If you want to start a business that focuses on helping people to run their own business, a consulting business will be one of the best options to take.
From the HR area to technology, there is a wide range of consulting business areas that are available for you to choose from. Ready to start your own business? Here are 8 easy steps on how to set up a consulting business to follow.
How to Set Up a Consulting Business?
#1. Know Your Strengths and Skills
Keep in mind that business consultants are commonly hired to help clients to solve their business problems. Your clients will need you to come to them with the best solutions for their business and tell them what to do.
In this way, you need to have the knowledge and skills required in a specific area that becomes the focus of your consulting business.
Also, make sure that you assess your strengths to allow you to find out what you can help. Assessing your own weaknesses is also critical so that you will know what to do to fill in the gaps.
To make sure that you are qualified in your business area, certificates and licenses are also needed.
#2. Know the Market Demands
Once you have set up your mind about the consulting business you are going to start, now it is time to think about problems in your chosen area.
Keep in mind that businesses will not grow well if no problem can be solved by your consulting business. Doing some research to find out what your market demands can be very helpful.
Not only that but it is also important to think about the pain point of your consulting business and figure it out by tapping your network. For instance, you can work closely with digital marketers if you plan to build a digital marketing consulting agency.
#3. Invest in the Trading Tools
Depending on the expertise area you are focusing on, there are various trading tools you can find out there. For example, if you are starting a technology consulting business, investing in high-quality web-based software is critical.
With all the features needed in the business, you can post your jobs better easily and effectively. Meanwhile, good video conferencing software will make it possible for you to connect to your clients better.
Aside from these consultant-specific tools, you also need to invest in all common things that owners of a small business do. These include developing a website, setting up an LCC, ordering business cards, opening a business account, and hiring a financial accountant to help you with file taxes.
#4. Use Organic Marketing
Bear in mind that the best marketing is organic marketing. This will provide you with two main benefits. First, organic marketing will make it possible for you to know other business owners, allowing them to make a referral to you.
It is a kind of networking that if you partner with somebody in a business, there will be a chance for you to work with their friends as well. Another main benefit of organic marketing is that it is free. A good and reliable organic marketing will allow you to grow your client base.
Not only that but good organic marketing also make it possible for your consulting business to run at a constant track.
#5. Do You Need to Hire Staff
Depending on the amount of work you have to complete, you might need to hire staff to help you to run your consulting business. No matter how fit you are, working 12-hour days per week and doing all the jobs by yourself can be very tiring and stressful.
Getting some professional help can save your day. Instead of a full-time employee, hiring an on-demand assistant that will help you to do tasks on a part-time basis isn’t a bad move.
Otherwise, it is one of the best solutions to take if you want to keep a low operational budget for your business.
#6. Create Client Proposal
The next thing you need to do when setting up a consulting business is writing a client proposal. It is an important part of getting clients for your business.
This proposal will make it possible for you to illustrate how you will provide services for your clients. Not only that but this client proposal will also show them how the solutions you provide will effectively help them solve their problems.
In this way, make sure that you write everything in the proposal clearly. The proposal itself should include an explanation about what project you provide, why you offer the services, and when the project will be completed.
Furthermore, the client proposal also needs to be clear when it comes to the details of the project. These include budget, deliverables, and how the results will be measured.
#7. Set the Costs of Your Services
The Consulting business now faces tough competition. Make sure that you include the price of your service in your business proposal.
This will allow your clients to have estimation costs over the services you provide. Just keep in mind that it can be a bit tough to determine how to price your service if you just start the consulting business.
This is because you are assuming more risks as an independent consultant. In this way, make sure that you show your clients how much value you bring to their business.
Write all the services you provide along with the cost as well as the benefits that your clients will get. This is a great way to ensure your clients that you offer things better than your competitors.
Not only that but it can also help you to show your clients how much money they will save if using your services if compared to other independent consultants.
#8. Elevator Pitch Is Critical
Communication skill is the key. Convincing a potential client and closing the sale is impossible if you don’t practice your elevator pitch. You should be able to briefly explain your target audiences by using value proportion about why they need to choose your consulting services.