how to make a business plan for a consulting firm

How To Start A Consulting Business In 2024

Updated: Feb 11, 2024, 3:43pm

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, frequently asked questions.

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 $300 per hour–all for sharing your expertise with others. Here’s everything you need to know.

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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 your state’s Secretary of State 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 $50 to $100 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.

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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 $16 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 $16 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 $4 to $8 per month). It’s the best option for those who have very unique website needs or experience with the CMS.

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.

Where can a consulting business find government contracts to apply for?

You can look on this website that lists government agencies that take contractors and consultants .

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 blueprint for crafting your effective consulting business plan

Keith Rabkin Chief Revenue Officer for PandaDoc

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Ever tried to put up a tent blindfolded? Navigating the consulting world without a business plan can feel the same overcomplicated.

We created this guide to help you set a strategic, actionable plan on how to operate your early-stage consulting business.

We’ll help you define your services, set achievable and clear goals, and arrange strategies for growth.

So are you ready to pitch your tent with both eyes open?

Key takeaways

• A consulting business plan starts with defining your unique selling proposition (USP). Identify a niche and ideal client by conducting thorough market research and competitive analysis.
• Develop a 12-month marketing strategy with specific targets. Allocate 10-15% of projected revenue to marketing for optimal results.
• Realistically estimate your expenses and revenue based on billable hours/fees and retention rate assumptions.
• Use a proven template rather than starting from scratch to not overlook important elements of the plan.

What is a consulting business plan?

A business plan is a document covering all the aspects of your future consulting business in terms of achieving business goals.

In other words, this specific plan removes the guesswork from how one runs their consulting business.

In the upcoming sections, we’ll explain the key pieces needed to create your business plan.

Your consulting business plan should offer a detailed overview of your consulting firm.

Let’s briefly review the essential sections of the plan and what should be in each of them.

• Executive summary is a short overview of the main points of the document.
• Business overview highlights the mission, vision, history, and services offered by the consulting firm.
• Management team provides bios and expertise of key team members.
• Customer analysis defines target clients, their needs, and how the consulting service solves their problems.
• Industry analysis evaluates the landscape including growth, trends, regulations, and competition.
• Competitive analysis compares the consulting firm’s positioning and offerings versus competitors.
• Marketing plan outlines promotional strategies, lead generation, and metrics.
• Operations plan details the logistics of service delivery, staffing, resources, and customer service principles.
• Financial plan projects costs, revenue, cash flow, and profitability timelines.

Key steps for developing your consulting business plan

Building a thriving consulting business requires thorough planning and a keen eye for detail. Let’s walk through this journey step-by-step.

Step 1. Identify your niche and ideal clients

Kick off your business plan by diving deep into industry research. Look for sectors and trends where there’s a gap that your expertise can fill.

To validate the demand, consider surveying potential clients.

Once you’ve got a handle on that, create a detailed profile of your ideal client , considering factors like their company size, revenue streams, challenges, and objectives.

By the way, focusing on ideal buying personas in B2B (with all these fictitious names, bios, etc.) is one of the greatest sales mistakes, according to Corporate Visions’ findings and Gartner B2B sales research results.

Step 2. Analyze the competition

Understanding your competition is crucial. Examine competitor services offered, how they are marketed, and what they charge.

This is your chance to find your unique selling proposition.

Step 3. Set your rates and service packages

Following the actual industry norms to appoint your consulting fees. However, the price that you use should mirror both your expenses as well as the premium value that your expertise brings to your clients.

Let’s say you work out your overhead costs (utilities, office rental, equipment, etc.) to be roughly $50 per hour, while your hourly work value, which includes your experience and knowledge in this field, is $100.

So, your primary costs in total for an hour of consultation would be $150.

A standard practice in the consulting industry is to have a 100% markup rate on your primary costs.

Applying that rule to your scenario would mean doubling your total cost of $150, which brings your final hourly rate to $300.

Create bundled service packages that combine different services, such as business strategy consultation, market analysis report, and a follow-up action plan. You can offer these at a discounted rate compared to purchasing each service individually.

For example, Bronze is an entry-level package with initial consultation and some basic professional business advice.

Silver is a mid-tier package covering everything from the Bronze plus a detailed action plan for improving business operations.

Finally, the Gold package is a top-tier one complementing what’s in Silver with extended support and follow-ups.

Step 4. Create a marketing and client acquisition strategy

Outline a 12-month marketing strategy that includes a mix of content marketing, events, referrals, and lead-generation campaigns .

Set achievable targets for each quarter, focusing on metrics like leads generated, sales appointments set, and deals closed.

When it comes to budgeting, aim to allocate 10%-15% of your projected revenue or even more to marketing.

According to Gartner, the average startup spends 11.2% of its revenue on marketing.

Step 5. Calculate potential project expenses and revenue

You’ll need to account for various expenses, including staffing, office space, equipment, software, and marketing.

Don’t forget about professional services, travel, and other overhead costs.

On the revenue side, forecast your monthly earnings based on projected billable hours or fixed fees, and assume a client retention rate between 80%-90% .

Extend these projections to create 3 to 5-year profit and loss statements and cash flow forecasts.

Step 6. Plan for sustainability and growth

Your business plan shouldn’t just be a launchpad; it should be a roadmap for long-term growth.

Given that self-funding for growth beyond 20% annually is often unrealistic for most consulting firms, you’ll need a plan B.

One smart move is to establish strategic financial partnerships with investors, banks, or other financial institutions.

These partnerships can offer the capital injection you need to scale your services, break into new markets, or even acquire other businesses. 

More than just a financial lifeline, these partnerships can also provide invaluable business insights and open doors to new opportunities.

Step 7. Use an appropriate consulting business plan template

Having a consulting business plan template is like having a roadmap for your contractual relationships.

It ensures you don’t overlook key elements such as scope, payment terms, and legal considerations.

Consultant Business Plan Template

Used 4999 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.

Customize it and review it with a legal advisor to ensure compliance.

Why developing a consulting business plan is so important

Let’s talk about the positive outcomes of planning. A well-defined consulting business plan…

…directs your business operations

A business plan defines your strategy and major goals, simplifying day-to-day decision-making and helping you focus on long-term objectives.

In other words, you know what to do next at any given moment of operating your early-stage consulting business.

…mitigates your risks

With a comprehensive business plan in place, you can anticipate and prepare for potential challenges, turning risks into opportunities.

…attracts investors

If you want to secure investments, the first thing venture investors or business angels will ask you for is (surprise, surprise) a business plan.

Not just any plan, but a detailed, convincing blueprint of your consulting business that highlights growth and potential returns.

Wrapping up

A well-crafted consulting business plan is essential for guiding your strategy, operations, marketing, finances, and growth.

Carefully working through each component will ensure you launch your firm following a clear plan on how to achieve success.

Using business planning platforms like PandaDoc that offer templates and tools can help streamline creating a professional plan.

The software also enables real-time collaboration so you can work seamlessly with colleagues and advisors.

PandaDoc is not a law firm, or a substitute for an attorney or law firm. This page is not intended to and does not provide legal advice. Should you have legal questions on the validity of e-signatures or digital signatures and the enforceability thereof, please consult with an attorney or law firm. Use of PandaDocs’ services are governed by our Terms of Use and Privacy Policy.

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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.

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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.

• Sample Business Plans

How to Write a Consulting Business Plan + Free Template

Are you someone people usually come to to get valuable business advice? Or do you really like sharing valuable business insights to help businesses grow? Well, starting a consultancy business can be one efficient move to monetize your expert skills.

Now, you wouldn’t start a business without solid planning, would you? Well, how about you take the first step and write an actionable management consulting business plan for your business idea?

Writing a business plan can be tough. But we are here to make it easier for you.

This step-by-step guide is here to help you write a forward-thinking, realistic plan in easy actionable ways and offers a free management consulting business plan template to kickstart your writing process. .

So let’s get started.

Key Takeaways

• Craft a remarkable executive summary summarizing the concept, strategies, objectives, financial projections, and mission values of your consulting business plan.
• Conduct in-depth industry analysis and market research identifying emerging trends and shifts that are likely to influence your consultancy business.
• Introduce the services of your consultancy firm along with its pricing plan to give readers a thorough idea of your service offerings.
• Conduct a SWOT analysis of your key competitors and determine your competitive edge over them to strengthen your competitive analysis.
• Lay down a clear organizational chart highlighting the key skills, salaries, and experience of people working in your consulting firm. .
• Create realistic financial projections for sales, revenue, costs, expenses, and cash flow for your consultancy after making room for contingencies and emergencies.
• Draft a detailed operations plan highlighting the processes and procedures for everyday activities at your consultancy.
• Devise a diversified marketing and sales plan to promote your business effectively to your target audience.

Key Elements of a Management Consulting Business Plan

• Executive Summary
• Company Overview
• Competitor and Market Analysis
• Service Offerings
• Marketing Plan
• Management Consulting Team
• Operational Plan
• Financial Outlook

Since we are talking about a consulting business plan, let us walk you through this step-by-step outline to help you write a stellar plan covering all the essential facets.

1. Executive Summary

The executive summary is the first and foremost section of your consulting business plan that will engage your readers and persuade them to dive further into details.

Begin by offering a brief overview of your business idea highlighting what it does. Take reference from the below example written using Upmetrics AI assistant .

Further, paint a picture, briefly highlighting your consulting services, market scenario, competition, USP, marketing and sales strategies, and financial objectives.

Ensure that you adopt a storytelling approach while crafting your executive summary. Ideally, this section of your business plan should concisely summarize your entire business plan in a page or two.

So ensure that you strategically place the information within this section to keep the readers hooked.

Now be smart and revisit this section after you are done writing for every other section of your plan. A thorough understanding of your business plan at that time will enable you to craft a compelling summary easily.

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2. Company Overview

This section of a business plan helps the reader get a thorough understanding of your consulting firm.

The company overview offers a detailed description highlighting what type of consultancy you would run, its physical location, legal structure, mission objectives, history, and all such related information.

Begin by clearly stating the concept and niche of your consulting firm. Further, highlight whether you would be running a sole proprietorship or partnership, and if it’s the latter discuss the profit-sharing ratio.

Don’t forget to mention your business structure and whether or not will you run a Limited Liability Company (LLC).

This section is your chance to introduce your business objectives, core value proposition, and mission objectives. Highlight any milestones you plan to achieve or have already achieved and make this section insightful.

Refer to this example describing the short-term objectives of a consulting firm from an Upmetrics plan.

3. Competitor and Market Analysis

An in-depth analysis of the consulting industry, market, and competitors is essential to build a successful consulting business. This is the most crucial part of your consultancy business plan helping you identify your target market, emerging trends, competitors, and your advantage over them.

Market analysis

The market analysis section of your consultant business plan will help you evaluate the market condition, target market, and business growth opportunities for your consultancy business.

Begin by researching and analyzing the consultancy market size and the serviceable obtainable market of your specific consultancy.

Further, determine your target audience by creating a buyer’s persona of your ideal customer. In this customer analysis section, determine their demographic and psychographic details to get a clear understanding of who your customer would be.

Refer to this buyer’s persona written using Upmetrics AI assistant:

Lastly, identify the emerging market trends within your industry, potential risks, and the shifts in consumer behavior likely to influence your business.

Competitors analysis

In the competitive analysis section of your plan, identify the consulting firms and other businesses that offer direct or indirect competition to your business.

Your direct competitors are other consultants in your local market, while your indirect competitors are in-house experts, software solutions, and an industry-specific business community extending resourceful help.

Conduct a SWOT analysis of your key competitors and analyze them based on their service offerings, target demographics, pricing, and other relevant factors.

Highlight your competitive advantage over these firms, suggesting that there are ample opportunities for you to succeed despite the competition.

Here’s an example of a competitive advantage for a consultancy business using Upmetrics.

4. Service Offerings

Consulting businesses offer a variety of consulting services. In this section of your consulting business plan, you will create a clear list of all the services you will be offering.

The list can include various business consulting services such as:

• Strategy consulting
• Operation consulting
• Human resources consulting
• IT Consulting
• Risk and compliance consulting

Now, elaborate on these services to help your readers understand what it truly entails. Refer to this example of legal and compliance services brief description:

As part of our risk and compliance service, the company will offer:

• Draft, negotiate, and conclude ‘Joint Venture Agreements’, and ‘Memoranda of cases for one of our key clients. 
• Legal Advice & Consultation
• Case Litigation & Pleading
• Legal Translation
• Business Start-up Advice
• Management Consultancy
• Representation and Attorney Services
• Legal Compliance

Determine the pricing of these services and place it alongside your service list. Ideally, you should create differential and tiered pricing plans for your services to cater to different target audiences.

All in all, make this section an informative read for your readers helping them understand your unique business offerings.

5. Marketing Plan

A well-defined marketing plan is among the most important components of your consulting firm’s business plan. Well, It’s time to design your marketing strategies using your market research about the target customers and the potential clients.

Multifarious marketing efforts are essential to make your new business visibly famous in the market. Well, here are a few strategies that a successful consultant follows religiously:

Social media marketing

Choose different social media platforms to build your consultancy brand online. LinkedIn can be a good choice for a consultancy business followed by FaceBook and Instagram. Create your marketing plans for different platforms and be consistent with your posting there.

Informative website

Build an informative website for your consulting business and enhance its ranking on search engines by creating a dedicated content marketing program.

Email marketing

A well-defined email marketing program to attract new clients, newsletters for subscribed customers, and promotional services offer to convert a potential customer base.

Targeted advertising

Running a paid ads program to reach targeted small businesses and potential clients.

Refer to this example of marketing and promotion programs for your consultancy from Upmetrics.

In this section of your consulting business plan, also highlight your marketing budget and its allocation to different marketing activities.

6. Management Consulting Team

Introduce your managerial team in this section of your consultant business plan by showing how you have the right people to run a successful consultancy.

Begin by introducing the people at top managerial positions and offer a brief description depicting their skills, expertise, and experience in offering specific consulting services.

Refer to this example introducing the managing director of a consulting agency.

Mr. Ashton will serve as the Managing Director of CCI. A highly motivated and dynamic individual, Thomas boasts vast experience in the field of aesthetics having spent a career spanning 14 years essaying various white-collar roles for aesthetic companies across America. His ability to multi-task and expertly weave through operational pitfalls equips him with exceptional management and administrative skills. The US operations include sourcing, interacting, and building client relations across the industry value chain involving professional salons and end-user clientele. Mr. Ashton’s expert management and industry-specific skills will play an instrumental role in achieving the parent company’s goal of establishing a sustainable and reliable aesthetic brand in the US.

Don’t limit this section to the introduction of owners and managers. Instead, introduce every person who’s an asset to your business and can contribute significantly to your business goals.

In this section, you will also highlight the organizational design to offer a clear understanding of the hierarchy in your consulting firm. And lastly, don’t forget to add the salaries and wages of these people alongside their roles while creating your management plan.

7. Operational Plan

The operations plan shows that you don’t only have the means but also the knack to operate the consulting business efficiently.

This section of your business plan highlights the processes and procedures essential to run the everyday operations of your consulting business and the milestones you wish to achieve.

Confused what should you include in your operations plan? Let’s check this out:

Hiring plan

Mention the number of project managers, analysts, BD, administrative, and support workers needed for your business. Briefly describe the qualifications, skill sets, and experience for these roles and lay your hiring plan to hire employees.

Refer to this example of a hiring plan for a consultancy by Upmetrics.

Operational processes

Briefly explain the different processes and procedures of your business in the consulting industry. This includes processes for client acquisition, service delivery, project management process, quality assessment, and client retention.

Tools and equipment

Mention all the equipment you will require to deliver quality consulting services to the clients. Also, include the pricing of these equipment and how you plan to source them from the market.

Overall, think of smaller nuances and make this section as brief and detailed as possible. Consider it as a guidebook that will answer all the operational queries that arise while running the business.

8. Financial Outlook

A comprehensive financial plan is the most crucial component of your business plan and sometimes it is the only section investors or readers might be interested in.

So work on putting together a well-detailed financial plan with realistic financial forecasts to increase the weight of your consulting plan.

The projections in a financial plan are important because they help the readers gauge the financial viability of your business idea. They offer a clear picture of the profitability, growth potential, and cash-generating capacity of your consulting business.

To create a befitting plan, begin by offering a detailed insight into your startup costs, revenue streams, profit margins, operational costs, and cash flow projections. Gather these projections to work on your key reports.

Refer to different business plans to see what more could you add to your financial section apart from these key essentials:

• Balance sheet
• Profit and loss statement/ Income statement
• Cash flow statement
• Break-even analysis
• Investment plan

While making a financial plan, ensure that you figure out the calculations for the next 3-5 years. And yes, we agree that calculating all these financial projections from scratch can get overwhelming. However, with this financial forecasting tool from Upmetrics , the entire task of creating a detailed plan will get much easier and more effective.

Simply enter the details in the tab and let the tool undertake all the manual calculations and create engaging visual reports to add to your plan.

Get Your Free Management Consulting Business Plan

Need help writing the contents of your management consulting business plan? Well, here you go. Download our management consulting business plan pdf and start writing.

Our intuitive and modern consulting business plan template offers a step-by-step guide with relevant examples to speed up your process of writing an effective business plan. It will get your actionable plan ready while ensuring that you add all the crucial details to it.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Start preparing your business plan with Upmetrics AI

And here we are. Now that you are aware of how to write an effective business plan using our consulting business plan template, you are one step closer to starting your business with a bang.

But that’s not it. What if we tell you that your business planning process can be made easier and more efficient with a few cutting-edge tools? Well, the Upmetrics business planning app is here at your service.

With an AI assistant to speed up your writing process, financial forecasting tools to help you with projections, and thousands of free educational guides to help you set up the business- we think you get it all with Upmetrics.

Get started now.

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Frequently asked questions, what are the key components of a management consulting business plan.

While there are no fixed rules regarding what to include in your consulting business plan, you can ensure that you don’t miss adding these key components to your plan:

• Executive summary
• Company overview
• Market and competitor analysis
• Service offerings
• Management team
• Operations plan
• Financial plan

What financial projections should be included in the business plan?

While making your consulting business plan, ensure that you add the financial forecasts for startup costs, expenses, revenue, cash flow, sales, and expected profitability to your plan.

How often should I update my Management Consulting Business Plan?

Ideally, you should update your business plan at least once a year since you operate in a highly dynamic industry. However, if you feel that the yearly updates are insufficient, you can also review and update your plan every quarter.

How should I approach the funding section of my business plan?

Begin by calculating your startup costs and the actual monetary situation to evaluate the funding needs for your business. Thereafter check the potential funding sources and their application procedure to avail required funding.

As a consulting business, you can choose one of these funding sources:

• Private loan
• SBA approved loans
• Angel Investors
• Venture Capitalist firms
• Crowdfunding

Can the business plan help in securing funding or investments?

Absolutely it does. Investors, credit lenders, and banks will look after your business plan before accepting the funding request for your business. This is because a business plan offers a clear understanding of your business idea while simultaneously vouching for the financial feasibility of your plan.

What legal considerations should I include in my business plan?

Here are a few of the legal considerations you should make while writing your business plan:

• Business licenses and permits
• Health safety compliance
• Insurance coverage
• Legal business structure
• Employment laws

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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How to start a consulting business in just 7 steps

• 12 min read

What is a consulting business?

• steps to start a consulting business in 2024

Can anybody start a consulting business?

Copilot: how consultants manage their consulting business.

Start your consulting business

Copilot gives consultants the tools they need to start, run, and grow their business. Try it for free!

Two years ago, I realized that what I was doing at my 9-5 job could easily be turned into a consulting business where I made my own hours and decided who I wanted to work with.

Time flexibility, autonomy, and income potential were at the top of my list of things I wanted to accomplish.

But, I also noticed that there were many consultants and agencies in my niche giving lackluster advice. I wanted to bring a new approach and be a guiding light to business — which is what essentially allowed me to consistently bring in new clients and help me achieve what I wanted in terms of time freedom and finances.

However, starting my consulting business isn’t something that happened overnight. In fact, when I quit my job, it took me almost a full year to figure out what I was doing and to make any sort of living income.

But, don’t let this discourage you. I clearly made A LOT of mistakes. When I first started, it felt like trying to scale Mount Everest barefoot. Though it seemed like an impossible task, the journey need not be so daunting.

This guide is your sherpa up that mountain, offering practical steps on identifying your niche expertise, creating an effective business plan based on client pain points, and managing finances like a pro. We'll even dive into legal aspects and relationship-building strategies for long-term success.

Intrigued? Let’s make this journey together!

A consulting business, at its core, is about problem-solving. It's where an expert in a specific field offers advice and strategies to individuals or companies who need it.

This kind of business opportunity can be highly rewarding since businesses are always looking for ways to enhance productivity, generate more revenue, and find solutions to intricate issues.

The essence of being a consultant lies not just in having specific knowledge, but also knowing how to apply that knowledge effectively. That's why experience plays such a crucial role here — the more problems you've solved before, the better equipped you'll be to tackle new ones.

In addition to solving problems, consultants often help with implementing solutions too. This might involve coaching team members on new processes or helping set up systems that facilitate improvement.

Consulting spans many industries — from IT and management, all the way to finance and HR. What ties them together? The fact they're built around offering specialist insight others don't have access to.

Now, let’s get into the steps you can take to start your own consulting business. These steps are based on my own experience of starting my marketing consulting business two years ago.

7 steps to start a consulting business in 2024

Here are nine steps on how to start a consulting business:

• Master a craft in a specific niche
• Create a business plan based on pain points
• Setting up your online workspace
• Marketing your business to acquire clients
• Managing cash flow and your finances
• Building relationships and referrals
• Taking care of the legal stuff

Okay, let’s dive deeper into each step.

1. Master a craft in a specific niche

Before you launch your consulting business, hone your skills to become a master in the specific niche. It's insufficient to just be familiar with an industry or field — you need to excel .

Your clients will rely on your expertise and advice for their business decisions. If you aren't fully equipped with deep knowledge of the field, it might lead to ill-advised guidance which can harm both parties involved .

This doesn't mean spending decades working in that particular field before taking the plunge into consulting though. But yes, having years of experience would certainly add credibility.

Finding your niche

Choosing a niche isn’t as complicated as it sounds — it’s all about identifying where your passion meets proficiency. Start by analyzing what interests you most and then look at how proficient or skilled are in that area. Here’s some help if needed.

Becoming an expert

To achieve mastery in any given domain, consistent learning is crucial along with hands-on experience. HubSpot has detailed insights on how anyone can grow from being good at something to becoming great.

Avoid client disservice

If I’m honest here, entering consultancy without sufficient expertise may do more harm than good to your client’s businesses due to its high-stakes nature (depending on the industry). This reinforces why mastering a craft within a chosen niche is non-negotiable when thinking about starting your own consultancy business.

2. Create a business plan based on pain points

Building your consulting venture starts with a solid game plan. A solid business plan addresses the real issues potential clients face in their businesses.

To start, you need to know what keeps your target market up at night. Your expertise should align with these concerns and provide solutions that alleviate them.

The next step is setting goals for your consulting business that directly address these pains. This will not only guide the direction of your services but also show prospective clients how valuable you can be to their success.

You'll then want to map out strategies for attracting new customers who experience these specific problems. The aim here is to position yourself as an expert problem-solver within this space.

Try looking in online communities for what problems and conversations are happening in your niche. Reddit is a great place to start if you’re not sure where your community hangs out. Try Googling something related to your niche and type in “reddit” after to see what conversations show up.

And last but not least, sketch out financial projections considering all these factors into account. Here’s where you’ll outline anticipated income streams and expenses tied specifically to solving client problems — this helps ensure sustainable growth for both parties involved.

Note: Don't forget tools like Copilot make managing finances easier by offering features such as invoice templates and third-party integrations like QuickBooks.

Once you have a general idea of what your goals and objectives are, it’s time to take some tangible action.

3. Setting up your online workspace

If you're about to start a consulting business, getting organized is crucial. But it doesn't mean having papers and sticky notes scattered all over your desk.

Your workspace needs to be as digital and streamlined as possible. This is where Copilot , a modern client portal for service businesses, comes in handy.

The power of Copilot: Everything at your fingertips

Copilot offers an intuitive platform that lets consultants manage everything from contracts , invoices, files, messaging, intake forms, and more in one place. Imagine having a clutter-free desktop but with access to every essential tool needed for your work.

A community you can count on

You might be wondering if this setup works for other consultants too. Absolutely. In fact, one of the largest customer bases of Copilot consists of successful consultants who decided to streamline their operations digitally.

Copilot isn’t just about managing paperwork, it's also about fostering relationships with clients through seamless communication features built into the system. It keeps conversations flowing smoothly while making sure important messages don't get lost in translation or buried under heaps of emails.

Say goodbye to disorganization chaos

To say starting a consulting business can be chaotic would be an understatement. But thanks to tools like Copilot, keeping track becomes less daunting and more efficient — letting you focus on what truly matters: providing exceptional services for your clients.

