software consulting business plan

• eSignatures
• Product updates
• Document templates

The blueprint for crafting your effective consulting business plan

Keith Rabkin Chief Revenue Officer for PandaDoc

• Copy Link Link copied

Ever tried to put up a tent blindfolded? Navigating the consulting world without a business plan can feel the same overcomplicated.

We created this guide to help you set a strategic, actionable plan on how to operate your early-stage consulting business.

We’ll help you define your services, set achievable and clear goals, and arrange strategies for growth.

So are you ready to pitch your tent with both eyes open?

Key takeaways

• A consulting business plan starts with defining your unique selling proposition (USP). Identify a niche and ideal client by conducting thorough market research and competitive analysis.
• Develop a 12-month marketing strategy with specific targets. Allocate 10-15% of projected revenue to marketing for optimal results.
• Realistically estimate your expenses and revenue based on billable hours/fees and retention rate assumptions.
• Use a proven template rather than starting from scratch to not overlook important elements of the plan.

What is a consulting business plan?

A business plan is a document covering all the aspects of your future consulting business in terms of achieving business goals.

In other words, this specific plan removes the guesswork from how one runs their consulting business.

In the upcoming sections, we’ll explain the key pieces needed to create your business plan.

Your consulting business plan should offer a detailed overview of your consulting firm.

Let’s briefly review the essential sections of the plan and what should be in each of them.

• Executive summary is a short overview of the main points of the document.
• Business overview highlights the mission, vision, history, and services offered by the consulting firm.
• Management team provides bios and expertise of key team members.
• Customer analysis defines target clients, their needs, and how the consulting service solves their problems.
• Industry analysis evaluates the landscape including growth, trends, regulations, and competition.
• Competitive analysis compares the consulting firm’s positioning and offerings versus competitors.
• Marketing plan outlines promotional strategies, lead generation, and metrics.
• Operations plan details the logistics of service delivery, staffing, resources, and customer service principles.
• Financial plan projects costs, revenue, cash flow, and profitability timelines.

Key steps for developing your consulting business plan

Building a thriving consulting business requires thorough planning and a keen eye for detail. Let’s walk through this journey step-by-step.

Step 1. Identify your niche and ideal clients

Kick off your business plan by diving deep into industry research. Look for sectors and trends where there’s a gap that your expertise can fill.

To validate the demand, consider surveying potential clients.

Once you’ve got a handle on that, create a detailed profile of your ideal client , considering factors like their company size, revenue streams, challenges, and objectives.

By the way, focusing on ideal buying personas in B2B (with all these fictitious names, bios, etc.) is one of the greatest sales mistakes, according to Corporate Visions’ findings and Gartner B2B sales research results.

Step 2. Analyze the competition

Understanding your competition is crucial. Examine competitor services offered, how they are marketed, and what they charge.

This is your chance to find your unique selling proposition.

Step 3. Set your rates and service packages

Following the actual industry norms to appoint your consulting fees. However, the price that you use should mirror both your expenses as well as the premium value that your expertise brings to your clients.

Let’s say you work out your overhead costs (utilities, office rental, equipment, etc.) to be roughly $50 per hour, while your hourly work value, which includes your experience and knowledge in this field, is $100.

So, your primary costs in total for an hour of consultation would be $150.

A standard practice in the consulting industry is to have a 100% markup rate on your primary costs.

Applying that rule to your scenario would mean doubling your total cost of $150, which brings your final hourly rate to $300.

Create bundled service packages that combine different services, such as business strategy consultation, market analysis report, and a follow-up action plan. You can offer these at a discounted rate compared to purchasing each service individually.

For example, Bronze is an entry-level package with initial consultation and some basic professional business advice.

Silver is a mid-tier package covering everything from the Bronze plus a detailed action plan for improving business operations.

Finally, the Gold package is a top-tier one complementing what’s in Silver with extended support and follow-ups.

Step 4. Create a marketing and client acquisition strategy

Outline a 12-month marketing strategy that includes a mix of content marketing, events, referrals, and lead-generation campaigns .

Set achievable targets for each quarter, focusing on metrics like leads generated, sales appointments set, and deals closed.

When it comes to budgeting, aim to allocate 10%-15% of your projected revenue or even more to marketing.

According to Gartner, the average startup spends 11.2% of its revenue on marketing.

Step 5. Calculate potential project expenses and revenue

You’ll need to account for various expenses, including staffing, office space, equipment, software, and marketing.

Don’t forget about professional services, travel, and other overhead costs.

On the revenue side, forecast your monthly earnings based on projected billable hours or fixed fees, and assume a client retention rate between 80%-90% .

Extend these projections to create 3 to 5-year profit and loss statements and cash flow forecasts.

Step 6. Plan for sustainability and growth

Your business plan shouldn’t just be a launchpad; it should be a roadmap for long-term growth.

Given that self-funding for growth beyond 20% annually is often unrealistic for most consulting firms, you’ll need a plan B.

One smart move is to establish strategic financial partnerships with investors, banks, or other financial institutions.

These partnerships can offer the capital injection you need to scale your services, break into new markets, or even acquire other businesses. 

More than just a financial lifeline, these partnerships can also provide invaluable business insights and open doors to new opportunities.

Step 7. Use an appropriate consulting business plan template

Having a consulting business plan template is like having a roadmap for your contractual relationships.

It ensures you don’t overlook key elements such as scope, payment terms, and legal considerations.

Consultant Business Plan Template

Used 4999 times

An example of a document outlining your strategy for launching or expanding your consulting firm is a Consultant Business Plan Template. The essential elements include a summary of the company, team, sector, rivals, target audience, and an operations and marketing strategy.

Customize it and review it with a legal advisor to ensure compliance.

Why developing a consulting business plan is so important

Let’s talk about the positive outcomes of planning. A well-defined consulting business plan…

…directs your business operations

A business plan defines your strategy and major goals, simplifying day-to-day decision-making and helping you focus on long-term objectives.

In other words, you know what to do next at any given moment of operating your early-stage consulting business.

…mitigates your risks

With a comprehensive business plan in place, you can anticipate and prepare for potential challenges, turning risks into opportunities.

…attracts investors

If you want to secure investments, the first thing venture investors or business angels will ask you for is (surprise, surprise) a business plan.

Not just any plan, but a detailed, convincing blueprint of your consulting business that highlights growth and potential returns.

Wrapping up

A well-crafted consulting business plan is essential for guiding your strategy, operations, marketing, finances, and growth.

Carefully working through each component will ensure you launch your firm following a clear plan on how to achieve success.

Using business planning platforms like PandaDoc that offer templates and tools can help streamline creating a professional plan.

The software also enables real-time collaboration so you can work seamlessly with colleagues and advisors.

PandaDoc is not a law firm, or a substitute for an attorney or law firm. This page is not intended to and does not provide legal advice. Should you have legal questions on the validity of e-signatures or digital signatures and the enforceability thereof, please consult with an attorney or law firm. Use of PandaDocs’ services are governed by our Terms of Use and Privacy Policy.

Related articles

Proposals 24 min

Document templates 15 min

Sales 9 min

Software Consulting: How to Start a Software Consulting Business

You can take your experience in software development and use it to create a software consulting business. 

We’ve helped a number of consultants do just that.

Consider the case of Blake Waldon , founder of Black Owl Strategies.

Blake combines his expertise as a programmer with his skills as a consultant to create customized software for wealth management firms that enables them to make data-informed decisions.

As an entrepreneurial software consultant, you are offering what you’ve learned over the course of your own career to other organizations.

In this article, we’re going to show you step-by-step how to create your own profitable software consulting business using the skills you’ve developed in the software world.

Software consultants in our Clarity Coaching Program like Sam Schutte routinely make $250,000 per project or higher .

What Is a Software Consultant?

A software consultant is an independent expert with particular expertise in IT, programming, and/or software development.

They typically help clients strategize, design, build, and implement software solutions to solve their business challenges.

What are some reasons why a business might hire a software consultant?

• To increase efficiency by implementing new technology.
• To address and create solutions for overcoming technical issues.
• To introduce best practices in development and infrastructure.
• To provide much-needed tech skills to help their team meet goals.

Here’s an example from a software consultant — one of our Clarity Coaching clients:

Businesses often struggle with operational inefficiencies that make it harder to achieve their goals. However, solving these inefficiencies can be daunting.

Sam Schutte’s consulting company, Unstoppable Software , identifies problem areas that are creating these inefficiencies and develops user-friendly software tools to help clients solve them. 

As they say on their website , “Unstoppable Software delivers high-quality, usable, and innovative solutions that drive business outcomes.”

An Example of Software Consulting Services

Software consultants address a wide range of client needs and provide numerous services, expertise, and advice.

With his background in both finance and software development, Blake Walden of Black Owl Strategies knows that companies, especially wealth management firms, often struggle to acquire the data they need to make smart decisions.

In his business, he applies his expertise to design data-centric software solutions for clients that would help them make data-informed decisions, cut technology costs, and streamline workflows.

In his own words, “We help companies who are feeling overwhelmed by their data gain control.”

He’s helped clients cut their tech costs by as much as 25 percent and streamline their workflows by as much as 85 percent .

If you want your software consulting business to take off, you need to narrow your focus and aim at a specific target market.

5 Steps to Become a Software Consultant

So, how do you take all of your experience in the software world and turn it into a profitable software consulting business?

Follow these five steps.

1) Get specific about your ideal software client

All kinds of organizations need software solutions or advice about technology. They come in all shapes and sizes, and they exist in practically every industry.

You can’t possibly reach out to all of them. If you try, you will only spread yourself too thin and diminish the impact of your message.

Instead, if you want your software consulting business to take off, you need to narrow your focus and aim at a specific target market.

Get very specific about who your ideal client is so you can reach them with magnetic messaging that speaks directly to their needs.

