Consultancy is a large and profitable industry. Organizations around the globe spent more than $155 billion in 2018 on consulting firms.
India has five of the largest IT consultancies in the world. That is more than China, Ireland, and France combined. And it is two less than the United States if you consider the companies whose outsourcing practice is at the core of their business, like IBM for instance, according to a report published in Forbes.
In India companies like Wipro, Infosys, Tech Mahindra, and TATA Consultancy Services are the big names in the industry. However, where small and mid-level businesses are concerned, there are many industries and business owners who have plenty of professional challenges and are looking for business coaches to resolve their business challenges.
If you want to start your startup, starting a business consulting firm is a lucrative business idea. All you need to discover is your strength and expertise in a particular field.
Life as a consultant has a lot going for you in 2023. Here is a definitive step-by-step guide to starting your consultancy firm:
1. Choose your Segment
A consultant is a professional who is an expert in a particular field. It not just provides you an edge in the market but also helps you to differentiate yourself from all the other generalized consultants.
If you have a problem with your eye, would you go to an optician or a general physician? Optician, right? Similarly, when planning to start a consulting business, it is highly recommended to specialize in a niche segment. Knowing that you are an expert in their issue will give confidence to your clients. After all, they are going to invest their money to pay your fees.
Have a business idea? You can hire a business coach as well for your business.
2. Get Proper Certification & License
Based on your profession and specialization, you may need special certifications or licenses. For instance, you will have to register as a professional fund-raising consultant before starting any consultancy services.
3. Define your Consulting Services
Consulting is a broad and vague concept. But clients and potential clients do not pay money for vague promises. Hence, you need to showcase the specific consulting services you will offer and deliver to your existing as well as new potential clients. You can start by analyzing your skillset and brainstorming the general consulting services before you take up any new project.
This could be beneficial for both you and your clients. Your clients can make a comfortable, clear, and informed decision. You should also understand why clients hire consultants. Some businesses hire consultants to supplement their staff, identify and resolve problems, to promote change, to influence important decision-makers. As a consultant, your services and deliverables are foremost important for the business. Once you know what you will be offering to your clients, you are ready to take on the world with your next step- writing a business plan.
4. Write a Business Plan
When starting a business, entrepreneurs tend to make multiple mistakes and rush into things without considering the crucial element of their business - a clear vision and goal.
A clear and well-defined goal helps you to focus solely. And the focus comes from a business plan. Though writing a business plan is not necessary, it can help you crystallize your innovative ideas and avoid mistakes.
Entrepreneurs who take time to write business plans when starting a business are 2.5 times more likely to get their business off the ground. But do not get obsessed with writing every other small detail. You can write a concise business plan and start working on it.
5. Decide your Legal Business Structure
Before you start your small business consulting services, you need to decide which type of entity you need to register. As your legal aspect of business affects everything, do not rush yourself into deciding to register your business immediately.
Spend some time reading about all four types of business entities:
a). A sole proprietorship
c). Limited Liability Company (LLC)
Starting a business from scratch is not easy. Hence, pay some attention to developing your brand identity. Once you have defined your brand, you can start and run a consulting business. To learn how you can run a consulting business smoothly, you can take our ‘Business coaching program’. To know more about it, click here: www.badabusiness.com