Congratulations on your choice to start your own consulting business! Like any start-up business, there are various things to consider before you can commence business and thrive adequately in the industry. That is especially important in consulting business because you might have to approach your customers to showcase what you do and the impact of your consulting service on their business. Using a question approach, here is all you need to start your own consulting business in 2024. 

Starting Own Consulting Business – Step-by-Step Guide 

• Registration and License

Whereas you can choose to register a consulting business as a sole proprietor in the United States, if you want to float the business so that liability does not follow your assets and that your consulting business has a separate legal personality different from you, then incorporation as an LLC is a must. For registration of consulting business in the United States, you must contact your State’s Secretary of State. 

A sole Proprietorship is easy to set up, and you can trade under your name. You identify with your business. Thus, all liabilities and costs will be tied to you and all personal assets. Should there be a case where your own consulting business cannot meet its financial obligations, your assets, and other possessions will attach to your liability to the last cent.  

On the other hand, in an incorporated entity such as an LLC, you will have to choose a business or trade name distinct from you. And your consulting business will be floated as a separate entity. Hence, your assets will not be used to settle the company’s debt in case your business is being wound up. 

Do you need a consulting license? That will depend on your State of residence and the type of consulting business or niche area you want to specialize in. For example, those providing consultancy services in accounting and tax preparation will require a license from the relevant regulators or State Boards. 

Entrepreneurs.com emphasized the need to conduct thorough research on any licensure requirement in the State where your business will operate so you can avoid fines and other regulatory penalties. 

• Choose a Consulting Business Niche or Specialty 

This step should have come first. But it does not hurt. We only wanted you to know the legal requirements before you start, as every business will need legal backing before the commencement of business so that you are statutory compliant. 

According to NerdWallet, you must define a niche service for your consulting business. What area or industry do you have expertise in, and have you identified some problems faced in that industry that you are willing to proffer solutions to? If yes, then that is excellent! But if you do not have a niche yet, here is a list of consulting businesses you might consider setting up. 

Types of Consulting Business 

• Human Resource Consulting: 

This type of consulting works with companies to develop HR policies, procedures, and modes of implementation. They work with managers, give advice, and help source talents on the job market for open positions in any organization. 

To succeed as an HR Consultant, you will need a broad knowledge of Labour and Employment Law, interpersonal skills, and to stay updated on ever-evolving HR trends. 

• Finance Consulting:

Consulting business in this area knows efficient management of money. Finance Consultancy helps companies manage a book of accounts, interest rates, loans, raising capital, and other related financial matters. 

You require medium to solid financial expertise to go into financial consulting. The goal is to be knowledgeable in finance and have a knack for advising people from an economic background. 

• Business Consulting: 

Business consulting provides all-rounded guidance to businesses, whether start-ups or large-scale businesses. Their services cut across all areas of business, such as finance, operations and logistics, Human Resources, marketing, and more. 

• Risk Management Consulting:

Risk Managers help organizations identify, measure, and control risk so they do not adversely affect capital and earnings.

• Legal Consulting: 

As the name implies, legal consulting deals with activities that promote compliance with the law and regulations in different sectors of the economy. Some legal consultants help businesses gain incorporation status, draft legal documents, and act as a medium to some agencies, Company Secretaries. 

• Regulatory Compliance:

This is an offshoot of the above, except that their services help companies interface with their regulators. 

• Operations Management: 

Operations management consulting takes charge of running and managing a business seamlessly. They may process logistics and handle some petty activities. 

• Management Consulting: 

This type of consulting advises companies on how they can improve their processes and operations.  

• Marketing: 

Talk about reaching your target audience, pitching, and developing strategies for more patronage. Marketing consultants are your best bet. They are regarded as the most important consultants because their job impacts a Company’s standing in the market. 

• Information Technology Consulting (Digital Consultant):  

With the development of new technologies, Digital Consultants have the expertise of what technology is trending and how it can help your organization make processes easy. They bring the technology to you, help you set it up, manage subscription services, train your staff, and offer maintenance services when needed.  

There are several other consulting niches to explore apart from those stated above. You can also set up an Event Consulting business. Note that there is room for professional growth and development in whatever industry you choose, with dedication and the acquisition of the requisite skills and knowledge. 

• Choose the right consulting model.

We tried to steal into your mind for a few minutes and found that your desire to own a consulting business is to escape from the regular 9-5 hours job you have done all your life. Thus, endeavor to build a model consulting business that fits the lifestyle you want. If you miss the model, your consulting business might end up being worse than the 9-5 hours job you are running from. 