4. Marketing your business to acquire clients

Realizing who requires your services is the key to advertising them successfully. To stand out in the crowded market, you need a unique selling proposition (USP) . This is what sets you apart from others and makes clients choose you over competitors.

Once you figure out who you want to speak to, and what you want to speak about, it’s time to figure out how you’re going to reach your ideal clients. Many consultants initially take an outbound approach — usually reaching out to prospective clients via LinkedIn.

Social media platforms are excellent places for promoting your consultancy. You can use these channels to share valuable content related to your niche, positioning yourself as an expert.

However, note that taking the “content creation” route on social media can take a while to see some tangible results. This is definitely the route to go down for the long term. But, if you’re just starting out, you need to sign your first client as quickly as possible. And, to do this, many consultants (myself included) do a cold reachout approach.

Email remains one of the most effective ways to reach potential clients directly. An email newsletter filled with insightful advice can be just the thing that converts prospects into paying customers.

If you have the time, you can also go to events related to your industry and network with people. The rate of how efficient this will be depends on your industry. For me, as a marketer, this wasn’t the best option as it is very time-consuming (and I’m sort of an introvert). But, for non-tech-related industries, this is often a great place to start.

Some things you can do to network include:

• Nurture relationships within professional networks such as LinkedIn or industry-specific forums.
• Join local business groups and attend events where prospective clients might hang out.
• Talk at conferences or webinars — sharing knowledge helps build credibility and attract potential leads.

As your business grows, you can shift your focus to acquire clients “passively.” By passively, I mean inbound marketing. Here are some strategies:

• A well-optimized website attracts organic traffic; consider SEO blogging regularly on topics relevant to your expertise.
• Publish whitepapers or case studies demonstrating how you've helped previous clients achieve their goals. It’s proof that gives confidence.
• Copilot's client portal software , a powerful tool used by many consultants like myself, integrates smoothly with other marketing tools, letting you automate processes and focus more on delivering value.

5. Manage Cashflow and Your Finances

Running a successful consulting business isn't just about your expertise. It's also about smart money management. In the early days of your business, you’ll most likely act as the CEO, CMO, COO, and CFO — yeah, it’s a lot. But you’ll gain a lifetime of experience in a short amount of time.

One of the most crucial “roles” early on will be the CFO (chief financial officer). Most businesses die because they run out of capital. So, don’t take this aspect lightly.

When starting out, consider packaging your services . Determine the appropriate pricing for your consulting services that is competitive yet does not undervalue yourself. Don't undersell yourself but make sure you're still competitive.

Invoicing made easy with Copilot

Sending invoices shouldn’t be a chore. With Copilot’s invoicing feature , it doesn’t have to be. Create branded invoices and even set up recurring subscriptions — no sweat.

Also, to manage cash flow effectively, keep track of all expenses – both big and small. From office supplies to travel costs, every penny counts. This is where integrations with your back office platform, like Copilot, comes in handy.

Copilot integrations make life easier

Fumbling between different apps? Let Copilot do the heavy lifting by integrating with third-party applications like QuickBooks for seamless financial management.

6. Building relationships and referrals

You might be wondering how to get more clients for your consulting business. The secret? It's all about building solid relationships.

People trust people, not businesses . So it's crucial that you focus on developing genuine connections with your clients. They're much more likely to recommend someone they like and trust — that could be you.

In my marketing consulting business, after just two years of dedicated relationship-building, I started seeing a consistent stream of client referrals from past customers I'd done great work for. This is the power of word-of-mouth.

The power of networking

Beyond individual clients, don't forget the potential power within professional networks too. Connect with other consultants or professionals in related fields — these contacts can also provide valuable client referrals if they know and respect your work.

Maintaining client relationships

Maintaining those strong bonds even after projects end is equally important because happy clients are the best advertisers for your services. Regular check-ins let them know you value their partnership long-term.

Acing customer service

Finally, ace customer service at every step along the way. Delivering high-quality results is a given but being responsive, respectful, and easy to work with gives added reasons for referral recommendations.

Remember: Happy clients = more referrals.

7. Take care of the legal stuff

To start a consulting business, you'll need to tackle some paperwork first.

Make sure to check your local laws and register your company name with the authorities in your area so they know you're ready to conduct business and pay taxes. Registering your small business with the local government informs them that you're in operation and prepared to pay taxes. It might sound daunting, but it's not as scary as it seems.

Choose your business structure

The type of structure can affect how much you pay in taxes and your personal liability. Do some research or get help from an attorney or CPA. In the US, many consultants operate with an LLC (Limited Liability Company). But, this will all depend on your preference and practice.

You’ll also want to open a separate business bank account to separate your personal finances from that of your business. This will help you avoid headaches when it comes to tax season.

Nail down licenses and permits

You may also need specific licenses or permits depending on what kind of consulting work you do. For example, if environmental consultancy is your thing, certain certifications are required.

Tax obligations

Avoid any unpleasant surprises by understanding tax obligations upfront. Are you aware that consultants often have self-employment tax?

Breathe easy with liability insurance

Last but certainly not least, consider getting liability insurance for peace of mind because accidents happen even when we wish they didn't. This isn't everything there is to starting a consulting biz legally, but these steps will set solid foundations.

Well, the short answer is yes. But it's more about who should. The truth of the matter is that anyone can technically become a business owner and start a consulting firm. You don't need any special license or degree to hang up your shingle and call yourself a consultant.

This may seem like great news for those itching to escape their nine-to-five grind and set off on an entrepreneurial adventure.

However, there's more than meets the eye

Becoming successful in this field requires something money can't buy — expertise. It’s not just about having knowledge; it’s also about being able to apply that knowledge effectively for clients' benefit.

Your success hinges on demonstrating your skills in tangible ways. This could be through past work experience, professional certifications, academic achievements, or even client testimonials praising your abilities.

To really hit home with potential clients and succeed as a consultant you'll need a solid business plan. This helps demonstrate how you're going to solve problems for clients — essentially why they should choose you over someone else.

Above all else though, remember confidence counts. To thrive as a consultant you must believe in yourself before expecting others (clients) will too.

The journey of starting a consulting business is an adventure filled with twists and turns. But one tool that can help smooth out the bumps in this road is Copilot.

Crafting your workspace with Copilot

A well-organized workspace is essential for success, and that's where Copilot shines. This client portal platform lets you keep track of contracts, invoices, files, messaging, and forms all in one place.

Financial management made easy

No need to dread financial management anymore. Copilot makes it simple by letting you create branded invoices and recurring subscriptions right from your dashboard.

Bonus? It even integrates seamlessly with third-party apps like QuickBooks so you have everything under control without breaking a sweat.

Fostering client relationships

I've been running my marketing consultancy for two years now — believe me when I say relationships are key.

If done right using platforms like Copilot can get consistent referrals from past clients who loved working with us because we did an amazing job managing their projects smoothly through the portal.

Growing Your Consulting Business With Confidence

In conclusion, there’s no doubt about it: Starting a consulting firm isn’t easy. But, having tools such as Copilot on your side gives both newbies & experienced consultants the confidence they need to grow their businesses effectively and efficiently.

Launching a consulting startup is a complex adventure that goes far beyond just announcing your readiness to serve. Finding your niche where your expertise aligns with industry trends and new business needs is key.

If you’ve made it this far into the article, you've mastered the art of crafting an effective business plan that's not just a document, but a strategic roadmap addressing the real pain points of new clients. We've dove into client portals, equipping you with robust online workspace setups and innovative marketing strategies to captivate and retain clients .

We navigated the financial landscape, providing practical advice on project management tools like Copilot, designed to streamline your invoicing and financial tracking — crucial for any entrepreneur eager to maintain a healthy cash flow. We also shed light on the significance of relationships in the consulting industry — these connections are not merely advantageous but are the lifeblood of referrals and sustained growth.

Legal stuff? Consider it covered. Everyone is now equipped with the knowledge that diligent attention to legalities and choosing the right business name from the outset can prevent future legal entanglements.

Whether you're eyeing a niche in management, IT consulting, or any of the other types of consulting, this guide has laid the foundation. You're not just starting a new consulting practice — you're sculpting a beacon in the consulting industry.

Launching your consulting business is no longer akin to scaling Everest barefoot — it's an exhilarating climb we've prepared for together. With the toolkit you've assembled, the path to success is clear, and the summit is within reach.

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How To Write A Consulting Business Plan

Creating a business plan is essential for any business, but it can be especially helpful for consultants who want to establish their credibility and get ahead in the industry.

A well-crafted business plan not only outlines your vision for the company but also provides a step-by-step process of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article will provide an overview of the key elements that every consultant should include in their business plan.

Download the Ultimate Consulting Business Plan Template

What is a Consulting Business Plan?

A consulting business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons why you will be profitable, how you can succeed in your market, what will set your product or service apart from others, and includes information about your team members, if applicable, to convince investors and lenders (if needed) that you have what it takes to make your venture successful.

Why Write a Consulting Business Plan?

A consulting business plan is required for banks and loan companies, and it is often requested by investors. This document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Consulting Business Plan

The following are the key components of a successful consulting business plan:

Executive Summary

The executive summary of a consulting business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your consulting firm
• Provide a short summary of the key points of each section of your business plan.
• Organize your thoughts in a logical sequence that is easy for the reader to follow.
• Include information about your company’s management team, industry analysis, competitive analysis, and financial forecast.

Company Description

This section should include a brief history of your company. Include a short description of how it all started, and provide a timeline of milestones the company has achieved.

If you are just starting your consulting business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your consulting firm, mention this.

Industry Analysis

The industry or market analysis is an important component of a consulting business plan. Conduct thorough market research to determine industry trends, identify your potential customers, and the potential size of this market. 

Questions to answer include:

• What part of the consulting industry are you targeting?
• Who are your competitors?
• How big is the market?
• What trends are happening in the industry right now?

You should also include information about your research methodology and sources of information, including company reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or consulting services with the right marketing.

Competitive Analysis

The competitive analysis helps you  determine how your product or service will be different from competitors, and what you are using as your unique selling proposition (USP) that will set you apart in this industry.

Complete a SWOT Analysis. Your SWOT analysis should include:

• Strengths : what are your strengths?
• Weaknesses : what are your weaknesses?
• Opportunities : how can you take advantage of competitive weaknesses and strike back at them with your strengths and possible new product or service offerings?
• Threats : what are the potential threats to your company? How can you prepare for them? What can you do to mitigate potential risks?

You will then use this information to develop your own competitive strategy. Determine your competitive advantage and how you will differentiate your business from these competitors.

Marketing Plan

Your consulting marketing plan is where you determine how you are going to reach your target customer(s). Your marketing strategy should be clearly laid out, including the following 4 Ps.

• Product/Service : Make sure your service offering is clearly defined and differentiated from your competitors, including the benefits of using your service.
• Price : How do you determine the price for your service? You should also include a price strategy that takes into account what customers will be willing to pay and how much the competition within your market charges.
• Place : Where will your customers find you? What channels of distribution will you use to reach them?
• Promotion : How will you reach your target market? You can use social media or write a blog, create an email marketing campaign, post flyers, pay for advertising, launch a direct mail campaign, etc.

You should also include information about your paid advertising budget, including an estimate of expenses and sales projections.

Operations Plan

The operations plan should include the following information:

• How will you deliver your service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Management Team

Include a list of team members including names and titles, as well as their expertise and experience relevant to your specific consulting industry. Include brief biography sketches for each team member.

Financial Plan

Now include a complete and detailed financial plan. This is where you will need to break down your expenses and revenue projections for the first 5 years of operation. This includes the following financial statements:

Income Statement

Your income statement should include:

• Revenue : how will you generate revenue?
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the service offering.
• Net Income (or loss) : once expenses and revenue are totaled and deducted from each other, what is the net income or loss? 

Sample Income Statement for a Startup Consulting Firm

Balance Sheet

Include a balance sheet that shows what you have in terms of assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Consulting Firm

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Income : all of the revenue coming in from clients.
• Expenses : all of your monthly bills and expenses. Include operating, marketing and capital expenditures.
• Net Cash Flow : the difference between income and expenses for each month after they are totaled and deducted from each other. This number is the net cash flow for each month.

Using your total income and expenses, you can project an annual cash flow statement. Below is a sample of a projected cash flow statement for a startup consulting business.

Sample Cash Flow Statement for a Startup Consulting Firm

You will also want to include an appendix section which may include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• A list of your hard assets and equipment with purchase dates, prices paid and any other relevant information
• A list of your soft assets with purchase dates, prices paid and any other relevant information
• Biographies of the key employees listed in the executive summary section above.
• References to people you have done business with who are willing to confirm their positive business holdings with your company.

Writing a good business plan gives you the advantage of being fully prepared to launch and grow your consulting company. It not only outlines your business vision but also provides a step by step process of how you are going to accomplish it. Sometimes it may be difficult to get started, but once you get the hang of it, writing a business plan becomes easier and will give you a sense of direction and clarity about your consulting company.  

Finish Your Consulting Business Plan in 1 Day!

Wish there was a faster, easier way to finish your consulting business plan?

With our Ultimate Consulting Business Plan Template you can finish your plan in just 8 hours or less!

Consulting Business Plan Guide + Free Example

July 6, 2023

Adam Hoeksema

The consulting industry offers vast opportunities, and while some might believe that running a consulting agency is straightforward, involving only client meetings and providing expert advice, careful planning and meticulous execution are essential for achieving success, hence a well-structured business plan is indispensable.

Our primary expertise lies in creating consulting agency financial projections , but we recognize that some of our clients require comprehensive business plans. That's why we've taken the initiative to delve into this topic and cover the following:

• Why Write a Business Plan For a Consulting Agency?
• What to Include in a Consulting Agency Business Plan?

Consulting Agency Business Plan Outline

How to determine the market demand for my consulting services.

• How to Analyze the Competition for a Consulting Agency?
• How to Create Financial Projections for a Consulting Agency?

Consulting Agency Business Plan Sample

• Consulting Agency Business Plan FAQs

Why write a business plan for a consulting agency?

For consulting agency proprietors seeking financial support from investors, banks, or financial institutions, a well-structured business plan is an essential requirement. Demonstrating a comprehensive analysis of the market, a clear and strategic approach to client acquisition and service delivery, and a thoughtful assessment of potential risks and rewards is vital to securing the necessary funding for your venture. This provides both a roadmap for the agency's growth and assurance to potential investors that the business is robust and well-equipped to navigate industry challenges.

What to include in a consulting firm business plan?

A consulting agency business plan should outline for investors and lenders the compelling reasons why clients will select your services over others in the market, highlight the qualifications and expertise of you and your team in delivering consulting services, and present a robust financial projection that validates the security of their investment. Below is a comprehensive outline of our complimentary consulting agency business plan template.

We suggest the following sections for your consulting agency business plan

Executive Summary

Company Description

Market Analysis

Product and Service Offerings

Marketing Plan & Customer Acquisition

Operating Plan

Financial Plan

Analyzing the market for consulting services is essential to understanding your potential clients, competitors, and the overall landscape of the industry. Here's a step-by-step guide tailored for consulting services:

Identify Your Target Audience : Determine who your potential clients are. Are you targeting corporations, small businesses, non-profits, individuals, or specific industries? Understanding the unique needs and problems of these segments will help you tailor your services.

Market Size Estimation : Gauge the size of your potential market. This might include the number of businesses or professionals in a particular industry, region, or demographic segment. 

Competitor Analysis: Assess who your competitors are, their offerings, pricing strategies, marketing approaches, client reviews, and market share. This can help you find opportunities and differentiators for your consulting business.

Trend Analysis: Use Google Trends to see trends in popularity in your market. If we examine the consulting services industry, for example, we can track the following seasonal trends and trends over the last 5 years for search terms related to specific types of consulting, "IT consulting." This can help you identify when demand for particular services might peak, allowing you to align your marketing and service offerings accordingly.

SWOT Analysis: Perform a SWOT analysis - strengths, weaknesses, opportunities, and threats related to your consulting service. This will help you identify your unique position in the market.

Pricing Analysis: Evaluate your competitors' pricing strategies and understand the budget constraints and willingness to pay among potential clients. This will help you set a price that's both competitive and profitable.

Customer Behavior and Preferences : Utilize surveys, interviews, and feedback to understand what drives client decisions. Consider their pain points, needs, and what influences their choice in selecting a consulting firm.

How to Analyze the Competition for a Consulting Firm?

When analyzing the competition in the consulting agency industry, there are several useful tools at your disposal. One of the key tools I recommend using is Ahrefs.

Ahrefs is a powerful SEO tool that allows you to research and analyze your competitor consulting agencies' online presence. By entering a competitor's website into Ahrefs, you can gain valuable insights into their organic traffic and the keywords driving that traffic. For example, we can see that Exact IT is receiving roughly 250 monthly organic traffic visitors. 

The tool provides data on the competitor's organic traffic and highlights the specific keywords that are bringing visitors to their website.  For example, they are ranking for 498 keywords and below you can see the keywords that are bringing the most traffic to the site. 

By understanding the keywords and SEO strategies that competitor consulting agencies are employing, you can tailor your content and marketing approach to compete effectively in the same spaces or identify niche areas that are underserved. This knowledge can help improve your consulting agency's online visibility, attract more clients through search engines, and position your business for success in the competitive consulting industry.

LinkedIn is a powerful platform for professional networking and can be a goldmine for competitor analysis. By searching for the names of consulting agencies or specific individuals who work for them, you can gather valuable information about their company size, services offered, client base, and recent updates or publications. Additionally, you can follow their company pages and employees to receive updates on their activities, such as new hires, client wins, and thought leadership content.

How to Create Financial Projections for a Consulting Firm?

Just like in any industry, the consulting agency business has its unique factors that impact financial projections, such as client acquisition rates, project size and complexity, billable hours, and overhead expenses. Utilizing a consulting-specific financial projection template can simplify the process and increase your confidence. Creating accurate financial projections goes beyond showcasing your consulting agency's ability to secure contracts; it's about illustrating the financial roadmap to profitability and the realization of your firm's growth goals. To develop precise projections, consider the following key steps:

Estimate Startup Costs: These might include office space, professional certifications, legal and insurance costs, technology setup, and initial marketing and branding efforts.

Forecast Revenue : Base this on projected client acquisition, average project value, billable hours, retainer agreements, and potential growth in client base or expansion into new service areas.

Project Costs : Include costs related to staffing, subcontractors if needed, travel and accommodation for client meetings, and any other expenses specifically related to delivering your consulting services.

Estimate Operating Expenses : Regular overheads like rent, utilities, office supplies, technology and software subscriptions, marketing expenses, and administrative salaries.

Calculate the Capital Needed: This should cover both the initial expenses to launch the consulting agency and provide working capital for continued growth and operational expenses until the business reaches sustainable profitability.

Seek Guidance from Experienced Professionals : While financial projections are a critical component of your consulting agency business plan, don't hesitate to seek expert advice. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about trends and best practices in the consulting world to ensure your financial plan aligns with your goals and positions your consulting agency for long-term success

Delve into our Consulting Agency Business Plan, available for your review below. If you desire more customization, a Google Doc version of this consulting agency business plan template is accessible for download, enabling you to modify it to fit your unique needs and strategies. For your convenience, an accompanying video tutorial is also provided, directing you through the method of tailoring the business plan to perfectly resonate with your specific consulting agency's goals and identity.

Table of Contents

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

5. Organizational Structure and Management

5.1. Organization’s Facility & Location

5.2. Staffing Plan and Volunteer Management

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

 1.1. Company Overview

Briefly introduce the company's background, products or services, and target market.

      -  Example: TalentEdge Consulting is a premier HR consulting firm based in Denver, Colorado, specializing in providing comprehensive human resources solutions to businesses of all sizes. Our services range from talent acquisition and employee development to HR strategy and compliance.

   1.2. Objectives

Outlines the company's short-term and long-term goals.

        - Example: Short-term: Establish TalentEdge Consulting as a trusted partner for businesses in Denver. Within the first year, we aim to secure partnerships with at least 100 businesses.

        - Example: Long-term: expand our presence beyond Denver and become a leading HR consulting firm in the region, known for our expertise, exceptional client service, and measurable impact on businesses.

  1.3. Mission Statement

 Describes the company's purpose and core values.

        - Example: We are dedicated to providing customized and  effective HR strategies and solutions that align with our client's unique needs, foster a positive work environment, and unlock their full human potential.

  1.4. Keys to Success

Highlights the factors that will contribute to the company's growth and success.

        - Example: By leveraging our in-depth industry expertise in HR best practices, tailoring HR solutions that address our client's specific challenges and goals, and by continual innovation to stay ahead of emerging HR trends and technologies, TalentEdge Consulting is poised to become the go-to HR consulting firm for businesses seeking strategic and impactful HR solutions in Denver and beyond.

2. Company Description

   2.1. company history.

Provides context on the company's background and founding story.

        - Example: TalentEdge Consulting was founded by Rosetta Tanner, an experienced HR professional with a passion for driving organizational success through effective people strategies. With a background in talent management and HR consulting, Rosetta established the firm in Denver, Colorado, to provide businesses with expert HR guidance and support.

   2.2. Legal Structure

 Describes the company's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: TalentEdge Consulting operates as a sole proprietorship owned by Rosetta Tanner.

 2.3. Unique Selling Proposition

  Emphasizes the company's competitive advantage or unique offerings.

        - Example: TalentEdge Consulting differentiates itself by offering holistic and tailored HR solutions that align with each client's unique business needs. Our focus on practical implementation and measurable results sets us apart, ensuring that our clients experience tangible improvements in their HR practices and overall organizational performance.

  2.4. Target Market

Defines the company's ideal customer base.

        - Example: We serves businesses in Denver, Colorado, across various industries and sizes. We cater to businesses seeking to optimize their talent acquisition, employee engagement, performance management, compliance, and HR strategy for long-term success.

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: As businesses in Denver, CO recognizes the importance of effective HR practices in driving organizational success, the demand for specialized HR consulting services is increasing. Factors such as evolving labor laws, workforce diversity, and the need for talent management contribute to the growth potential of the industry.

3.2. Competitor Analysis

 Evaluates the company's direct and indirect competitors, as well as their strengths and weaknesses.

        - Example: Direct competitors: HR Solutions Inc.: A boutique HR consultancy known for its expertise in leadership development and talent acquisition.

        - Example: Indirect competitors:  In-house HR departments: Larger organizations with dedicated HR teams may choose to handle HR functions internally.

3.3. Target Market Analysis

Explores the company's target customers, their demographics, preferences, and pain points.

        - Example: TalentEdge Solutions targets small and medium-sized businesses in Denver, Colorado, across various industries. Our ideal clients include startups, growing businesses, and companies undergoing organizational changes.

3.4. Market Opportunities

Identifies potential opportunities for the company to grow within the market.

        - Example: TalentEdge Solutions can seize market opportunities by leveraging digital marketing, offer specialized HR solutions, forge strategic partnerships, stay ahead of HR trends, and target niche markets to expand brand visibility, attract clients, generate referrals, provide cutting-edge services, and establish leadership in specific industry sectors.

• Example 1: Conduct a survey among local businesses to assess their HR consulting needs and challenges. This will provide insights into the demand for specialized HR solutions in the area. (e.g., 80% of surveyed businesses express a need for talent acquisition and retention strategies)
• Example 2: Analyze industry reports and local employment trends to identify areas of growth and emerging HR challenges. This will help tailor TalentEdge Consulting's services to address specific market needs. (e.g., Denver's technology sector has experienced a 15% annual growth rate, indicating a potential demand for HR solutions in this industry)
• Example 3: Analyze the top competitors in the area to understand what services they are offering, and what things you may be able to specialize in to compete or steal some customer base. Do an SEO/keyword analysis of your competitors to see what keywords they are ranking for and what opportunities there would be to steal some of that website traffic through ads or organic SEO
• Example 4: Perform keyword research related to your specific professional service/industry to see growth trends

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the company's products or services in detail.

        - Example: TalentEdge Solutions offers a comprehensive suite of HR consulting services, including talent acquisition and management, leadership development, performance management, employee engagement, HR policy development, and HR technology implementation.

4.2. Pricing Strategy

 Outlines the company's approach to pricing its products or services.

        - Example: TalentEdge Solutions adopts a flexible pricing structure tailored to the unique needs and budget of each client, ensuring cost-effectiveness and maximizing value for their investment in HR solutions.

4.3. Sales Strategy

  Explains how the company plans to generate sales and build

customer relationships.

        - Example:  We will leverage networking events, industry conferences, and referrals to generate leads and establish strategic partnerships with local businesses and organizations in Denver, CO.

 Describes the methods through which the company will deliver its products or services to customers.

        - Example: TalentEdge Solutions delivers its services through personalized client engagements, utilizing a combination of on-site consultations, virtual meetings, and collaborative technology platforms to ensure seamless communication and service delivery.

4.5. Promotions and Advertising

 Details the company's promotional efforts and advertising strategies.

        - Example: TalentEdge Solutions implements targeted marketing campaigns, leveraging digital channels, industry events, and professional networks to raise awareness about their expertise, showcase thought leadership, and attract potential clients in the Denver, CO area.