For example, Blake Walden specifically targets wealth management firms because he brings a unique combination of expertise from the worlds of finance and computer programming.

Sam Schutte , on the other hand, targets mostly manufacturing and engineering clients, because he knows how much organizations in those industries deal with operational inefficiencies.

With a well-defined ideal client, you also have an easier time communicating the value of your services and setting higher prices.

2) Write messaging that attracts your ideal client

Magnetic Messag ing  is tailored to your ideal client’s specific wants and needs, so when they encounter your content, they will feel understood. More than that, they will see the real value in the solutions you offer .

For example, a manufacturing company might struggle with eliminating operational inefficiencies caused by older technology, but they lack the expertise to identify and implement a newer system.

When they come across messaging from Unstoppable Software, they think, “Wow, these experts are helping manufacturing businesses move mountains. They clearly understand the tech challenges of our industry.”

To create impactful messaging, use the following framework: Problem – Action – Results .

You probably already know some of the software or tech-related problems that your ideal clients struggle with. Make a list of these problems.

• Maybe they’re looking for a software tool that will save them time and money;
• Maybe they are looking for a way to gather more data so they can make data-driven decisions;
• Or maybe they need help overcoming some process-related issues caused by outdated tech.

In your messaging, let your ideal client know that you understand their specific technology challenges.

Then, explain how you use your expertise and skills to help clients just like them to solve those challenges.

Finally, share the results they can expect to achieve from implementing your solutions.

• Problem : Your ideal client deals with a lot of frustrating lag time in their operations due to a lack of user-friendly tech.
• Solution : You offer a three-day workshop that helps organizations identify their specific tech needs and come up with a customized solution that boosts operational efficiency.
• Result : Clients who have attended the workshop have increased their operational efficiency by an average of 40 percent.

To make this process as simple as possible, refer to our “ Magnetic Message Formula ” which will help you create a straightforward and effective message to attract your ideal client.

Here’s what it looks like:

I help [WHO] to [solve WHAT problem] so they can [see WHAT result].

Remember, as a software consultant, your job is to understand deeply the specific software or tech-related challenges that organizations deal with and to create offers to solve those problems.

3) Create and price your strategic offer

The value a software consultant offers is simple to communicate: your ideal client has tech-related challenges, and you, the software consultant, offer customized solutions for overcoming them.

Your expertise is going to help your client achieve their desired outcomes, and that is why they will invest in your consulting fees .

To justify the fee you charge, you need to communicate the positive impact your services are going to make on their organization.

For example, if you can increase their operational efficiency by 50 percent through a new software solution, that will make a big difference in their growth and profitability.

To that end, we don’t advise using hourly fees, because much of a consultant’s work is spent “off the clock” winning new clients. An hourly rate won’t cover all of the other work you must do to build your business.

Instead, we recommend setting value-based fees  that will provide income for both the tangible and intangible value you create for your clients.

4) Rev up your marketing engine

Many of your ideal clients probably don’t even know software consultants exist, so they’re not actively looking for your services. Unless you reach out to them, they’re not going to ask you for help.

It’s up to you to spread the word and explain the value you offer. Help your ideal client get to know you so they come to trust you. That’s the essence of effective marketing.

As you build trust over time by sharing your expertise, clients with software-related problems will start to think, “Hey, that consultant really seems to know what they’re talking about. I’ll bet they could help us.”

In our experience, the most effective way to market yourself like this is to practice Outreach , Follow-up , and Authority-building .

• Outreach  – Share valuable content with your ideal clients directly through LinkedIn or email. By adding value to their lives, you generate interest in your services.
• Follow-up  – Add more value over time by sending clients direct messages or emails on topics relevant to their industry or their niche.
• Authority-building  – Publish regular content on your blog, website, and social media platforms to position yourself continually as a software or tech expert. This will bolster your outreach and follow-up efforts.

When your marketing combines outreach, follow-up, and authority-building, you continually build relationships with your ideal clients and create opportunities for meaningful conversations.

5) Create meaningful conversations

How do you know when your marketing engine is churning along effectively? Because prospective clients will begin responding and reaching out to you.

They’re already getting value from you, which inspires them to have meaningful conversations about their software or technology needs.

Just remember, in these conversations, your goal is not merely to close the sale. Rather, you want to help the client understand their situation more clearly and envision their desired outcome .

Once they agree that you provide the right solution, only then can you make them an offer like this:

“It seems like our software roadmapping session would give us the perfect opportunity to discuss and design a custom software solution that would help you achieve your goals.”

Software Consultant Case Study: Sam Schutte

At this point, you probably have two questions: How much should I charge my clients for my consulting services? And how much will clients be willing to pay?

Of course, your income will vary depending on the services you offer and the kinds of clients you work with.

However, you can only earn those kinds of fees if you charge per-project fees rather than an hourly rate.

Let’s look at the example of Unstoppable Software .

Sam Schutte’s consulting business has identified a few key business problems that they can solve with their technology services. For example, many manufacturing and engineering companies struggle to integrate legacy systems with newer technology.

So they can speak to this issue very clearly: “Do you struggle to connect your older, on-premises systems to newer cloud-based digital technologies? Is this causing operational headaches and slowing you down? We can help by connecting your legacy systems to modern application with our customized APIs.”

Sam credits our Clarity Coaching Program with helping him communicate the value of what he has to offer clearly, which enabled him to charge much higher fees.

As he put it, “I would have charged a lot less in the past for a project because back then I wasn’t able to connect the value to the price.”

The steps we’ve shared with you in this article helped him break $1 million in annual revenue for the first time in his company’s history.

By learning how to identify his ideal client, create a portfolio of services with clear pricing, and build compelling messaging around it.

Get Personalized Coaching To Become A Software Consultant

We’ve helped many software consultants start and grow their businesses — and we can do the same for you.

We’ve worked with software consultants and understand the specific nuances of starting, growing, and scaling a software consulting business specifically.

Learn More About Clarity Coaching

We’ll work hands-on with you to develop a strategic plan and then dive deep and work through your ideal client clarity, strategic messaging, consulting offers, fees and pricing, business model optimization, and help you to set up your marketing engine and lead generation system to consistently attract ideal clients.

We will help you to clearly define your ideal client, create impactful messaging, set a generous pricing structure, develop a robust marketing engine and lead gen, and build an optimized business model.

Leave a Comment, Join the Conversation! Cancel reply

Your Email will be kept private and will not be shown publicly.

Privacy Overview

Consulting Business Plan: Complete Consultant Template & PDF

This consulting business plan is a comprehensive copy/paste example that includes an operating and marketing plan for any kind of consulting business. You can download it and make edits to create a plan for your business, whether you’re a startup consultant business or an existing consulting firm that wants to grow faster.

(Estimated reading time: 19 minutes)

Table of Contents

Consulting Business Plan Template

This plan for consultants contains in-depth information to build your own version. Simply modify the examples in this consulting plan to fit your specific line of work and you can quickly create a plan for industries such as (but of course not limited to):

• management consulting business plan
• advertising and marketing agency business plan
• healthcare consulting business plan
• IT consulting business plan
• fintech consultant business plan
• environmental consulting business plan
• security consulting business plan
• software consultant business plan

This business plan for consultants covers the following topics that go into a plan: your service list and descriptions, target market, marketing strategies for consultants, competition, and financial projections. You can download this example plan as a Google Doc for easy editing in Google Docs, Microsoft Word, Apple Pages, or save it as a PDF:

How to Use This Consultant Business Plan to Attract Clients

• Consulting Business Plan Template – This section provides guidance on what to include in each part of your business plan.
• Sample Consulting Business Plan Text – This part includes actual text from a real consulting business plan example that you can use as-is or modify to fit your specific needs.

Since many consulting businesses are established by solo practitioners, this consulting business plan example will focus on one-person firms. However, if you have partners or are part of a larger company, you can easily adapt this plan by replacing singular pronouns (I) with plural forms (we).

To help you chart a revenue course to starting your consulting business, this business plan example also includes a brief overview of a marketing plan. I recommend taking a look at (even downloading) my detailed marketing plan example as a model for yours.

Sample Consulting Business Plan

Let’s begin with the sections that make up your consulting business plan. I include sample text below the description of what to focus on within each section.

The first section of your business plan introduction is critical for framing your consulting practice.

1. Consulting Business Plan Executive Summary

Here are the key topics to focus on in this section of your consultant business plan:

• An introduction to your consulting business and the services you offer
• A summary of your target market and their needs
• Your key differentiators and what sets your consulting business apart from competitors
• Your approach to delivering high-quality consulting services and achieving measurable results
• A summary of your marketing strategy and how you plan to reach your target market

Consultant Business Plan Executive Summary Example

I specialize in strategic planning, market research, and growth strategies for small and medium-sized technology businesses that cater to the financial sector (i.e., fintech). Additionally, I offer consulting resources such as training programs, workshops, and customized solutions tailored to each client’s unique needs.

My consulting business is built on the belief that every business has the potential for growth and success. To achieve this, I work closely with my clients to understand their goals and challenges, and develop customized solutions that help them achieve their objectives.

My target market consists of small and medium-sized businesses in the financial technology industry, a.k.a. fintech, who are looking to make their operations more efficient based on data and methodical research. My management consulting services are tailored to meet their unique needs, and my approach is focused on delivering measurable results that align with their business objectives.

What sets my consulting business apart from competitors is my focus on collaboration and transparency. I believe in working closely with my clients to develop solutions that are customized to their specific needs, and I keep them involved in the process every step of the way.

To reach my target market, I will establish a strong online presence through content marketing and search engine optimization (SEO for consultants). I will leverage social media platforms to engage with potential clients and showcase my expertise in the fintech industry as a top consultant.

My consulting business is committed to helping businesses solve challenging business management problems that require rigorous analysis and careful calculations. With a focus on delivering innovative solutions and building strong relationships with my clients, I am confident in my ability to help businesses succeed and thrive in today’s competitive market.

