Consultants make the world go round. Just ask anyone in business. Consulting itself has become a big business too.
U.S. businesses spent more than $12-billion on consulting in 1997, and that figure has only climbed since. The Association of Professional Consultants in Irvine, California has recently mentioned that the market is opening up for the consulting-for-businesses arena.
There are a lot of things that should be considered before you work towards a career in the consulting field.
Target Market
You need to know who your potential clients are. Will you be marketing your consulting services to large corporations or a specialty that would only be of interest to smaller businesses?
Make sure you spend time preparing both a business plan and a marketing plan.
Location and Employees
When setting up a business you should consider operating from home. Low overhead expenses, flexibility, no commuting and your home office space will most likely be tax-deductible.
Employees
If your business grows, be open to the idea of hiring help. Can you afford to spend time doing administrative tasks when you could be looking for and assisting new clients?
Ask for references, preferably from other consultants who have used their services, or from small-business owners.
You may find it more cost-effective to hire someone to work in the office with you and it can mean the difference between success and failure.
There are some benefits to having someone in the office with you. You’ll save time and money, you won’t need to worry about being out of the office, and you’ll have someone to offer different ideas and perspectives.
Income and Billing
When it comes to charging your client, how do you find that middle ground that seems fair to everyone involved? One way is to find out what the competition’s rates are.
Then before setting your fees, make sure you have listed all of your expenses. Most clients will understand that in every project, there will no doubt be additional expenses. Make sure everyone involved knows that upfront and an approximate figure for those expenses.
When setting your rates, you have several options, including hourly rates, project fees and working on a retainer basis.
Project Rates
A consultant normally gets a fixed amount of money for a period of time, when working on a project rate basis. Most agencies preferred to be billed on a monthly basis, but it’s worth keeping in mind that some can be late paying their bills.
Marketing
You must remember that you are selling your consulting services to people who may not be aware that they need those services.
Here are some of the ways you might like to begin to attract clients.
- Brochure
Brochures should clearly state what your services are, and tell customers why you are the best person for the job.
It should give reasons why you should be hired, and include some biographical information.
Keep it simple. Remember, your brochure represents you.
- Cold Calling
You must do whatever it takes to make cold-calling work and make it easier for yourself. Prepare a script ahead of time, be creative in your efforts to reach the decision maker and limit your cold calls each month.
- Advertising
The limits you place on advertising your consulting services will be directly tied to your advertising budget. You don’t have to spend the money on ads just because you have it to spend.
Look through media relative to the fields you specialize in. Look at ads for other consultants, and think about how effective they are. Then design one that suits you best.
- Newsletters
Produce a newsletter as a means of attracting potential clients. Hire a local freelance writer and graphic designer to do the job for you if you don’t feel comfortable enough. The simpler, the better.
- Public Speaking
Public speaking is another excellent way to recruit new clients and to earn a reputation for excellence in your community. You can offer your services as a speaker for luncheons, dinners or any other special occasion.
- Ask for Referrals
This is an easy marketing tool. When you have finished a project as the client for a referral. Ask for the names of any colleagues, friends or business associates they feel might be good prospects for your services. Ask permission to mention their name. Easy!
Protection
Consultants provide advice and professional services for their clients on a daily basis, there are certain risks that consultants are exposed to. So one of the most important things to consider when starting up a consulting business is getting consultant insurance.
The opportunities in consulting really are endless. Some of the top consulting businesses that are thriving today include:
- Accounting: Accounting is something that every business needs, no matter how large or small.
- Advertising: This type of consultant is normally hired by a business to develop a good strategic advertising campaign.
- Auditing: From consultants who audit utility bills for small businesses to consultants who handle major work for telecommunications firms, auditing consultants are enjoying the fruits of their labor.
- Business: Know how to help a business turn a profit? If you have a good business sense, then you might do well as a business consultant.
- Business writing: Everyone knows that most businesspeople have trouble when it comes to writing a report–or even a simple memo.
- Career counselling: With more and more people finding themselves victims of a corporate downsizing, career counsellors will be in higher demand.
- Communications: Communications consultants specialize in helping employees in both large and small businesses better communicate with each other.
- Computer programmer: From software to hardware, and everything in between, if you know computers, your biggest problem will be not having enough hours in the day to meet your clients’ demands.
- Editorial services: From producing newsletters to corporate annual reports, consultants who are experts in the editorial field will always be appreciated.
- Executive search/head hunting firms: This isn’t for everyone, but there are people who enjoy finding talent for employers.
