When it comes to starting your own consulting business, it’s not only a great idea, but the industry itself has so much freedom in it that it allows you to choose which next step to take.
Running your own consulting business allows you to create your own working schedule and work as you see best fits you.
In this article, we’ll let you see which next steps to take on starting your own consulting business.
1. Choose your niche
The first step in successfully establishing your consulting business starts with knowing where you need to place your focus. A consulting business is successful when you specialize in your niche and depend on how you serve your customers. In other words, consultants are experts with degrees in their fields and have many years of experience.
There’s no such thing as being a consultant and a beginner in a certain industry. Consultants are always people who have many years of achievements and know how their industry works.
Therefore, whichever niche you are part of and know you have the most experience in, that’s the one you should choose for starting your consulting business.
2. Do your market research
Especially if you are starting a consulting business in a competitive market, it’s important to do your research on the market. Market research helps you learn more about your competitors and what you are going up against.
Regardless if you’re working as an independent consultant or want to start your business with other people, market research will help you identify the competitive advantages you have and how they impact your success.
For instance, if you are thinking about starting a business with professionals in your industry, you can also ask them for ideas and see how you can help each other.
3. Choose your legal business structure
If you choose a sole proprietorship (SP), this means that you’ll register as an independent consultant and have everything placed on your shoulders.
However, if you are thinking of starting a consulting business with a group of people, you can consider starting a partnership or Limited Liability Company (LLC) that will protect your business interests and allow you to be part of a limited liability company.
Depending on your business structure, your personal liabilities and tax payments will vary based on the legal business structure you choose.
4. Create a business plan
Your business plan will serve as your “GPS” in your career. Every successful business has a plan and it easily helps you in managing goals and evaluating your performance. Not only does it help in making much more informed decisions in your business, but will bring you closer to achieving your goals.
A general overview of what your business plan should have includes:
- Your executive summary: Includes a general overview of what your business wants to achieve.
- Your business description & structure: What business legal structure did you choose? What industry are you in? What business model are you pursuing?
- Market research and analysis: Demonstrate that you understand your industry, competition, and target audience. You can perform a competitor analysis that includes your strengths, weaknesses, opportunities, and threats- (SWOT).
- Products or services: Clearly describe what you are selling and how it’ll benefit your customers. This includes the product/service details and pricing, your unique selling proposition (USP), and production or sourcing details.
- Operations & management: Detail the day-to-day operations and key personnel that will be involved in your consulting business.
- Risk analysis & contingency plan: Identify all potential risks associated with your consulting business and how you’ll overcome them.
While business plans weren’t very popular before, entrepreneurs are starting to use them more often.
5. Define your pricing and services
Consultants always experience a dynamic lifestyle and their services always depend on the needs of the client. Overall, it’s always important to assess your target client base and establish the services you want to offer and attract them. Always make sure you are listing your services effectively and the price next to them.
When it comes to the pricing part, everything may become complicated, but the truth is that as a start, you need to make sure you aren’t listing different prices from your competitors. Never price your services too high since you are just starting out and may cause issues in acquiring customers.
It’s important to find a balance to make sure you are the winner in the long-term. You can either choose a fixed pricing model or charge based on the hours you are working. It really depends on what suits you best.
6. Create your own website
Creating a website for your consulting business is always a good idea if you want people to learn more about your business. Many business owners are now making their lives easier by using AI tools to create their own websites.
This is thanks to the help of AI web builders. They can help you create your website in under one hour and you don’t have to worry about waiting months to get one like traditional development methods. Also, most AI web builders offer a free trial so you can test it out to see if it fits your preferences or not.
Moreover, costs are much lower compared to traditional development methods where you only pay a monthly subscription for maintenance.
Creating a website allows you to list all of your consulting business services and when potential customers want to learn more about you, they’ll be able to do so easily.
7. Create a marketing strategy to strengthen your online presence
The success of your consulting business will heavily rely on how you market it. Once you’ve created your business, acquired the necessary licenses, established your website, and completed the other steps, it’s now time to focus on your marketing strategy.
There are many different marketing platforms you can use to strengthen your online presence. While many focus on only word-of-mouth marketing, technology has now made it possible to market your business on social media channels, your website, and even on your own blog.
Social media marketing
People all over the world are using social media channels to receive information and learn more about products and services they can purchase. The good news about consulting businesses is that it’s an industry that covers everything and you have the freedom to market your business in any social media channel you like.
The only thing you’d want to pay attention to is where your target audience is most active. Now, let’s take a closer look at each social media channel and what it represents:
- LinkedIn: The best alternative for B2B purposes, professional networking, and communicating with business owners. This is an ideal choice for consulting businesses.
- Instagram: Great for visual branding, infographics, and personal branding. There are plenty of consultants on Instagram so you won’t be alone.
- X (Twitter): Ideal choice for posting industry updates, and quick insights. This can help people become more aware of your business.
- YouTube: You can always create videos of in-depth tutorials, webinars, and thought leadership.
- Facebook: A Classic social media channel that is excellent for community building, groups, and even running paid ads.
You can always create a channel on each social media platform to make sure you are targeting your audience from all sides.
Email marketing
Email marketing is the backbone of a successful consulting business. It’s best when you focus on organically building up your email list and in this case, you can do so by following these steps:
- Create website sign-up forms: This includes placing opt-in forms on your homepage, blog, or even checkout page.
- Lead magnets: Offer free resources (books, guides, discounts) in exchange for someone’s email address (to sign up).
- Pop-up forms: Use timed pop-ups to capture leads before they leave your website.
- Social media promotion: Encourage your followers to subscribe for exclusive offers.
- Event sign-ups: Collecting email addresses from customers who are visiting you in person or even interacting with you online.
Another tip to keep in mind is when building your email list, you need to segment your list to allow personalized and relevant content. Again, let’s take some time to analyze how you can do so:
- New subscribers: Send out a welcome email.
- Purchase behavior: Target buyers with product recommendations based on past purchasing behaviors.
- Engagement levels: Re-engage with your subscribers with special offers.
- Demographics: Customize emails based on age, interest, and location.
- Browsing activity: Send out reminders and special offers in case someone wants to book a meeting with you but cancels it.
Email marketing is a whole new level of marketing and we can admit that it helps you connect with your audience on a deeper level.
Starting your own consulting business is now possible
Starting your own consulting business brings you one step closer to fulfilling your dream of becoming your own boss. By identifying your niche, building a strong brand, leveraging social media and email marketing, and delivering value to clients at all times, you can be a real winner in the long term.
Always remember that consulting isn’t only about having the right skills, but about building long-term relationships, adapting to changes in the market, and always improving at what you do. Regardless if you work solo or with a team, you need to be flexible, innovative, and client-focused which will set you apart in a competitive market.