2. Consulting Business Plan Service Description

Every consulting business description is slightly different. I’ve provided two variations in this section so that you can identify which one resonates best with your goals. Each version provides similar information, but is structured differently. I have also included consulting service description examples for each version.

Version 1: Service Description

Focus on these elements for this section of your business plan:

• The types of consulting services you offer and their value proposition
• A description of the types of clients you serve and the problems you solve for them
• A summary of your consulting methodologies and tools
• An explanation of the benefits your clients can expect to receive from your services

If you are an independent consultant or small group, even in serving in a consulting capacity at a different firm, you can introduce the fact that your years of experience enable you to offer the same caliber of services that larger more expensive firms provide at significantly higher rates.

Sample Consulting Service Description

• Achieving product-market fit
• Improving operational efficiency
• Enhancing strategic planning and decision-making processes
• Implementing change management initiatives
• Developing growth strategies and market expansion plans
• Optimizing financial performance and risk management

My consulting methodologies are based on a data-driven approach that combines qualitative and quantitative analysis to identify and solve business problems. I use a variety of tools and techniques, including process mapping, benchmarking, and SWOT analysis to develop customized solutions for each client.

Working closely with my clients, I help them develop actionable plans and implement them efficiently to achieve measurable results. By leveraging my expertise and experience, my clients can expect to:

• Improve profitability and reduce costs
• Increase efficiency and productivity
• Enhance customer satisfaction and loyalty
• Expand into new markets and drive growth
• Stay ahead of the competition and achieve sustainable success

I will share examples of past projects that provide a detailed framework along with results to show clients what they can achieve by hiring my consulting business.

With my 15 years of niche industry experience and wealth of successfully completed projects, I am able to offer exceptional high caliber service at lower overall rates than larger firms. My management consulting services are designed to help businesses achieve their full potential and thrive in today’s competitive marketplace.

Version2: List of Business Consulting Services

Before you start writing this section, ask yourself the following questions to help define and refine your consulting services. For this consultant business plan example, I’ve included the following prompts to focus on what a management consultant would focus on. Tweak these as needed for your line of consulting.

• Types of consulting services : Describe the different types of management consulting services you offer, such as strategy consulting, organizational design, change management, or project management.
• Delivery methods : Explain how you deliver your consulting services, such as through workshops, one-on-one consultations, or online platforms.
• Benefits : Highlight the benefits of your consulting services for clients, such as increased efficiency, optimized performance, improved profitability, or streamlined operations.
• Unique value proposition : Describe how your consulting services are unique and different from those of competitors. This could include your methodology, tools, experience, or industry knowledge.
• Website URL : Include the URL of your website where clients can learn more about your consulting services and contact you for more information.

Below is my example of a management consulting services write up, including descriptions of each service, the benefits they provide, and your unique approach to delivering them. You can modify this section of your consultant business plan to fit your exact services offered.

This version is a little shorter than the one above and also includes a case study example link, since content like that will help clients understand the value you bring to the table. You can add a link like this in version 1 above as well.

Example: Management Consulting Services Offered

• Strategy consulting : We work with businesses to develop effective strategic plans that align with their mission and vision and drive business growth.
• Organizational design and development : We help businesses optimize their organizational structure and processes to improve performance and efficiency.
• Change management : We assist businesses in managing organizational change effectively to minimize disruption and achieve desired outcomes.
• Project management : We provide project management services to help businesses plan, execute, and deliver projects on time and within budget.
• Performance management : We help businesses implement performance management frameworks that align employee goals with business objectives and drive results.

Our management consulting services are delivered through a combination of workshops, one-on-one consultations, and online platforms. We use a data-driven approach that combines qualitative and quantitative analysis to identify and solve business problems. Our unique value proposition is based on our extensive experience working with businesses in diverse industries, combined with our personalized approach and commitment to delivering results.

Clients can expect to achieve a range of benefits, including improved organizational performance, increased profitability, enhanced employee engagement, and optimized project outcomes. See our go-to-market strategy case study example for details on the types of results clients can expect from our team.

3. Consultancy Business Plan Target Market and Buyer Persona

It is important to focus on a niche rather than offering generic services.

Consulting as an industry is highly competitive, so prospects may not be able to determine who is the best consultant for them. When you focus, your marketing efforts can be customized to the niche you specialize in.

Think of it this way: if you were to implement Salesforce or Hubspot in your business, would you hire a general IT consultant or a specialist in the product? A general IT consultant may have experience with different systems but may not be as familiar with the intricacies of how to set up Salesforce or Hubspot in a way that makes the most sense for your company.  A specialist, however, will have in-depth knowledge and experience and most all will use best practices for your business.

You would pick the Salesforce or Hubspot specialist without question. In my prior companies, I went through this exact exercise and hired specialists for each of these products.

Similarly, your management consulting business plan should focus on a specific target group so that you become known as a specialist for your niche.

Additionally, create a buyer persona – or a few – to get a clear picture of who you plan to target.

What Goes Into a Buyer Persona for a Consultancy

• Sample Name, Job Title and Role : I always like to give each persona a name to make it more real. Then, include the specific job title and role of the individual who is most likely to hire a management consultant, such as a CEO, CFO, or HR Director.
• Industry and Company Size : Add the industry and size of the company that the individual works in, as the challenges and needs of a small startup may be different from those of a large corporation.
• Goals and Objectives : Be sure to list the most common goals and objectives that the individual is trying to achieve, such as improving operational efficiency, increasing revenue, or expanding into new markets. These should tie into your product or service offering.
• Pain Points and Challenges : Know the pain points and challenges that the individual is facing, such as difficulty retaining top talent, ineffective decision-making processes, or lack of innovation.
• Decision-Making Criteria : Identify the factors that the individual considers when making a decision to hire a management consultant, such as experience, reputation, price, or industry expertise. This can include the influences – or rather, influenc ers , that the buyer relies on to make final purchasing decisions.
• Communication Preferences : Add what you believe to be the preferred communication channels and styles of the individual, such as email, phone, text or in-person meetings.
• Personal Characteristics : You can include the personal characteristics of the buyer, such as their values, beliefs, and personality traits, which may impact their decision-making process.

I’ve created several samples that you can download and have also provided one for this consulting business plan below.

Download 5 Free Buyer Persona Examples →

Sample Management Consulting Target Market

Given my strong background in financial technology (fintech), I specialize in working with fintech startups and small to mid-sized financial institutions.

My clients are typically looking for help in implementing new technology solutions, improving their operational efficiency, or expanding into new markets. As a fintech consultant, I help them identify market expansion opportunities where they could increase their total addressable market ( TAM ) and clarify the marketing plan to penetrate deeper into existing accounts, also known as the land-and-expand strategy.

My consulting services are tailored to each client’s specific needs and can include everything from strategic planning to project management. By working with me, my clients gain access to my expertise in fintech, as well as my extensive network of contacts in the industry.

4. Marketing for Consulting Firms

As a consultant starting a new business or growing an existing one, it is crucial to have a well-planned marketing strategy to acquire clients. In the Marketing Strategy section of your consulting business plan, you should outline how you will promote your consulting firm and services to potential clients. This section should also include information on your consulting branding strategy and how you position yourself in the consulting market.

Here are ten marketing ideas to consider when developing your consulting marketing plan, written as tactics that you can copy/paste into a consulting business plan template or PDF. You can even use ChatGPT, Bard, or other AI-writing tools to create a starter outline, but be sure to include your own original content.

Sample Marketing Plan for a Consulting Firms

To acquire new customers and expand deeper within existing clients, I will deploy the following marketing ideas for consultants and leverage partners to expand my brand’s reach:

• Developing an educational website : My website will contain information on my services, but more importantly it will include case studies and thought leadership content. The key to success will be my educational content as part of my long-term content marketing strategy. I will add lead capture forms on each high-intent article to convert website visitors into leads that I can nurture through email marketing and social media.

• Leveraging SEO : I will identify specific high-intent keywords related to my fintech consulting niche and optimize my website content accordingly. This will help my website rank higher on search engines and attract more potential clients through my educational content. Many of my articles and guides will include videos because research shows that content with videos and images enhances SEO. While many firms rely on paid advertising, using long-tail keywords can be an effective and cost-saving approach. By targeting “low keyword difficulty” and “high search volume” phrases, I can tap into organic search traffic that can continue to generate leads even after the initial investment. Therefore, as a consulting firm, I will prioritize SEO as part of my overall marketing strategy to increase my online visibility and attract potential clients. I will use MoreBusiness.com’s SEO Coaching services to accelerate my footprint online to drive sales from organic traffic.
• Podcasting with thought leadership content : I will share my knowledge and expertise by starting a podcast . This way, I can repurpose the content I create into multiple channels, including writing articles, blog posts, and white papers and using clips to sprinkle throughout my social media channels. I will also produce webinars and slide decks from these podcasts to educate my target market. Having experts as guests on the podcasts will allow me to expand my reach when the guests share posts on their social channels as well.
• Attending industry events : I will attend relevant industry events to network with potential clients and showcase my expertise. I will identify 10 unique events every quarter and inquire about speaking to build my reputation and attract new clients. My goal is to speak at least twice each quarter to new audiences.
• Partnering with complementary businesses : Partnering with complementary businesses can help me reach new clients and expand my services. These businesses would provide services such as IT managed services, accounting, legal and HR, which can lead to referral business.

• Building a referral network : I will leverage my existing network to generate referrals by first providing opportunities for others to get more business. This approach builds trust first, which can lead to getting referrals from others.
• Advertising on industry-specific platforms : I will advertise on industry-specific platforms such as trade publications, industry associations, and job boards and look at the cost-benefit of Google and LinkedIn advertising.
• Using email marketing : I will send regular email newsletters with business consulting topics to stay in touch with clients and prospects. I will send newsletters with trending topics, case studies, and other relevant content to keep them engaged and informed about the industry as a whole as well as projects related to my services.

