30 Tips on How to Start a Consulting Business

by on May 12, 2010

Who is a business consultant?

“A business consultant is the one who consults and manages at profiting and improving an organization.”

And to be a good consultant one must have a good knowledge about the subject one is consulting about.consultany business is a solution to the problems that we find at work.

Most preferred consultancy in today world is the fund-raising consultancy.

Even though starting a consultant business is an exciting but a tricky venture at the same time. Three main things required to start a business needs a lot of 1) time, 2) money and 3) effort.

As this is a really difficult business we can say it cannot be handled by one-and-all.

10 Most preferred consulting businesses are:

1. Accounting

2. Business

3. Communication

4.  Gardening

5. Computer consulting

6. Human resources

7. Insurance

8. Marketing

9. Public relations

10. Taxes

There are many important points that one should keep in mind before starting a consulting business…setting up of the consultancy business should be in a systematic manner.

1. Deciding the purpose of your consulting business – You have to see first that what all requirements will your business would need ,of what all ways you would be adopting to solve problems ,what recommendations should be given ,will you be required to conduct workshops or seminars? How and when the workshops will need to be conducted and also of how many people would be taken for consideration. Would there be a need to launch videotaped, books or CD’s type of products for your business.
2. Be aware of your rights and conditions – To consult at any institution one must have complete knowledge of how and when would they be given the consulting duty, and what area they would be working for. What sort of conditions is the institution putting up, does it suit you or not. How many leaves are you allotted and what sort of visitations will you have to make. The new achievement in consulting business is the online consulting.
3. What type of business it is? – We must be fully aware of whether the business that we are doing is full time of a part time business. As instructors in institutions will begin the business as part time but later over years they decide on how the business would be conducted further, whether it would be turned into full-time or part time.

4. Know more about your field – If you area in consulting business you must have complete knowledge about different areas of work.try to broaden your interest, choose and go for the training if needed. And try to make developments in your consulting business.

5. Identification – One must know and have a targeted audience according to some common features such as background and the ones who would be interested in attending the workshops or purchasing of above mentioned products .try to use the best marketing strategies. Learn the ways to be best competition in the market and come up as an expert consultant.

6. Keep Knowledge – In consulting business it is important keep knowledge of all the competitors in the market what all they do how much they charge.etc

7. Be the best – To be in this business one should be best in competition so as to approach and attracts the clients towards themselves. Also you must have clear specifications about your conditions, capabilities and areas of expertise.

8. Naming of the business – Naming is one of the most important characteristic in consulting business. The name should such that it directly grabs the attention in the market and best suits your area of consulting business.

9. Follow legal structure – For setting up of consulting business one must know what all certifications and special licensing is required whether it is in partnership, corporation, or LLC (limited liability Company). The legal structure includes of how the business is owned, managed, how successful it is and what is the situation of the taxes that they have to be paid.

10. Business blueprint – To work as consulting business we must make a proper business plan. The business plan is a guide which includes of how the business would be set up and every detail that is to be followed step by step.ie; marketing, management, ownership, and also financial aspects.

11. Business location – This business can be easily set up at the home with proper business/office environment. With no personal interference, this type of business carried out at home is called business office.

12. Financing of the business – Before starting of the business we must be very careful about our financial status and look into account of how finance is required for setting it up how much investments do we have to make per year .but if this consult business is part time one it would need less of investment from the personal funds itself, until we require expensive equipments.

13. Take professionals help – We must hire personal specialist such as accountant, lawyer, banker or any other specialist to take timely help from them.  Advancing in business without any financial or lawful obstacle.

14. Deciding the fees for consulting – As mentioned we must set the consultation fee, which may be increased later in time with progress.

15. To start up the business without any obstacle we must ensure that you have obtained the tax and business licenses.

16.  Marketing plan – Just like business plan we must try to setup a marketing plan as well. To decide as to how much time, money and effort must be invested to get the best business profit. We must follow some strategies;

a. Speak to specialists or trusted colleagues.
b. Know about people’s ideas and views about your business by attending conference.
c. Asking some of the clients to fill the questionnaire
d. Taking the help of campus volunteers by trying in your ideas.

17. Cut down expenses – To be a smart business person one must learn to cut down the unnecessary expenses by using all the available resources or borrowing them instead of buying them. This way we can save a lot of money.

18. Timely renewing – One must keep on renewing the products (books, cd’s, videotapes, business-cards, brouchers, etc).
Or produce some of the new and unique products at fixed time intervals.

19. Importance of business checking account – This is the best way to keep a check on income and the business expenses as here in the business checking account the bank keeps all the detailed information of  finance.

20. Business expenses to be made through credit cards – By managing and maintaining a business credit card we can keep a tracing of our expenses hence separate from the personal purchase it keeps a track record of how much money spent, on which date and on which business item.  Many business credit cards will also provide a year end summary to help you prepare for taxes.

21. Taxing information – One must better keep oneself informed and updated about the procedures that are followed for taxing. One can also take a proper help from the accountant as well.

22. Business promotion – One of the best way for business promotion is the online business promotions; you may promote it through a proper website or by providing links to different sites. Once a person on for your site they should see a complete description of your facilities and services you provide including the ways to contact you.

23. Need for insurance agent – when starting a consulting business we idling and managing many sorts of insurance such as life insurance, health insurance  , general liability insurance etc for which we would be needing an insurance agent who would be handling it carefully .

24. Have a business card – To promote business one must carry a business card with your name, company name. So that is gets easy to get clients and for them to contact you.

25.  Have a mailing address – If you are an owner to a home business  office then it becomes really important to have a mailing address through you would be easily able to contact many at the same time ,and expand your business through the help of networking sites.

26. Business phone lines – Business phone lines is an important aspect of contacting the clients you cannot use your personal home number to contact the clients as the environment at home may disturb you and it may not be liked by client as well.

27. Office space – If not possible in the starting but later on as the business widens it gets important and necessary to get a new personal office space.

28. Be a consultant group member – Becoming a member of a consultant group is a really smart idea. As this way we can get a chance to learn from other consultants as well and take their help whenever needed.

29. Finding a client – One must have a “key” client who ensures to take their help and support to a long and trusted period of time. So that we may not suffer loss at any point of time.

30. Try to be prepared for any kind of new project that may come up in future or that you may be taking up next. One must widen the range of their contacts and clients and have meetings with new business associates at least once in a week.

{ 6 comments… read them below or add one }

simran khan April 16, 2011 at 2:12 am

thanks dis tips will really be useeful for me…..i am willing to start a consultancy firm which will be providing services in recruitment, insurance,realestate….so could you please guide me with more tips and procedure for starting consultancy firm.

Reply

Greg Miliates July 9, 2011 at 8:33 am

You’re blog is great, Hope to find more of this blog. Should you need my idea as well, I’m a business consultant too, and would love to share my ideas with your firm. Feel free to visit my site.

Reply

business July 19, 2011 at 12:43 am

Wow, awesome blog. Did you make this on your own?

Reply

Suraya Pillay November 1, 2011 at 12:14 pm

Great blog. I am planning to start a green consulting part time business. Any assistance at this stage is most welcome. I found some of your tips very useful. Tnx

Reply

shire consulting October 10, 2013 at 5:05 am

Also it depends on the field that the consultant is providing the service because they have to adapt and learn new things if the business is totally new to the industry.

Reply

Steve smith May 29, 2015 at 3:21 am

Thanks for the great list and what I have been looking for. Can you tell me what kind of consulting businesses are most successful?

Reply

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