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Start Business ConsultingStart Business Consulting I’ve worked in the consulting business on and off for the better part of twenty-five years and would highly recommend that you start a consulting business if that is your interest. Because of that consulting is second nature to me and I’m going to attempt to break it down for you, so you can also be successful in consulting. The most common mistake people make when they start business consulting is thinking they don’t need to have a business plan. They create a resume and list their services with various recruiters and staffing agencies, and wait for the phone to ring. Generally they do get their first assignment and they’re off and running. But eventually that assignment begins to wind down and they have to begin to look for their next assignment. The time between assignments is expensive so they usually begin taking assignments that get them working, but really aren’t in an area they want to work in, or they are beneath their skill level. They haven’t really start business consulting but they think they have. Steps to Start Business Consulting The first step to start business consulting, and by far the most important, is defining what consulting service you want to offer? As you’re defining your service, try to picture what kind of customer would use your service (large corporate customer, new mom, retired people, or small business people just to name a few possibilities). Now it’s time to do what every other business needs to do and that’s to create your business plan. This plan will determine HOW you will define, market, grow and fund your business. Consulting in many ways is just like any other business; you must fully define your product, and then choose marketing tactics to sell your product. Please go to the business planning section of this site and create a short and simple plan:
Click here to plan your consulting business. After you have your first three SATISFIED customers, use what you learned to grow your business. Don’t expand too quickly, but try to find three more GOOD customers. Once you have replicated this process a couple of times, you may want to consider adding your first employee or partner, who will also do consulting under your guidance. You need to be involved with ALL customers and be careful what you delegate. The only product you have is SATISIFIED customers. When you have another person handle YOUR customer, be careful to maintain customer service and satisfaction. You don’t want your business damaged by an employee who doesn’t offer the same level of service and talent that you do. Be careful. On the other hand, the complexities of adding an employee to the staff often stop consultants from doing it and they remain one person firms. Don’t get caught in this trap. You must add employees and delegate parts of consulting assignments in order to grow. Just do it carefully, stay close to it and it should work out well. Once you have successfully added one employee, then go through the same process and add another. Again, you should decide to add employees based on two factors: your revenue potential for them and YOUR AVAILABILITY to indoctrinate/train them. Never add a new employee that you don’t have time to train; otherwise you could easily lose control of your consulting business. Also, have every employee sign a non-compete agreement, this will give you some level of protection against them stealing your accounts. It’s not complete protection, but it is a measure that communicates your expectations.
Growing your business more and more! If your business really takes off and you run out of time to train any more new employees, then you may want to consider adding a business partner rather than an employee. Why a business partner? You add a partner because they are invested in the business and you can contractually stop them from taking your customers. This allows you the freedom to grow without the risks of losing customers to your employees. This business partner structure is one the most law firms use VERY successfully and one I recommend you follow. When you add a business partner they CAN have contact with customers and you don’t have to be involved with every one of them. Your business partner can also hire, indoctrinate and train new employees with little involvement from you. The business structure that is commonly called a partnership is the ideal structure to expand your consulting business as much as you’d like. Also the partnership model is the one the rest of the world can understand and help you with.
Growth is important Growth is as important in the consulting business as in any other business, but it must be accomplished with care and hands-on support throughout the process. Not growing will strangle your business and make you TOO dependent on a few KEY accounts. Consulting is a VERY profitable, fun business if handled correctly. Be sure to PLAN. Be sure to execute each step of the plan. If you follow the plan, you should be well on your way to a successful business. If you’re having trouble getting your first three customers, try changing your business definition to more closely match what you think they’re looking for and you should be able to get started. Remember 1. Do a business plan:
Start Business Consulting Planning Click here 3. Create testimonials 4. Find three more customers 5. Find three more customers 6. Hire/Indoctrinate your first employee (carefully) 7. Hire your second and third employees 8. Add a business partner and new customers 9. Continue to grow! Good luck!
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