5. Consulting Business Plan Financials

To calculate your projections, your business model needs to consider several factors such as your revenue streams, cost structure, market size, and growth potential. You’ll also need to look at any historical financial data you have to create realistic projections.

It’s important to keep in mind that financial projections are not a guarantee of your business’s future performance, but rather an estimate based on the information you have available. That’s why it’s essential to make sure the assumptions in your business plan are realistic and backed up by data.

Overall, the financial projections section of your consulting business plan is a critical component that helps you understand the financial feasibility of your business and attract investors or lenders. In the example below, I’ve included an outline of what an individual business plan consultant might put into their business plan. If you are operating with partners as part of a larger entity, modify this example to accommodate for your team’s output and productivity. This consulting plan example also includes various sources of revenue, not just billable time.

Sample Financial Projections for Consulting Business Plan

As a consulting firm, I have several sources of revenue aside from billable hours. These include:

• Retainer Fees : Some clients prefer to pay a fixed monthly fee in exchange for a set number of hours or a specific scope of work. This can provide a predictable revenue stream for the firm.
• Project-Based Fees : For larger projects with a defined scope, I may charge a fixed fee based on the work required. This allows clients to budget more effectively and can provide a higher profit margin for the firm.
• Commission Fees : For certain types of work, such as sales, I may earn a commission on the results achieved. This can be a win-win for both the client and the firm, as the client only pays for results achieved and the firm is incentivized to achieve those results.
• Product Sales : I will develop proprietary online courses to share my expertise in fintech consulting and grow advisory services with those who are not yet ready or unable to afford my consulting services. These will provide an additional revenue stream and can also be used as a freebie given to select clients to share with their staff.
• Referral Fees : By referring clients to other businesses or consultants, I may earn a referral fee. This not only provides an additional source of revenue, but can also help to build relationships and expand my firm’s network.

By diversifying revenue streams, my consulting firm can create a more stable and profitable business model. Our expected revenues for the first three years are as follows:

Year 1 Consulting Firm Financial Projections:

• Billable hours: 1,000 hours x $300/hour = $300,000
• Retainer clients: 3 clients x 10 hours/month x $300/hour x 12 months = $108,000
• Product sales: 5 sales x $197 = $985
• Commissions/referral fees: $10,000
• Total revenue: $419,985

Year 2 Consulting Firm Financial Projections:

• Billable hours: 1,400 hours x $300/hour = $420,000
• Retainer clients: 3 clients x 10 hours/month x $350/hour x 12 months = $126,000
• Product sales: 7 sales x $197 = $1,379
• Commissions/referral fees: $15,000
• Total revenue: $562,379

Year 3 Consulting Firm Financial Projections:

• Billable hours: 1,800 hours x $300/hour = $540,000
• Retainer clients: 3 clients x 10 hours/month x $400/hour x 12 months = $144,000
• Product sales: 10 sales x $197 = $1,970
• Commissions/referral fees: $20,000
• Total revenue: $705,970

6. Consultant Business Plan Conclusion

The conclusion section of a consulting business plan should summarize the key points of the plan and reiterate the main goals and objectives as you start your consulting firm. It is similar to your executive summary and should reinforce the value that your consulting firm brings to clients and how it will address their needs and solve their problems.

Your goal is to leave a positive and lasting impression on the reader, highlighting your consulting firm’s strengths and capabilities and conveying a sense of confidence in your ability to build a successful consulting business. Again, as in previous sections, I’ve written the example below for an individual consultant, which you can easily modify as you need.

Consulting Business Plan Conclusion Example

My consulting firm is well-positioned to provide exceptional services to our clients in the fintech industry. I have a highly experienced team through partnerships with individuals who have a track record of success in this fintech consulting, and we are committed to helping our clients achieve their business goals through innovative and effective solutions. I believe that by leveraging our expertise in operations management and technology, we can help our clients optimize their operations, increase efficiency, and ultimately, drive growth and profitability.

Through strategic partnerships, I’m able to offer a comprehensive suite of services to meet our clients’ needs, from project management and process improvement to software implementation and data analytics. My goal is to establish long-term relationships with our clients and become a trusted partner in their success.

I understand the challenges facing the fintech industry and are constantly adapting and evolving to stay ahead of the curve. I am committed to staying up-to-date with the latest trends, technologies, and best practices in my field, and we are excited to bring this knowledge to clients.

Overall, I am confident in my ability to deliver exceptional value to our clients and achieve the business goals outlined in this plan. I am excited to embark on this journey and look forward to the opportunities that lie ahead.

Start Your Consulting Business

Ready to get started? Download this consulting business plan template and save it as a PDF or doc file for future reference as you build out your business model and growth path.

Connect with me at MoreBusiness.com to help you grow faster! I’ve built several businesses and can help you fast-track your marketing and sales, especially through a managed podcast and thought leadership.

Set Up a Coaching Conversation →

Like this? Share it with your network:

I need help with:, popular topics:.

• Learning SEO
• Generating Sales
• Writing a Marketing Plan
• Writing a Business Plan
• Leading My Team
• Free Marketing Webinars
• Starting My First Business

Got a Question?

Get personalized expert answers to your business questions – free.

Affiliate Disclosure : This post may contain affiliate links, meaning we get a commission if you decide to purchase something using one of our links at no extra cost to you.

You Might Also Like...

Should I Give a Discount on My Consulting Fees?

SEO Title Tag Makeover: 4 Powerful Examples

5 Steps to Design an Effective Employee Engagement Action Plan

4 Actionable Steps to Find a Mentor for Your Business

5 Effective Scheduling Tips To Boost Your Productivity

Business Coaching vs Executive Coaching: 10 Examples

7 Employee Satisfaction Secrets: Nurturing a Happy Small Business Team

Secure Your First 10 Investors: Step-by-Step Startup Guide

SEO Coaching and Marketing Courses

Get More Business

Marketing tools.

• SEO Keyword Tool
• MSP Website Content Kit
• Done-for-You Content
• Graphic Design Tool
• Webinar Automation
• Getting Referrals
• Hubspot Marketing Automation

Popular Downloads

• Marketing Plan Example
• MSP Marketing Plan
• Life Coach Business Plan
• Consulting Business Plan
• How to Write a Business Plan
• Clothing Line Business Plan
• Restaurant Business Plan
• Personal Trainer Business Plan
• Trucking Business Plan
• Pizza Restaurant Business Plan

Free Guides

• B2B SaaS SEO Best Practices
• MSP SEO Marketing Playbook
• Buyer Persona Examples
• How to Increase Google Rankings
• New Client Welcome Package
• How to Create a Happy Customer
• Brand Development Guide
• SaaS Metrics Dashboard
• Marketing and SEO Videos
• Salary Calculator
• Executive Coaching Newsletter
• Contributing Content
• Affiliate Disclosure

Small Business Trends

How to start an it consulting business: a step-by-step guide.

Table of Contents

Understanding the IT Consulting Business Landscape

Is an IT Consulting Business Profitable?

The credentials needed to become an it consultant, the role of an it consulting firm, how it consulting firms make money, essential steps in starting an it consulting business, creating a robust business plan.

Identifying Your IT Consulting Niche

Building your team, securing funding for your it consulting service.

Establishing Your Own Consulting Business

Setting up your office, building a strong online presence, offering stellar it consulting services, developing your it consulting skills, maintaining client relationships, leveraging tools for remote it management, market trends in the it business, building a profitable consulting business, strategies for profit maximization, case studies of successful it consulting businesses, faqs: how to start an it consulting business, how much capital do i need to start an it consulting business, how can i differentiate my it consulting business from competitors, what are some common challenges in starting an it consulting business and how can i overcome them, how long does it take to start making a profit in an it consulting business, how do i become an it consultant, how much should i charge as an it consultant, how can it consulting services benefit small businesses.

• Sample Business Plans
• IT, Staffing & Customer Service

IT Consulting Business Plan

The increasing use of AI and Automation and the rising remote & hybrid work culture have revolutionized the IT consulting industry. The demand for IT consultants is like never before.

Starting and managing an IT consulting firm may involve loads of hard work and a bit of risk, but the benefits are well worth it.

And having a well-prepared business plan could make things a lot easier for you to get started.

Need help writing a business plan for your IT consulting business? You’re at the right place. Our IT consulting business plan template will help you get started.

Free Business Plan Template

Download our free IT consulting business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write an IT Consulting Business Plan?

Writing an IT consulting business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your business: Start your executive summary section by briefly introducing your IT consulting business to your readers.
• This section may include the name of your IT consulting, its location, when it was founded, the type of IT consulting business (E.g., cybersecurity consulting, cloud computing consulting, IT project management consulting.), etc.
• Market opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Product and services: Provide a description of the IT consulting services you provide to your clients. Include any additional or value-added services you offer that may differentiate you from the competition.
• For instance, you may provide services, like IT governance & risk management, cybersecurity services, data analytics, and business intelligence, etc.
• Marketing & sales strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Technology strategy consulting
• Cybersecurity consulting
• IT outsourcing consulting
• Cloud computing consulting
• IT infrastructure consulting
• IT project management consulting
• Describe the legal structure of your consulting company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of the founders or owners of your company. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business history: If you’re an established IT consulting service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
• Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future goal: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the consulting industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• For instance, You may target SMEs, startups, non-profits, healthcare organizations, and financial institutions if you provide IT consulting services.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
• You may include statistics and information like the number of SMEs and startups in any particular industry if you target a niche market.
• Competitive analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your consulting services from them. Point out how you have a competitive edge in the market.
• Market trends: Analyse emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with these trends.
• For instance, there is a growing trend toward cloud computing and digital transformation. More and more businesses are embracing cloud technologies. Describe your plans for dealing with this.
• Regulatory environment: List regulations and licensing requirements that may affect your IT consulting company, such as business registration, professional licenses, data privacy and security regulations, local business regulations, etc.

