and highly flexible. However, it’s a bit more expensive than Squarespace with plans starting at around INR 1,355 per month.
• WordPress : The world’s most popular content management system, WordPress, is not the most user-friendly, though it is one of the most customizable and affordable options (as you only have to pay for web hosting for around INR 150 to INR 1,000 per month). It’s the best option for those who have very unique website needs or experience with the CMS.

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Building a website can seem intimidating, but many of the best website builders make it easy for beginners to create a site without any experience or coding knowledge. However, keep in mind that websites do require ongoing maintenance, so you might want to hire a virtual assistant or work some time into your calendar to do regular website maintenance and updating.

Marketing a new business can be difficult, but being diligent about finding new marketing channels and leveraging connections will make it a lot easier. Try these simple and low-cost solutions to start marketing.

• Search engine optimization to rank on Google
• Online business directories, such as Google My Business, Yelp or Yellow Pages
• Pay-per-click advertising, such as Google Ads, Facebook Ads or YouTube Ads
• Subreddits for entrepreneurs or your industry
• Slack groups for freelancers
• Find local networking groups, such as local business associations
• Participate in industry networking events

Working on this yourself, in the beginning, will require a fair amount of time, but when your business grows, you might be able to hire a social media strategist or partner to work on finding business leads.

Frequently Asked Questions (FAQs)

How can a consulting business get clients using fiverr.

Fiverr allows anyone to sign up and sell their services as a freelancer. A lot of companies looking for freelance writing, design or marketing work use Fiverr, so it would be a good place to do consulting for content strategy.

Is it possible to start a consulting business on the side?

If you are comfortable with working with a smaller number of clients and are realistic about your time, you can easily run a consulting business on the side. It’s important to be open with your clients about your time constraints to build trust.

What are some good fields to start a consulting business in?

The consulting business you start is going to be based on your strengths and skills, but some of the potential fields where you might enjoy some of the most success include public relations, publishing, human resources (HR) marketing, computer programming, career consulting, advertising and accounting .

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The Legacy Company’s Guide to Innovation

• Ivanka Visnjic
• Ronnie Leten

Many experts are urging established companies to radically innovate—and disrupt themselves before someone else does. The trouble is, large firms aren’t designed for moon shots. Their owners don’t like the risks and won’t kill the goose that lays the golden egg. As a result, all too often they end up defaulting to incremental innovation.

But there is a solution: Incumbents can partner with entrepreneurial start-ups or with intrapreneurs that have ideas for breakthrough products. By doing that, they can leverage their significant resources while increasing the odds that those ideas will take off. This approach does require careful management, however.

Drawing on the experiences of more than a dozen large multinationals, including Atlas Copco, Enel, and Epiroc, this article outlines a three-stage innovation process for incumbents to follow: First, set up numerous projects with multiple partners, nurturing them until their chances of success become clear. Next, once a venture has a breakthrough, gradually increase your commitment and help it remove roadblocks. Finally, when its business model is viable and it has a critical mass of customers, rapidly mobilize the resources it needs to scale up quickly.

How to collaborate well and scale up fast

Idea in Brief

The problem.

Many established companies aspire to develop radical innovations—to disrupt themselves before someone else does. But for all their capabilities and resources, they struggle to innovate successfully.

Why It Happens

Large firms aren’t set up for moon shots. Their owners don’t like risk and won’t kill the goose that lays the golden egg. So firms end up defaulting to incremental innovation, which only increases their odds of being upended.

The Solution

Partner with start-up companies or intrapreneurs to create portfolios of projects that you can nurture until their chances of success have become clear. Once a new business begins to take off, quickly ramp up investments in it.

As the markets celebrate the success of gen-AI and green-tech start-ups, many experts are urging established companies to emulate those ventures by committing to radical innovation—by disrupting themselves before someone else does. But for a lot of incumbent companies, that’s just not a feasible strategy. Their owners don’t like risk and won’t kill the goose that lays the golden egg. As a result large enterprises end up defaulting to incremental innovation, perversely increasing the chances that they’ll get upended.

• IV Ivanka Visnjic is a professor at ESADE Business School in Barcelona and the head of its department of operations, innovation, and data sciences.
• RL Ronnie Leten is the chairman of Epiroc, a Swedish-based manufacturer of mining and infrastructure equipment; the former chairman of Ericsson; and the former CEO of Atlas Copco.

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