• Example 1: Begin offering Recruiting & talent finding services as an independent freelancer with some local companies to demonstrate success and traction before expanding the business.
• Example 2: Host free HR workshops and seminars for local businesses to showcase TalentEdge Consulting's expertise and establish credibility in the market. (e.g., 50 attendees participate in a workshop on effective performance management, generating positive testimonials and potential leads)
• Example 3: Create a social media following providing tips to people trying to find a job as well as tips to small businesses looking to hire people.

5. Operations and Management

5.1. organizational structure.

Outline the company's organizational structure, including key roles and responsibilities within the HR consulting firm.

        - Example: TalentEdge Solutions will have a flat organizational structure, with a core team consisting of HR consultants, specialists, and administrative staff. The CEO, Rosetta Tanner, will oversee overall operations and strategic direction.

5.2. Team Development and Management

Describe how the company will attract, develop, and manage a skilled team of HR professionals.

        - Example: TalentEdge Solutions will focus on recruiting experienced HR consultants with diverse expertise and a strong track record. The company will provide ongoing professional development, training, and mentorship programs to enhance skills and ensure the team stays updated on industry trends and best practices.

5.3. Quality Assurance

Explain the measures the company will implement to ensure the delivery of high-quality HR consulting services.

        - Example:  TalentEdge Solutions will establish a comprehensive quality assurance framework, including regular performance evaluations, client feedback surveys, and internal audits. This will ensure consistent delivery of tailored, effective, and compliant HR solutions to clients.

• Example: The founder of TalentEdge Consulting, Rosetta Tanner, brings 15 years of experience in HR management across various industries, including healthcare and technology. Her expertise ensures that the company stays updated with industry best practices and can provide valuable insights to clients.

5.4. Technology and Systems

Highlight the technology and systems the company will utilize to streamline operations and enhance service delivery.

        - Example: TalentEdge Solutions will leverage advanced HR software and systems to automate administrative tasks, streamline recruitment and talent management processes, and enhance data security. The company will also implement a client management system to efficiently track client interactions and deliver personalized HR solutions.

All of the unique Professional Service  projections you see here were generated using ProjectionHub’s Professional Service Financial Projection Template . Use PH20BP to enjoy a 20% discount on the template. 

   6.1. Startup Costs

  Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to breakdown how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: Creating a solid financial plan is crucial, and we are taking the necessary steps to ensure the success of TalentEdge. Based on our projections, we actually plan to break even relatively quickly by choosing to be as lean as possible in year 1 so we have limited starting capital needs. We plan to begin with$25,000 in cash from person investment from the owner and are seeking a $50,000 SBA microloan to provide a cash buffer to help with unforeseen expenses and working capital.

6.2. Revenue Projections

Provides an estimate of the company's future revenue based on market research and assumptions.

        - Example:  TalentEdge projects $300,000 in revenue in the first year. The company anticipates steady growth in revenue over the initial five-year period.

 Estimates the company's future expenses, including fixed and variable costs.

        - Example: TalentEdge is choosing to keep overhead as low as possible in the first year and willow wait to secure a physical office space until year 2 as well as expanding the labor force considerably.

Summarizes the company's revenue, expenses, and net income over a specific period.

        - Example: TalentEdge expects to achieve sustainable profitability in year 3 of operation.

 Outlines the company's projected cash inflows and outflows.

        - Example: TalentEdge cash flow projections demonstrate how we’ll handle cash outflows during growth events like securing an office space and hiring more team members.

  Determines the point at which the company's revenue equals its expenses.

        - Example: TalentEdge anticipates reaching its sustainable break-even point in year 3 of operation.

Watch how to create financial projections for your Professional Service Firm

Key Point  4 

• Example 1: Benchmark financial projections against industry standards to ensure realistic revenue and expense estimates. (e.g., The average billing rate for HR consulting firms in Denver is $150 per hour, which aligns with TalentEdge Consulting's projected rates)
• Example 2: Evaluate the potential impact of market fluctuations on financial projections, such as changes in labor regulations or economic conditions. (e.g., A 10% decrease in business expansions could result in a 5% decrease in TalentEdge Consulting's revenue)

   7.1. Supporting Documents

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

Key Point 5

• Example: Rosetta Tanner and the founding team of TalentEdge Consulting invest personal funds into the business to cover startup costs and demonstrate their commitment to the venture. This personal investment showcases their dedication and shared risk, increasing confidence among lenders and potential partners.

Consulting Business Plan FAQs

How do i start a consulting or professional services business.

To start a consulting or professional services business, define your area of expertise, identify your target market, develop a business plan, establish your pricing structure, create a marketing strategy, build a professional network, and continuously enhance your knowledge and skills.

What types of consulting services are in high demand?

Consulting services that are often in high demand include management consulting, IT consulting, marketing consulting, financial consulting, HR consulting, business strategy consulting, and niche-specific consulting services tailored to specific industries or challenges.

How can I find clients for my consulting business?

To find clients, leverage your professional network and relationships, participate in industry events and conferences, offer valuable content through thought leadership articles or blog posts, utilize social media platforms, and seek referrals from satisfied clients or business partners.

How can I demonstrate the value of my consulting services to potential clients?

Demonstrate the value of your consulting services by showcasing past client success stories or case studies, highlighting your expertise and qualifications, offering free initial consultations or assessments, providing testimonials from satisfied clients, and emphasizing the tangible results or improvements your services can bring.

How can I scale my consulting business?

To scale your consulting business, consider hiring additional consultants or subcontractors, developing scalable systems and processes, expanding your service offerings or target markets, leveraging technology to automate certain tasks, and establishing strategic partnerships or collaborations with other professionals or firms.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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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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Written by Mary Kate Miller | July 26, 2021

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Want to start a consulting business but not sure how? You’ve come to the right place. At Foundr, we’re not about fluff. We’re about giving you the actionable information you need to turn your million-dollar idea into a million dollars worth of revenue.

We’re also all about helping you learn in the way that works best for you. Do you prefer to get your information by reading? Buckle up. This guide is for you, and we are going to dig in and show you how to start a consulting business brick by brick.

Time is ticking. Let’s dig in so you can start your new business and be on your way to becoming a highly successful consultant.

How Much Does It Cost to Start a Consulting Business?

Startup costs for a consulting business can range anywhere from a few hundred dollars to around $10,000.

What to Consider Before Starting Your Consulting Business

Before starting your own consulting firm, consider these 3 questions.

Are you qualified to be a consultant?

Before beginning, ensure that you have the qualifications to consult in your desired industry. You want to ensure that you’re selling services that you can deliver. If you plan to work as a marketing consultant, do you have a proven track record of success? If you’re working as a computer consultant, do you have specific experience and training to ensure you can do the job?

Do you have the necessary licenses or certifications?

Even if you’re starting your business from home, you will likely want to procure a business license for your consulting work. A business license provides a few key benefits. First, it demonstrates the legitimacy of your business to customers, which can help attract potential clients. Some clients will even require it.

Some consulting niches may require certifications. Even if your specialty doesn’t, certifications may prove your expertise and bolster your marketing efforts.

Do you like to network and work with other people?

While introverts and ambiverts can make highly successful consultants, the consulting industry is best suited to extroverts—especially if you’re going out on your own. Networking, specifically, will be a crucial element of growing your business.

Steps to Creating a Consulting Business

You came here to learn how to start a consulting business, and we’re here to help you make it happen. Here are the 8 concrete steps you need to take to get your consulting service up and running.

1. Determine Your Consulting Specialty

You will determine your specialty by considering the expertise you possess in relation to market demands.

• Begin by taking inventory of the skills and expertise you’ve cultivated throughout your career, the industries you’ve worked in, and the customers you’ve helped. Now is the time to brainstorm. Write down anything that comes to mind. Pay special attention to the big wins you’ve had and the KPIs you’ve consistently outperformed.
• Look for patterns that emerge from your list.
• What work do you genuinely enjoy doing? The benefit of being a consultant means you get to determine your scope of work. You can choose to do the work that makes you feel engaged and inspired.

Types of Consultants

These in-demand niches will give you a leg up in building a successful consulting business.

• Operations consultant
• Marketing and sales consultant
• IT consultant
• Project management consultant
• Human resources consultant
• Management consultant
• Social media consultant
• Business coach

2. Choose a Business Model That Best Fits Your Business

There are 3 options to choose from when starting your consulting business.

Independent Contractor

If you’re working as an independent consultant, you may want to work as an independent contractor. As a 1099 consultant, you’re incredibly agile. You can begin offering consulting services today, and it may be easier for some clients to onboard you. (For example, a company may require review for hiring an agency but not a contractor.)

On the flip side, there are some drawbacks to this business structure. Some larger enterprise clients may prefer to work with a consulting firm, plus you’ll likely have to pay higher tax rates as an independent contractor.

Sole Proprietorship

As a sole proprietor, you can offer consulting services with the agility of an independent contractor and the apparent credibility of a full-scale consulting firm.

Consulting Firm (S-Corp, C-Corp, or LLC)

If you’re planning to start a consulting company, you’ll definitely want to go with a business model that’s built to accommodate employees. You can learn more about the different options for incorporating your business and weigh advice from expert attorneys with our guide .

3. Identify Your Target Client

Your marketing will be most successful if it’s targeted toward your ideal client. While it may seem counterintuitive, beginning with a narrow focus may open you up to more potential business. That’s because once you get specific about who your ideal client is, you can create a marketing plan directed toward that person or company, addressing their particular pain points and needs.

For the full rundown on how to identify your ideal client, check out our complete guide to defining your target market .

4. Create Your Consulting Brand

Your brand determines what differentiates you from other consultants. When starting a consulting business, you’ll want to assess your brand identity, name, logo, tagline, design, and voice. For an in-depth walkthrough of branding, check out “The Small Business Guide to Branding.”

It’s likely that as your consulting business grows and evolves, your brand will evolve with it. That’s OK! You still want to outline your brand guidelines now to have clear, consistent messaging when reaching out to a prospective client. This will build credibility and make you look like the expert that you are.

5. Develop a Consulting Proposal

Your consulting proposal works as a sales tool to attract new clients and as a document that outlines everything you will deliver for a potential project or client. For step-by-step directions, check out our guide to writing the perfect consulting proposal .

You will need to tailor your proposal for each individual client and project, but you can create a template that outlines the basic consulting services you plan to offer. This preparation will streamline the proposal process and allow you to provide quick turnarounds when pitching prospective clients.

Within each proposal, you’ll want to ensure you do 3 things. You want to ensure you understand the client’s wants and needs, create a unique value proposition, and outline the scope and timeline of the project.

Each consulting proposal should include the following elements:

• Executive summary
• Project outline/scope of work
• Timeline for the deliverables
• Payment terms
• Client requirements
• Expiration date of the proposal

As you begin pitching clients, you’ll work to refine your proposal, identifying what works and weeding out what doesn’t until you’ve crafted a proposal that wins every time.

6. Determine Your Consulting Pricing

Determining your pricing is the final step before launching your consulting business. You can follow these 5 best practices for defining your pricing.

• Estimate your value: Your value is determined by the results your consulting work provides to a client rather than the work you put into it. What will your work give to the client? Increased web traffic? Leads? Business-changing insights? A streamlined talent acquisition process? Technological improvements that reduce lead time? These impacts all have a direct effect on revenue. Determine what impact your work will have on the client’s bottom line.
• Determine the scope of work: Predict the amount of work and labor required to deliver what you’ve offered the client.
• Calculate your hourly rates: In light of the value you provide to clients (as determined in step one), consider the yearly salary you want to make, divide that to an hourly rate, then mark it up by at least 20%.
• Determine the cost per project: When working with a fixed fee, you want to determine the number of hours you anticipate working on the project and calculate the project cost based on your hourly rate. You may also want to add 10% to the anticipated amount to protect yourself from potential scope creep.

For absolutely everything you need to know about setting your pricing (and we mean everything), check out our guide, “Consulting Fees: How Much Should You Charge as a Consultant?”

7. Create a Web Presence

You want to have a strong online presence to market your consulting practice. You need to have a domain to represent your brand, hosting that will give it a home, and a website that highlights what you can offer.

Building a Consulting Website

Start by picking a domain that’s representative of your brand. If your company is called “John Doe Enterprises,” 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 the prefix “the” or suffix “agency”. If you need, you can get an alternative top-level domain like a .org or .co.

Next, 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.

Now you have all the technical stuff set up, you need to write some copy. Start by explaining what you do and who it serves. This information is known as your value proposition. Make sure to include 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, you can ask your former bosses and coworkers for testimonials.

8. Market to Your Audience

Now that you’ve narrowed down your target audience, it’s time to create a marketing plan and roll it out. How do you do that? As we mentioned before, networking is going to be a big part of it.

Ben Baker of Your Brand Marketing , a corporate branding consultancy, says networking was the key to building his client base. “I joined a couple of chambers of commerce, got involved in Business Networking International , and became involved in different marketing organizations,” Baker says. “99% of my clients today still come through referrals.”

Find Consulting Clients Online

If you’re not into the whole “schmoozing at networking events” thing, networking opportunities in online groups are a tap away. Here are some great places to start:

• Facebook groups
• Online forums
• LinkedIn hashtags
• Slack channels
• Twitter chats

How to Leverage Social Media for Marketing

Social media marketing is essential for a consulting entrepreneur. To get as much out of it as possible, we recommend you follow these steps.

• Research the top Facebook groups around your niche. This can be a matter of a Google search, but a great way of grabbing the attention of the people you’ll be interacting with is to post to LinkedIn or Twitter asking for recommendations.
• Join all the recommended groups and follow the group owners. While you’re first starting out, expect to spend quite a bit of time in these groups. Becoming a prominent member of a community within your niche will build recognition and trust.
• When people post a question or ask for help, broadcast amazing advice to the group. Your role in these communities is to help fellow members, not to sell your services. Be generous with your knowledge, offer excellent resources they can use, even refer them to other members who specialize in areas outside your expertise.
• Only promote your services when invited to. Again, focus on building goodwill in your community before reaching out to people with your product. Most Facebook groups have a weekly post where members can pitch their services. And if you’re in the right groups, there are always members asking for recommendations for freelancers, consultants, and coaches.
• Reach out to each prospect with a one-to-one “give.” After you’ve had a positive exchange with a prospect in the group, ask if it’s OK to message them directly. Then give them an offer they can’t refuse: a free live consultation, walkthrough, or feedback session.

Get Your Consulting Business Started

You’re one step closer to your dream of becoming a small business owner. Now that you have everything you know, the only thing left is to get started.

About Mary Kate Miller

Mary Kate Miller writes about small business, real estate, and finance. In addition to writing for Foundr, her work has been published by The Washington Post, Teen Vogue, Bustle, and more. She lives in Chicago.

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1-Page Business Plan For Consultants (Template Included)

In 2018, Laura Posey received the worst news you could imagine.

Her partner was diagnosed with cancer.

She could no longer run her company, Simple Success Plans , because her new full-time position was taking care of her partner.

But Laura had something that many consultants don’t — a clear, strategic plan.

Before taking time off to take care of her partner, she gave that plan to her team, and told them to “go make it happen.”

They did just that.

This plan allowed Laura to step out of the business for an entire year.

Everything still got done.

And with her 1-page business plan, she got to do a far more important job.

If you’re feeling “all over the place” in your consulting business and lack a clear plan on how to get to where you want, you need to write that plan.

But not just any plan.

You need a plan that fits on 1-page, forcing you to prioritize what’s truly important to your business and your life.

By the end of this post, you’ll have a 1-page business plan for your consulting business which you will use to achieve your revenue goals — and build the consulting business that supports your desired lifestyle.

Declare Your 5 Core Values

First things first — you must declare the core values of your business.

You’ll write 5 of them. One core value for each finger on one hand, making them easy to remember.

A core value is something that shapes the way you see and behave — similar to a mindset .

Core values often come from the heart. You don’t just think about them — you feel them at your core.

Core values are decision-making criteria. They are a primary filter that makes sure what you do is in alignment with the business that you want to build.

If a new opportunity comes your way, it must be congruent with your core values. If not, you will happily say no to it.

Examples of core values:

• “We will have each other’s back.” This core value is about teamwork. In Laura’s business, if someone needs help or support, they know they can trust in the team to provide that.
• “We will try and figure it out ourselves.” This core value is about delegation. Laura knows she doesn’t have all of the answers. So she trusts her team to solve problems autonomously, without micromanagement. This core value also ensures that they hire problem solvers who want to solve problems on their own.
• “We will support out-of-the-box thinking.” This core value is about creativity, taking chances, and trying new things. If you deeply value-creating new things, even if they might be inefficient, then this would be a good core value for your business.

With your 5 core values in place, you’ll get clear on your business vision .

Get Clear On Your Vision

Where do you want to take your business?

This is your vision .

Imagine how you want your business to look. Imagine how it helps support your desired lifestyle.

Dream big. This is where you picture yourself living the lifestyle that prompted you to start your consulting business in the first place. It’s your source of motivation — your desired future state.

Your vision should include a mix of your business and your personal life.

Here are some examples of vision:

• “I want to be the go-to expert in my industry who is so successful that key industry players come to me first when they are seeking advice.”
• “I want to change the way healthcare is run and convince insurance companies that they should cover preventative and alternative medicine practices.”
• “I want to buy a home for my parents and pay for live-in care so they can grow old comfortably in their own home.”

And one final example from Laura’s business — and a story about how she made it happen.

“I want to build a business where I can work from anywhere and don’t have to travel for work.”

Laura values location independence — the ability to work from anywhere.

Years ago, her business partner was making her miserable. She wanted out.

She called her landlord and asked him “what would it cost to get out of this lease?”

It wasn’t cheap.

To get out of the lease, she had to cut her expenses way, way down.

She wanted a business where she could work from anywhere — so she never felt “trapped” in a single location ever again.

So, she told her clients she was cutting down on travel. Much to her surprise, many of them were delighted.

It would save them a lot of money.

It took her a full year to transition…but she took action to make her vision a reality.

You must state your vision before you can make them real.

Once you’ve done that, you will get more tangible: starting with your long-term targets.

Aim At Your Long Term Targets

Your long-term targets are where you want to be in 3-5 years.

They are medium-resolution — specific enough to give you something to aim at, but vague enough to give you some wiggle room.

Ultimately, these targets are the building blocks of turning your vision into reality.

Examples of long-term targets (3-5 years):

• Hit a revenue of $2M+ (your number may be higher or lower)
• Invest in a second office
• Take 4 weeks of vacation

Once you’ve written down your long-term targets, you can set your short-term goals.

Set Your Short Term Goals

Your short-term goals are goals you want to hit within one year.

Unlike long-term targets, they are very detailed and specific.

When writing them, visualize what they look like once they’re complete.

Like your long-term targets, they should help you fulfill your vision.

Examples of short-term goals (1 year)

• Hire a full-time administrative assistant who handles all of my low-hour tasks
• Create a new productized service with a value of $2500
• Cut my hours to 35/week

After setting your short-term goals, you can narrow down to your daily tasks with a checklist.

Breaking It Down: The Daily Success Checklist

What are you doing today to hit your goals?

To create your vision?

To align with your core values?

The Daily Success Checklist keeps you accountable. It’s something you can follow every day to ensure you hit your goals and create your dream business.

Here’s what it looks like:

The Daily Success Checklist is broken down into these areas:

• Success Habits : The daily habits you must achieve to hit your goals. A good one here is making sure you reach out to a certain amount of ideal clients — what we call your “Magic Number.”
• Goals : You can insert your short-term goals here to keep them in focus.
• Key Three : Your three important areas of focus for today — where you want to improve.
• Other Tasks : Miscellaneous tasks that you must complete to finish the day.
• Reflection : After your day is done, answer these reflection questions. They’ll help you analyze what you did well and how you can improve — and be grateful for another day getting one step closer to your desired life and business.

Just like the strategic plan, this checklist also fits on one page. As you go through your day, check off the tasks you complete.

Do this every day, and you’ll be working towards making your vision a reality.

Action Step: Complete Your 1 Page Business Plan

Your action step for this article is to write your 1 page business plan .

Using the guidelines in this article, write down your…

• 5 core values
• Business vision
• Long-term targets
• Short-term goals

…and then print it out. Put it on your desk, where you can’t miss it.

Finally, download Laura’s Daily Success Checklist , and build a habit of using it every day.

You can find Laura’s strategic plan system here if you’d like to do this with her help.

Until you make your core values, vision, and goals explicit, you’ll never have 100% clarity on what you should be doing in your business — and why.

By getting focused, you’ll put yourself on the path to build the highly profitable business of your dreams.

• What are some examples of your core values?
• What is your vision for your dream business and lifestyle ?
• What are you doing daily to make it all a reality?

Leave a comment below — and join the discussion!

If you’d like to join a like-minded community of consultants who are all helping each other achieve the business of their dreams, check out our Clarity Coaching Program.

“Michael and Sam run a great program. It’s not cookie-cutter. They meet you where you are, listen well, and provide relevant solutions. They plug you into a community of peers, which is so important if you’re just starting out. You don’t have to figure it all out on your own! ”

(Read Mike’s full consulting case study )

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Sample Consulting Firm Business Plan

Writing a business plan is a crucial step in starting a consulting firm. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring consulting firm business owners, having access to a sample consulting firm business plan can be especially helpful in providing direction and gaining insight into how to draft their own consulting firm business plan.

Download our Ultimate Consulting Firm Business Plan Template

Having a thorough business plan in place is critical for any successful consulting firm venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A consulting firm business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The consulting firm business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your consulting firm as Growthink’s Ultimate Consulting Firm Business Plan Template , but it can help you write a consulting firm business plan of your own.

Consulting Firm Business Plan Example – InsightAdvantage Consultants

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to InsightAdvantage Consultants, our new consulting firm rooted in the vibrant landscape of San Francisco, CA. Born out of a vision to fill the void for high-quality local consulting services, our mission is dedicated to offering unparalleled consulting solutions tailored to the unique needs of businesses in our community. Specializing in strategic planning, management consulting, and financial advisory, we craft personalized solutions that empower our clients to navigate their specific challenges and seize opportunities for growth. With our firm strategically located in San Francisco, we not only ensure our services are highly relevant and specialized for the local market but also contribute actively to the local business ecosystem, making us the go-to consulting firm in the area.

Our success at InsightAdvantage Consultants is driven by a blend of factors. The wealth of experience brought by our founder, who has a proven track record in the consulting industry, sets a solid foundation for our operations. Coupled with our commitment to superior consulting expertise, we stand out as a leader in the field. Our specialized understanding of the San Francisco market further cements our position as the preferred local consulting partner. Since our launch in January 2024, we’ve hit several key milestones, including establishing our brand identity, securing a prime location for our operations, and structuring our business as an S Corporation ready for growth. These accomplishments underscore our readiness and enthusiasm to empower local businesses towards success.

The Consulting Firm industry in the United States, currently valued at over $250 billion, exhibits a robust demand across various sectors, including healthcare, technology, and finance. With an expected annual growth rate of 3-4%, the industry is on a trajectory of steady expansion. A notable trend is the emergence of specialized niche consulting firms like InsightAdvantage Consultants, which cater to specific business needs with highly targeted expertise and solutions. This trend aligns with our focus on the San Francisco market, positioning us to leverage the increasing demand for specialized consulting services in the region.

InsightAdvantage Consultants targets a diverse customer base, starting with local residents to establish a strong community presence. We also focus on small to medium-sized enterprises (SMEs) and tech startups in San Francisco, offering them tailored consulting services to address their unique challenges. By providing strategies for growth, efficiency improvements, and competitive positioning, we aim to support the backbone of the local economy and the dynamic tech startup sector with agile, innovative solutions that drive sustainable success.

Our main competitors include Run Right Business Consulting, with their tailored services and deep local market understanding; Piedmont Avenue Consulting, specializing in marketing and branding strategies; and BookSoEasy, which combines business consulting with technological solutions. Despite the strengths of these firms, InsightAdvantage Consultants remains unmatched in our blend of industry experience, innovative strategies, and deep local market insights. Our diverse team of industry veterans and young innovators enables us to offer solutions that are both time-tested and infused with fresh, forward-thinking ideas. This unique combination, along with our strategic location in San Francisco, positions us as a leader in the consulting industry.

InsightAdvantage Consultants offers a comprehensive suite of services, including Strategic Planning, Management Consulting, and Financial Advisory, each designed to meet our clients’ diverse needs. Our pricing strategy is tailored to reflect the value and customization of our services, with prices varying based on scope and complexity. To promote our offerings, we employ a robust digital marketing strategy, leveraging social media, SEO, and email campaigns, complemented by content marketing to position us as thought leaders. Networking events, referral programs, and targeted advertising campaigns further amplify our visibility and attract a broad spectrum of clients.

Our operations at InsightAdvantage Consultants are centered around key processes such as client communication, market research, strategy development, project management, and quality assurance, to name a few. We are committed to continuous learning and professional development to stay ahead of industry trends. In the coming months, we aim to achieve several milestones, including securing initial client contracts, achieving operational efficiency, and building a strong local network. These efforts are all geared towards ensuring our firm’s success and sustainable growth.