Here are a few tips for writing the market analysis section of your IT services business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• IT outsourcing and vendor management
• Digital transformation services
• IT project management
• Software development & integration
• IT infrastructure services
• Cloud computing services
• Describe each service: Describe each service you offer, including the tools, technologies, and methodologies you use. Provide examples of how your service offerings contribute to the success of your client’s business.
• Partnerships & Alliances: Mention any strategic partnerships or alliances your business has with other companies or vendors to deliver your services efficiently.

In short, this section of your IT consulting plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique selling proposition (USP): Define your business’s USPs depending on the market you serve and the unique consulting services you provide. Identifying USPs will help you to plan your marketing strategies.
• For example, a proven track record, responsive and timely service, and specialized expertise could be some of the great USPs for a professional IT consultancy.
• Pricing strategy: Describe your pricing strategy—how you plan to price your consulting services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new clients to your IT consulting service.
• Marketing strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—SEO content marketing, social media marketing, Google ads, brochures, email marketing, and print marketing.
• Sales strategies: Outline your strategies to sell your IT consulting services. Your sales strategies may include direct sales calls, partnering with other companies and vendors, lead generation practices, prospecting, and closing deals. Include any sales training or workshops you provide to your sales team.
• Customer relationship management: Describe your customer relationship management process, including necessary information like your customer retention strategies, communication plans, and client feedback procedure.

Overall, this section of your IT consulting or tech support business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your IT consulting business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & training: Mention your consulting business’s staffing requirements, including the number of employees needed, such as IT consultants, project managers, administrative staff, etc. Include their qualifications, the training required, and the duties they will perform.
• Operational process: Outline the processes and procedures you will use to run your IT consulting business.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your IT consulting business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founder/CEO: Mention the founders and CEO of your IT consulting company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include key executives(e.g. COO, CMO.), IT consultants, and other department managers (e.g. operations manager, project manager.) involved in the business operations, including their education, professional background, and any relevant experience in the consulting industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information about their roles and years of experience.

This section should describe the key personnel for your IT consulting services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should summarize the business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
• Cash flow statement: This section should estimate and describe the cash flow for the first few years of your operation. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance sheet: Create a projected balance sheet documenting your IT consulting business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.
• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing needs: Calculate costs associated with starting an IT consulting business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the IT consulting industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your IT consulting business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample IT consulting business plan will provide an idea for writing a successful IT consulting plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our IT consulting business plan pdf .

Related Posts

Software Company Business Plan

Computer Repair Business Plan

10 Best Business Plan Software

400+ Real Business Plan Examples

SEO Business Plan

Blog Business Plan

Frequently Asked Questions

Why do you need an it consulting business plan.

A business plan is an essential tool for anyone looking to start or run a successful IT consulting business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your IT consulting company.

How to get funding for your IT consulting business?

There are several ways to get funding for your IT consulting business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your IT consulting business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your computer consulting business plan and outline your vision as you have in your mind.

What is the easiest way to write your IT consulting business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any IT company business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Turn your business idea into a solid business plan

Explore Plan Builder

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

How to Write an IT Consulting Business Plan: A guide for Success in 2024

Chris Heard

The world of IT consulting is rapidly evolving. Economic fluctuations, coupled with the rise of freelance and specialized consultancies, have led to a highly competitive environment. Despite these challenges, the demand for IT consulting services remains strong. To succeed in this competitive landscape, IT consultants need a comprehensive business plan. A well-structured plan should include growth strategies, pay rates, expenses, marketing, equipment costs, training, qualifications, and technology. Here’s how to create an effective business plan for your consulting business in 2024.

Identifying the Target Market and Sector Analysis

Understand Your Target Market

Your target market comprises the customers who are the best fit for your services. Identifying this group will help you focus your marketing efforts and resources effectively. As Seth Godin famously said, “When you speak to everyone, you speak to no one.” It’s crucial to understand who your ideal customers are and where to find them. Conduct a target market analysis to set appropriate price points and tailor your services to meet their needs.

Defining Business Objectives and Unique Selling Proposition (USP)

Clarify Your Unique Selling Proposition

A USP summarizes what makes your business unique and valuable to your target market. It answers the question: How do your services benefit your clients better than anyone else’s? A clear USP helps define your business goals and provides a strong foundation for your business plan. Outline your business objectives with specific steps to achieve your goals.

Estimating Startup Expenses and Assets

Plan for Initial Costs

Estimating your startup costs is essential for avoiding unnecessary risks and staying on track during volatile months. Consider all potential expenses, including technology, furniture, insurance, marketing, legal fees, and miscellaneous costs. Whether you’re setting up a remote or in-person consulting business, having a clear understanding of your startup expenses will help you plan effectively.

Forecasting Overheads and Fixed Costs

Predict Fixed Overhead Costs

Fixed costs, such as office rental, software licenses, salaries, taxes, and insurance, are necessary to keep your business operating smoothly. Ensure your profit margins reflect these costs to maintain financial stability.

Developing a Marketing Strategy and Budget

Create a Cohesive Marketing Plan

A strong marketing strategy is crucial for launching your consulting business. This includes establishing your brand, creating a professional website, investing in social media and search marketing, and building a professional network. Strategically determine your marketing spend, funding requirements, loan collateral, and cost of interest to maximize your marketing efforts and avoid wasted resources.

Including Pay Rates, Revenue, and Cash Flow Projections

Manage Your Finances

Pay attention to your balance sheet to avoid cash deficits. Track your assets, liabilities, and shareholders’ equity to understand your financial health. Cash flow projections are vital for predicting future cash flows and planning spending decisions. They help you anticipate and avoid future cash flow issues.

Forecasting Sales in Monthly Intervals

Predict Future Needs

Monthly sales forecasts help you understand the future needs of your business and fine-tune predictions accordingly. This is particularly important for service businesses, which can be susceptible to revenue swings. The more predictable your revenue, the better you can manage your business.

Including Growth Projections and Strategy

Plan for Growth

A concrete growth strategy is crucial for the future success of your consulting business. Determine your targeted area of growth, invest in market research, set growth goals, plan your actions, and execute your strategy. This will help you navigate market fluctuations and ensure sustained business growth.

Leveraging Technology for Success

Utilize Software for Consultants

With the continuous evolution of technology, your IT consulting business plan should incorporate the latest technological developments and digitalization. Providing digital offerings will enhance your business’s appeal and increase your chances of securing funding. Software for consultants like Olive can be a vital differentiator, helping you manage and automate the software selection process, streamline technology evaluations, and facilitate agile collaboration with stakeholders.

Writing and executing a consulting business plan requires planning, strategy, and foresight. By leveraging the right automation technology and creating a comprehensive business plan, you can build a successful consulting business ready for 2024 and beyond. Olive’s tools can help you streamline processes, enhance collaboration, and deliver more value to your clients, ensuring your business thrives in a competitive environment.

Chris Heard, CEO and co-founder of Olive Technologies, began his journey with "Bars in Action" in England before transitioning to tech sales. He played a key role at Mobify, driving growth as head of business development and senior account executive. He then led sales teams across the US tech industry. In 2018, Chris co-founded Olive Technologies, with a mission to revolutionize enterprise IT decision-making by eliminating bias, enhancing transparency, and improving efficiency.

Stay Updated with the Latest in Software and Technology Sourcing

Join Our Community of IT Leaders and Consultants!

Get insights, tips, offers and the latest trends in software sourcing delivered straight to your inbox. Subscribe to our blog and never miss an update.

Software sourcing, without the bias

Read related posts, 5 essential tools: the best software for consultants.

RFP Software for Consultants – Streamline Your Process

Requirements Gathering for Software Selection

BUSINESS STRATEGIES

How to create a consultant business plan

• Nirit Braun
• Oct 30, 2023
• 13 min read

When launching your consulting business, one of the essential first steps is crafting a well-structured and detailed business plan. Your consulting business plan is like a strategic playbook that lays out your goals, tactics and financial projections. It not only steers you toward success but also equips you to adapt and thrive in the dynamic world of consulting.

Keep reading for tips on how to build a strong business plan for your business. Use the template provided at the end to get started on your own plan.

Looking to kick off your consultancy business? Create a business website today with Wix.

Why create a consultant business plan? Top benefits to consider

A business plan forces entrepreneurs to thoroughly evaluate their business idea, target audience and competitive landscape. This process clarifies their vision and mission, ensuring that they have a clear understanding of how their consultancy will provide value to clients. A business plan helps you in the following ways:

Create a business blueprint : With a business plan in place, entrepreneurs looking to start a business can make informed decisions based on a solid foundation of research and analysis. They can choose the most effective strategies for marketing, pricing and service delivery, enhancing their chances of success. Your business plan can also be used to explain what type of business you'll start - whether that's an LLC, Corporation or something else. Learn more about how to start an LLC .

Secure funding : The cost to start a consultancy business can range from around $60 to several thousand dollars . For those seeking external funding, a well-developed business plan demonstrates credibility and professionalism. Investors and lenders are more likely to support a venture with a thought-out plan that showcases its potential for growth and profitability.

Set measurable goals : A business plan sets measurable goals and performance metrics, which is vital with this type of business . This allows entrepreneurs to track their progress, adapt strategies as needed and celebrate milestones along the way.

Want to remind yourself of the basics? Learn more about how to start a service business .

How to create a successful consultant business plan in 6 steps

In this section, we'll break down the key components involved in crafting a successful consultant business plan in six steps.

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

An executive summary serves as a concise overview of the consultant's business plan, providing a snapshot of the key components and the business' essence. It's usually the first section investors, lenders and stakeholders read, so it must encapsulate the business' value proposition, objectives, strategies and projected growth. To write a clear executive summary for a consultant business make sure to keep it succinct yet informative. Clearly state the purpose of the business, the services offered, the target market and the unique value proposition. Avoid technical jargon that may confuse readers.

