Getting Started in Consulting summary

If you’ve worked out how much you need to save for your first year and you’ve prioritized your time, then it’s time to get your consultancy going! This means finding a place to work, and some equipment to work with.

As a consultant, you have many different workplace options, and each has its pros and cons.

Any budding entrepreneur needs to have some tax savvy. If you want to avoid extra costs (and stay on the good side of the law!) then it’s time to start learning.

Finding your company’s tax status is the first challenge. As this can get very complicated, your best bet is to consult a professional. However, there are a few things you can do before you seek advice.

With your business newly established, you’re ready to start working with some clients. But where do you find them? Remember: A consultant doesn’t call potential buyers to sell them a service. Consultants get called by buyers who want services. If you want customers, your name needs to be out there, and to achieve this you’ll need to start marketing.

Begin by preparing some basic promotional materials; these are the building blocks of your marketing campaign. Your press kit should include the following: the results your clients can expect; a small biographical blurb mentioning relevant successes and listing references; and, finally, an outline of your area of expertise.

No matter what type of consulting you do, you’ll face stiff competition from rivals. So how can you get an edge? By building yourself a brand.

An official website and social media are great tools for boosting the presence and popularity of your brand. By establishing a credibility website, you’ll have an online presence that demonstrates your company’s  professionalism. It should feature a clear image of yourself, a succinct explanation of what you do, what your services are and how clients will benefit from your guidance.

Say you’ve followed the advice in these blinks and a client, interested in the services you offer, has reached out to you. How do you convince her that you’re the person to sign with?

First, when you’re presenting your proposal to these kinds of people, you should always be sure to provide lots of options as part of your services. The more options and extras you offer, the more opportunities you’ll have to increase profits.

Lots of consultants that do fantastic work simply don’t get enough money for the effort they put in. Why? It comes down to some basic errors in how they establish their fees. So how do you avoid this in your consultancy?

First, be very clear about one thing: you are selling your services, not your labor power. When establishing fees, do not charge for the amount of hours you put in, but for your expertise in the field. By setting an upfront fee, you’ll free yourself from the temptation of working longer to boost the bill.

After all the hard work of setting up your business, you shouldn’t just sit on your laurels. Once your consultancy is a success, you’ll need to manage it, consider hiring some collaborators, boost income and start choosing your clients more carefully. But how do you know if your business is doing well in the first place?

Well, it takes at least three years before you can evaluate whether your business is successful. So what are the criteria? First off, you receive more business by passive marketing (word-of-mouth recommendations and so forth) than through active solicitation. Returning clients constitute about 75 percent of your business, while new relationships comprise a mere 25 percent. You have time for at least two weeks’ vacation per year, and the running of your practice doesn’t require 24/7 attention. Finally, you can afford to reject clients without threatening your reputation or income.