At the helm of InsightAdvantage Consultants is Lucas Jackson, our President, who brings a wealth of experience and a proven track record from the consulting industry. His expertise in strategic planning, operational efficiency, and business development is invaluable to guiding our firm towards achieving its strategic goals. Lucas’s leadership and deep market understanding ensure we are well-equipped to navigate the industry landscape and achieve lasting success.

Welcome to InsightAdvantage Consultants, a new consulting firm based in the vibrant city of San Francisco, CA. As a local consulting firm, we stand out in a landscape that previously lacked high-quality local consulting services. Our mission is to bridge this gap and offer unparalleled consulting solutions that cater specifically to the needs of businesses in our community.

At InsightAdvantage Consultants, we specialize in a range of services designed to empower businesses to achieve their goals. Our offerings include strategic planning, which helps businesses chart a course for success in an ever-changing market. We also provide management consulting to streamline operations, enhance efficiency, and foster leadership within teams. Additionally, our financial advisory services are tailored to help businesses optimize their financial strategies for growth and stability. Each of these services is crafted with our clients’ success in mind, offering personalized solutions that address their unique challenges and opportunities.

Our firm is proudly based in San Francisco, CA, serving customers within this dynamic city. This strategic location not only allows us to be close to our clients but also to be an integral part of the local business ecosystem. By focusing on serving San Francisco businesses, we ensure that our services are highly relevant and tailored to the specific needs of companies operating in this unique market.

InsightAdvantage Consultants is uniquely qualified to succeed for several reasons. Firstly, our founder brings valuable experience from previously running a successful consulting firm, ensuring that we have the knowledge and skills necessary to deliver exceptional results. Moreover, we pride ourselves on offering superior consulting expertise compared to our competition, setting us apart as a leader in the field. These factors, combined with our deep understanding of the local market, position us as the go-to consulting firm in San Francisco.

Since our inception on January 5, 2024, InsightAdvantage Consultants has achieved several milestones. We have successfully established our brand, starting with the design of our logo and the development of our company name, which resonate with our vision and values. Furthermore, we secured a prime location that not only serves as our base of operations but also reflects our commitment to being an accessible and integral part of the local business community. As a S Corporation, we are poised for growth and are excited to continue building our legacy as we serve and empower businesses in San Francisco.

The Consulting Firm industry in the United States is a thriving sector with a significant market size. Currently, the industry is estimated to be worth over $250 billion, showcasing the high demand for consulting services across various sectors such as healthcare, technology, finance, and more.

Market research indicates that the Consulting Firm industry is expected to experience steady growth in the coming years. With an annual growth rate projected to be around 3-4%, the industry is set to reach new heights as businesses increasingly seek out expert advice and guidance to navigate complex challenges and drive growth.

One of the key trends in the Consulting Firm industry is the rise of specialized niche consulting firms, such as InsightAdvantage Consultants. These firms offer tailored services to specific industries or business needs, providing clients with highly targeted expertise and solutions. This trend bodes well for InsightAdvantage Consultants, as their focus on serving customers in San Francisco, CA, positions them to capitalize on the growing demand for specialized consulting services in the region.

Below is a description of our target customers and their core needs.

Target Customers

InsightAdvantage Consultants will target a diverse range of customer segments, beginning with local residents. This group is essential for establishing a strong community presence and reputation. By focusing on the unique needs and challenges of San Francisco’s residents, InsightAdvantage Consultants will tailor services to offer practical, impactful advice and solutions.

Small to medium-sized enterprises (SMEs) within the city will also form a significant part of InsightAdvantage Consultants’ target market. These businesses, which are the backbone of the local economy, often encounter unique challenges that require specialized consulting services. InsightAdvantage Consultants will provide these companies with strategies for growth, efficiency improvements, and competitive positioning.

Furthermore, tech startups, which are prolific in the San Francisco area, will be another primary customer segment for InsightAdvantage Consultants. This sector is dynamic and requires agile, innovative consulting solutions to navigate rapid growth, funding rounds, and scaling challenges. The firm will offer bespoke services that align with the fast-paced nature of tech startups, helping them to achieve sustainable success.

Customer Needs

InsightAdvantage Consultants caters to the distinct needs of San Francisco residents by delivering high-quality consulting services that align with their diverse ambitions and challenges. Clients can expect tailored solutions that resonate with their unique scenarios, whether they are startups seeking to innovate, enterprises aiming to scale, or individuals pursuing personal growth. This dedication to customization ensures that every strategy is not just a roadmap but a reflection of the client’s vision and potential.

In an environment as dynamic and competitive as San Francisco, customers demand not just advice but actionable insights that can lead to tangible outcomes. InsightAdvantage Consultants rises to this expectation by leveraging cutting-edge research, data analytics, and industry expertise to empower clients with strategies that are both innovative and practical. This approach guarantees that clients not only navigate their immediate challenges but are also equipped for long-term success.

Moreover, InsightAdvantage Consultants understands the value of accessibility and ongoing support for San Francisco’s bustling clientele. Clients have the convenience of engaging with experts who are committed to their success beyond the initial consultation. This includes follow-up services, the provision of resources for implementation, and the availability of guidance through the evolution of their projects or businesses. Such comprehensive support underscores our dedication to not just meeting but exceeding client expectations.

InsightAdvantage Consultants’ Competitors Include the Following Companies

Run Right Business Consulting

Run Right Business Consulting offers a comprehensive suite of services including strategy development, operational improvements, and financial advisory. The firm specializes in serving small to medium-sized businesses across various industries. Their services are tailored to meet the specific needs of each client, ensuring a personalized consulting experience.

Pricing models at Run Right Business Consulting are project-based, with costs varying depending on the scope and complexity of the consulting engagement. This flexibility allows them to cater to a wide range of budgets. The firm reports annual revenues in the mid-range, indicating a stable client base and consistent service delivery.

Located primarily in the San Francisco Bay Area, Run Right Business Consulting has a strong local presence. However, they also serve clients across the United States, leveraging remote consulting capabilities. Their customer segments include startups, established SMEs, and occasionally larger corporations seeking niche expertise.

Key strengths of Run Right Business Consulting include their tailored service approach and deep local market understanding. Weaknesses may include limited international exposure and a narrower service offering compared to larger consulting firms.

Piedmont Avenue Consulting

Piedmont Avenue Consulting focuses on marketing and branding strategies, offering services such as social media management, public relations, and digital marketing. They cater to a diverse clientele, including retail, hospitality, and technology sectors. This specialization enables them to offer deep insights and innovative strategies in these areas.

Their pricing strategy is flexible, offering both retainer-based and project-specific engagements. This allows businesses of varying sizes and budgets to access their services. Piedmont Avenue Consulting’s revenue is competitive, reflecting their strong position in the niche of marketing consultancy.

Based in the San Francisco Bay Area, Piedmont Avenue Consulting maintains a strong local presence while also serving clients nationwide. Their geographic reach is supported by a robust online consulting platform. The primary customer segments include small to medium-sized businesses looking to enhance their market presence and brand visibility.

The firm’s key strengths lie in its specialized focus on marketing and branding, coupled with a strong understanding of digital trends. However, their narrow focus could be seen as a weakness, limiting their appeal to businesses seeking more comprehensive consulting services.

BookSoEasy offers a unique combination of business consulting and technological solutions, with a focus on streamlining operations, improving customer engagement, and enhancing digital presence for their clients. Their services are particularly appealing to the hospitality and retail sectors, where they leverage technology to drive growth and efficiency.

The firm employs a value-based pricing strategy, ensuring clients only pay for tangible improvements and outcomes. This approach has contributed to their competitive positioning in terms of revenue, signaling strong client satisfaction and results-driven service delivery. BookSoEasy operates primarily in San Francisco but has started expanding its services to other major cities across the US.

Their customer base mainly consists of small to medium-sized enterprises seeking to leverage technology for business improvements. BookSoEasy’s strength lies in its ability to integrate consulting services with technological implementation, providing a comprehensive solution to business challenges.

A potential weakness is their sector-specific approach, which might limit their appeal to a broader audience. Additionally, as they expand geographically, maintaining the high level of personalized service that characterizes their San Francisco operations could present a challenge.

Competitive Advantages

At InsightAdvantage Consultants, we pride ourselves on delivering superior consulting expertise compared to our competitors. Our team comprises industry veterans and young innovators, all of whom bring unique perspectives and cutting-edge strategies to the table. This blend of experience and fresh ideas enables us to provide our clients with solutions that are not only time-tested but also infused with innovative approaches. We understand that the landscape of business is ever-changing, and our ability to adapt and foresee shifts in the market sets us apart. Our consultants specialize in various sectors, ensuring that clients receive tailored advice that directly impacts their specific industry challenges and opportunities.

Furthermore, our location in a vibrant city such as San Francisco allows us to stay at the forefront of technological advancements and trends. This geographical advantage complements our commitment to utilizing the latest tools and methodologies in our consultancy services. We leverage local networks and partnerships to offer our clients exclusive insights and opportunities that are not readily available elsewhere. Additionally, our commitment to fostering strong relationships with each client means we go beyond traditional consultancy roles, acting as true partners invested in their success. Our approach is holistic and personalized, ensuring that every strategy we develop is not only innovative but also practical and sustainable in the long run. This unique combination of expertise, innovation, and partnership is what makes InsightAdvantage Consultants a leader in the consulting industry.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

InsightAdvantage Consultants offers a comprehensive suite of services tailored to meet the diverse needs of its clients. With a focus on delivering actionable insights and strategic direction, the firm has positioned itself as a valuable partner for businesses looking to navigate the complexities of today’s market landscape. Among the services offered, Strategic Planning, Management Consulting, and Financial Advisory stand out as core competencies, each designed to address specific areas of client concern.

Strategic Planning is a critical service offered, designed to help businesses define their vision, set achievable goals, and develop a roadmap for success. Clients can expect to engage in deep-dive sessions aimed at understanding their market position, competition, and internal capabilities. The average selling price for Strategic Planning services is typically around $10,000. This price can vary based on the scope and complexity of the project, tailored to meet the unique needs of each client.

Management Consulting is another key service area, focusing on improving organizational performance through the analysis of existing business problems and the development of plans for improvement. InsightAdvantage Consultants leverages industry best practices and innovative strategies to guide leadership teams through transformational changes. Clients opting for Management Consulting services can expect to invest approximately $15,000, depending on the project’s duration and depth.

Lastly, the Financial Advisory service aims to help clients manage their financial strategy, planning, and risk. This service covers a broad spectrum of financial disciplines, including mergers and acquisitions, financial planning, and risk management. With an average selling price of $20,000, this service provides clients with expert advice and insights into optimizing financial performance and achieving long-term financial stability.

InsightAdvantage Consultants prides itself on delivering high-quality, tailored services that drive value and competitive advantage for its clients. By focusing on strategic planning, management consulting, and financial advisory, the firm ensures that it covers a comprehensive range of needs that are crucial for businesses aiming to thrive in the modern economy.

Promotions Plan

InsightAdvantage Consultants employs a comprehensive suite of promotional methods to attract customers, with a keen focus on leveraging the power of online marketing. In the digital age, establishing a robust online presence is non-negotiable, and InsightAdvantage Consultants recognizes this by prioritizing a well-rounded digital marketing strategy. This includes the utilization of social media platforms, search engine optimization (SEO), and email marketing campaigns, all designed to build brand awareness and drive customer engagement.

In addition to these online marketing efforts, InsightAdvantage Consultants also taps into the potential of content marketing. By creating and distributing valuable, relevant, and consistent content, the firm aims to attract and retain a clearly defined audience. This strategy not only positions InsightAdvantage Consultants as thought leaders in the consulting industry but also helps in building trust with potential clients. High-quality blog posts, whitepapers, and case studies will serve as tools to showcase the firm’s expertise and success stories.

Networking events and industry conferences represent another pivotal promotional method for InsightAdvantage Consultants. By actively participating in these gatherings, the firm has the opportunity to connect with potential clients face-to-face, build meaningful relationships, and stay abreast of the latest industry trends. These interactions often translate into business opportunities and collaborations, further amplifying the firm’s reach and influence within the consulting sector.

Referral programs will play a critical role in the firm’s promotional strategy as well. Encouraging satisfied clients to refer others to InsightAdvantage Consultants not only helps in acquiring new customers but also strengthens the firm’s reputation. Offering incentives for referrals demonstrates appreciation for existing clients while simultaneously expanding the customer base.

Lastly, targeted advertising campaigns, both online and offline, will complement the firm’s promotional activities. These campaigns will be carefully crafted to reach potential clients within specific industries or sectors, ensuring that the messaging is relevant and resonates with the intended audience. By employing a mix of traditional advertising mediums and digital channels, InsightAdvantage Consultants aims to maximize its visibility and appeal to a broad spectrum of clients.

In conclusion, InsightAdvantage Consultants employs a diverse range of promotional methods to attract customers, with a strong emphasis on online marketing. By integrating content marketing, networking, referral programs, and targeted advertising into its promotional strategy, the firm is well-positioned to build its brand, engage with potential clients, and achieve sustainable growth in the competitive consulting industry.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of InsightAdvantage Consultants, there are several key day-to-day operational processes that we will perform.

• Client Communication: Maintain open lines of communication with clients through emails, phone calls, and meetings to understand their needs and provide timely updates.
• Market Research: Conduct continuous market research to stay updated on industry trends, challenges, and opportunities relevant to our clients’ businesses.
• Strategy Development: Develop customized strategies for each client, focusing on their specific goals, challenges, and market position.
• Project Management: Utilize project management tools to track progress, manage deadlines, and ensure that all team members are aligned and accountable.
• Data Analysis: Analyze data from various sources to inform strategies, measure performance, and make data-driven decisions.
• Quality Assurance: Regularly review and assess the quality of our work to ensure that it meets high standards and delivers value to our clients.
• Professional Development: Engage in continuous learning and professional development to enhance our skills and stay ahead of industry changes.
• Networking: Actively participate in local and industry-specific events to build and maintain a strong professional network in San Francisco and beyond.
• Financial Management: Monitor and manage the firm’s finances, including budgeting, invoicing, and financial reporting, to ensure healthy cash flow and profitability.
• Feedback Collection: Solicit feedback from clients post-engagement to identify areas for improvement and strengthen client relationships.
• Marketing and Business Development: Implement marketing strategies and business development activities to attract new clients and retain existing ones.
• Team Collaboration: Foster a collaborative work environment where team members can share ideas, solve problems together, and contribute to each other’s professional growth.
• Compliance and Ethics: Ensure that all business practices comply with local laws and regulations and adhere to the highest ethical standards.

InsightAdvantage Consultants expects to complete the following milestones in the coming months in order to ensure its success:

• Launch Our Consulting Firm : Successfully establish and officially launch InsightAdvantage Consultants, including setting up a fully functional office in San Francisco, CA, and a polished online presence that showcases our value proposition and services offered.
• Secure Initial Client Contracts : Within the first three months, secure at least 3-5 initial client contracts through networking, marketing efforts, and leveraging personal and professional contacts. This will provide an early revenue stream and case studies/testimonials for future business.
• Achieve Operational Efficiency : Streamline business processes, including client onboarding, project management, and billing, to ensure operations are as efficient and scalable as possible. Proper use of technology and software tools should be integrated to support these operations.
• Build a Strong Local Network : Participate in local business events, join relevant associations, and actively engage with the business community in San Francisco. Building a strong local network will be crucial for word-of-mouth referrals and gaining trust within the community.
• Develop a Robust Marketing Strategy : Implement a comprehensive marketing strategy that includes digital marketing (SEO, content marketing, and social media), speaking engagements, and workshops. This strategy should aim to establish InsightAdvantage Consultants as thought leaders in the industry.
• Hire and Train Key Staff : As revenue starts to grow, hire additional consultants and support staff to ensure the ability to scale operations without compromising on the quality of service. Implement a training program to ensure all team members are aligned with the company’s methodologies and values.
• Get to $15,000/Month in Revenue : This is a critical financial milestone that indicates the business is gaining traction. Achieving this goal will likely require a combination of increasing the client base, possibly raising prices for services (based on the value delivered), and ensuring high levels of client satisfaction for repeat business and referrals.
• Establish Partnerships : Form strategic partnerships with other businesses and organizations that can offer complementary services or refer clients, such as law firms, accounting firms, and local business associations. These partnerships can help expand the client base and add value to InsightAdvantage Consultants’ offerings.
• Implement a Client Feedback System : Develop and implement a systematic approach for collecting and analyzing client feedback to continuously improve the service quality and address any areas of concern. This will not only help in refining the services but also in retaining clients and encouraging referrals.
• Evaluate Expansion Opportunities : After achieving a stable client base and consistent revenue growth in San Francisco, begin evaluating opportunities for expansion either by offering additional services or by extending the geographic reach to other cities or regions.

InsightAdvantage Consultants management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Lucas Jackson, President

Lucas Jackson brings a wealth of experience and a proven track record of success to InsightAdvantage Consultants. Having previously helmed a consulting firm, Lucas has demonstrated an exceptional ability to lead, innovate, and drive growth within the consulting industry. His expertise spans strategic planning, operational efficiency, and business development, making him well-positioned to guide InsightAdvantage Consultants towards achieving its strategic goals. Lucas’s leadership skills, combined with his deep understanding of the consulting market, ensure that InsightAdvantage Consultants is not just equipped to navigate the complexities of the industry but is also poised for lasting success.

To reach our growth goals, InsightAdvantage Consultants requires $397,000 in funding. This capital will be allocated across both capital and non-capital investments, including location buildout, equipment, working capital, initial marketing, and staffing. These resources are crucial for establishing our operations, securing a competitive position in the market, and laying a foundation for future growth and profitability.

Financial Statements

Balance sheet.

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Income Statement

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Cash Flow Statement

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Consulting Firm Business Plan Example PDF

Download our Consulting Firm Business Plan PDF here. This is a free consulting firm business plan example to help you get started on your own consulting firm plan.  

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How to Start a Consulting Business: The Definitive Guide for 2024

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You’ve become an expert in your field after years of dedication, countless hours of work, and relentless pursuit of excellence.

So, what’s next?

Imagine leveraging your expertise and time into a rewarding venture – starting a consulting business .

What is consulting?

Consulting is the art and science of offering specialized advice, sharing opinions, and crafting strategies to help clients excel. Consultants aren't just advice-givers; they wear numerous hats. They diagnose problems, gather data, offer constructive feedback, build strategies, and participate in implementation.

According to Statista, the information technology consulting industry in the U.S. grew by over 30% between 2011 and 2019, amounting to more than $600 billion in 2022. Similarly, the management consulting sector is projected to hit $343.4 billion by 2025 from an estimated $330 billion in 2023.

And these are just two pieces of the enormous consulting pie.

Leveraging my extensive experience of over a decade as an attorney, alongside a 15-year journey mentoring numerous entrepreneurs, I’ve had the privilege of collaborating with hundreds of consultants and consulting firms. I’ve also hired many consultants for my businesses.

Moreover, crowdspring has served as a vital springboard for tens of thousands of ambitious consultants and aspiring small business owners for the past fifteen years. Our team has amassed a rich repository of insights, practical tips, and industry best practices essential for kick-starting and successfully sustaining a consulting venture.

This definitive guide shares this collective wisdom, hard-earned experiences, and insightful learnings with you.

Consultant vs. contractor vs. freelancer

As you prepare to launch your consulting business, it’s essential to understand your place in the professional landscape. The terms ‘consultant,’ ‘contractor,’ and ‘freelancer’ are often used loosely and interchangeably, but critical differences exist.

While consultants, contractors, and freelancers offer their services to businesses, their roles diverge beyond this similarity.

Contractors, including freelancers, are self-employed professionals contracted by companies to provide specific services. On the other hand, consultants are specialists who offer expert advice and assessments. They can either be independent or part of a consulting firm.

However, the lines can blur.

You could be asked to deliver a specific service as a consultant, making your role somewhat akin to a contractor. For instance, imagine you’re hired to evaluate a customer service team’s performance. Post-assessment, you suggest a new strategy and training plan. If you’re asked to develop and present this strategy, your role will expand to include elements of a contractor’s job.

Consulting is a vast field with opportunities across virtually all sectors. Let’s explore the diverse consulting specializations you can consider.

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How to Start a Consulting Business

• Choose your niche and define your services
• Write a business plan
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• Develop your brand identity
• Create an effective fee structure
• Launch your website and market your business
• Grow your consulting business

Additional resources for consultants

• Frequently Asked Questions (FAQs)

1. Choose your niche and define your services

When someone utters the word “consulting,” what springs to mind?

Is it a seasoned expert offering priceless advice or a niche firm with razor-sharp strategies to tackle business challenges?

Consulting is a thriving industry revolving around knowledge – the commodity businesses are willing to pay for.

Business leaders often navigate complex problems; sometimes, the much-needed solution is a fresh perspective. That’s precisely what consultants bring to the table. Their unbiased viewpoint helps reduce the noise and find the best approach to tackle business problems.

In a nutshell, consultants are problem solvers. They work tirelessly to make their clients more successful, a commitment that makes the consulting business rewarding and lucrative.

Here are some of the reasons that businesses hire consultants:

• Businesses hire consultants because of their expertise. Suppose a company is raising funding or adopting a new software system. In that case, it pays for them to hire a specialist who has raised millions or has already implemented the same software system.
• Businesses hire consultants to supplement their staff. Companies often engage consultants for their specialized skills and flexibility. This approach eliminates the costs and commitments of full-time hires, particularly for temporary projects.
• Businesses hire consultants to identify problems. It’s not uncommon for employees to struggle to resolve an issue inside an organization. Having seen a similar situation across many organizations, an experienced consultant might have the necessary expertise to help.
• Businesses hire consultants to promote change. Often, companies get stuck trying to change their internal organization, so outside consultants are often used to facilitate the transition.
• Businesses hire consultants to teach. Training programs, retraining programs, technical software implementation, and other areas require specialized skills that only experienced consultants offer. And remember, age is simply a number. Even if you’re over 60 or have been living the good life for a while, there’s never a wrong time to kick off your consulting gig. You’ve got a lifetime of lessons under your belt, and believe it or not, people are always hunting for that kind of seasoned insight.
• Businesses hire consultants to make tough decisions. If a company needs to downsize, it will often bring in consultants to make the tough decisions to deflect blame for letting people go.
• Businesses hire consultants to influence important decision-makers at other companies. For example, if you’re trying to reach a deal with another company and find a consultant who knows that company well, the consultant may be the X factor in putting the deal together.
• Businesses hire consultants for ideation. Sometimes, a company hits a rough patch and has a hard time finding new ideas. Consultants can help bring new energy to the business and help ideate products and services.
• Businesses hire consultants to create new companies and products. Some specialized consultants help others create (or buy) new companies’ products and services.

When choosing your niche, you can start by assessing your skills and strengths and brainstorming the general consulting services you’d like to offer.

How to assess your skills and strengths for consulting:

• Start by identifying your transferable skills. What skills have you gained from your education, work experience, and personal life that can be applied to consulting? For example, if you have experience in sales, you may have transferable skills such as communication, persuasion, and negotiation.
• Reflect on your past experiences. Think about the projects and tasks that you have completed in the past. What skills and strengths did you need to be successful? For example, you may have demonstrated organization, time management, and problem-solving skills if you successfully managed a complex project.
• Survey your network. Ask your friends, family, and colleagues for feedback on your skills and strengths. What do they see as your assets? What areas do they think you could improve?
• Take a skills assessment test. There are several online and offline skills assessment tests available. These tests can help you identify your strengths and weaknesses in various areas, such as communication, problem-solving, and critical thinking.
• Complete a personal SWOT analysis. A SWOT analysis is a framework for identifying your strengths, weaknesses, opportunities, and threats. This can be a helpful exercise for assessing your skills and strengths as a potential consultant.
• Create a portfolio of your work. This could include samples of your writing, presentations, case studies, or other work products. A portfolio is a great way to showcase your skills and strengths to potential clients.
• Volunteer your services to a nonprofit organization. This is a great way to gain experience and test your skills in a real-world setting.
• Shadow a consultant. This is a great way to learn about a consultant’s day-to-day work and see if it is a good fit for you.
• Take a consulting course or certification program. This can help you to learn the essential skills and knowledge needed to be a successful consultant.
• Network with other consultants. Attend industry events and connect with other consultants on LinkedIn. This is a great way to learn from others and to get your foot in the door.

By following these suggestions, you can better understand your skills and strengths and develop a plan for becoming a successful consultant.

Just as you’d consider different business ideas when starting a business, you must nail down the specifics of your consulting business before you work with any clients.

This is vital for three reasons:

• You must articulate your consulting service to potential clients to convince them that your services are valuable.
• You’ll need to charge fees that let you run a sustainable business.
• Specificity helps to set realistic expectations for your clients and potential clients.