Then you can mention the business' strengths, such as the expertise of the consultants, unique methodologies or specialized services. Emphasize factors that set your consultancy apart from competitors.

Briefly discuss the market need for your services and how your consultancy plans to fulfill it. It’s worth noting that strategy and management consulting, as well as technology consulting, financial consulting and HR consulting are in high demand . Highlight any trends or changes in the industry that your business can capitalize on.

Remember to include a snapshot of your financial projections, indicating expected revenue, costs and profitability. This provides a glimpse into the business' potential financial success.

Example of an executive summary for a consultant business

"XYZ Consulting is a boutique consultancy firm specializing in digital transformation for small and medium-sized enterprises (SMEs). With a team of seasoned professionals, we offer tailored solutions to help businesses harness the power of technology for growth. Our unique approach blends strategic consulting with hands-on implementation, ensuring tangible results. In a rapidly evolving tech landscape, XYZ Consulting is poised to be the partner SMEs need to thrive. Our financial projections forecast a steady growth trajectory, with a focus on achieving profitability within the first two years. With a proven track record and a finger on the pulse of industry trends, XYZ Consulting is well-equipped to guide businesses toward digital success."

02. Business and domain names

Knowing how to name a business is crucial for a consultancy venture and a key step before you register your business . It's the foundation of your brand and influences how clients perceive your services. With Wix , you can use a free business name generator or consulting company name generator as helpful tools for brainstorming unique and memorable names. Ensure the name reflects your expertise and the services you offer.

Similarly, the domain name for your business website is vital. It should be easy to remember, relevant to your services and ideally, match your company name. Check the domain's availability using domain registration platforms. Ensure the domain name aligns with your consultancy's focus and services. Generally, this means keeping it short and easy to spell and pronounce.

Learn more: How to make a consulting website

03. Market analysis and research

Incorporating a thorough market analysis within your consultant business plan is essential. Understand the competitive landscape, target audience and market trends. Research your competitors' strengths and weaknesses, pricing strategies and client base. This information will shape your business strategies and help you identify gaps in the market that your consultancy can fill.

04. Operations plan

The operations plan outlines the logistical aspects of your consultancy. It covers location, premises, equipment and staffing requirements. Determine whether your consultancy will be home-based, have a physical office or operate virtually. Define the equipment and software needed to deliver services effectively. Outline your staffing needs, including the roles and expertise required.

05. Marketing and advertising plan

Your marketing and advertising plan outlines how you will promote your consultant business. Identify the most effective strategies to reach your target audience. Consider content marketing, social media campaigns, networking events and speaking engagements to showcase your expertise. Emphasize how your marketing efforts will build brand awareness and attract clients.

You’ll need to develop a suite of brand assets to use in your marketing as well, starting with a company logo. You can use a free logo maker to get a professional logo in minutes.

06. Financial plan

The financial plan is a critical component of any business plan. It outlines how you will raise money for your business initially and provides a timeline for reaching profitability. Detail your startup costs, including equipment, marketing expenses and personnel. Present your revenue projections, taking into account different pricing models and growth scenarios. Highlight your break-even point and the strategies you'll employ to achieve profitability.

By addressing each part of their plan, entrepreneurs can create a robust business plan that guides them toward achieving their business goals and building a reputable consulting brand.

Consultant business plan examples

These templates illustrate two hypothetical consultant business plans, each tailored to a specific niche. These are just templates and should be adapted to your specific business goals and industry dynamics.

Consultant business plan template 1: XYZ Digital Consultants

XYZ Digital Consultants is a pioneering consultancy firm focused on digital transformation for businesses seeking to thrive in the digital age. Our team of experienced professionals offers strategic guidance and hands-on implementation to drive growth through technology adoption. With projected profitability within two years and a commitment to excellence, XYZ Digital Consultants is poised to lead businesses into a successful digital future.

Company and domain name

Company name: XYZ Digital Consultants

Domain name: xyzdigitalconsultants.com

Market opportunity: The rapid shift toward digital operations has created a substantial demand for expert guidance. Our analysis reveals a gap in the market for holistic digital transformation solutions tailored to the needs of SMEs.

Competitor research: We've identified key competitors and their strengths, which informs our strategy to emphasize personalized service and comprehensive implementation.

Location: Primarily virtual, with occasional in-person consultations as needed.

Premises: Home-based setup with access to modern communication tools.

Equipment: High-speed internet, latest software tools and virtual meeting platforms.

Staffing: Founder and lead consultant, supported by contract specialists as projects demand.

Content marketing: Regular blog posts on digital transformation trends, case studies and client success stories.

Social media campaigns: Active presence on LinkedIn and X to engage with potential clients and share valuable insights.

Networking events: Participation in industry webinars, seminars and local business events to showcase expertise.

Speaking engagements: Leveraging speaking opportunities at conferences and workshops to establish authority in the field.

Startup costs (equipment, website development, marketing materials): $15,000

Revenue projections (year one): $150,000

Revenue projections (year two) : $300,000

Break-even point: Achieved by the end of year one

Funding: Initial investment and savings from the founder

Consultant business plan template 2: LeadersEdge Consultants

LeadersEdge Consultants is a dynamic consultancy dedicated to leadership development and organizational excellence. Our experienced team offers customized programs that empower leaders to drive positive change. With a projected growth trajectory and a commitment to fostering impactful leadership, LeadersEdge Consultants is poised to transform organizations and elevate their success.

Company name: LeadersEdge Consultants

Domain name: leadersedgeconsultants.com

Market opportunity: Our analysis reveals a growing need for leadership development programs in diverse industries.

Competitor research: We've identified competitors' offerings and recognized an opportunity to provide a unique blend of coaching, training and strategy implementation.

Location: Virtual consultations, with the option for on-site workshops

Premises: Virtual office setup with video conferencing capabilities

Equipment: High-quality audiovisual tools, assessment software and learning platforms

Staffing : Founder will serve as the lead consultant, supported by certified leadership coaches

Customized workshops: Designing tailored leadership development programs for individual organizations.

Webinars: Hosting webinars on leadership best practices to showcase expertise and engage potential clients.

Thought leadership content: Publishing whitepapers, eBooks and video content on leadership topics.

Collaborations: Partnering with HR and talent development professionals to expand reach.

Startup costs ( making a website , training materials) : $10,000

Revenue projections (year one): $120,000

Revenue projections (year two): $250,000

Break-even point: Achieved within the first six months

Funding: Initial investment from the founder.

How much should you be charging as a consultant?

The amount you charge as a consultant will depend on a number of factors, including:

Your experience and expertise

The type of consulting services you offer

The value you provide to your clients

The market rate for consulting services in your field

In general, consultants charge between $100 and $500 per hour. However, some experienced and highly specialized consultants can charge upwards of $1,000 per hour.

To determine your consulting rate, you can use the following formula:

Consulting rate = Hourly rate * Value multiplier

Your hourly rate should reflect your experience and expertise, as well as the type of consulting services you offer. For example, if you have 10 years of experience and you offer specialized consulting services, you can charge a higher hourly rate than a consultant with less experience and who offers more general consulting services.

Your value multiplier should reflect the value you provide to your clients. For example, if you can help your clients to achieve significant results, you can charge a higher value multiplier.

Here is an example of how to use the formula:

Consultant: Experienced consultant with 10 years of experience offering specialized consulting services

Hourly rate: $200 per hour

Value multiplier: 2

Consulting rate: $200 per hour * 2 = $400 per hour

Can a consulting business be profitable?

Yes, a consulting business can be profitable. In fact, consulting is one of the most profitable industries in the world. According to a report by IBISWorld, the average profit margin for consulting businesses is 20%. This means that for every $100 in revenue, consulting businesses generate $20 in profit.

There are a number of factors that contribute to the profitability of consulting businesses. First, consultants are able to charge high fees for their services. Second, consulting businesses have relatively low overhead costs. Third, the demand for consulting services is high, and it's only expected to grow in the coming years.

Of course, not all consulting businesses are successful. Some consultants struggle to find clients or to charge high enough fees. Others may not be able to deliver the results that their clients expect. However, for consultants who are able to overcome these challenges, the potential rewards are great.

Here are some tips for increasing your chances of success as a consultant:

Specialize in a high-demand area of consulting. This will allow you to charge higher fees and attract more clients.

Build a strong reputation and network of clients. This will help you to generate word-of-mouth referrals and land new clients.

Market your services effectively. Make sure that potential clients know about your services and how you can help them.

Deliver high-quality results. This is the most important thing you can do to ensure that your clients are satisfied and that they continue to use your services in the future.

How much does it cost to start a consulting business?

The cost to start a consulting business can vary depending on a number of factors, such as the type of consulting services you offer, the size of your business and your location. However, in general, you can expect to spend between $10,000 and $50,000 to start a consulting business.

Here is a breakdown of some of the typical start-up costs for a consulting business:

Business formation: $100 to $1,000

Website and domain name: $100 to $2,500

Marketing and advertising: $500 to $5,000

Office equipment and supplies: $500 to $5,000

Professional liability insurance: $500 to $1,000

Other miscellaneous expenses: $500 to $5,000

Total start-up costs: $10,000 to $50,000

You can reduce your start-up costs by working from home, using free or low-cost marketing tools and purchasing used equipment. You can also start your consulting business part-time while you continue to work your full-time job. This will give you a chance to generate revenue and build a client base before you leave your full-time job.

If you need financial assistance to start your consulting business, you may be able to qualify for a loan from a bank or credit union. You may also be able to find investors who are willing to invest in your business.

Which clients to avoid and which to take on?

Here are some tips on which clients to avoid and which to take on in a consulting business:

Clients to avoid

Clients who aren't willing to pay your rates. If a client isn't willing to pay your rates, it's a sign that they don't value your services.

