Many people consider consulting business to be a good way to monetize the knowledge and experience they have. This is substantiated by stronger rates of new business formation 2023 — over 5.5 million new business applications have been created, opening new avenues for consultants. Entering the consulting world at the turn of this surge can prove immensely profitable to meet market demands.
If you have decided to start a consulting business, there are many considerations essential for you to succeed. For example, selecting a consulting company name impacts how potential clients view your services and the way you create your consulting proposal will set the tone with your clients.
In this blog, we’ll show you what it takes to start a consulting business step by step and also share software that will help you succeed.
What is a Consulting Business?
A consulting firm is a legal entity that provides advice and particular services in a certain industry or field to companies/persons. Such consultants bring their knowledge and skills to solve problems, improve efficiency and effectively decrease difficulty levels to assist their clients in fulfilling their goals.
Types of Consulting Businesses:
- Management Consulting
- Financial Consulting
- IT Consulting
- Marketing Consulting
- Human Resources Consulting
- Environmental Consulting
- Legal Consulting
- Healthcare Consulting
Why Start a Consulting Business?
Starting a consulting business gives you the chance to make a successful career from your knowledge and expertise. You can be self-employed, provide valuable assistance that clients are willing to pay for, and contribute to their needs as you create a sustainable business model.
A consulting business offers several compelling benefits:
1. Leveraging Expertise
Many companies employ management, IT or marketing professionals as contractors because it provides immediate expertise without additional long-term investment. For instance, a former McKinsey partner has said business consultants are "masters at reinventing the wheel." Companies are willing to spend on professionalism that may help improve performance or solve major issues.
2. High Earning Potential
Consultants often charge based on their skills and industry demands. The average revenue per management consultant has reached $212,000 in 2023. With well-structured pricing models such as the 3 tier pricing strategy, hourly rates or retainer agreements, consulting businesses can generate significant revenue with minimal overhead costs.
3. Flexibility and Independence
For consultants, this career path offers an opportunity to determine one’s own work schedule and work on projects that are interesting and align with their expertise. This freedom makes it a great job market for those who seek better work-life balance.
4. Diverse Opportunities
The consulting field is expansive, covering industries like finance, technology and healthcare. This allows consultants to pick a field they specialize in and work within your niche for significant profitability.
5. Making a Difference
Consultants are important in helping businesses thrive by offering appropriate recommendations for improvements and expanding opportunities.
Pro tip: When you have a consulting business, it's crucial to use a professional client contract to establish clear expectations—if your business is in marketing, for instance, a marketing agency contract template can ensure both clarity and professionalism in your agreements.
5 Steps to Start a Consulting Business
Starting a consulting business requires certain considerations. Below are detailed guidelines to help you get your business started.
Step 1: Define Your Niche
Focus on an area where you have strong expertise, professional experience and market demand. A clear niche helps you position yourself as an authority.
Example: IT consultants focusing on cybersecurity for small businesses.
Step 2: Develop a Business Plan
Describe your intended services, your consumer group, your market promotion plan and your targeted earnings. A good plan provides structure to the business and draws the attention of some potential clientele and investors.
Key sections to include: Executive summary, market analysis, and financial plan are key sections to include in a business plan.
Step 3: Set Up Legal and Financial Frameworks
File your business, obtain licenses and permits, and open a business bank account. This ensures compliance and personal and business expense segregation. Consider forming an LLC or sole proprietorship for simpler operations.
Step 4: Build a Strong Online Presence
Having both private and public, well-maintained personal sites and accounts on such platforms as LinkedIn. Create blogs, testimonials, and case studies that showcase your area of specialization.
Pro tip: Use SEO techniques to rank higher in search results. If you’re an accountant use SEO for accountants strategies to attract clients. Learn more about SEO reporting dashboard using examples, templates and tools.
Step 5: Network and Market Your Services
Stakeholder engagement at industry-relevant events can help prospecting for potential clients, as well as encourage word of mouth recommendations. Advertise your services via emails, social media, and ads.
Example: Offer free webinars to build your credibility.
Best Software for Your Consulting Business
Consulting businesses often struggle with managing multiple clients, streamlining operations, and maintaining strong client relationships. Cone’s specialized software like proposal software, work management software, marketing project management software and billing and invoicing software addresses these challenges effectively.
Cone’s Proposal Software for Consultants
Creating polished professional proposals is crucial for winning clients. Cone is among the best proposal software that simplifies the process with:
- Ready-to-Use Templates: Pre-designed templates tailored for consulting services
- Customizable Features: Add client-specific details for personalized proposals
- Automated Recurring Proposals: Save time with templates for repeat clients
- e-Signature Integration: Speed up approvals with electronic signatures to get quick payments
Here are some of Cone’s proposal templates:
- Marketing Consulting Proposal Template
- Payroll Services Proposal Template
- Accounting Services Proposal Template
- Web Design Proposal Template
- IT Services Proposal Template
Cone’s Work Management Software for Consultants
Efficient project and task management is vital for consultants juggling multiple assignments. Cone’s work management software features include:
- Task Tracking: Assign and monitor tasks across clients and projects.
- Time Tracking and Invoicing software: Ensure invoice automation and automated billing system with precise time management tools.
- Centralized Client Hub: Store all client data and communications in one secure place.
- Custom Dashboards: Visualize key performance metrics for better decision-making.
Also Read: Project management software integrated with Quickbooks that can streamline your accounting processes
Pricing:
Cone offers affordable and scalable pricing plans, starting at just $5/user/month.
Set Your Consulting Business Up For Success
There are many benefits to starting a consulting business: flexibility, independence, and the chance to apply your knowledge and experience for the success of a company. To navigate this path effectively, consider utilizing Cone's comprehensive suite of tools - proposal software and work management software designed specifically for consultants.
Cone has key functions to create proposals and manage your work, giving you the freedom to concentrate on providing maximum value to your clients. Begin your consulting experience with Cone as your trusted partner and reach your business goals with ease.