This last point benefits both you and your clients. Your clients can make comfortable, informed decisions, and you can avoid being taken advantage of.

While you can’t prevent “scope creep” entirely, being clear about what a client is paying for upfront (and getting it in writing) will help set realistic, workable boundaries both parties can agree to. And, importantly, this will also clearly define the value proposition for your consulting business.

If you’re struggling to identify what your niche or specialty might be, consider these techniques for narrowing it down:

• Identify any underserved specialties in your field.
• Consider what specialties will continue to be underserved by a suitable consultant over the long term.
• Determine which areas in your field clients and potential clients struggle with the most.
• Ask yourself if your unique background and niche expertise provide you with rare knowledge not easily found in the job market.
• You’ve probably informally helped friends solve their business problems and pain points. What areas have you focused on when working with your friends?
• Is your consulting business limited to helping clients in the United States, or will you provide services to clients worldwide?

Here’s a detailed look at the most popular consulting niches. For each niche, we’ll outline the essential skills required, provide insights into the typical clientele, and discuss the frequent challenges small businesses face.

Types of consulting:

• Management consulting
• Strategy consulting
• I.T. consulting
• Operations consulting
• Business consulting
• Financial strategy consulting
• Sales consulting
• Human resources consulting
• Marketing consulting
• Career consulting
• Financial consulting
• Environmental consulting
• Real estate consulting
• Risk management consulting
• Education consulting
• Legal consulting
• Digital transformation consulting
• Sustainability consulting
• E-commerce consulting
• Healthcare consulting
• Diversity, Equity, and Inclusion consulting (DEI)
• Public relations consulting
• Brand consulting
• Nonprofit consulting
• Food service consulting
• Retail consulting
• Franchise consulting
• Agriculture consulting
• Hospitality consulting
• Logistics consulting
• Payroll management consulting

1. Management consulting

Management consultants play a critical role in helping businesses improve their overall performance. They meticulously assess existing organizational issues, devise strategic improvement plans and aid in executing those strategies. Their solutions typically span various business functions, including operations, H.R., finance, and IT. They also collaborate with international contractors to ensure a global perspective is incorporated into their recommendations and to navigate the complexities of international contracting.

Skills needed: Problem-solving, business strategy, change management.

Typical clients: Large corporations like McKinsey and Bain & Company, where they may work with C-suite executives to streamline business processes.

Common SMB Problems: A local restaurant chain struggling to manage operations across multiple locations; an online retailer failing to optimize its supply chain efficiency.

2. Strategy consulting

Strategy consultants are the architects of high-level, strategic business decisions. They help companies devise growth strategies, enter new markets, and make informed business choices. They analyze a company’s strengths and weaknesses , assess market conditions, and help formulate a winning strategy.

Skills needed: Strategic thinking, industry-specific expertise, decision-making.

Typical clients: Large-scale organizations such as Coca-Cola and IBM, where strategic decisions have far-reaching consequences.

Common SMB problems: A brick-and-mortar bookstore considering expansion into the e-commerce space; an artisanal coffee shop struggling to differentiate itself in a competitive market.

3. I.T. consulting

I.T. consultants are technical wizards that help businesses implement and manage new technologies. They tackle system integration, software development, enterprise architecture, cybersecurity, etc. Their work is essential in today’s digital age, where technology plays a pivotal role in business success.

Skills needed: Technical knowledge, problem-solving, and project management.

Typical clients: Tech companies, manufacturing firms, and educational institutions.

Common SMB problems: A local bookstore trying to set up an online sales platform; a small travel agency experiencing difficulties with their booking system.

4. Operations consulting

Operations consultants are the mechanics of business processes. They help organizations streamline operations by enhancing supply chain management, procurement, manufacturing, and service delivery. They identify bottlenecks, propose improvements, and may even assist in implementing these changes.

Skills needed: Project management, process improvement, analytical thinking.

Typical clients: Large logistical companies like Amazon and FedEx, where efficient operations directly influence the bottom line.

Common SMB problems: A local craft brewery struggling with inventory management an online fashion boutique experiencing difficulties with order fulfillment.

5. Business consulting

Business consultants wear many hats, depending on their clients’ needs. They could advise on financial matters one day and resolve operational bottlenecks the next. Their ultimate goal is to help businesses run more efficiently and profitably.

Skills needed: Business understanding, problem-solving, and communication skills.

Typical clients: Small to medium-sized businesses, entrepreneurs, and startups.

Common SMB problems: An independent fashion retailer struggling with business growth; an online fitness trainer unsure how to scale their business.

6. Financial strategy consulting

Financial strategy consultants guide businesses in making sound financial decisions, focusing on corporate finance, risk management, financial restructuring, and real estate. Their expert financial advice helps companies maximize returns, manage financial risks, and comply with legal requirements.

Skills needed: Financial acumen, risk management, understanding of laws and regulations.

Typical clients: Multinational corporations, financial institutions, and property developers .

Common SMB problems: A growing neighborhood bakery unsure of how to manage its financial growth; an online health supplement retailer struggling with pricing strategy.

7. Sales consulting

Sales consultants are sales performance enhancers. They develop effective sales strategies , refine sales processes, and boost team morale, aiming to optimize sales team performance and, ultimately, increase revenue.

Skills needed: Sales expertise, communication skills, motivational abilities.

Typical clients: Companies with sales teams, ranging from technology firms to consumer goods manufacturers.

Common SMB problems: A small electronics store with stagnating sales figures; an online handcrafted jewelry shop failing to meet sales targets.

8. Human resources consulting

Human resources consultants are experts in managing a company’s most valuable asset—its employees. They guide H.R. processes, such as talent management, conflict resolution, training and development, benefits administration, and compliance with employment laws.

Skills needed: Understanding H.R. practices, interpersonal skills, and knowledge of employment laws.

Typical clients: Corporations of all sizes, startups, and nonprofit organizations.

Common SMB problems: A family-owned grocery store grappling with high employee turnover; a small digital marketing agency striving to develop a comprehensive employee benefits program.

9. Marketing consulting

Marketing consultants work magic with a company’s marketing strategy , enhancing brand visibility , customer engagement, and sales conversions . They specialize in diverse areas, including digital marketing, content creation, SEO , social media marketing, and more.

Skills needed:   Marketing expertise, creativity, analytical skills.

Typical clients: Any company needing marketing help, including tech startups, retail businesses, and service providers.

Common SMB problems:   A small café struggling to attract customers; an online clothing boutique experiencing low web traffic.

10. Career consulting

Career consultants serve as career architects, helping individuals set career goals and build successful careers. They assist with skill development, resume writing and enhancement , job applications, interview preparation, and market understanding.

Skills needed: Job market knowledge , interpersonal skills, H.R. expertise.

Typical clients: Job seekers, career changers, and businesses looking to support their employees’ career growth.

Common SMB problems: A small architectural firm looking to improve employee skillsets; an online tutoring company wanting to assist tutors with professional development.

11. Financial consulting

Financial consultants help individuals, families, and businesses manage their finances. They offer guidance on investments, budgeting, tax planning, insurance, and more. They help their clients make financially savvy decisions to achieve their monetary goals.

Skills needed: Financial knowledge, analytical skills, trustworthiness.

Typical clients: Individuals, families, entrepreneurs, and businesses of all sizes.

Common SMB problems: A family-owned bed and breakfast struggling with budgeting; an online art store owner uncertain about investment strategies.

12. Environmental consulting

Environmental consultants help businesses assess and minimize their environmental impact. They offer advice on sustainable practices, regulatory compliance, waste management, etc. Their work often intersects with the construction, energy, and real estate sectors.

Skills needed: Knowledge of environmental regulations, scientific expertise, and analytical skills.

Typical clients: Construction companies, energy producers, and manufacturing firms.

Common SMB problems: A local brewery looking to reduce water waste a small online furniture retailer aiming to source more sustainable materials.

13. Real estate consulting

Real estate consultants provide expert property buying, selling, and management advice. They analyze market trends, assess property values, and help clients make informed real estate investment decisions.

Skills needed: Deep understanding of the real estate market, analytical skills, and negotiation skills.

Typical clients: Individual investors, real estate developers, and commercial property firms.

Common SMB problems: A local coffee shop considering expansion and needing advice on location selection; an online business ready to establish a physical headquarters and requiring guidance on property acquisition.

14. Risk management consulting

Risk management consultants are the fortification experts of an organization. They identify potential threats to a business’s financial health, operational efficiency, or reputation and devise strategies to mitigate these risks.

Skills needed: Risk analysis, strategic planning, problem-solving skills.

Typical clients: Financial institutions, manufacturing companies, and businesses exposed to significant risk.

Common SMB problems: A small construction company grappling with safety compliance issues; an online travel agency struggling with data security risks.

15. Education consulting

Education consultants work with schools, educational institutions, or individuals to enhance learning experiences. They advise on curriculum development, educational policies, and strategies to improve student performance.

Skills needed: Knowledge of educational systems and policies, curriculum development, and interpersonal skills.

Typical clients: Schools, universities, and educational technology companies.

Common SMB problems: A local private school struggling to improve student outcomes; an online tutoring platform seeking advice on curriculum enhancement.

16. Legal consulting

Legal consultants provide expert advice on legal matters. They help with contract drafting, legal compliance, dispute resolution, and other legal complexities businesses may face.

Skills needed: Legal knowledge, analytical skills, attention to detail.

Typical clients: Businesses across industries require legal guidance without a full-time attorney.

Common SMB problems: A small brewery facing difficulties understanding licensing laws; an e-commerce platform unsure about customer data usage compliance.

17. Digital transformation consulting

Digital transformation consultants help businesses adapt to the digital age. They guide companies in integrating digital technology in all operations, enhancing efficiency and competitiveness.

Skills needed: Proficiency in digital technologies, change management, and strategic planning.

Typical clients: Traditional businesses looking to digitize their operations and tech companies aiming to update their digital strategies.

Common SMB problems: A local bookstore wanting to create an online presence; an established online clothing retailer seeking to streamline order processing with advanced technologies.

18. Sustainability consulting

Sustainability consultants assist businesses in incorporating sustainable practices into their operations. They help clients reduce environmental impact, comply with sustainability regulations, and build a green brand image.

Skills needed: Understanding environmental science, corporate sustainability strategies, and regulatory compliance.

Typical clients: Manufacturing companies, energy firms, and businesses aiming for greener operations.

Common SMB problems: A local organic grocery store wanting to reduce its carbon footprint; an online eco-friendly clothing brand needing help with supply chain sustainability.

19. E-commerce consulting

E-commerce consultants guide online businesses toward success in the digital marketplace. They assist in website optimization , digital marketing, customer journey mapping , SEO consulting , and conversion rate improvement .

Skills needed: Digital marketing, SEO, UX design, data analysis.

Typical clients: Online retailers and businesses transitioning from brick-and-mortar to online.

Common SMB problems: A small local artisan wanting to sell their products online; a niche online beauty store struggling to increase site traffic and conversion rates.

20. Healthcare consulting

Healthcare consultants focus on optimizing the operations and outcomes of healthcare organizations. They scrutinize all aspects, from personnel and profits to processes, offering valuable insights to enhance efficiency and tackle complex challenges.

Skills needed: Deep understanding of healthcare systems , analytical skills, and problem-solving abilities.

Typical clients: Hospitals, clinics, healthcare tech companies, and pharmaceutical firms.

Common SMB problems: A local dentist office struggling with patient scheduling efficiency; an e-health startup looking to improve their telehealth service delivery.

21. Diversity, Equity, and Inclusion consulting (DEI)

DEI consultants promote diversity, equity, and inclusion within organizations. They bring an unbiased perspective to companies’ equity issues and help devise strategies that nurture an inclusive and respectful workplace culture.

Skills needed: Deep understanding of DEI issues, sensitivity to cultural differences, and practical communication skills.

Typical clients: Businesses across all sectors committed to improving diversity and inclusivity.

Common SMB problems: A local bakery with a culturally diverse staff experiencing communication issues; an online software development company aiming to build a more inclusive work culture.

22. Public relations consulting

P.R. consultants are crisis managers and image guardians for organizations. They strategize how to present the company in the best light, deal with potential crises, and facilitate effective communication with the public and media .

Skills needed: Excellent communication skills, crisis management expertise, and ability to think independently.

Typical clients: Enterprises, celebrities, political entities, or organizations needing to maintain a positive public image.

Common SMB problems:  A small town family restaurant facing negative press over a food safety issue; an online retail brand dealing with customer complaints going viral on social media .

23. Brand consulting

Brand consultants act as brand sculptors, carving out a company’s brand identity in the market. They conduct competitor analysis , initiate market research, and devise creative strategies to enhance brand perception and customer loyalty.

Skills needed: Creativity, market research skills, and understanding of consumer psychology .

Typical clients: Businesses looking to launch, rebrand , or strengthen their market position.

Common SMB problems: A local gym failing to differentiate its brand from competitors; an online pet supplies store struggling to connect with its target audience .

24. Nonprofit consulting

Nonprofit consultants assist charitable organizations in achieving their mission and improving their effectiveness. They help with fundraising strategies, volunteer management, marketing efforts, and organizational structure.

Skills needed: Understanding the nonprofit sector, fundraising strategies , leadership, and management skills.

Typical clients: Charitable organizations, educational institutions, and advocacy groups.

Common SMB problems: A small local animal shelter struggling with volunteer retention; an online nonprofit aiming to improve donor engagement and fundraising .

25. Food service consulting

Food service consultants advise restaurants, cafeterias, and other food establishments. They help with menu development, supply chain management, health and safety compliance, and operational efficiency.

Skills needed: Understanding the food industry, culinary expertise, and supply chain management.

Typical clients: Restaurants, hotels, catering businesses, and food delivery services.

Common SMB problems:  A small town café needing menu innovation to compete with larger chains; an online food delivery service struggling with logistical and supply chain issues.

26. Retail consulting

Retail consultants work with businesses to optimize their operations, sales strategies, inventory management, and customer service. They help brick-and-mortar stores transition to e-commerce and cope with the challenges of the digital era.

Skills needed: Understanding the retail industry, sales and marketing expertise, and knowledge of e-commerce trends.

Typical clients: Retail stores, e-commerce businesses, and department stores.

Common SMB problems: A local bookstore struggling to compete with online retailers; a clothing store facing inventory management issues.

27. Franchise consulting

Franchise consultants guide businesses through becoming franchisors or help potential franchisees select the right opportunity. They help with legal matters, business plans, marketing strategies, and location selection.

Skills needed: Franchise business models, legal expertise, and business development skills.

Typical clients: Potential and existing franchisors and franchisees.

Common SMB problems: A small fast-food restaurant looking to franchise their business; an online tutoring service considering becoming a franchisee.

28. Agriculture consulting

An agriculture consultant assists farmers and agribusinesses in making informed decisions that improve their farm operations’ profitability and sustainability. They can provide expert advice and assessments on crop management, soil health, livestock care, sustainable farming practices , and modern farming technologies.

Skills needed: Deep knowledge of farming techniques, environmental regulations, and agricultural economics. Furthermore, an understanding of biotechnology and data analysis proficiency can be beneficial.

Typical clients: Farm owners, agribusinesses, agricultural technology firms, agrarian nonprofits, and government agencies.

Common SMB problems: A small family-owned vineyard might struggle with soil health affecting their grape yield. Alternatively, an organic vegetable farm could explore ways to enhance sustainable farming practices to meet increased demand without compromising its organic status. These situations call for an agriculture consultant’s expertise.

29. Hospitality consulting

Hospitality consultants assist businesses in the tourism and lodging industries. They help with business development, customer service strategies, facility management, and creating memorable guest experiences.

Skills needed: Understanding of the hospitality industry, customer service expertise, and facility management skills.

Typical clients: Hotels, resorts, travel agencies, and event planning businesses.

Common SMB problems: A boutique hotel struggling with online booking management; a local tour agency facing marketing challenges in attracting tourists.

30. Logistics consulting

Logistics consultants help businesses streamline their supply chain, distribution, and transportation processes. They assist in optimizing warehouse operations, reducing shipping costs, and improving delivery times.

Skills needed: Supply chain management, transportation logistics, analytical skills.

Typical clients: Manufacturing companies, e-commerce businesses, and logistics providers.

Common SMB problems: A local craft brewery having issues managing distribution logistics; an online clothing retailer struggling with international shipping costs and regulations.

31. Payroll management consulting

Payroll management consultants streamline and optimize a business’s payroll process, ensuring employees’ accurate and timely payments. They help create efficient payroll structures, integrate payroll systems, ensure regulatory compliance, and manage payroll taxes.

Skills needed: Extensive knowledge of payroll systems and payroll services , tax regulations, auditing skills, numerical proficiency, and a thorough understanding of local and international labor laws.

Typical clients: Any organization that manages a workforce, from small businesses to multinational corporations, across industries.

Common SMB problems: An e-commerce startup might struggle with managing payroll for its remote workers across different states or countries, creating issues with tax compliance and payment schedules. In another scenario, a local retail business may experience errors in calculating overtime, leading to discrepancies in employee pay.

Finally, don’t forget to consider the size of your target market. Not every niche will be lucrative. You can make more informed decisions once you understand each niche’s total addressable market (TAM) .

2. Write a business plan

Starting a new business is quite an adventure, and like any good journey, it can be helpful to have a map. That’s where a business plan comes in.

It’s not a must-have, but it can help clarify your thoughts and dodge some rookie mistakes.

Believe it or not, studies show that folks who take the time to jot down a business plan when kick-starting a business are 2.5 times more likely to see their dreams turn into reality. Not only that but crafting a business plan also helps you sharpen skills that’ll be a tremendous asset down the line.

Don’t sweat over making every little detail perfect in your business plan.

You certainly don’t need to lose sleep over writing a 100-page document. There are tons of practical one-page business plan models out there that can guide you in writing a concise, one-page business plan.

Different consulting business models

The independent consultant model.

As an independent consultant, you are the captain of your ship. You work directly with clients, deliver projects single-handedly, and manage all aspects of your business operations.

This model is an excellent fit if you prefer maintaining flexibility and having hands-on involvement in every project. It requires a high level of expertise in your niche and solid business and time management skills.

The consultancy firm model

In the consultancy firm model, you set up a team of consultants, each contributing their unique expertise. You focus on leading the organization and contributing to client projects.

This model allows for scalability and an expanded service offering, making it a viable option if you’re targeting large businesses and complex projects. However, it also comes with increased team management responsibilities, including hiring, training, and retention.

The productized consulting model

Productized consulting takes a unique approach to consulting services.

Instead of delivering bespoke advice and solutions, you build a standardized “products” suite based on your expertise. These could range from online courses and digital tools to books and webinars. You sell these to clients at a fixed price, creating a scalable source of passive income.

This model allows you to leverage your knowledge and reach a wider audience, but it requires product development and marketing skills.

The hybrid consulting model

A hybrid model is a fusion of two or more models tailored to your preferences and business goals. For example, you could combine independent consulting with productized services, delivering personalized consulting while offering pre-packaged digital resources.

This model gives you the flexibility to design a business that aligns with your skill set, work style, and the needs of your target market.

The networked consulting model

In the networked consulting model, you collaborate with other independent consultants, forming a network of specialists. You refer work to each other, collaborate on projects, or even pitch together as a virtual firm for more significant contracts.

This model allows you to extend your service offering and reach without the overheads of running a firm. It requires strong networking skills and forming mutually beneficial professional relationships.

The subscription consulting model

In this model, instead of charging per project, you offer your consulting services for a regular subscription fee. Clients get a certain amount of your time or specific services each month.

This provides steady recurring revenue and allows you to form deeper client relationships. It suits consultants whose services involve ongoing work, like business coaching, digital marketing, or I.T. support.

Each of these models has advantages and challenges, so choosing a model that aligns with your goals, preferred working style, and the needs of your target clients is crucial.

Need some help getting started? Check out our no-nonsense guide to writing a business plan . It’s packed with insights and free downloadable business plan templates designed to help you take your business from a dream to a reality.

3. Choose your legal business structure

Embarking on your consulting business journey, you’ve got to make a few critical decisions – like the kind of business type you want your business to be.

It might seem a bit dry, but this stuff is essential, as it affects everything from tax filings and liability to local, state, or national rules you need to follow.

There are different legal business structures to choose from, and for those starting, it can feel like trying to order food in a foreign language.

Here’s the thing – don’t feel pressured into registering your business immediately. Sure, becoming a sole proprietor might be easy on the wallet and quick to set up, but it could leave you open to more risk and potentially create a tax headache.

Forming a Limited Liability Company (LLC) could be smarter for most consulting gigs.

Invest some time into researching the business structures that could suit you. Consider which will benefit your business now and align with your future professional and personal ambitions.

Let’s look at the four main types of business entities:

• Sole proprietorship. This is the simplest entity. As a sole proprietor, you’re the lone ranger responsible for your business’s profits and debts.
• Partnership . This is when two or more people team up, sharing liability and responsibility for a business.
• Limited Liability Company (LLC). This structure allows owners, partners, or shareholders to limit their personal liability while reaping a partnership’s tax and flexibility perks.
• Corporation . This is a separate legal entity from its owners. A corporation can own property, get sued, pay taxes, and enter into contracts.

Consider what will work best for your current needs and future ambitions.

Hire an expert to form your company and save time. Our trusted partners can help: Northwest ($39 + state fee) or Bizee ($199 + state fee) . We recommend Northwest. After evaluating the leading registration companies, Northwest stands out as our top choice due to its competitive pricing, exceptional customer support, and commitment to privacy. Pay just $39 + state fees and you'll get a free year of registered agent service, articles of organization, privacy, and client support from local experts.

And a heads up – in most states, if you’re planning to run your consulting firm under a different name than your legal business name, you need to register this with the secretary of state or county clerk.

For instance, if your registered company is an LLC named “Three Brothers, LLC,” but you’re selling services as “Three Tigers,” you might have a problem. That’s because your registered name and your trade name don’t match.

But don’t worry, this is not as scary as it sounds. You can sort this out by registering your trade name with your state (and or local government) by filing a “doing business as” (DBA) certificate. Also known as an “assumed name,” “fictitious business name,” or “trade name.” Need help? Check out this super handy resource that breaks down what a DBA is, the state requirements for a DBA, and how to file a DBA in all 50 states and U.S. territories .

3. Set up business accounting and bookkeeping

Let’s talk about something I find less cool but super important – business accounting and bookkeeping . This stuff is vital to understanding your cash flow and filing taxes correctly.

Accounting is all about recording, organizing, and presenting your financial info. It’s the backbone of your business’s financial health, helping you make informed decisions.

Bookkeeping is more about recording, storing, and retrieving your financial data.

Sure, the two overlap. But the significant difference? Bookkeeping is about recording and categorizing financial info, while accounting uses that info for analysis, strategy, and tax planning.

Hire a bookkeeper – your new best friend

Unlike accountants, bookkeepers have a simple mission: keep things organized, pay bills, track an invoice financing loan , and prep work for the accountant. They’re typically more wallet-friendly than CPAs (certified public accountants) and can handle day-to-day transactions, bank account balancing, basic reports, and keeping your financial records tidy.

Many consultants hire an external bookkeeper, paid hourly, who swoops in regularly to manage entries, bills, invoices, and receivables. The best part? They don’t need to be in your office 24/7. They can work remotely or drop by every couple of weeks.

An experienced bookkeeper isn’t just handy; they’re a lifesaver, especially when setting up invoice financing to speed up client payments. Plus, with the help of tools, a free invoice template , or invoicing software from Billdu for creating and managing invoices, they can help you be more efficient and less stressed.

Organize your financial information

Every business generates heaps of data; if it’s not organized and accessible, it’s as useful as a chocolate hammer. This is doubly true for your consulting gig. Even a few weeks of unrecorded transactions or a month of unmailed invoices can drown a small business.

A sharp bookkeeper can help you set up a filing system, keep bills organized, ensure invoices are sent out promptly, and introduce a disciplined, organized approach. They can even help set up and track invoice financing loans if clients are slow on payments.

Perform an annual health check

Don’t underestimate the value of a yearly review of your bookkeeping, accounting, and tax strategies. Give a hard look at your systems and the people managing them, and ask some critical questions.

Are you being cost-effective and productive with your accounting? Does your CPA understand your industry enough to give solid advice? Is your tax preparer skilled enough to keep you on the right side of the law? Most importantly, can you trim expenses while maintaining high-quality controls?

Take the time to reevaluate and bolster your accounting strategy. It might seem like a chore, but trust me, it’s worth it!

4. Assess your finances and secure startup capital

Let’s talk money. Assessing your finances is super important – it’s not just about tracking sales and profits but getting a complete picture of your financial health.

So, here’s the rundown on business finance:

Business finance is like your company’s personal trainer. It uses your financial data to help you manage your funds, making your operations profitable and sustainable.

And you’ve got plenty of business financing options.

You must figure out how to fund your business and fuel its growth. You’ll struggle to build a sustainable, profitable business if you’re not on top of your numbers.

Starting a business is exciting, but don’t let the excitement push you to overspend. Be careful with your funds and make purchases that make sense.