Clients who are unrealistic about their expectations. If a client has unrealistic expectations about what you can achieve, you're likely to set yourself up for failure.

Clients who are difficult to work with. If a client is demanding, rude or disrespectful, it's best to avoid them.

Clients who aren't a good fit for your business. If a client isn't in your target market or if their business isn't aligned with your values, it's best to decline working with them.

Clients to take on

Clients who are willing to pay your rates. This shows that they value your services and are committed to working with you.

Clients who have realistic expectations. This makes it more likely that you will be able to meet their needs and exceed their expectations.

Clients who are easy to work with. This will make the consulting process more enjoyable and productive for both of you.

Clients who are a good fit for your business. This means that they're in your target market and that their business is aligned with your values.

In addition to the above, here are some other factors to consider when deciding which clients to take on:

Your own skills and experience. Make sure that you have the skills and experience to help the client achieve their goals.

The client's budget. Make sure that the client has a budget that's sufficient to cover your fees.

The client's timeline. Make sure that you have the time and resources to meet the client's timeline.

Your gut feeling. If you have a bad feeling about a client, it's best to trust your gut and decline working with them.

It's important to be selective about the clients you take on. By avoiding difficult clients and focusing on good-fit clients, you can set yourself up for success in your consulting business.

Consultant business plan FAQ

What qualifies you as a consultant.

To qualify as a consultant, you need to have the expertise and experience in the area that you're consulting in. You also need to be able to communicate your ideas effectively and build relationships with clients.

How do you start off as a consultant?

How to make 6 figures as a consultant, how do you pay yourself as a consultant, do consultants pay their own taxes, want to create another business plan.

How to create a virtual assistant business plan

How to create a cleaning business plan

How to create an eCommerce business plan

How to create a plumbing business plan

How to create a trucking business plan

How to create a daycare business plan

How to create a food truck business plan

How to create a restaurant business plan

How to create a clothing line business plan

How to create a real estate business plan

How to create a contractor business plan

How to create a bar business plan

How to create a coffee shop business plan

How to create a bakery business plan

Looking for other service business ideas ?

How to start an online business

How to start a consulting business

How to start a fitness business

How to start a fitness clothing line

How to start a makeup line

How to start a candle business

How to start a clothing business

How to start an online boutique

How to start a T-shirt business

How to start a jewelry business

How to start a subscription box business

How to start a beauty business

How to start a car wash business

How to start a baking business

How to start a food prep business

How to start a trucking business

How to start a construction business

How to start a landscaping business

How to start a food business

How to start a vending machine business

How to start a contractor business

How to start a coaching business

How to start an eCommerce business

How to start a dropshipping business

How to start a farming business

How to start a plumbing business

How to start a rental property business

How to start a cleaning business

Check out more service business examples .

Looking to start a business in a specific state?

How to start a business in Arizona

How to start a business in South Carolina

How to start a business in Virginia

How to start a business in Michigan

How to start a business in California

How to start a business in Florida

How to start a business in Texas

How to start a business in Wisconsin

Related Posts

How to create a website from scratch in 11 steps (for beginners)

How to start a business in 14 steps: a guide for 2024

Consulting business names for your firm

Was this article helpful?

How to write a consulting business plan

If you want to work as a consultant, you'll need a plan. Here's how to create one just for you.

Consultants do things differently

If you’re a self-employed consultant your work isn't like other forms of business. Unlike retailers or manufacturers, you're not making and/or selling tangible products. And unlike service companies, you're not employing a team of people to provide solutions.

Remember you’re not not just selling your time. As a consultant, you will be paid for the skills, knowledge and abilities you've developed over your career.

We have some useful background reading about the benefits of becoming a consultant or contractor , which will help explain how such businesses work. But having decided to become a consultant, what's the next step?

Like all new small businesses, you'll need a plan. That plan will have to cover funding, growth, pay rates, expenses, marketing, equipment costs, training and qualifications. It will also have to cover your goals, and the strategy you'll use to reach them.

Consulting business plans are a little different to other business plans. Here's what you need to know to get your consulting career off the ground.

Who are you writing the plan for?

This is an important question to ask yourself before you start. For most conventional businesses the answer will be "For the bank and investors." That's because small businesses usually need startup funding to get off the ground.

But consultants setting up their own business might not need much funding – if any. It's still important to have a business plan though – not only to clarify the details in your own mind, but also to help you understand the potential risks and rewards.

A good business plan will combine elements of both finance and strategy, but the contents will vary depending on the target audience. We'll take a look at the options next.

A business plan for banks and investors

You may not need funding for capital equipment expenses or office rent. But you might need a loan to tide you over for the first few months, until you have a regular cash flow. The initial period for any new business can be a tough time – money worries will just make it tougher.

You may also decide that you want to make more of an impression by hiring office space, perhaps in a shared office environment. Or you might want funds to spend on marketing and advertising, particularly if you're offering consulting services in a competitive market.

For all of this, you'll need money. You could apply for a bank loan, look for grants, or try other forms of capital-raising such as crowdfunding. Whichever method you choose, any potential investors will want to see the important numbers. That means you'll need to cover the following points in your business plan:

• target market and sector analysis
• business objectives and USP (unique selling proposition)
• startup expenses and assets, including equipment
• overheads and fixed costs
• marketing strategy and budget
• funding requirements, loan collateral and cost of interest
• pay rates, revenue and cash flow projections
• sales forecasts in monthly intervals
• ongoing expenses
• growth projections and strategy

Some of this information will be difficult for you to estimate. It might be even harder for you to present clearly. Use your accounting software to help with figures and to produce professional tables and charts. Then, an accountant can help you include the right information in your plan.

A business plan for you

Of course, you might not need any funding. Perhaps you have enough savings to keep you going for a few months and clients already lined up. Or you may be starting your consulting career after an inheritance or unexpected windfall.

If money isn't an immediate concern, you can afford to be less formal when drafting your plan. That means making sensible predictions and setting goals for yourself, not just financial targets – though you should include those too.

This isn't an exercise in creative writing. The purpose of creating a plan is to help you concentrate on what you want to achieve. Some points to consider include:

Reasons for being a consultant

Why are you doing this? It's important to answer honestly. If the answer is “to make more money” or “because I'm good at what I do” then write that down. Write down all the reasons you can think of, then read them back. Do they sound convincing? Make sure you know your true motivation, as it will help you focus on your goals.

Consulting can mean you have an irregular income. Sometimes you might be busy, other times less so. It makes sense to keep some money in savings accounts, especially if you'll be paying tax at the end of the year instead of while you're earning.

Relationship risks

Think about the impact of consulting on your family or friends. Consultants often work irregular hours, sometimes from home, and they might be working at weekends. That can put a strain on relationships. Be realistic about this and set boundaries around when and where you will work.

Which clients to avoid and which to take on

You will already have an idea of the types of client you don't want to work for, because you know the industry you work in. For example, known late-payers can damage your cash flow so it's sensible to avoid them where possible. Look for clients who are reliable, as they’ll help make your business a success. Know that you can let go of clients who are more trouble than they're worth.

Training and certification

In many industries, especially IT, it's important to keep your skills up to date. But your clients are unlikely to pay for you to go on training courses – that's an expense you'll have to cover yourself. How will you stay up to date? Think about industry magazines, websites, forums, news feeds, conferences, courses, distance learning, peer groups and self-teaching strategies.

Personal goals

Perhaps you're planning to be a consultant for the rest of your working life. Maybe you want to do it for a couple of years and then move back in-house as an employee. Or you might want to start employing other consultants at some stage and build up an agency – maybe even sell it. It doesn't matter what your personal goals are, as long as you have some. Write them down and bear them in mind when making big decisions.

What to do with your profits

This is a good opportunity to think about how much money you want to make . Consider how much you will charge and what you will do with your commission. For example you may decide to use 50% to cover costs, pay yourself with 30% and put 20% back into your business.

Some of this information would be inappropriate to include in a financial business plan for banks or investors. But it can be very helpful in guiding you through the early part of your consulting career.

Five top tips for writing a good consulting business plan

Business plans can be difficult documents to write. If you've never done it before, thinking clearly and logically about your business strategy may not be easy. Here are some tips to help you succeed:

1. Write the first draft

Don't worry about grammar, structure or neatness. Just get the thoughts out of your head and onto the paper or screen. Some people find this easier to do in an informal setting, such as a library or café.

2. Do your research

Understand the market you're going to be working in. Get to know all the details, as it'll help you write a more effective consulting business plan.

3. Identify your USP

That's your unique selling proposition. Why should companies hire you and not one of your competitors? Think carefully about what you're particularly good at, then use that as a basis for marketing yourself.

4. Get feedback

Talk to your peers, friends, previous business associates and potential customers. Show them your plan and listen to their feedback.

5. Keep it simple

Don't write dozens of pages. You'll bore the investors and your plan will end up on a pile where nobody will ever look at it again – including you. Stick to the important points.

Update your business plan regularly

A business plan isn't a static document. It should change and evolve over time as your business grows. You will learn a great deal in your first few months working as a consultant, and that knowledge should be applied to your business plan. It's a good idea to review your plan every month.

You may find that some of what you initially wrote turns out to have been misguided, inaccurate or just plain wrong. That's normal. Nobody can predict every step a business will take. The important thing is to learn as you go along – and make use of that knowledge to improve your plan.

Plan for consulting success

A consulting business plan is written as much for you, the consultant, as for anyone else. The point of writing it is to concentrate on what's important. That clarity is what will help you succeed.

So don't look at a business plan as just another box to be ticked. It's a fundamental process when starting any business, particularly a consulting business where you will need initiative and drive to succeed.

Take the time to write a proper business plan, and keep it regularly updated as your business grows. You can use our free business plan template . You'll find it an invaluable guide to becoming a successful consultant.

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

Download the business plan template

Fill out the form for a downloadable business plan template. Your business plan doc is available as an editable pdf to use again and again.

