You’ve been around the block, enjoyed a good measure of professional success and have lots of hard-fought knowledge that you’re confident people will pay good money to learn from you. It’s now time to market that knowledge as a consultant, coach, advisor, or guru, whether full-time or in a freelance capacity. But where do you begin when it comes to starting a consulting practice?
Know, first of all, that there are many consulting firms out there already. Big Ones. Really big ones. Medium-sized ones. Small ones. Now, let’s look at this in a different way. There are consulting firms that address every industry and every kind of business issue imaginable. What will you offer that makes you different and, potentially, a preferred one in your area of expertise?
Second, are you ready to pound the pavements in search of clients? Before you do anything, advises Abdullahi Muhammad, founder and CEO of Oxygenmat, make sure you really are qualified to provide counsel to others.
“There are a lot of people today selling knowledge online on subjects they don’t actually know much about,” he writes. “If you want to become a successful freelance consultant, you need to pick a niche where you actually have real expertise. Just because you have an interest in marketing doesn’t mean you’re equipped to become a successful marketing consultant. You’ll need to take the time to build extensive knowledge on the topic.”
On the other hand, if you have a wealth of experience in your field or industry, you’re in a position to provide guidance to other professionals. Consider Toronto executive Robert Morton, who serves as Principal at RLM Consulting, a strategy and operations consulting firm that provides expertise in new product development, organizational effectiveness, change management, and strategic planning.
“Two-plus decades in the financial sector prepared me for my new life as a consultant,” says Morton. “I have a level of proven expertise, backed by results, that places me in a position me to help other organizations achieve their goals and run their operations efficiently, effectively and profitably.”
So where do you begin?
Certified financial planner and author Dana Anspach recommends taking your time to lay the groundwork. “If you want to start a consulting business,” she writes, “it’s best to start planning a year or two ahead if you can. Build relationships with your current work environment with colleagues, suppliers, competitors—anyone who will be a good contact for you when you head out on your own.
She also cautions that you should be clear about your specific services. A common mistake is trying to be all things to all people. That’s not wise, according to Anspach. “You will be a far more successful consultant by applying your expertise to a niche market that needs what you have to offer. In this way, you can tailor your services, so they add value to a specific group of people or businesses. Once you define what you do and who you do it for in a succinct way, you’ll find it also makes it far easier for other people to refer your services.”
Of course, there’s always the concern of getting your first engagements. Dan Schawbel, managing partner of Millennial Branding, LLC, suggests starting out with a free project or two to get your feet wet. “The best piece of advice I can give you is do some free consulting for a friend, family member or someone else,” he writes. “This way, you can wrap up your client engagement into a case study, promote it on your website, put it in your sales sheet, and they can refer you new business if they like what you’ve done for them. Don’t cringe at the fact that you are doing unpaid work. Instead, think of it as an investment that will help jumpstart your business and something you can leverage for years to come.”
Once you’re in business, many consultants say it’s crucial to be a people person. After all consulting is based on relationships. People are more likely to hire you if they know you, or if you’ve been referred to them by someone they trust. Once you’re seated at the table with a client, observe professional protocol.
“The wise consultant always listens before she speaks,” writes Scott Steinberg, CEO of TechSavvy Global. “Never talk costs before first discussing your clients’ specific needs and objectives. For reasons both practical and political, few businesses actively look to hire consultants on a regular or recurring basis, so knock on many doors, make a point of keeping in running contact with connections, and above all else, maintain good rapport through your work. Reputation is everything, and it’s vital to stay on clients’ radars.”