Expensive and unnecessary equipment? That’s a no-no. They might seem cool, but they could put your small business’s survival on the line.

Your startup costs may include the following:

• your brand design (logo, business cards , and website)
• any license or permit fees
• deposits and rent for a physical work location (if you plan to lease your own office space)
• basic infrastructural costs like VoIP phone and internet service, scheduling and invoicing software , etc. You can reduce costs by picking invoicing software that includes automated tax compliance.
• marketing and advertising costs

Here’s the upside – most successful consultants can run their businesses with low costs until they’ve built a solid client base, then they can spend more on equipment and supplies.

Securing startup funding

Securing sufficient capital is a major hurdle for new businesses. While self-funding is ideal, it’s often not feasible, making business partners or outside investors essential.

Before engaging potential partners or investors, clarify your expectations:

• What do you want from this partnership or investment?
• How involved should they be in decision-making?
• Is the relationship short-term or long-term?

Your partnership can take various forms: pure capital investment, cost-sharing, leads generation, or associating with a reputed brand. Knowing your goals upfront helps in selecting the right partner or investor.

Consider these relationship options:

• Crowdfunding. Platforms like Kickstarter and Indiegogo allow raising funds from the public without granting them business control. However, it requires fulfilling commitments made to backers. Crowdfunding may not suit consulting businesses, but its growing popularity, projected to exceed the global venture capital industry, makes it worth exploring.
• Angel investors and venture capitalists. These traditional funding sources suit those planning a consulting agency. Convincing investors about your business viability is challenging, particularly for startups. However, finding investors becomes easier if you have a profitable consulting business looking to scale, particularly in technology. Remember, they may want significant involvement in your business to safeguard their investment.
• Partnerships. True business partnerships involve an equal investment of finances, resources, and labor. Alternatively, you can establish temporary partnerships with existing brands or consultants who complement your services. Here are two examples: (a) Partner with a consultant in a related field to offer combined services to a broader client base; (b) Collaborate with a software business in your field to create a lead exchange program, driving well-qualified leads to each other. The crux is finding a partner who shares your goals and fostering mutual motivation to succeed.
• Strategic alliances. This is a collaboration where you and another business agree to combine resources to achieve a common goal. For example, a marketing consultant might form a strategic alliance with a graphic design firm . Together, they could offer a more comprehensive service to their clients. Both businesses retain their independence but might share costs, risks, and rewards.
• Joint ventures. A joint venture (J.V.) is a business agreement in which parties agree to pool their resources to accomplish a specific task or business activity. Unlike a strategic alliance, a J.V. often results in the creation of a new business entity. For instance, two consulting firms might create a J.V. to tackle a market segment neither could own. This type of arrangement typically involves more commitment and investment than a strategic alliance but can lead to greater rewards due to the combined strength of the partners.

Finally, remember that accounting and bookkeeping system we discussed earlier? It’s back in play here. You need to set up one to keep tabs on your finances. It’s essential for understanding cash flow and filing taxes, but it also helps you track income, expenses, capital expenditures, profit, loss, EBITDA, and so on.

5. Develop your brand identity

Think brands are only for the big corporations?

They’re super crucial for small businesses, especially independent consultants.

A solid brand adds a layer of professional polish that can be tricky for small outfits to establish. So, don’t leave your brand identity to fate – building a successful consulting biz requires serious attention to branding .

Let’s rewind – your brand is your company’s public persona. Ideally, it should reflect your business’s best and most vital traits.

For consultants, credibility is king. A lackluster brand identity undermines that.

Good design isn’t just a luxury – it’s essential for you and your clients.

Picture this – you’re selling $10,000 projects and want to double the price. To do that, you must articulate the value differently, and design can help.

Before you dive into networking, ask yourself some key questions. What persona do I want my brand to project? Who needs my services? What unique value do I offer? What are my brand values ? What’s the core part of my client’s experience? Your answers will shape your brand’s core and influence your future branding decisions, from your company name and logo design to your website design.

And remember, you don’t have to break the bank to create a strong brand identity. Here’s a guide to help you figure out the sweet spot for pricing:

• How much should a logo design cost?
• How much does a business card cost?
• How much should brochure design cost?
• How much does website design cost?

These guides cover various price points, so you’ll find something that fits your budget.

Ultimately, building a successful consulting business is about brand authenticity and connection . A compelling brand can make that happen. Whether you’re starting or thinking about a rebrand , take the time to think about your brand. It might make all the difference.

For more on establishing and maintaining a consistent brand identity, check out Grow Your Small Business with Consistent Branding .

Marketing psychology can help you increase revenues

Marketing Psychology can help you boost your revenues by incorporating psychological principles into your marketing strategy.

6. Create an effective fee structure

Creating an effective fee structure starts with understanding your operating costs – rent, utilities, subscriptions, taxes, supplies, and salaries. But don’t forget to factor in profit, which is crucial for business sustainability. And remember to pick a an appropriate consulting model.

Envision how you want to run your consulting business – a brick-and-mortar agency, a home office, or a global setup while traveling. Your fees should support this style. For various strategies, see this article by Andrea Coutu of Consulting Journal.

Thoroughly dissect your operational costs, which stretch beyond fixed and variable expenses like rent, utilities, and supplies, to incorporate aspects like:

• Time investment. Calculate the non-billable hours spent on marketing, administration, and skill enhancement.
• Risk mitigation. Factor in a buffer for unforeseen circumstances or potential risks, such as project overruns or unexpected costs.
• Profit margin. Explicitly ascertain a profit margin that compensates for your expertise and ensures business growth.

Next, conduct a robust analysis of:

• Competitor pricing. Understand competitors’ pricing strategies and identify market gaps or opportunities.
• Clients’ paying capacity. Evaluate the financial bandwidth of your target audience and what they’re willing to pay for your services.
• Unique Value Proposition . Gauge how your unique offerings and expertise can justify a premium or competitive pricing strategy.

Your pricing should resonate with the tangible and intangible benefits clients derive. To augment your perceived value:

• Showcase expertise. Use case studies, testimonials, and certifications to validate your expertise and results.
• Brand positioning . Ensure your branding, from website design to communication, exudes professionalism and competence.

Next, explore, understand, and select a pricing strategy that aligns with your services and client expectations:

• Hourly rate. Transparent and straightforward, this method is often suitable for consultants with clearly definable hourly services, such as legal consultants or I.T. troubleshooters. However, tracking hours is essential; questions may arise if work takes longer than estimated.
• Project rate. Ideal for projects with clear deliverables and defined timelines, like marketing campaigns or project management services. This could be risky if the work takes longer but beneficial if completed quicker. Adjustments may be needed for scope changes.
• Retainer. Suitable for ongoing, long-term services, such as H.R. consulting or business advisory, where clients require access to your expertise over a period.
• Value-based pricing. Charging is based on the value provided to the client, which can be highly profitable for consultants who significantly impact client revenues or costs, such as business strategy consultants or revenue growth advisors.

Additional revenue streams

Beyond direct consulting, explore alternative revenue avenues:

• Online courses. Leverage your expertise to educate others, ensuring a revenue stream decoupled from your consulting hours.
• E-books or guides. Create comprehensive guides or e-books based on your area of expertise, providing a low-cost option for those unable to afford your full services.
• Affiliate marketing. Recommend tools or services and earn a commission for each sale made through your referral.

Periodic review and adjustment

Ensure your fee structure remains viable and competitive through:

• Client feedback. Understand client perceptions and reservations about your pricing.
• Market trends. Stay attuned to shifts in market rates or emerging pricing strategies.
• Business evolution. As your expertise and offerings evolve, ensure your pricing reflects these advancements.

For more on fee setting, check out this online mini-course by Consulting Journal.

Consider offering online courses if you have unique expertise. It’s another revenue stream for your consulting business. Here’s a guide on how to sell online courses .

7. Launch your website and market your business

Your business website is not just a digital address; it’s your brand ambassador. Use your site to effectively communicate your brand ethos, values, and services to your target audience.

It’s crucial that your website truly personifies your consulting brand. For example, suppose you’re running a leadership consulting service emphasizing transparency and innovation. In that case, the site should have a modern, clean design with easy-to-navigate menus and transparent information about your services.

The website’s visual design elements should resonate with your brand’s voice and identity. For instance:

• Use your brand’s colors. If your brand colors are turquoise and white, these colors should be prominently displayed in your site’s design. For example, a sustainability consulting company might use green and earth tones to reflect their environmental commitment.
• Feature your company logo. Your logo is a visual shorthand for your brand, and it should be prominently displayed, preferably in the header or corner of every page.
• Write marketing copy for your target audience. Your website copy should speak directly to prospective clients’ needs and interests. If you’re a technology consultant, use language that tech-savvy visitors will appreciate and understand.
• Showcase your consulting style. Whether you’re more hands-on or prefer to guide from the sidelines, ensure this is evident. For example, a dynamic, interactive website may indicate a more engaging consulting approach.

Beyond these design elements, your website is an ideal platform to highlight your consulting achievements.

Feature testimonials and case studies from past clients to showcase your expertise and success. For example, a healthcare consultant might include a case study on how they helped a hospital streamline its processes for better patient care.

Including an online store on your website can be a strategic move, especially if you have proprietary consulting tools, books, or digital resources to sell. For example, a marketing consultant might sell eBooks or webinars on the latest marketing strategies.

Passive income can bolster your bottom line and is an important safety net for lean seasons.

Marketing your consulting business

Being an exceptional consultant is only half the battle; marketing yourself effectively ensures your talents don’t go unnoticed.

If you’re not selling your services, there’s a good chance that no one is. So, you’ll complete your current contracts to find an empty calendar with no income looming ahead. As a result, you’ll miss many opportunities to generate ongoing online marketing income and may need to start from scratch.

Establishing a steady pipeline of clients and potential clients involves spreading the word about your consulting services to your target market.

Ultimately, you’ll write many client proposals , so get used to doing so early in your consulting practice.

Client proposals are your chance to show how you can help clients solve their problems. You’ll need to be clear about the project’s scope, the services you provide, what you’ll charge for the services, the deliverables, and the time frame, and use an electronic signature tool to bind clients legally. And be sure you show how you and the client can measure the results.

One proven method to gain traction in consulting and attract clients is to share your expertise extensively.

Networking at industry events relevant to your clients can be a goldmine for insights about industry trends, networking with current and prospective clients, and leveraging word-of-mouth referrals to generate fresh consulting leads. For example, if you’re a technology consultant, participating in tech expos or conventions can put you directly in contact with potential clients.

Participating in events catered to the consulting industry could also be beneficial, as you can build connections with other consultants and potential clients. This could also expose you to different approaches to delivering a persuasive value proposition when offering your consulting services to clients.

When attending these events, carry business cards and brochures about your services, complete with contact information, including a phone number. While email communication is prevalent,   other tactics like an email signature can help strengthen your business communication and establish trust with prospective clients.

In your marketing collateral, include the following:

• A comprehensive overview of your services
• A persuasive argument about why you’re the best choice
• Convincing reasons to hire you
• A concise biography containing relevant information
• A snapshot of your existing client portfolio

Also, consider exploring content marketing strategies tailored for consultants. Writing an ebook about your field of expertise or maintaining a regular blog can help establish you as an authority in your niche, improve your search ranking through SEO practices, and gather email leads. For example, a leadership consultant could blog about the latest trends in leadership and management, drawing from their own experiences and insights.

As a burgeoning business owner, capitalize on the exposure offered by social media marketing . Platforms such as Twitter , Facebook, and LinkedIn can help build an audience of followers.

Regularly post helpful tips, insights, and articles related to your services. By engaging with your followers and participating in relevant discussions, you present yourself as a subject matter expert, reinforcing your reputation as a knowledgeable and reliable consultant.

Invest in a social media management tool like Buffer for scheduling posts beforehand, freeing up your day to focus on clients. However, regular check-ins are essential to address client inquiries promptly.

Consider collaborating with micro-influencers in your industry, as aligning your brand with theirs can boost credibility and accelerate growth.

Here are other marketing strategies and tactics that can help you grow your consulting business:

Host free workshops or webinars

Free educational content through workshops or webinars can exhibit your expertise and attract potential clients.

Best for: I.T. consultants, marketing consultants, and management consultants. Not good for: Legal consultants, financial advisors, medical consultants.

Collaboration and partnerships

Join other consultants or businesses to expand your client base by providing complementary services. Best for: Technology consultants, business strategy consultants, marketing consultants. Not good for: H.R. consultants, independent financial consultants, health & safety consultants.

Whitepapers and case studies

Publishing in-depth whitepapers and client case studies demonstrates your skills and past successes. Best for: Data analytics consultants, research consultants, and financial consultants. Not good for: Image, lifestyle, or social media consultants.

Leverage client testimonials

Use your positive feedback and testimonials from past clients in your marketing materials to build trust. Best for: Management consultants, education consultants, H.R. consultants. Not good for: Cybersecurity consultants, legal consultants, crisis management consultants.

Join online forums and groups

Engage in online communities related to your niche, offering advice and establishing your expertise. Best for: Tech consultants, SEO consultants, freelance writing consultants. Not good for: Medical consultants, corporate strategy consultants, or tax consultants.

Implement a referral program

Reward existing clients for referring new clients to your consulting business. Efficient referral program software can streamline this process, making it easy to track and reward referrals. Best for: Career consultants, small business consultants, fitness consultants. Not good for:  Forensic, industrial safety, and agricultural consultants.

Pitch to local media

Offer your expertise for free to local media in exchange for publicity.

Best for: Personal finance consultants, relationship consultants, wellness consultants. Not good for: I.T. consultants, biotech consultants, energy consultants.

Speak at conferences

Presenting at conferences can establish you as an authority and help network with potential clients.

Best for: Environmental consultants, scientific researchers, marketing consultants. Not good for: Personal shopping, etiquette, or hobby consultants.

Engage in direct email marketing

Sending targeted emails with valuable content to a segmented audience can generate leads. Best for: Sales consultants, digital marketing consultants, and e-commerce consultants. Not good for: Grief consultants, child behavior consultants, or art consultants.

Local business community involvement

Engaging with local business communities or chambers of commerce can help foster local client relationships. Best for: Retail consultants, local marketing consultants, and hospitality consultants. Not good for: International trade, space, and research & development consultants.

Sharing regular posts about industry insights or tips showcases your expertise and improves your website’s visibility on search engines. Best for: Marketing consultants, career coaches, nutrition consultants. Not good for:  Privacy consultants, forensic consultants, chemical consultants.

Hosting online seminars can display your knowledge to a wide audience and attract potential leads. Best for: Financial consultants, I.T. consultants, marketing consultants. Not good for: Art consultants, fashion consultants, or local retail consultants.

Creating or participating in podcasts can help you reach new audiences and discuss industry trends and insights.

Best for: Personal development coaches, financial advisors, and health consultants. Not good for:  Cybersecurity consultants, data privacy consultants, industrial consultants.

Speaking and teaching

Leading workshops or courses and speaking at events can build your reputation and network. Best for: Business consultants, educational consultants, leadership consultants. Not good for:  Legal consultants, risk management consultants, chemical safety consultants.

Social media marketing

Using platforms like LinkedIn, Twitter, and Facebook to share content and engage with followers can enhance your online presence and credibility.

Best for: Social media consultants, branding consultants, travel consultants. Not good for:  Data security consultants, industrial safety consultants, forensic consultants.

Print or digital advertising

Placing ads in newspapers, magazines, or online platforms can promote your services to a broader audience.

Best for: Event planners, small business consultants, real estate consultants. Not good for: Scientific research consultants, aerospace consultants, and biomedical consultants.

Cold calling and emailing

Directly contacting potential clients might generate quick leads, but it might also have low conversion rates.

Best for: B2B service providers, sales consultants, and marketing consultants. Not good for:  Childcare consultants, mental health consultants, art consultants.

Remember, marketing becomes more straightforward once you’ve established a client base. According to this study , “43.7% of consultants reported that referrals were their top-earning marketing strategy”. Don’t hesitate to ask satisfied clients for referrals, as they can be a significant marketing asset.

Starting out, covering as many marketing channels as possible is wise. As you grow, you’ll naturally discover what methods work best for your consulting business.

8. Grow your consulting business

Starting a consulting business is thrilling, but it’s just the beginning. Here are five exciting steps to take your consulting business to the next level:

Study your competitors

Get your magnifying glass out and take a good, hard look at what other consultants or firms in your space are up to.

You’ll uncover their secrets to success and spot areas they’ve missed, carving out unique opportunities for you. Notice their marketing approach, service offerings, and how they price their services. A competitive analysis will give insights into your customers’ journeys and ways to make your service the top pick.

Be a storyteller

Starting a blog is like opening a window into your consulting world. It gives your business a voice, helps you become a trusted authority in your field, and boosts your online visibility.

If you’re scratching your head about what to write, your clients are your best inspiration. Address their challenges and questions in your blog posts. Plus, sharing these posts with potential clients can convince them of your expertise.

Be the thought leader

Beyond blogging, sharing your insights on social networks can amplify your reach. Use platforms like HARO to connect with journalists and bloggers who can quote you in their stories. This way, you can gain your consulting niche’s recognition as a thought leader.

Broaden your horizons

Your competitive analysis might reveal services your competitors offer that you don’t. Can you fill these gaps?

For example, if you’re a content marketing consultant, could you extend your services to include email or social media marketing? But remember, only add services that align with your expertise.

Make friends

The world is full of potential connections, and they’re only a click away from the internet. Networking online might seem tricky, but with platforms like Twitter and LinkedIn, you can spark conversations with industry peers and potential clients. Regular interaction can rekindle old connections and forge new ones.

Test these strategies and find the ones that boost your client base and help your consulting business thrive. Remember, it’s not about copying others but learning from them and building a brand that reflects you.

Grow your team

The life of an entrepreneur can often feel solitary, especially when you’re launching your consulting business. While the journey may start with you at the helm, remember the goal is to grow and expand, which calls for additional hands on deck.

After all, time is a finite resource, and you can’t run a successful consulting business burning the midnight oil every night. As your business scales up, you must delegate tasks to ensure you continue delivering exceptional service to your clients.

However, expanding your team doesn’t mean hiring without a strategy. Each new member should bring immediate value to your business. This decision is highly specific to your business, as every consulting venture has unique challenges and requirements.

Reflect on your strengths and weaknesses to determine who your first hire should be.

For instance, if marketing isn’t your strong suit, consider hiring a marketing manager to help map your business plan. Just ensure you validate their credibility, perhaps through references or evaluation letters , to guarantee they’re the real deal.

If dealing with numbers gives you a headache, a billing specialist could be your saving grace, managing accounts and ensuring payments are collected on time.

In essence, your first employees should fill the gaps in your expertise. Building a well-rounded team ensures a sturdy foundation for your business.

For many entrepreneurs, the first hire is often a part-time virtual assistant – a jack-of-all-trades ready to dive in, learn, and grow with the company. This person should be reliable, proactive, and have a strong work ethic. Having someone dependable on your side will make your journey less stressful and more enjoyable.

So, take a moment to reflect: what does your business truly need? Who could help turn your weaknesses into strengths and pave the way for your consulting business to thrive?

Start your consulting journey today

Venturing into entrepreneurship, especially after years of enjoying the safety of a salaried job, can be daunting.

The fact that you’ve made it this far in the article indicates a spark within you, a desire for something more fulfilling, more liberating.

Starting a consulting business can be a transformative journey, not just a decision. It’s a courageous step, a move that speaks volumes about your passion, expertise, and readiness to shape your destiny.

Are you ready to embrace this adventure, empower others with your knowledge, and define your own path?

The world of consulting awaits your unique perspective and innovative solutions. Will you rise to the challenge and create your own consulting legacy?

Associations

• Airport Consultants Council
• American Marketing Association
• Association of Management Consulting Firms
• Canadian Association of Management Consultants
• Canadian Marketing Association
• Direct Marketing Association
• Direct Selling Association
• Information Technology Association of America
• Institute of Management Consultants USA
• International Advertising Association
• International Association of Registered Financial Consultants
• International Association for Wedding Professionals
• International Branding Association
• IWA – International Webmasters Association
• National Retail Federation
• Professional & Technical Consultants Association
• Public Relations Society of America
• Search Engine Marketing Professional Organization
• SMEI The worldwide professional association for sales & marketing
• The National Association of Sales Professionals
• The Society of Professional Consultants
• Word of Mouth Marketing Association

Frequently Asked Questions (FAQs) about consulting

1. where can a consulting business identify government contracts to pursue.

You can find government contracts on official government procurement sites such as SAM.gov in the U.S. This platform lists federal business opportunities. Remember, each country has its own respective platform.

2. Can I establish a consulting business while still employed elsewhere?

Absolutely! Starting a consulting business as a side venture is possible. It allows you to test the waters and build a client base without risking your current employment. Just ensure that there’s no conflict of interest with your present job.

3. Which are promising sectors to launch a consulting business in?

The best field for your consulting business depends on your skills, experience, and passion. However, industries like I.T., H.R., business strategy, healthcare, and environmental sustainability are seeing high demand for consultants.

4. What credentials are required to start a consulting business?

While there are no specific requirements to start a consulting business, having relevant qualifications, certifications, and experience in your chosen field will boost your credibility and attract potential clients.

5. How can I price my consulting services?

Pricing can be based on factors like market rates, the complexity of the work, the client’s budget, and your experience. You can choose an hourly rate, a per-project fee, or value-based pricing.

6. How do I market my consulting business?

Multiple channels to market your consulting business include networking, social media marketing, blogging, speaking engagements, and email marketing. Highlight your unique value proposition and expertise.

8. Is a business plan necessary for a consulting business?

It’s not necessary but highly recommended. It provides direction, helps you understand your market and competition, and is necessary if you seek funding.

8. How can I differentiate my consulting business from competitors?

Differentiating your consulting business requires you to clearly articulate your unique value proposition, leverage your unique skills or experience, specialize in a niche, provide excellent customer service, and build a strong personal brand.

9. Should a consulting business be incorporated?

Incorporation can provide benefits such as limited liability, tax advantages, and a professional image. It’s advisable to consult with a legal professional or business advisor to understand the best structure for your business.

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How to Start a Consulting Business Here's how to put your knowledge to work as an independent consultant.

By Entrepreneur Press Edited by Melissa Malamut Jun 21, 2024

Key Takeaways

• Businesses hire consultants for everything from marketing to running back-end IT.
• No matter your specific expertise, you can help companies streamline systems and deliver better results as a consultant.
• Conduct proper market research and obtain necessary licenses before launching your own consulting company.

Opinions expressed by Entrepreneur contributors are their own.

Are you an expert in your field? Are you tired of working for someone else? If you answered yes to both, then starting your own consulting business could be your next venture. Consultants are in high demand, as they advise businesses on strategy, help cut costs and outline roadmaps for companies.

The beauty of consulting is that you can specialize in whatever you're good at: managing software development, regulatory compliance, digital marketing, talent recruitment, etc. No matter your area of expertise, you can help businesses run more profitably and efficiently. And the best part? Even if you're just starting to consult as a side hustle , you're your own boss with the ability to work from anywhere and build a lifestyle that fits your career goals.

Before diving headfirst into owning your own consulting firm, though, you should learn what to expect. Here are the basics of starting a successful consulting business, including what services to offer, creating a marketing strategy and the kind of paperwork you'll need to file.

How much does it cost to start a consulting business?

If you're thinking of starting a consulting business, you're probably wondering how much it'll cost to get started. The good news is that the startup costs for most consulting businesses are relatively low, with just a few essential expenses to budget for including marketing, office space and networking events.

That said, costs can vary depending on the type of consulting business you plan to operate. If you start an IT consulting business, for example, you'll need to have the proper hardware and software, which can cost thousands of dollars. Other industries, such as insurance or real estate, involve their own special licenses and registrations.

Marketing costs can vary depending on the type of marketing you pursue. A simple website and some online advertising can quickly add up, and while business cards might seem outdated, don't neglect the power of word-of-mouth referrals. If you plan on meeting with clients in person, you might also factor in the cost of office space, which gives your business a more professional appearance and helps build credibility with potential clients.

At a glance

LLC filing fee: $35-$300, depending on your state

Reporting fees: $100

Business license fees: Varies

Annual report fees: $50-$200

How much do consultants make?

Consulting work can be profitable, but it depends on a few factors. First, you must determine what kind of consultant you want to be. Some general consultants help clients with a wide range of knowledge, some specialize in accounting, marketing or human resources.

After you've honed in on your specialty, research what services and hourly rates you should offer. There are a few things to keep in mind when setting your prices. Consulting is often seen as an investment, and many clients will pay more for a good consultant — someone with experience who can help them achieve their goals. Some examples of consulting salaries, according to the U.S. Bureau of Labor Statistics :

• Information security consultant: $120,000
• Computer programming consultant: $100,000
• Financial analysis consultant: $99,000
• Management consultant: $99,000
• Web development consultant: $92,000
• Accounting consultant: $80,000
• Environmental consultant: $79,000

What types of consultants are there?