Here are examples of the consulting business model for you: 

• Solo Consultant

If your dream is to work with clients alone and complete any given project by yourself, then Solo Consultancy is the best for you. It is flexible and profitable, and it is a lifestyle business. 

• The Consulting Firm Model

This Consulting business model is best for those with managerial skills who do not want to be involved in the ‘day-to-day’ work, as the team of consultants hired by you will be the ones to work on client projects. 

If you struggle to manage people and do not love the idea of a low-profit margin, this model may not be the best for you. In addition, those who get bored with payroll management will find this model complex. 

• The Productized Consulting Model

Here, your expertise in helping businesses, over the years, to solve their problems is turned into a product that you sell to people.  

Your steps have been used repeatedly, it has generated results, and there are indications that they will always produce predictable results for clients. 

This model may not be the best for you if you want to work on new projects on a repeated basis or if you lack managing and training people to promote your productized services. 

• The Hybrid Model 

You can combine any of the models above into one consulting business or all together. Though, it will require more time, dedication, and resources. In the long run, you will have a scalable consulting business. 

• Market Research and Identification of Target Clients 

Consulting Success write-ups noted that the greatest point many prospective consultants ignore is the identification of ideal clients for their business.  

So that you may not make the same mistake, we recommend that you conduct Market Research. That will help you understand some of the pain points of your ideal clients and thereby have a clearer picture of where you will start to solve the problems. 

Additionally, market research will help identify your competitors and develop strategies to make your business stand out. 

• Drive Organic Traffic to your business with Marketing. 

A consulting business requires some effort from you to get clients. You will have to adopt aggressive marketing when you begin. And after you have got a few clients on board, ensure you deliver the best service so their referrals bring other potential clients to your business.  

Your marketing can start from social media, owning a blog where you dish out thought leadership topics for your audience. Here is how social media is effective for marketing.

• Determine your pricing

Whether short-term or long-term and in either of the industries you choose as a niche, you must determine the rate at which your consulting business will be offered to clients. 

Forbes Advisor’s blueprint is that your pricing should take into account, the preparation required to start the project, if there are necessary tools you will use in the course of the project, and other fees. You may also look at the market and the price of other services in your industry. Kindly do not undercharge, and if you believe you offer more and your service is worth more, you are welcome to charge the best price in the market. 

• Build a website for your own consulting business.

You need a website for your business if you want people to find you when they search for consultants or consulting businesses in their industry. Your aim should be that your website should pop up when clients search for your niche service. To get results, you will need to adopt SEO best practices. If you have a good grasp of SEO, you can do the job yourself or hire someone to help you do it. 

Though building a website might be overwhelming, many Best Website Builders in 2023 make the steps easy and seamless for beginners. Note that you are not required to have coding experience to build a website. However, maintaining and updating the website on an ongoing basis may be tasking. Thus, the need to hire a virtual assistant for that. 

• Special Training

Your expertise in an industry may be sufficient for your own consulting business. However, there are instances where an additional certification may set you apart from others.  

Take, for example, with all the knowledge you have in your niche service, you were invited to give a talk show, identify problems a company is currently facing, and you must present a report to the team or provide feedback on analyzed data. If you are not well grounded in reporting, public speaking, data presentation, or management, you may struggle. 

Thus, having specialized training certification that helps you offer more value to your clients may be a game changer for you. 

To achieve results, consider training courses that are well-aligned with your niche service. 

• Staff Wisely

Your consulting business may not require many hands. But if you need hands to relieve some of your processes, go for the best in the market. You may also consider hiring interns and turning them into Full-Time roles if the experience goes well. Talents on your team may be a breakthrough in your consulting business. 

• Contract 

Ignoring the contract aspect of your business could be detrimental to your consulting business. No matter how familiar the client is, you should always draw up a contract, just in case there arises a dispute in the future. 

In the United States, Contracts are bound by State Laws. However, the requirements are largely the same.  

If you will be drawing up your contracts, here are the essentials your contracts must have: 

• A title 
• Certainty of parties 
• The Terms in the contract must be certain 
• The contribution or supplies required by either of the parties to the contract. 
• Details of the purpose of the project. 
• The cost of the project 
• The commencement date and when the contract will be determined. 
• Execution by both parties. 

To sum up, starting your own consulting business is very straightforward, and you may not require large resources to start out, depending on the type and model of consulting business you want to establish. 

Following the steps above and ensuring you are statutory and tax compliant will ensure your consulting business thrives. The apex is to render services that your clients gain maximum satisfaction from, to enjoy their goodwill and referrals.