Starting your own consulting business can be one of the most challenging but rewarding entrepreneurial endeavors an individual can embark on. If you have a great deal of expertise in your field and your skills are highly sought after, then you might have what it takes to go independent and really start earning what you are worth. Some consultants may be surprised to discover how much their employer is billing the end clients for their hours, and seek to capture 100% of those hourly rates. However, a career in consulting is not ideal for everyone. As with any important decision, conduct as much research as possible before making up your mind.
The advantages to becoming an independent consultant are numerous, and the right preparation can help to ensure the early success of a consulting business. Financial backing is, of course, crucial. Whether it is a robust savings account or the support of a financial patron, it is vital to have a strong foundation financially. In many cases, an independent consultant will also need to be able to pay for their own medical benefits, disability insurance, general liability business insurance and professional liability insurance at high individual rates; unless an umbrella company or employer of record is utilized to secure group rates. You'll also need to research what to charge for your hourly or project based billing rates. The right rate needs to cover you for the additional overhead of being in business for yourself, while still remaining competitive in the marketplace.
In order to achieve success working independently, an individual must be well organized and self-motivated. For many, having the freedom to define your hours, at least to some degree, is incentive enough to start a consulting business. Still, there are several aspects to consider before setting out on your own. Managing one's self can prove difficult for some. Without proper planning, scheduling and organizing can be a challenge. There is the financial aspect to starting a consulting business as well. Finding jobs for yourself can be a grueling process that can test your confidence and your bank account simultaneously. To succeed as an independent consultant you will need to be able to handle the pressures of motivating and organizing yourself.
Another important aspect of successful consulting is going through the process of building your individual business. Using an Umbrella Company or an Employer of Record can also help you take care of particulars such as benefits, taxes and insurance, however they are not in the business of finding work for you - you must have your own clientele. A staffing firm is an organization which can help you find work, however the exchange is that they will typically take a high markup on your rate. Be sure to compare prices with other types of companies. An umbrella company or an employer of record may not be quite as expensive if you have the ability to line up your own assignments and clients.
Another way to structure your company is by self incorporating. In this scenario, the independent consultant is responsible for all legal and insurance needs. An alternative to self incorporating is working with an umbrella company or an employer of record. Self incorporation involves freedom and independence, but also a great deal of responsibility and administrative overhead.
Beyond these structural elements, there are a few important steps that can be taken to help make a consulting business successful. It is crucial to be constantly marketing yourself. Building clientele, following up with clients and creating a professional image for yourself are all necessary if you are to find success as a consultant. It is also important to get on the vendor list. This will help you become recognized by larger corporations which provide the most lucrative consulting projects. Working with an umbrella company or an employer of record can help in this regard as well. Joining one of these organizations can be a great benefit for any consultant. Plugging yourself into a larger corporate structure can help you obtain contractor compliance and vendor qualifications that will provide an important avenue to big clients.
To succeed in independent consulting one needs to be an expert in their given field. However, expertise is not always enough. Staying up to date on trends and developments can help in convincing companies that you are the individual they need to help them reach the goals they are working towards. You can also help yourself by obtaining skills that are indispensible. In order to get companies to consistently pay for your services, offer them something they cannot get anywhere else. Often, companies can save money by outsourcing. Help make their decision easier. Simply put, provide your clientele with services and expertise that makes you a necessity.
Request rates that are competitive but reasonable. This is another important aspect of individual consulting. If you offer services for too little you may have trouble convincing a company that you possess the level of professionalism they will require. Charging too much can make it difficult for you to find work.
For many, independent consulting is a rewarding profession. But be sure to prepare yourself adequately before you get into the business, though. There are clear advantages to working for yourself, and an umbrella company or an employer of record can help pave the way for your consulting career to become a success.
Start A Consulting Business
There may be a number of factors involved in establishing your fees, but starting out with beginning and small businesses, and until you line up 50 regular clients, your best bet would be $50 per hour. Count on two to three hours per clients per day, and devoting 10 days per months to work on their needs, you're talking about $1,000 to $1,500 per month from each client. Multiply that times 50 clients, and you'll be grossing $5,000 to $7,500 per month. As a one-man operation, you'll be plenty busy.
Insiders in this business say a person can leave his regular job on Friday, start a consulting business on Monday and within six months, and have an income of more than $100,000 per year. Suffice it to say that a beginning business consultant should earn from $30,000 to $60,000 before taxes and office expenses, in his first year in the business.
There's still another very important method of finding new clients, and that is via Direct Mail solicitation. This is done either by postcard or sales letter mailings. For a mailing list of local businesses, check the yellow pages of your telephone directory, under the heading "Mailing lists." Tell the advertiser the kind of mailing list you need - if they don't have it, ask them for the names of suppliers who might be able to supply your needs. Alternately, you could compile your own mailing list of prospects most likely to be interested in your services. Mark the names you want in the area business directory, and pay someone to input these names onto a computer for you. The computer should be able to supply you with peal-and-stick address labels at a nominal cost. Putting your list on computer from the start will save you thousands of dollars in money and count less hours of work.
Your postcard solicitation should basically be an elaboration of your printed advertising. In other words, an ad or a Direct Mail Consultant might be transferred to a postcard along these lines:
Are you having trouble getting results
with your direct mail business?
I can help you! Show you how to double, maybe even triple the response from your mailings! Expand your market! Increase your profitability!
Whatever your needs, I can HELP! Whatever your problems, I can SOLVE THEM! Call now, and let me explain.
After the message on the postcard, add your telephone number and your name, followed by your identification as Direct Mail Consultant.
A direct mail solicitation sales letter simply uses more words than the postcard, reads smoother, and forces the reader to respond as you direct him. Your sales letter can be any length needed to tell your story and achieve the objective. To be successful, though, it must embody and follow the "AIDA" form:
A = Attention; I = Interest;
D = Desire; A = Action on the part of the reader.
Another point to remember when writing sales letters: Always appeal to the needs and wants of the person who's going to be reading the letter. He will start reading to see if your services can benefit him. He is greatly interested in more profits, reduced production costs and higher efficiency. He is looking for answers to his most pressing problems. Keep these elements in mind when you write a sales solicitation letter, whether for yourself or for a client.
People receiving sales letters are somewhat more responsive to a letter that is typed, as opposed to one that is typeset. But the typed letter must be "letter perfect," and not of a different or unusual style of type. As a consultant, your letterhead should be simple while still conveying to the reader a sense of class. Your paper should be the best quality you can afford - not flamboyant, but sending a subtle message of success. Direct mail surveys show that slightly better numbers of responses are received when a light beige or off-yellow paper is used.
Basically, your letter should do what the postcard does for you - move the recipient to call you and allow you to set up an appointment to discuss his needs as your client. Whether you're writing an advertisement or a sales letter, it's important that you have the objective clearly in mind - what you want the reader to do. With this in mind, you needn't use the "hard sell" approach quite as forcefully as someone asking for money on the first contact.
All that's left is meeting with the prospect, listening to his problems, and hearing what he wants, then write out a proposal to solve his problems and satisfy his wants. This means selling yourself to the prospect - assuring him you know what you're talking about, and that you can make him more successful.
There you have it - a plan that can lead you to success as a Business Consultant. Remember, though, no amount of research, reading, listening or investment can make you successful until you do something with them. Action on your part is the absolute ingredient that must be added, and that's up to you.
Both Nick Kakolowski & are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Nick Kakolowski has sinced written about articles on various topics from Home Improvement, Vacation and Home Improvement. About Author:Nick Kakolowski is a freelance writer who writes about topics pertaining to employment opportunities and employment options for