When most people think of consultants, they think of business consultants. However, there are many other types of consultants, including (but not limited to) financial, IT, HR and marketing.

Business consultants

Business consultants provide companies with advice and guidance on various topics, such as marketing, finance and operations. These consultants can be beneficial in times of change or growth, when businesses need to make critical decisions but lack the required expertise.

Many business consultants are self-employed, working as independent entrepreneurs. There are also a number of large firms, such as Deloitte and McKinsey, that offer a wide range of services. These firms often have teams of specialists who can help clients with any issue they face (e.g., business processes, public relations, cutting costs, value propositions).

Financial consultants

Financial consultants help people with their money. They know a lot about money management, i.e. how to save it and how to make it grow. To thrive in this business, you'll need a deep understanding of bank accounts, stocks, loans and interest rates, in addition to your specific expertise.

The most successful financial consultants are patient and helpful, with the ability to break down complicated cost analyses for clients. After all, you're helping people figure out how much money they're making and how much they need to save. Moreover, the best financial consultants understand how to advise people from various economic backgrounds. It's essential to have a knack for helping people make intelligent financial decisions no matter how much money they're working with.

IT consultants

IT consultants help businesses with their technology needs. They can advise companies on what technology to buy and how to set up networks, as well as provide training on how to use new systems.

Being a successful IT consultant requires a plethora of technical knowledge and the ability to explain complex concepts in an easy-to-understand way (remember: your clients aren't tech experts, that's why they hired you). It's also critical to stay updated on the latest changes in the tech industry so you can advise clients on the best options for their business.

HR consultants

If you're looking for a career that's constantly evolving and challenging, becoming an HR consultant might be the perfect fit. HR consultants work with businesses to help them develop and implement human resources policies and procedures.

Related: Human Resources - Entrepreneur Small Business Encyclopedia

They also advise and support managers and employees on HR-related issues, such as hiring, firing, pay, team structures , benefits and training. Here are a few things you can do to boost your chances of success as an HR consultant:

• Gain a strong understanding of the law as it relates to HR. This includes federal and state labor laws , as well as employment discrimination laws.
• Develop strong interpersonal skills. HR consultants must build relationships with clients, employees and management teams.
• Stay current on evolving HR trends. The only way to provide your clients with the best possible advice is to have a firm understanding of the standards and practices related to your field.

Marketing consultants

A marketing consultant helps businesses and individuals grow and reach their target markets.

To be successful as a marketing consultant, you must have in-depth knowledge of marketing principles and strategies and experience implementing these strategies for businesses.

Marketing consultants help businesses:

• Create effective marketing plans
• Develop campaigns to promote their products and services
• Analyze market research data to identify trends
• Assess customer needs and preferences
• Advise on pricing strategies
• Position their company in the marketplace

You'll also need expertise in digital marketing tactics such as social media marketing, content creation, search engine optimization (SEO) and email marketing. Help your clients with branding efforts, create marketing materials (e.g., websites, brochures, and email newsletters) and even provide training for employees on best practices for marketing their business.

The ultimate goal of a marketing consultant is to help businesses succeed by increasing sales, building brand awareness and attracting new customers. If you can do that, you'll become indispensable to your clients.

Other types of consultants

There are many other types of consultants that can help businesses and individuals. If none of the jobs above feel like a good match, consider these:

• Accounting consultants provide expert financial advice and help businesses manage their finances, assets and investments. Many organizations hire accounting consultants to improve their cash flow and tax preparation.
• Management consultants advise companies on improving their operations and processes.
• Environmental consultants help organizations comply with environmental regulations, minimize pollution and protect natural resources.
• Business coaches guide entrepreneurs in developing the skills they need to be successful.
• Supply chain consultants help businesses improve their supply chain processes.
• Data analytics consultants analyze large amounts of data to uncover patterns and insights.
• Financial advisors provide individuals with advice and guidance on retirement planning, investments and other financial matters.
• Legal consultants give legal advice and help businesses stay compliant with ever-changing regulations.

No matter which type of consultant you choose to become, there is immense potential for professional growth and success. With the right skills, dedication, and knowledge you can make a name for yourself in your field.

Steps to starting a consulting business

So you're inching closer to becoming a business owner. But where do you start? Starting any small business can be complex and demanding, but you can save yourself time, stress and money by knowing what to expect — and preparing accordingly.

Here are some essential steps to starting a successful new business:

Research the market and identify target clients

Before you launch your consulting business, you should understand the industry and identify your target audience . Doing market research can help you understand the behaviors and would-be clients, your potential competitors and — perhaps most importantly — what sets your business apart.

Network with potential partners

Networking is also critical to any successful business and especially important in the consulting industry. Cultivate relationships with potential partners and influencers in your industry to generate more leads, grow your client base and build a successful consulting business.

Related: Target Market - Entrepreneur Small Business Encyclopedia

Determine services and pricing

Scout the competition and do some digging to understand how local competitors price and position themselves. It also helps to find a niche because you'll have fewer competitors if your services are specialized. Entrepreneur's also covered how to determine the best pricing strategy .

Register your consulting business

Depending on what service you're providing, you'll need to obtain the proper paperwork and certifications to start consulting. At the very least that includes a state business license, with the possibility of more specialized licenses for medical or legal services. (See: Do I need a consulting license? section below.)

Outline your business plan

Gather all of your research and turn it into an actionable roadmap, a.k.a. your business plan . A business plan is a written document that outlines your business goals and strategies and the resources needed to achieve them. It should also include your marketing and financial plans. A business plan can help you stay organized, track your progress and identify any missing pieces that need to be addressed.

Secure the necessary financing

Before you can launch your business, you'll need to secure the necessary financing . Consider options such as crowdfunding, bank loans or investors. Remember to outline your financial needs in your business plan to help streamline the process.

Develop your brand and build a website

Your brand represents your business, so creating a robust and recognizable identity is crucial. Start by developing a company name, logo, website and other visuals that help to reinforce your brand. Additionally, be sure to use consistent messaging so that potential clients clearly understand who you are and what services you offer.

Related: Branding Basics – How To Build a Stellar Brand from Scratch

Market your consulting business

Once you've completed the necessary steps to get your consulting practice up and running, it's time to start marketing. Develop and execute a comprehensive marketing plan that includes traditional and digital strategies, such as email campaigns, social media promotion, SEO practices and content marketing. At this point, you can also lean on your professional network for early leads and to help you find your first consulting clients.

Do I need a consulting license?

The answer is usually yes if you're a business consultant or plan to become one. Depending on the state where you operate and the type of services you offer, you might need a consulting license for legal reasons.

Professional certification might also be necessary if you provide certain services. For example, financial advisors typically require a Certification in Financial Planning (CFP) from the Certified Financial Planner Board of Standards Inc. or an Investment Adviser Representative designation from the Financial Industry Regulatory Authority (FINRA). Other services, such as accounting or tax preparation, might require professional licensing from the relevant state board.

Before starting a consulting business, it's essential to research and understand any applicable licensure requirements in your state. Failure to obtain the necessary license or certification could result in fines and other legal penalties.

Other considerations

It's also important to note that state and federal employment laws might apply if you hire employees for your consulting business. You'll want to register your business with the relevant state or federal agencies and obtain applicable permits or licenses, such as an Employer Identification Number (EIN) from the IRS.

Further, obtaining the appropriate business insurance coverage is critical to protect your consulting business from potential liabilities and risks. Comprehensive business insurance policies can provide liability coverage for claims arising from your professional activities, property damage and other losses.

Lastly, as with any type of business, choosing the appropriate legal structure can also protect you from liability. Depending on the services you plan to offer, there are a few business entities to consider for your consulting business. The most common business structures are sole proprietorships, partnerships, limited liability companies (LLCs) and corporations. Each has unique benefits and drawbacks, so you should research and understand which is best for your needs.

The bottom line

Starting a business might be the answer if you're looking for a way to make more money, set your hours and be your own boss. It doesn't have to cost a lot of money and you might be able to start a lot sooner than you think, provided you collect the right tools and resources.

Take time to consider the type of consultant you want to be and the services you can offer. And remember to fully commit to your consulting business if you're going to lay a foundation for long-term success.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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Consulting firms earn revenues from fees charged to clients. These can be hourly fees or fees paid on a per project basis. A consulting firm is not a capital intensive business to start. The challenges are finding clients, effectively managing your time so you maintain a high average hourly rate and collecting the fees you have earned. In a business plan for a consulting firm, the section on marketing strategies is particularly important. Consultants must have strategies in place to continually generate new clients for the firm.

Determine the scope of your services. Match your skills and capabilities with the needs of your potential customer base. Be sure clients are willing to pay for the services you are offering. Identify market needs that are serious -- your services must solve a significant problem for your clients. Just having skills or knowledge to offer is not enough.

Devise points of differentiation. Be able to articulate why the package of services you will be offering is different -- and better -- than other consulting firms. Think about how to express your firm’s competitive advantages clearly and succinctly to prospective clients.

Create your business model. Finalize the types of services you will be offering and what you will charge for each. If you are doing a three-year business plan, consider offering additional services in years two and three -- you will have an established customer base to sell these new services.

Formulate a marketing plan. Make your website a key strategy in the plan. Show how your website content and search engine strategies will draw in potential customers. An effective website gives your firm the potential for obtaining clients all over the U.S. and internationally. List the conferences and trade shows you will attend for networking purposes. Think of non-competitive professional service firms you could reach out to to mutually refer clients.

Prepare a financial forecast. Be conservative with your projections. Don’t assume revenues will grow quickly -- it will take time to develop a referral network. Make sure you start with enough capital to sustain your consulting business until it reaches break even. Scrutinize the proposed expenditures in your plan and make sure each one will contribute to the growth of your business.

• To conserve capital, you might assume in your business plan that the business will initially be operated out of your home. Caution must be taken to maintain a professional image. Add a phone line dedicated to the business with a professional greeting on the answering machine. Set up the office space in an area of the house that can be closed off to interruptions.
• A risk to achieving your revenue forecast in the business plan is not being paid all the fees you have earned. Assume in your cash flow forecast that you will charge a retainer at the beginning of each consulting engagement. For fees charged by the project, collect a portion when the project starts, a progress payment and then a final payment when the project is completed. This will partially protect you from less than honest clients, or those who decide to abandon a project before it is completed.

Brian Hill is the author of four popular business and finance books: "The Making of a Bestseller," "Inside Secrets to Venture Capital," "Attracting Capital from Angels" and his latest book, published in 2013, "The Pocket Small Business Owner's Guide to Business Plans."

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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

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Sample Business Plan for Consulting Firm

Executive Summary Of Sample Business Plan for Consulting Firm

Sample Plan 5 is an innovative management consulting firm business plan offering a variety of business solutions to clients across a broad cross-section of industries. From financial services to operations optimization to managing organization growth, Sample Plan 5 is adept at effectively managing a variety of client projects.

Founded by The Owner, the organization is in the midst of an aggressive expansion phase with client acquisition and profit growth being two of the primary objectives.

As the economy continues to rebound from what analysts agree was the deepest economic condition in nearly a century , organizations of all sizes will be in need of the types of services that are offered through Sample Plan 5.

The organization has already developed a strong reputation in the industry for the delivery of quality services that positively impact the client.

Moving forward, The Owner plans to leverage these experiences along with her vast professional network amassed over the course of her career to strengthen the client portfolio and improve the year-to-year profit standing of the firm.

Useful Resource:  How to write an executive summary for a business plan

Financial Objectives

The following table and graphs illustrate the financial goals of Shade Station during the next five years. The financials are explained in detail throughout the duration of the plan.

To see the complete financial plan of consulting business plan click here .

Pro Tips: Learn how to create a financial plan for business plan by pros.

Industry at a Glance

The industry is composed of companies that provide advice and assistance to organizations on issues ranging from strategic and organizational planning to financial budget planning. 

Although sample business plan for consulting firm is a relatively new industry, major consulting firms are among the most respected businesses in the world, and their advice is routinely sought by the corporate and governmental sectors. 

In the five years that have led up to 2011, IBISworld .com estimates that industry revenue increased at an average annual rate of 0.7% to $165.5 billion.

Compared with the industry’s overall growth during the past 10 years. this rate is somewhat sluggish. reflecting the extent of the recent economic downturn. 

The recession’s effect on the industry caused sales to plummet by 3.6%. LH in addition to decreasing revenue. firms laid-off employees. causing industry employment to fall by 7.0% over the course of the last two years.

Click here to read more about the industry at a glance  and sample business plan for consulting firm.

Projected Industry Growth

The Consulting Industry is currently in the mature stage of its life cycle. Over the five years leading up to 2016, research gathered via IBISworld .co m shows that the industry’s contribution to the overall economy is projected to grow at 2.5% annually. This is roughly in line with GDP growth over the same period. 

Like many industries, the Consulting industry’s growth has been slowed by the recent recession. Furthermore, more corporations are keeping consulting services in-house and hiring fewer consultants.

As a result, the industry’s growth is expected to remain below the levels experienced in the past. The benefits of consultants on human resources and management strategy are becoming increasingly accepted by the business community. 

Some businesses view outside consultants as a necessity when providing impartial advice. Although consultants have been increasingly taken 1n­ house, businesses are still hiring outside consultants to improve their bottom lines.

To read more about the projected growth of the industry click here .

Key External Drivers

For more information about external drivers , click here .

What follows is a listing of key objectives for Sample Plan 5.

1. Client portfolio expansion

The Owner has set client portfolio expansion as one of the primary objectives for this phase of business growth and development. The founder will aggressively pursue this objective, projecting to add no less than x clients during the course of the next calendar year.

2. Increased revenues

Founder The Owner has set a goal of no less than x worth of revenues being generated over the course of the next calendar year. Through a diverse suite of services and stellar delivery, this goal is easily attainable and will be the catalyst that propels the firm towards future revenues and profits.

3. Diversify client portfolio

The diversity of services gives The Owner the ability to develop a diverse client portfolio which will be another of the primary objectives. By doing this the organization in effect insulates the profit position from the cyclical nature of the economy and protects long-term growth prospects.

For a complete guide for key objectives for  sample business plan for consulting firm  here .

SWOT Analysis

What follows is a listing of the core strengths and weaknesses of the Alice Cardenas Consulting Company.

Funding:  The lone weakness in what has proven to be an otherwise sound business model and approach would be a lack of funding. Founder The Owner is confident that if a suitable funding source is secured, she can position the organization to become one of the industry’s true market leaders.

Click here for complete detail of the SWOT analysis .

To date Sample Plan 5 has relied primarily on word of mouth networking and the Internet to drive the organization’s marketing message. 

These two elements will remain the core of the marketing model with enhancements made to each that strengthen the market position and increase the volume of qualified business opportunities. 

The organization currently has a website but plans are to totally revamp the current website and develop a more appealing presence using state of the art web development technologies.

In addition to the improved website, the organization will also aggressively integrate social networking into the marketing efforts leveraging both Facebook.com and Twitter.com as well as an interactive online blog, managed by founder The Owner. 

Rounding out Sample Plan 5 marketing model will be an improved networking component as the founder is committed to expanding her professional network by becoming actively involved in the local business and social communities.

You can read more about sample business plan’s marketing by  downloading it.

Balance Sheet

The projected balance sheet for Sample Plan 5 is shown in the table below.

To view the full projected balance sheet, click here .

Our free real sample business plan pdf will show you how to write a plan that looks as elegant and professional as this one.

Click here to view an example of consulting business plan for consulting firm. Each business plan is professionally written by our MBA business plan writing consultant and is developed in close collaboration with the customer.

Need Nearest Business Plan Consultant

Looking for a professional business plan consultants near me ? Contact us to achieve your company’s goals and get funded.

Download The Consulting Firm Business Plan PDF​

Sample Plan 5 is an innovative  management consulting company business plan that offers a wide range of business solutions to clients in a broad variety of sectors.

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Do I Need an LLC for a Consulting Business?

By Catherine Hodder, Esq. | Legally reviewed by Madison Hess, J.D. | Last reviewed August 06, 2024

Legally Reviewed

This article has been written and reviewed for legal accuracy, clarity, and style by  FindLaw’s team of legal writers and attorneys  and in accordance with  our editorial standards .

Fact-Checked

The last updated date refers to the last time this article was reviewed by FindLaw or one of our  contributing authors . We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please  contact an attorney in your area .

If you are a freelancer operating a consulting firm as a sole proprietor or thinking of starting your own consulting business, it is essential to choose the best business structure. You may wonder if a limited liability company (LLC) is right for you. Learn how an LLC is an advantageous business structure for business owners offering consulting services.

Ready to form your LLC with confidence? Our trusted partner LegalZoom has packages starting at $0 + filing fees.

LLCs offer pass-through taxation similar to a sole proprietorship or partnership with the limited liability of a corporation. Read on to learn all the benefits LLC owners have for their consulting business.

Protecting Personal Assets

LLCs provide personal liability protection for their owners. A single small business owner can operate as a sole proprietorship; however, their personal assets are at risk if someone sues the business.

Owners can choose to protect their personal assets by forming a separate business entity, such as a corporation or LLC. These business entities shield personal assets from lawsuits and business debts, and only the business assets are at risk.

Many single-person businesses favor forming a single-member LLC over a corporation because there are less burdensome requirements to set up and maintain. For example, LLCs do not have to have bylaws or keep records of minutes of meetings that corporations require.

Offering Tax Reporting Advantages

There are tax benefits to having an LLC, namely, only filing a personal tax return. LLCs do not have to pay tax on the business level like C-corporations, so they avoid double taxation. Instead, an LLC is a pass-through entity, and you can report your business income or losses on your personal income tax return.

Providing Credibility

If a potential client does not know you, it can be hard to convey your credibility as an independent consultant.

As a solo entrepreneur, you can either use your name, such as “Sam Smith,” or apply for a “doing business as” (DBA) registration to use another name for your business. For example, you could register a DBA for “Sam Smith Consulting.” However, a DBA does not provide personal liability protection like an LLC.

An LLC conveys professionalism and does not broadcast that you are a one-person operation. Suppose you are a business consultant; who do you think a potential client might hire: “Sam Smith” or “Strategic Solutions, LLC?”

Furthermore, when you register an LLC for consulting, you register the LLC name with the state, so no one else can use your business name.

Distinguishing Yourself as an Independent Contractor

Forming an LLC means there is a separate legal entity from yourself. This is a critical distinction for businesses looking to hire you as an independent contractor and not an employee. If the IRS classifies you as an employee of the business, the business must pay benefits and follow wage and overtime laws driving up their costs. A company doing business with your LLC is one piece of proof that you are not an employee but an independent contractor .

Many times, a person works for a company but then leaves and does consulting work for that same company. Having an LLC separates you from being classified as an employee.

How To Get an LLC

It is easy to form an LLC in the state where you operate your business. You can file Articles of Organization with your Secretary of State’s office. In the articles, you will include basic information such as:

The LLC business name and address of the principal place of business

The LLC’s business purpose

Registered agent name and address for the LLC

Names of LLC members and managers

You file the Articles of Organization along with the state filing fee with the Secretary of State. Once approved, you receive a Certificate of Formation for your LLC.

LLCs are easy to maintain but you may be required to file annual reports or biennial reports with the Secretary of State and complete a Business Owners Identification Report (BOIR) .

Most states do not require an LLC to have an operating agreement , but you may want to have one anyway.

After Forming an LLC

Once you form your LLC, there are a few additional steps you should take:

Get an EIN for Your LLC

An Employer Identification Number (EIN) or Taxpayer Identification Number (TIN) is like a Social Security number for your business. You use this number to file taxes or open a bank account. It is easy to apply for an EIN online with the IRS.

Set up a Bank Account

You will want to open a bank account in the name of your LLC. Run all your business expenses and deposit all business income through your business bank account.

Get a Business License

Once you have your LLC, you will want to get a business license. Find out if you need a business license for the state or local town where you operate your business. Also, look into what permits you may need to run your business. For example, if you work from home, you may need a home occupancy permit or permission from your homeowner’s association (HOA).

When planning a consulting business startup or operating an established one, it is essential to consider the tax purposes and legal aspects of your business structure. Limited liability companies offer limited liability protection, flexible tax treatment, and ease of formation and maintenance.

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How to Start a Marketing Consulting Business

Sudarshan Somanathan

Head of Content

August 11, 2024

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If you’re reading this, we’ll go out on a limb and assume: 

• You’re a marketing professional tired of the full-time grind and want to do your own thing and own your time
• You’re a young professional or student and want to try your hand at freelance or a side gig 
• You already run a business and want to expand your offerings

Well, the good news is if you’ve ever wondered if becoming a marketing consultant is a good idea, the answer is simple—yes. You just need to find your niche and, more importantly, understand that you will have to tailor your offerings to suit your clients’ needs. Would a protein supplement brand have the same marketing strategy as a fast food company? Probably not. 

Here’s a quick look at what we’ll cover: 

• Who a marketing consultant is 
• What your job as a marketing consultant entails 
• How to set up your marketing consultancy 
• How to leverage networking tools such as LinkedIn
• How to become an independent marketing consultant 
• The finances of it all
• How to grow your marketing consulting business

Let’s break it down.

Understanding Consulting & Its Relevance in Marketing

Roles & responsibilities of a marketing consultant, 1. find your niche , 2. make a rate card, 3. build a portfolio/website, 4. get professional liability insurance, 5. decide between a registered company and an individual consultant , 6. find a mentor, 7. find clients, pro tips for linkedin networking, the independent marketing consultant, registration , technology , office space, miscellaneous expenses, communication is key, be creative, solve problems, build relationships, cultivate management skills, strategic management, from passion to profession, frequently asked questions (faq).

A consultant is an individual a company hires for their expertise in a particular field . You could be hired to perform any number of consulting services, including audits, strategy, feedback, upskilling, problem-solving, and even to offer your expertise on a project an in-house team is working on. 

A marketing consultant is simply a consultant who offers their marketing expertise — branding, digital marketing, market research, product launches, and advertising are some key areas. As a marketing consultant, you can focus on a niche that best utilizes your skills. For example, your focus could be digital marketing, and your niche could be how to grow organically through SEO content. 

The size and scope of your own consulting business are totally up to you. 

Now you might ask yourself why an organization wouldn’t do this in-house. 

• Consultants allow organizations to get an outsider’s perspective . There could be solutions or problem areas that an internal team may have missed
• Given that a consultant is not a full-time employee, organizations can always easily find someone else without the extensive paperwork that comes with full-time hires
• Sometimes, organizations have no choice if they’re keen to work with highly experienced and sought-after marketers who may not want to be tied to any single organization 

It may interest you to know that legacy businesses such as McKinsey & Company (specializing in management consulting), Bain & Company (doing similar work), and Deloitte (offering a range of professional services) all fall into different niches in the consulting world. 

None of these companies were built overnight, so your goal is to scale one step at a time. To build a profitable consulting business, remember to focus on your skills, don’t be deterred by failure, and always be open to course-correct if something isn’t working for you.

Bonus read : 10 Free Consulting Templates for Consulting Agreements & Services

Would soccer legend Lionel Messi have scored as many goals without the right coaching and his teammates playing crucial passes to him? Would legendary Olympian Usain Bolt have won as many gold medals without the right nutrition and care from expert trainers? 

As a marketing consultant, your role is similar to that of an elite athlete’s coach. Every organization you work with will have a different focus area that needs strengthening, flaws that need ironing out, and strategies that need implementing. 

How they execute a particular project is where you come in. Depending upon the scope of work, you will analyze their digital marketing efforts and brand initiatives, run campaigns, drive engagement, and ultimately contribute to growth . There are some basic skills that will benefit you as a consultant , including problem-solving, analytical thinking, and strategic planning. 

Understanding the target audience

You’ll also need to understand different audience personas while working with different organizations. Remember the protein supplement and fast food example? Even organizations in the same industry, say two fast-food companies, likely have different target audiences. Perhaps one caters to 35- to 55-year-old working professionals looking for a healthy meal during their work break, while the other caters to high schoolers looking for a greasy, after-school snack. 

Your customer demographic will define the kind of marketing initiatives you undertake. Snackable and shareable content on social media platforms like Instagram might work for those under 18. At the same time, you might have to target the 35- to 55-year-old age group through smart, insightful content on LinkedIn. Some businesses may also benefit from other digital marketing avenues, such as SEO blogs that drive organic growth.

Leveraging CRM

Amid all this, it’s likely you’ll also have to navigate the world of Customer Relationship Management (CRM). Don’t be fooled by the self-explanatory nature of the term; it can get quite complex. Simply put, CRM is crucial to helping your business grow. 

Bonus read : 10 best CRMs for consulting in 2024

Your CRM strategy could be as simple as reaching out to potential clients on LinkedIn and as vast as hiring an external agency that handles CRM for you . It will help you gain valuable insights on potential customers, effectively communicate with clients, run targeted outreach campaigns, and even support cross-selling or upselling. For example, your cold message goes unanswered by hundreds of people except one. Why did they respond? Are they your niche? Why did it strike a chord with them? 

