Getting Started in Consulting, Second Edition

1. Establish a solid foundation: Incorporate and set up your office

Act Like You Have a Business and You'll Have One

Incorporate your business. This creates a legal entity that separates your personal and professional assets, providing essential protection. Choose between subchapter S, C corporation, or LLC based on your specific needs and consult with an attorney specializing in professional services firms.

Set up a professional office space. Whether at home or elsewhere, create a dedicated, private workspace. Essential equipment includes:

• Computer with high-speed internet
• Multi-line phone system
• Printer, copier, and fax machine
• Professional-grade postage meter

Establish business banking. Open separate checking and savings accounts for your business. Meet with the branch manager to discuss your needs and potential for future growth.

2. Create a compelling brand identity and marketing materials

If you don't blow your own horn, there is no music.

Develop a strong brand. Work with a professional designer to create a logo, business cards, and stationery that reflect your unique value proposition. Ensure your materials convey professionalism and credibility.

Create a comprehensive press kit. Include:

• Results clients can expect
• Testimonials (or character references if just starting)
• Biographical sketch
• Position papers showcasing your expertise
• List of services offered

Establish an effective web presence. Design a professional website that serves as a credibility tool, not a sales platform. Key elements:

• Clear articulation of client results and value
• Easy navigation and fast loading
• Regular updates with valuable content (articles, resources)
• Professional contact information

3. Develop a diverse network and leverage relationships

Networking is the interactive pursuit of others and development of reciprocally beneficial relationships through interpersonal, telephonic, electronic, and correspondence activities.

Build a robust network. Systematically reach out to:

• Former colleagues and clients
• Professional association members
• Community leaders
• Industry experts

Provide value first. Focus on how you can help others before asking for anything in return. Share relevant articles, make introductions, or offer insights based on your expertise.

Engage in strategic pro bono work. Choose organizations that align with your values and provide access to potential clients or influential decision-makers. Use these opportunities to showcase your skills and build relationships.

4. Master value-based pricing to maximize profitability

If you bill by the hour, you cheat your client and yourself.

Abandon hourly billing. Instead, focus on the value you provide to clients. This approach allows you to earn fees commensurate with the results you deliver, rather than being limited by time-based constraints.

Educate clients on value-based pricing. Emphasize benefits such as:

• Predictable costs with no surprises
• Focus on results rather than time spent
• Alignment of interests between consultant and client

Provide options. Present multiple project scopes and corresponding fees, allowing clients to choose the level of investment that best suits their needs and budget.

5. Craft persuasive proposals that showcase your value

Proposals are summations, not explorations.

Focus on outcomes. Clearly articulate the specific results clients can expect from your work. Use concrete, measurable objectives whenever possible.

Structure your proposal effectively:

1. Situation appraisal
2. Objectives
3. Measures of success
4. Value to the organization
5. Methodology and options
6. Timing
7. Joint accountabilities
8. Terms and conditions
9. Acceptance

Keep it concise. Aim for a 2-3 page proposal that succinctly communicates your value proposition and project details.

6. Implement a systematic approach to generating leads

Marketing is the act of creating and accentuating need among potential buyers of your services.

Leverage your existing network. Create a comprehensive list of contacts and systematically reach out to inform them of your new venture. Ask for referrals and introductions to potential clients.

Target high-potential organizations. Identify 10-15 companies that match your ideal client profile. Research their needs and craft personalized outreach messages highlighting how your services can address their specific challenges.

Create a consistent marketing routine. Dedicate time each week to activities such as:

• Writing and publishing articles
• Engaging on social media platforms
• Attending industry events
• Following up with prospects and referral sources

7. Continuously refine your skills and expand your offerings

The more you learn, the more valuable you are.

Invest in ongoing professional development. Regularly attend conferences, workshops, and seminars to stay current with industry trends and best practices. Consider pursuing advanced certifications or degrees relevant to your field.

Develop passive income streams. Create products such as books, online courses, or subscription-based services that generate revenue without requiring your direct time investment.

Seek opportunities for thought leadership. Aim to become a recognized expert in your niche by:

• Publishing articles and books
• Speaking at conferences
• Engaging with media as an industry expert
• Developing a strong online presence through blogging and social media

Mentor others and give back to the profession. As you become established, share your knowledge and experience with aspiring consultants. This not only contributes to the field but also reinforces your own expertise and opens new networking opportunities.

Last updated: October 3, 2024