How to start a consulting business in 9 steps.

1. Identify what skills you bring to the table.

Before you build your business plan, take some time to assess your skills and strengths. What value do you provide clients, and how can you translate those talents into a viable business?

Typically, business leaders bring in consultants to provide a fresh perspective and resolve challenges they’ve been unable to overcome on their own. The best consultants tend to possess deep knowledge about a niche topic rather than surface-level knowledge about lots of different fields.

Some common consultancy specialties include public relations, human resources, digital marketing, and information technology. Take some time to reflect and make a list of your greatest strengths.

During this time of introspection, you’ll also need to conduct an objective assessment of your deficiencies. Focus on weaknesses associated with your chosen niche and work on elevating your skill set in the future so you can deliver better value for clients.

Knowing what you are and aren’t capable of will also help you focus on offering services that align with your current abilities. In turn, you’ll be able to better serve the people you work with because you’ll be less likely to work outside your scope.

2. Assess market needs.

Once you’ve looked inward and chosen your niche, shift your attention to your target market.

Think about the common pain points organizations in your market face. Remember, starting a consulting business is all about solving pressing problems for your clients. No amount of skills will translate to success if you can’t link those abilities to real-world challenges.

If you’ve got a network that includes business leaders in your niche, the easiest way to determine their needs is to ask them directly. Consider conducting a survey or chatting with a few company leaders one-on-one. Make detailed notes and look for common themes associated with your niche.

Alternatively, start browsing blogs relevant to your skill set. What questions or topics are trending on Google? Frequently asked questions and popular topics can serve as a good jumping-off point for assessing market needs.

4. Develop a pricing model.

You need to create a rough pricing model to help you decide how much to charge for each service. Setting rigid prices can be tough in the consulting industry, as many of your services will be personalized to the needs of each client. However, some services can include fixed prices, such as your initial consultation.

On that note, not every service needs a client-facing fee schedule. Developing a pricing model is more for internal purposes so you can ensure that you aren’t undercharging clients and eating away at your profits. At the same time, you must make sure your prices are competitive enough to attract business.

One simple way to make your pricing model scalable is to charge by the hour. That way, you can easily provide custom quotes to each client based on the scope of your work and the size of their project.

If you aren’t sure where to begin, consider the average hourly rate for an expert in your field. For instance, if you’re an IT manager, translate your salary into a by-the-hour figure. As you build your brand and refine your craft, you can increase your hourly rate to reflect your growing expertise.

6. Invest in quality tools.

Every great consulting professional leverages a dynamic mix of tools to maximize impact and better serve clients. While many of your tools will be specific to your niche, consultants in every category should invest in general solutions, such as:

• A website

• A content management system (CMS)

• Video conferencing software

• Document management tools such as PDF editing tools

• A project management platform
  
  Each of these solutions fills a specific need within your business. For instance, your content management system will help organize your marketing assets and other documents. Similarly, video conferencing software will promote better communication and collaboration between you and your clients.
  
  While all of these technologies are critical to your business, learning to use lots of new tools can be tedious and difficult. Fortunately, you can soften the learning curve and reduce your licensing costs by sourcing multiple tools from a single provider, such as Adobe.
  
  The Adobe ecosystem includes many of the tools you’ll need to help your business thrive. From a PDF editor that supports online signatures to project management software, you can find it all in the Adobe product suite.

7. Master the elevator pitch.

An elevator pitch is a concise breakdown of a prospective client’s challenge, the solution you provide, and what makes you different.

This type of sales pitch gets its name because it should last about the same amount of time as an average elevator ride. Imagine you just got on an elevator with someone, and you have to sell them your services before they arrive at their floor. What would you say in that brief window?

Don’t get into the weeds. Instead, focus on the basics like what you do, what problem you solve, and your unique value proposition. Your goal is to hook the client on your services and encourage them to choose your consulting business.

After delivering a captivating elevator pitch, seal the deal with a detailed proposal where you can unpack specific benefits and lay out your plan for solving the client’s problem.

9. Deliver results, gather feedback, and improve.

Once you’ve landed a client, it’s time to make good on all of those promises you made during your elevator pitch and written proposal. You’ll need to remain organized, especially if taking on multiple clients at once. Keep an eye on upcoming deadlines and do your best to ensure that each client enjoys a frictionless experience.

Set clear expectations (and boundaries) when forming relationships with clients. Let them know what level of support and participation you need from them to provide results. Also, be clear about when they can and cannot reach out to you with questions and support, which can be particularly important if your clients are in different time zones.

After you have completed a few projects, start exploring opportunities to automate certain tasks, such as invoicing clients and tracking hours. Be as transparent as possible to promote trust with your clients.

Gather feedback from each client and learn how you can improve in the future. Be open to constructive criticism and leverage these insights to become a more dynamic and well-rounded consultant. Positioning yourself as a people-first consultant can encourage clients to leave positive reviews and refer others to your business.