Sounds like a lot, but don’t worry, there are some great AI tools for consulting to help take some of the load off you.

Setting Up a Marketing Consultancy

Setting up a successful consulting business may sound daunting. But if you follow a few actionable steps and take advantage of free templates like the ClickUp Consulting Project Plan Template , you’ll have a business set up quickly. 

After you identify the areas of expertise and services you will offer and research the market and competition to position your services uniquely, this template will help you create a consulting project plan. 

Use the template to: 

• Organize larger projects into smaller, more manageable ClickUp Tasks and assign them to team members
• Set deadlines and monitor budgets using Gantt charts
• Monitor progress with 12+ custom task statuses and dashboards to ensure smooth project execution

Follow these steps to get started.

If you were to buy a car, you would consider a budget, the type of car, features, fuel economy, etc. And after test-driving a few, you settle on one that meets your requirements. Becoming a marketing consultant is similar to this: you are the only one with the car, and your potential clients are buyers with different preferences and requirements. Like every car isn’t for everyone, you must find what sets you apart from your target audience. There will always be other consultants and businesses offering the same services as you.

• What are your strengths ? Is it SEO? Content marketing? Advertising? Brand? Social media marketing?
• Focus on your core skills and work that you enjoy doing . It’s an old cliche, but if you love your job, are you really working?
• Don’t be afraid to go back to the basics. You might have a skill you picked up early in your career but stopped using it as much as you progressed. That very skill, say, quality long-form writing, could be your niche
• Less is more. If you offer too many services, brands may see you as a Jack-of-all-trades (master of none)

Once you settle on your niche and services, the next step is to make a rate card. Your rate card should include the following:

• List of services with a rate card for each. You could charge per hour, per project, or per day depending on the service and what suits you best
• You may choose to charge different clients differently. For instance,  a lower base rate for startups compared to larger organizations with bigger marketing budgets
• It is a good idea to add a timeline to your services. For example, if you are helping conduct an audit, mention how long the project will take so the expectation is set from the beginning 

You could go all out and make a website that you can direct potential clients to or make a portfolio that you share with them. The choice is yours. Whichever route you choose to take, make sure both highlight your strengths, showcase your skills, and clearly define what you are offering to potential clients. 

As with all things in life, sometimes plans don’t pan out the way we hope. Or perhaps you did your best, but your client isn’t happy. This is where professional liability insurance comes in. It protects you from settlement claims and costly legal fees in case of lawsuits arising out of negligence, mistakes, or failure to deliver on promised services. 

The cost of professional liability insurance will depend on the size of your business and the field you are working in. Some clients may require professional liability insurance as part of your contract. 

As with the portfolio and website, whether or not you register a company or choose to operate as an individual consultant is entirely up to you. Let’s briefly look at the advantages and disadvantages of both. 

 Advantages of a registered company

• Scaling is easier, with seamless integration of more partners, employees, etc. 
• Professional image
• You’ll have the potential for tax benefits

 Disadvantages of a registered company

• Higher initial costs 
• More paperwork, regulatory requirements, etc. 
• Once you scale and have more partners, employees, etc., there will be less flexibility in decision-making 

Advantages of being an individual consultant 

• Your setup cost can be close to zero
• Easier to manage with less paperwork and regulatory requirements 
• Complete control of your time, business decisions, etc.

Disadvantages of being an individual consultant 

• Your personal assets are at risk in case of debt or legal claims 
• You might have to work harder to build credibility
• More complicated to scale

Finding the right mentor or experienced entrepreneur friend can teach you valuable lessons and prepare you for any potential roadblocks. The right mentor will not only help guide you but also build connections, create accountability, learn from someone you trust, and keep you on the right path. 

Now comes the grind. Finding clients, especially that first client, is the biggest challenge you will face as a marketing consultant. You must work hard to get your first client from cold messaging, referrals, personal branding, etc. However, once you do, it should be much easier to find more gigs, as good work will always lend itself to glowing referrals. 

Bonus read : How to Find Clients for Copywriting to Build Your Business

Leveraging Networking Tools

One of the biggest disadvantages of being a consultant is that you aren’t guaranteed a monthly paycheck. This is why it’s important to keep the momentum going once you’re up and running. Relying on a few clients is a recipe for disaster, so keep the outreach going —whether you do it yourself or hire someone to help. 

You may create an engaging Instagram page for your business and promote content on other platforms like Meta and X, but  the place you want to promote the most on is LinkedIn . It is the best platform for professionals like you to network, engage, and reach out to potential clients, second only to a personal referral. 

Assuming you already have a LinkedIn account, here are some of the ways you can use it to your advantage:

• Connections : Stalking your peers is always fun, even on a professional networking platform like LinkedIn, but remember that they may also be your competition. Make sure to send connection requests to leaders at companies you’d like to work with —follow them and regularly engage with their posts
• Personal branding : LinkedIn is a great place to get noticed for your skills and potential work engagements. Post consistently about topics around your area of expertise , or just post about topics that you’re passionate about on your own profile or company page. Your end goal is for a potential client to see your post
• Lead generation : LinkedIn can be the only CRM you and your business need. Use its advanced search feature to find the right individuals to send cold messages to (you might need a LinkedIn Premium account to message some members). It’s the most direct way to contact the companies you would like to work with
• Finding talent : If you plan to expand your business instead of flying solo, LinkedIn is also a great place to find excellent talent. While you can post a job opening, don’t underestimate the power of a powerfully crafted hiring post from your personal profile . Chances are the people you reach are either fans of your work and will be a good culture fit or are already vetted and good at what they do

We hope this article has answered all your questions regarding the ins and outs of starting a marketing consulting business. If you’re convinced it’s something you’d like to take on independently, then this part is for you. 

Here are some perks—yes, it’s no joke—you’ll enjoy as an independent consultant.

Honing your skills 

Because you’ve chosen to fly solo, you can have your cake and eat it too (well, mostly!). You can choose to focus on work you both enjoy doing and are good at or upskill and explore other avenues on the side. You’re also the master of your own offerings, so feel free to tailor your services to fit your needs. And if you’d like to build credibility, consider getting a consulting certification that will reinforce your expertise. 

Flexibility

Perhaps the job’s flexibility is the biggest perk of being an independent marketing consultant. As your own boss, you get to pick the people and organizations you want to work with, set your working hours, and answer only to yourself (this one’s bittersweet because the goof-ups are also on you!). 

But make sure you don’t slack off and let down your clients or yourself. This is even more important when you are on a retainer with set deliverables and agreed timelines. 

We’ve already looked at how to start a marketing consulting business, but here’s where the fun begins for you. 

Here are some brief pointers on how to effectively fly solo:

• Focusing on your core skills and doing what you love is the first step to having fun as an independent consultant. However, your offering must meet market demands because that’s what will bring in business
• Create a business plan that includes your services, target audience, and financial projection and needs
• Even if you’re working independently, make time to establish yourself. Be that by building a powerful personal brand on LinkedIn (Medium or even Substack), coming up with a unique brand name, designing a logo, creating a website/portfolio, and even an outreach plan 
• Make sure your paperwork is in order . This includes professional liability insurance, any licenses or permits your country or State requires, and the type of business you would like to register (sole proprietorship, LLC, etc.)
• Referrals are the best way to get clients but also focus on networking, cold messaging, and potentially even digital marketing to attract clients 
• Finally, it is important to stay up to date on industry trends . This will not only help you tailor your services to meet evolving market demands but also tell you to upskill in anticipation of shifts in trends

The Financial Aspect of a Marketing Consultancy

So, how much does it cost to start a consulting business? Costs will likely vary based on the type of marketing consultancy you start, whether you choose to go independent or register a business, want to have an office space, etc. 

Here are some of the basic expenses you will have to incur to start a marketing consultancy business. 

Obtaining the necessary licenses and registering your business will cost between $500 and $2,000, depending on your operation and business structure.

An entry-level laptop or computer can cost between $400 and $1,000, depending on the manufacturer and specifications. Fortunately, you can get away with spending nothing on software, with plenty of free options. The best marketing agency software can help get you started. 

This is one cost that you can completely ignore if you work from home or allow any future employees to work from home. If you prefer the buzz of physical office space, it will cost you anywhere from a few hundred dollars to over $1,000 per month, depending on your location and the size of the space you rent. It’s worth mentioning that even if you set up a home office, you could be looking at spending a few thousand dollars depending on how fancy you want it to be.

You can spend as little as $3-4 per paid ad on Instagram to $25 and up on platforms like LinkedIn to get your brand the eyeballs it needs. However, you can grow your business organically by coming up with creative ideas that won’t cost you a penny to execute.

Costs such as professional insurance, potential legal fees, and unforeseen expenses such as computer repairs or upgrading your software suite can run into hundreds and thousands of dollars. 

But that’s not all—you will have to consider two other very crucial financial aspects. 

To start with, make a call about your preferred pricing model . A value-based pricing model is beneficial to both the consultant and potential client, as fees are set based on the perceived value of the services provided. This has an advantage over hourly pricing models. 

Second, you have to decide whether or not you would like to contract the services of a financial advisor. If you’re an independent consultant working with select clients and have no plans to scale, you may not need a financial advisor. However, if you plan to expand, a financial advisor can help you budget, forecast growth, manage cash flow, and ensure your business is financially stable. 

How to Grow Your Marketing Consulting Business

If you’ve made it this far, congratulations! Hopefully, you now have a decent sense of what it takes to set up and run a marketing consultancy. As they say, though, it’s probably in your best interest to plan for the future. Growing your business will help you keep up with inflation and also afford a better lifestyle for yourself. 

Make a start by keeping a handy list of valuable resources, such as helpful blog posts on how to scale your consulting business and growth marketing strategies .

Must-have skills to achieve tangible growth

Remember, no matter how good you are at what you do, it will get you nowhere if you aren’t effectively getting your message across to current and potential clients. The ClickUp Consulting Report Template is a great tool to have in your arsenal to stay on top of your communication as a consultant

There are hundreds, if not thousands, of marketing consultants out there. What makes you different? Be adaptable and show clients that you can offer them something others cannot

Is there a company you really want to work with? Look at their marketing efforts,  figure out how to plug the gaps, and reach out to them. Very often, clients will be open to a fresh perspective that an in-house team might miss

An obvious one, but an important one. Don’t underestimate the power of relationship building in client management . Even clients who can’t afford you but enjoy their conversation with you might become referrals! Even once a contract ends, a client might refer you to someone else if you’ve built a solid relationship with them

You need to be on top of every.single.thing. Be it the projects you’re taking on, understanding basic business principles, or developing decent financial acumen—being organized and disciplined is half the work done

We’re almost at the end now, but before we conclude, let’s talk about something that will take you very far in your consultancy business—strategic management. This will help you achieve your consultancy goals by ensuring you are structured in planning, implementing, and evaluating every step of your business. 

• Set clear goals for your consultancy business that align with your personal goals
• Perform a thorough market analysis to identify your niche. Combine this with a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to understand factors that could affect business goals 
• Set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) and develop a strategy that plays to your strengths 
• Make sure to stay relevant. But also stay true to your brand and your own identity. Don’t switch from knowledge-based posts to memes based on short-term trends, instead hop on moment marketing trends that align with your business and stay culturally relevant

As you start to shape your marketing consultancy business, don’t forget that ClickUp has many free tools and templates you can leverage to get you going. It’ll help you create and quickly access custom client portfolios all in one place. 

ClickUp Whiteboards are a great way to brainstorm independently, with your team as you grow, or with external marketers you contract. ICYMI, ClickUp also serves as your CRM, in addition to managing tasks, planning projects, and even integrating any other software you use. 

Becoming a marketing consultant can be a lucrative career. You’ll have the freedom to take on projects you are truly passionate about. This can lead to immense professional growth, as it also lets you take on diverse opportunities, unlike the monotony of a typical 9-5 job. 

However, it requires a lot of hard work, competition is fierce, and you won’t have the security of a regular income. To top it all, you will have to be your own boss, which involves managing a business and all the operational challenges that come with it . 

But don’t let the negatives deter you—the possibilities are endless! Excellent communication skills, coupled with a growth mindset and bias for action, and high-quality work will ensure you grow both personally and professionally. Good luck!

1. Is a marketing consultant a good job?

A marketing consultant’s job can be lucrative and quite exciting, as it allows you to choose your own projects and promises superior work-life balance to a traditional full-time job. 

2. What do I need to start my own consultancy?

You can start your own marketing consultancy with just a computer and an internet connection. Various free tools, like ClickUp, allow you to build your business from scratch, and platforms such as LinkedIn are great ways to reach potential clients. 

3. What do you need to be a marketing consultant?

To be a marketing consultant, you need expertise in market research, strategy development, digital marketing, and branding. Strong analytical skills, creativity, and communication abilities are essential. Experience in the field and a deep understanding of various marketing channels and tools are crucial for providing effective, tailored solutions to clients.

4. Can I be a consultant without a company?

Yes, you can be a freelance consultant without registering a company. 

Questions? Comments? Visit our Help Center for support.

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How to Hire a Business Consultant

Tips to help you find the right business consultant for your company include specifying your goals and asking potential candidates thorough questions about their offerings and processes.

Find out more about business consultants

by   Cara Hartley

Cara has written extensively on navigating privacy regulations, creating legal documents, and managing business issue...

Read more...

Legally reviewed by   Allison DeSantis, J.D.

Allison is the Director of Product Counsel at LegalZoom, advising and providing leadership to internal teams on the d...

Updated on: August 2, 2024 · 9 min read

What do business consultants do?

Why hire a business consultant, types of business consultants, how to hire the right business consultant.

A business consultant is an expert who helps business owners find solutions to their business challenges and optimize their productivity and performance. 

Business consultants provide advice and develop strategies to help business owners overcome obstacles and meet their goals. A business consultant's specific responsibilities can vary depending on their areas of expertise and their clients’ individual requirements.

• Identify a company’s key issues 
• Develop strategies to navigate challenges and achieve business objectives
• Implement strategies to meet both short- and long-term goals
• Provide a fresh perspective and professional advice 

A business consultant’s process typically involves three phases: investigation, strategy development, and implementation.

Investigation

A business consultant investigates issues hindering growth. They analyze your business’s systems and staff and external factors to identify opportunities and determine the root cause of existing problems. 

Strategy development

After they have identified the source of the problem, a consultant can assist in finding solutions to address the issue. The consultant will factor in information they uncovered during the investigative phase (including your business’s strengths and weaknesses and external influences such as market conditions and competitor activities) to create a customized plan of action.

Implementation

A business consultant can then help you implement their solutions. During the implementation phase, the consultant typically oversees staff management and training, monitors the plan and makes adjustments as necessary, and conducts evaluations to measure the overall impact of the implementation. 

Business owners hire consultants for a wide variety of reasons, from addressing specific issues to obtaining big-picture input on how to achieve core objectives.

When growth has plateaued

It can be challenging to figure out the next step when your company’s growth has stalled. A business consultant can provide new insights and creative approaches to help stimulate growth. 

During transitions

Transitions can be unsettling for staff and consumers alike. If your business is restructuring or going through a merger or acquisition, a business consultant can help facilitate a smooth transition.

During expansion

Whether you are expanding into a new location, launching a new digital storefront, or offering new products, a business consultant can provide information about industry trends, competitors’ tactics, and market entry plans to help you meet your expansion goals. 

When you need help with project management

There are times when you know what a project needs to succeed, but your staff doesn’t have the know-how to make it happen. A business consultant can bridge the knowledge gap by providing the external expertise needed to complete the project.

When you want to maximize efficiency

Companies often refer to business consulting services when they want to optimize their efficiency. A business consultant can evaluate your company’s operations to identify problem areas and develop time-saving and cost-reduction strategies. 

During a crisis

Crises such as recessions, pandemics, and public relations issues can have a significant impact on business operations. Hiring business consultants can be a smart move during a crisis, as they can implement proven methods for responding to and managing crises. Consultants can provide the neutral perspective necessary to navigate the chaos and get your business back on track. 

When you need a business plan

A business plan helps you stay focused and hit your goals no matter what stage your business is in. A business plan typically includes a description of your company, your mission statement, the strategies you will use to achieve your business’s success, and any funding requests.

A business consultant can help you create a comprehensive business plan that supports your company’s objectives in every stage and ensure that each part of the plan aligns with your ultimate vision. 

When integrating or updating information technology

Whenever a company updates its current systems or integrates new technology, there is a risk of integration failure. A business consultant with information technology (IT) experience can help minimize disruptions and confirm that your systems are functioning properly. 

Business consultants offer services across multiple industries, including the financial, marketing, and tech fields.

The different types of business consultants include the following: 

• Strategy and management consultants. A strategy or management consultant analyzes your company’s processes to identify issues that are impeding growth and develop solutions to help you meet your goals.
• Operations consultants. Operations consultants look at your business’s daily activities and pinpoint areas where improvements can be made to optimize efficiency and minimize expenses. Businesses in the manufacturing, financial services, healthcare, transportation, and service delivery industries may find operations consultants to be especially helpful. 
• Financial consultants. A financial consultant has a deep understanding of risk management, investment, and tax management strategies, and uses that knowledge to help businesses develop a plan to manage their current and future finances. 
• Human resources consultants. Professionals who offer human resources consulting services can assist with a variety of topics, including recruitment, hiring, payroll, benefits, productivity, employee satisfaction, and HR staff training. 
• Marketing consultants. A marketing consultant can train your marketing team, suggest marketing strategies to attract your ideal audience, and coordinate your business’ marketing activities. 
• IT consultants. An IT consultant can help you find and implement new technology systems, train staff, and monitor and troubleshoot systems once they have been installed.
• Sales consultants. Sales consultants can conduct sales strategy trainings for your staff and help build relationships with both existing and prospective clients to foster revenue growth.

Tips to help you find the right business consultant for your company include specifying your goals and asking potential candidates thorough questions about their offerings and processes. 

Clearly define your needs

In order to achieve your goals, you should know exactly what issues you need help with. Consultants can’t solve what they can’t see. A lack of clarity about your specific challenges can make it difficult to find a candidate who can help you. 

Thoroughly vet candidates

When it comes to a business consultant’s credentials, don’t just take their word for it. Reach out to their references and read reviews before making a hiring decision. Look for a consultant who has experience working within your industry and has had success helping comparable companies. 

Discuss their methodology

Ask the consultant what kind of tools, resources, and procedures they use to accomplish results and how they have tackled similar problems in the past. The right consultant will offer innovative solutions and use methodologies that align with your workplace culture.

Agree on clear objectives and outcomes

You and the consultant should agree on the metrics for success and ultimate outcomes. Success metrics–or key performance indicators (KPIs)–help you monitor the impact of the consultant’s work. 

For instance, if you hire a marketing consultant, you might use email open rates or the number of leads generated as success metrics and agree on a goal of a certain percentage increase within a specified timeframe.  

Create a strong consulting agreement

A consulting agreement communicates expectations and provides legal protection for your business. Your consulting agreement should clearly define the details of the work and the terms that both parties agree to.

A legal expert can help ensure that your consulting agreement contains clauses outlining key information such as deliverables, payment terms, deadlines, and grounds for termination. 

With our consultant contract services , a qualified attorney can help you write, revise, and customize your consulting agreement so that it is legally binding and protects your business.

Plan for knowledge transfer

A new system is only as effective as the people who maintain it. A business consultant should have the ability to train your staff on how to use the tools or systems they implement to help ensure your company’s continued success.

How much does it cost to hire a business consultant?

The cost of hiring a business consultant depends on a variety of factors, including the type of consultant you hire, the scope of the work, and whether you hire a freelance consultant or a consulting firm. 

For instance, according to a 2023 survey by the Institute of Electrical and Electronics Engineers (IEEE) , engineering consultants charge a median rate of $180, while the U.S. Bureau of Labor Statistics reported a 2023 median hourly wage of $37.83 for all occupations in the Management, Scientific, and Technical Consulting Services category.

How do you determine the ROI of a business consultant?

To calculate the return on investment (ROI) of a business consultant, you subtract the actual or estimated costs of the consultancy from the amount of income the consultancy is expected to bring in. The sum is the profit the consultancy is expected to generate. You then divide the sum by the costs.

The formula for ROI for a business consultant can be written as follows: 

ROI = (Profit from consultancy - Cost of consultancy) / Cost of consultancy x 100%

While the ROI formula may seem simple enough, keep in mind that it can be challenging to accurately estimate profits , and the cost of hiring a consultant may offset other expenses, such as the costs associated with an unmitigated public relations disaster or the cost of hiring a full-time employee instead of a consultant.

For instance, if you are hiring a consultant instead of a full-time employee , you should take into account the total expenses associated with hiring an individual full-time vs. the cost of hiring a consultant on an as-needed basis. When you consider the costs of recruitment, hiring, training, salary, benefits, bonuses, payroll taxes, and insurance, hiring a consultant can be cheaper than hiring a full-time employee.

Should I hire a freelance consultant or a consulting firm?

The decision to hire a freelance consultant or a consulting firm comes down to the consultant or firm’s relevant experience and availability, and your budget and personal preferences.

One benefit of hiring a consulting firm is that the quality of their work is backed by their brand. Another perk is that a consulting firm typically has many employees, so if an issue arises during the consulting period that is beyond the expertise of one employee, you may be able to access the full knowledge base of the firm. 

Freelance consultants may have limited availability to take on consulting jobs in comparison to consulting firms, but they may be more affordable than a firm. Freelance consultants are often highly motivated to provide their best work to help build a name for themselves. 

Whether you choose a freelance consultant or hire a consulting firm, you should verify their qualifications. A business consultant usually has a bachelor’s degree–typically in a field such as business administration, marketing, or finance. Some consultants may have a master’s degree, while other business consultants may have additional certifications. You should ask to see proof of their track record and details about how they have solved problems for similar clients. 

Business consulting can be a rewarding career and many consultants charge top dollar for their services, so it’s important to hire someone who has the qualifications and experience necessary to help your business succeed. 

What should a consulting agreement include?

A consulting agreement should include information about the scope of work, payment terms, and what happens if either party breaches the agreement. Consulting agreements often contain the following clauses:

• Responsibilities
• Deliverables
• Payment terms 
• Intellectual property
• Termination
• Confidentiality

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Consultants make $175,000 right out of business school. But some of them have nothing to do — so they're just sitting around getting paid.

• New hires at some top consulting firms don't have enough work, a Wall Street Journal report says.
• The slowdown comes as some firms have even paid new recruits to delay their start dates . 
• MBA grads recruited into top consulting firms often earn sizable six-figure salaries.

New hires at consulting firms like Bain, Boston Consulting Group, and McKinsey , fresh out of business school, are usually saddled with work. They're often shuffling to and from the airport , busily brushing up presentations, and  answering emails late into the night .

These days, though, some newbie consultants are getting paid just to bide time before their next project rolls around, a recent report by The Wall Street Journal says. The report included the perspectives of more than 30 current, former, and prospective consultants.

Amid uncertain economic conditions , there just doesn't seem to be enough work to go around, so consultants are using their free time for running errands, catching up on sleep, watching television shows, and even applying for other jobs, the Journal's report says. Many consultants call this time being "on the beach" or "on the bench." It's not a new concept in consulting, but it's apparently happening more — and for longer spells — amid the economic slowdown.

One consultant told the Journal he'd only had two client-facing projects since starting last fall and was filling the time by going for walks, buying groceries, napping, and streaming shows like Amazon Prime's "Fakes." Another consultant who was also hired around a similar time told the Journal she was prepping meals, spending time with family, and job hunting. 

Those hired into consulting firms out of business school generally take home hefty six-figure salaries. About half of the MBA graduates from Yale, Dartmouth, and the University of Virginia last year were hired into consulting firms with a median salary of $175,000, the Journal noted.

And last year, the "Big Three" firms — Bain, McKinsey, and BCG — also announced they were increasing their base salaries from $175,000 to $190,000-$192,000 for graduates in the United States. 

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But the downtime — as well-compensated as it might be — isn't always as enjoyable as it might sound. 

Some consultants seem to be getting anxious about how all this idle time could hinder their career trajectories.

The Journal reported that some early-career consultants said they were worried the slowdown would negatively impact their performance reviews, potentially throwing a wrench in their longer-term plans. Landing a job at a consulting firm isn't easy. For many ambitious graduates, consulting gigs can be a launchpad to other lucrative corporate roles or even a gateway to starting their own company .

Others are being encouraged to delay their start dates. Bain has offered to pay some new hires tens of thousands of dollars to work for a nonprofit, go on a safari, or become a yoga teacher — and push back their start dates with Bain.

The impasse that new hires face comes as consulting firms have laid off swaths of their workforces over the past year. In March, McKinsey cut approximately 3% of its workforce in an effort to downsize an employee base that had swelled in recent years. 

Are you a recent hire at a consulting firm who's a lot of time "on the bench" in recent months? Or have you been paid to push back your start date? We want to hear from you. Email the reporter Lakshmi Varanasi at [email protected] .

Watch: Looking for a new job? These are 31 of the coolest careers out there.

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