If you have a niche skill that businesses could leverage to achieve additional brand awareness, increased efficiency, or more profits, it might be time to learn how to start a consulting business.
Consulting is a massive field, and it’s still growing. The US Bureau of Labor Statistics estimates that over the next decade consulting jobs will increase by 11%, which is much faster than the average growth rate for most customer service jobs.
But, how can you break into this fast-growing industry? In this guide, we’re breaking down everything you need to know about how to start a consulting business. We’ll start with a brief run-down of consulting before jumping into eight steps for successfully launching a consulting brand.
Before we explain how to start a consulting business, let’s quickly explore what consulting is all about—what consultants do, how much they make, and whether or not consulting is right for you.
Consultants are industry experts who provide their niche, in-depth knowledge, and expert advice to aspirational businesses and the prospective client.
For instance, a newly-opened nail salon might reach out to a consultant for advice on:
Or, as an individual, you might seek out a consultant to help you meet your personal goals related to:
If someone needs advice in a specific area, a consultant is there to provide it—and help a business or individual conquer their goals.
In 2021, the median pay for consultants was $93,000/year or $44.71/hour. That same year, the median household income across the US was $70,784—so, consultants made almost 31% more than the average worker that year.
Depending on your lifestyle, the number of people in your household, where you live, and your current debts, consulting could be a profitable career choice. But, remember that you might not make this much in your first year on the job.
If you aim to become a consultant, the path you take will depend on what industry you plan to consult for. In general, however, consultants need to have a few special skills:
If you can make and stick to a tight schedule, you’ve never left an email unanswered, you know your worth, and you’re a master of one specific skill, you could have a promising career in consulting.
If you’re the ideal candidate for starting your own consulting business, read on—we’re going to break down eight steps for future consultants who are ready to build their brands.
Even if you have the skills listed above—superb communication, excellent time management, tenacity, and tech literacy, to name a few—what special skill do you plan to market?
While pinning down your consulting discipline, think about:
Once you find your niche, you may still need to improve other skills in your arsenal to excel at consulting.
For example, perhaps you’re considering becoming a restaurant industry consultant. While you might know how to organize, staff, and run the perfect kitchen, you may still have more to learn about:
If there are gaps in your knowledge, it’s time to track down what you don’t know. Expand your skills arsenal to increase your effectiveness as a consultant.
Before you throw your hat into the local consulting ring, check out your competitors to explore:
Let’s explore a real-world example. Velie Consulting Services, LLC, based in The Villages, FL, offers a tax return preparation service. Before launching their brand, the company likely scouted out the competition’s:
Before you can enter a competitive industry like consulting, you need to understand against whom you’re competing. Put your sleuthing cap on and see what the current market has to offer.
Before you can start marketing your services, you need two critical pieces of information:
While you can keep your prices slightly more confidential, you should be as clear and specific about your services as possible.
Check out Joyride Consulting in Austin, TX, for example. On their Nextdoor Business Page, they list numerous services available to clients, including market research, product ideation, prototyping, and UX design. The brand is specific about what it can offer to businesses and individuals, and your slate of services should be just as precise.
Once you’ve determined which services you’ll offer to future clients, it’s time to shout your brand from the rooftops. You can get the word out by:
Your marketing efforts should encompass three major avenues—verbal advertising, written or visual materials, and online efforts.
For the latter, there’s no better tool than Nextdoor. As a business owner, you can use Nextdoor to:
The best part—it’s free. If you’re looking for the locus of neighborhood business marketing, turn to Nextdoor as you grow your consulting brand.
As you market your consulting business and start to work with your first few clients, remember that the longevity of a business relationship is key to continued profits and brand awareness. So, while you’re working with a client, brainstorm some ways that you can support them in the future.
For example, if you’re consulting for a company trying to build an airtight HR department, you could offer the following services three months, twelve months, or five years from now:
To future-proof your business, it’s important to consistently think about how you can continue to help the clients on your roster after their contract ends.
As long as you have the discipline, people skills, and business savvy to become a consultant, remember that the other crucial element—expertise in a specific area—doesn’t have to stay the same forever.
As you grow your business, consider making a plan to branch out to other niches. For instance, if you’re offering financial planning to new college graduates, you could learn more about the following topics to expand your slate of services or market to new user groups:
Every new skill you learn is a chance to grow your business.
While you shouldn’t be afraid to branch out when you’re ready, remember to stay current with your areas of expertise, especially if you plan on consulting in the tech industry.
As long as you’re offering a service to a client, you should always be in the know about that topic’s:
Your clients trust you to provide expertise that’s accurate, useful, and up-to-date. You can achieve the latter by keeping up with the ins and outs of your industry at all stages of your business’s growth.
Learning how to start a consulting business can seem intimidating. But with a commitment to your industry, the marketing chops to get the word out, and the business savvy to identify and harness new opportunities for growth, you can build a consulting brand from the ground up.
While consulting work can be remote, your local economy is a gold mine of potential clients—and reaching them has never been easier. With a Nextdoor free Business Page, you can grow your market presence in your own backyard.
Among Nextdoor users, 88% shop at a local business once per week and 44% are willing to spend more to support a neighborhood brand. Your community wants to shop local, and they’re using Nextdoor to find their new favorite businesses.
Whether you’re looking to connect one-on-one with new customers, scope out the competition in your area, or plan a joint promotion with another local business, Nextdoor can put your business on the map and help you crush your goals as you grow your brand.
Sources:
US Bureau of Labor Statistics. Management Analysts. https://www.bls.gov/ooh/business-and-financial/management-analysts.htm
Indeed. Consultant Job Description: Top Duties and Qualifications. https://www.indeed.com/hire/job-description/consultant
US Census Bureau. Income in the United States: 2021. https://www.census.gov/library/publications/2022/demo/p60-276.html