Privacy notice .

Start using Xero for free

Access Xero features for 30 days, then decide which plan best suits your business.

• Try Xero for free
• See all features

You are using an outdated browser. Please upgrade your browser or activate Google Chrome Frame to improve your experience.

• Why crowdspring
• Trust and Security
• Case Studies
• How it Works
• Want more revenue? Discover the power of good design.
• Brand Identity
• Entrepreneurship
• Small Business

How to Start a Consulting Business: The Definitive Guide for 2024

Will your business idea succeed? Take our quiz - completely confidential and free!

You’ve become an expert in your field after years of dedication, countless hours of work, and relentless pursuit of excellence.

So, what’s next?

Imagine leveraging your expertise and time into a rewarding venture – starting a consulting business .

What is consulting?

Consulting is the art and science of offering specialized advice, sharing opinions, and crafting strategies to help clients excel. Consultants aren't just advice-givers; they wear numerous hats. They diagnose problems, gather data, offer constructive feedback, build strategies, and participate in implementation.

According to Statista, the information technology consulting industry in the U.S. grew by over 30% between 2011 and 2019, amounting to more than $600 billion in 2022. Similarly, the management consulting sector is projected to hit $343.4 billion by 2025 from an estimated $330 billion in 2023.

And these are just two pieces of the enormous consulting pie.

Leveraging my extensive experience of over a decade as an attorney, alongside a 15-year journey mentoring numerous entrepreneurs, I’ve had the privilege of collaborating with hundreds of consultants and consulting firms. I’ve also hired many consultants for my businesses.

Moreover, crowdspring has served as a vital springboard for tens of thousands of ambitious consultants and aspiring small business owners for the past fifteen years. Our team has amassed a rich repository of insights, practical tips, and industry best practices essential for kick-starting and successfully sustaining a consulting venture.

This definitive guide shares this collective wisdom, hard-earned experiences, and insightful learnings with you.

Consultant vs. contractor vs. freelancer

As you prepare to launch your consulting business, it’s essential to understand your place in the professional landscape. The terms ‘consultant,’ ‘contractor,’ and ‘freelancer’ are often used loosely and interchangeably, but critical differences exist.

While consultants, contractors, and freelancers offer their services to businesses, their roles diverge beyond this similarity.

Contractors, including freelancers, are self-employed professionals contracted by companies to provide specific services. On the other hand, consultants are specialists who offer expert advice and assessments. They can either be independent or part of a consulting firm.

However, the lines can blur.

You could be asked to deliver a specific service as a consultant, making your role somewhat akin to a contractor. For instance, imagine you’re hired to evaluate a customer service team’s performance. Post-assessment, you suggest a new strategy and training plan. If you’re asked to develop and present this strategy, your role will expand to include elements of a contractor’s job.

Consulting is a vast field with opportunities across virtually all sectors. Let’s explore the diverse consulting specializations you can consider.

Free Business Startup Kit

Receive six actionable guides, including a how to start a business checklist, detailed comparisons of LLCs, corporations, sole proprietorships, and partnerships to determine the best fit for your business, plus insights on crafting a compelling pitch deck to attract investors.

• How to Start a Business Checklist
• Starting a Corporation Guide
• Is an LLC Right for You?
• Starting a Sole Proprietorship
• Starting Business Partnerships
• Creating a Powerful Pitch Deck

How to Start a Consulting Business

• Choose your niche and define your services
• Write a business plan
• Choose your legal business structure
• Set up business accounting and bookkeeping
• Assess your finances and secure startup capital
• Develop your brand identity
• Create an effective fee structure
• Launch your website and market your business
• Grow your consulting business

Additional resources for consultants

• Frequently Asked Questions (FAQs)

1. Choose your niche and define your services

When someone utters the word “consulting,” what springs to mind?

Is it a seasoned expert offering priceless advice or a niche firm with razor-sharp strategies to tackle business challenges?

Consulting is a thriving industry revolving around knowledge – the commodity businesses are willing to pay for.

Business leaders often navigate complex problems; sometimes, the much-needed solution is a fresh perspective. That’s precisely what consultants bring to the table. Their unbiased viewpoint helps reduce the noise and find the best approach to tackle business problems.

In a nutshell, consultants are problem solvers. They work tirelessly to make their clients more successful, a commitment that makes the consulting business rewarding and lucrative.

Here are some of the reasons that businesses hire consultants:

• Businesses hire consultants because of their expertise. Suppose a company is raising funding or adopting a new software system. In that case, it pays for them to hire a specialist who has raised millions or has already implemented the same software system.
• Businesses hire consultants to supplement their staff. Companies often engage consultants for their specialized skills and flexibility. This approach eliminates the costs and commitments of full-time hires, particularly for temporary projects.
• Businesses hire consultants to identify problems. It’s not uncommon for employees to struggle to resolve an issue inside an organization. Having seen a similar situation across many organizations, an experienced consultant might have the necessary expertise to help.
• Businesses hire consultants to promote change. Often, companies get stuck trying to change their internal organization, so outside consultants are often used to facilitate the transition.
• Businesses hire consultants to teach. Training programs, retraining programs, technical software implementation, and other areas require specialized skills that only experienced consultants offer. And remember, age is simply a number. Even if you’re over 60 or have been living the good life for a while, there’s never a wrong time to kick off your consulting gig. You’ve got a lifetime of lessons under your belt, and believe it or not, people are always hunting for that kind of seasoned insight.
• Businesses hire consultants to make tough decisions. If a company needs to downsize, it will often bring in consultants to make the tough decisions to deflect blame for letting people go.
• Businesses hire consultants to influence important decision-makers at other companies. For example, if you’re trying to reach a deal with another company and find a consultant who knows that company well, the consultant may be the X factor in putting the deal together.
• Businesses hire consultants for ideation. Sometimes, a company hits a rough patch and has a hard time finding new ideas. Consultants can help bring new energy to the business and help ideate products and services.
• Businesses hire consultants to create new companies and products. Some specialized consultants help others create (or buy) new companies’ products and services.

When choosing your niche, you can start by assessing your skills and strengths and brainstorming the general consulting services you’d like to offer.

How to assess your skills and strengths for consulting:

• Start by identifying your transferable skills. What skills have you gained from your education, work experience, and personal life that can be applied to consulting? For example, if you have experience in sales, you may have transferable skills such as communication, persuasion, and negotiation.
• Reflect on your past experiences. Think about the projects and tasks that you have completed in the past. What skills and strengths did you need to be successful? For example, you may have demonstrated organization, time management, and problem-solving skills if you successfully managed a complex project.
• Survey your network. Ask your friends, family, and colleagues for feedback on your skills and strengths. What do they see as your assets? What areas do they think you could improve?
• Take a skills assessment test. There are several online and offline skills assessment tests available. These tests can help you identify your strengths and weaknesses in various areas, such as communication, problem-solving, and critical thinking.
• Complete a personal SWOT analysis. A SWOT analysis is a framework for identifying your strengths, weaknesses, opportunities, and threats. This can be a helpful exercise for assessing your skills and strengths as a potential consultant.
• Create a portfolio of your work. This could include samples of your writing, presentations, case studies, or other work products. A portfolio is a great way to showcase your skills and strengths to potential clients.
• Volunteer your services to a nonprofit organization. This is a great way to gain experience and test your skills in a real-world setting.
• Shadow a consultant. This is a great way to learn about a consultant’s day-to-day work and see if it is a good fit for you.
• Take a consulting course or certification program. This can help you to learn the essential skills and knowledge needed to be a successful consultant.
• Network with other consultants. Attend industry events and connect with other consultants on LinkedIn. This is a great way to learn from others and to get your foot in the door.

By following these suggestions, you can better understand your skills and strengths and develop a plan for becoming a successful consultant.

Just as you’d consider different business ideas when starting a business, you must nail down the specifics of your consulting business before you work with any clients.

This is vital for three reasons:

• You must articulate your consulting service to potential clients to convince them that your services are valuable.
• You’ll need to charge fees that let you run a sustainable business.
• Specificity helps to set realistic expectations for your clients and potential clients.

This last point benefits both you and your clients. Your clients can make comfortable, informed decisions, and you can avoid being taken advantage of.

While you can’t prevent “scope creep” entirely, being clear about what a client is paying for upfront (and getting it in writing) will help set realistic, workable boundaries both parties can agree to. And, importantly, this will also clearly define the value proposition for your consulting business.

If you’re struggling to identify what your niche or specialty might be, consider these techniques for narrowing it down:

• Identify any underserved specialties in your field.
• Consider what specialties will continue to be underserved by a suitable consultant over the long term.
• Determine which areas in your field clients and potential clients struggle with the most.
• Ask yourself if your unique background and niche expertise provide you with rare knowledge not easily found in the job market.
• You’ve probably informally helped friends solve their business problems and pain points. What areas have you focused on when working with your friends?
• Is your consulting business limited to helping clients in the United States, or will you provide services to clients worldwide?

Here’s a detailed look at the most popular consulting niches. For each niche, we’ll outline the essential skills required, provide insights into the typical clientele, and discuss the frequent challenges small businesses face.

Types of consulting:

• Management consulting
• Strategy consulting
• I.T. consulting
• Operations consulting
• Business consulting
• Financial strategy consulting
• Sales consulting
• Human resources consulting
• Marketing consulting
• Career consulting
• Financial consulting
• Environmental consulting
• Real estate consulting
• Risk management consulting
• Education consulting
• Legal consulting
• Digital transformation consulting
• Sustainability consulting
• E-commerce consulting
• Healthcare consulting
• Diversity, Equity, and Inclusion consulting (DEI)
• Public relations consulting
• Brand consulting
• Nonprofit consulting
• Food service consulting
• Retail consulting
• Franchise consulting
• Agriculture consulting
• Hospitality consulting
• Logistics consulting
• Payroll management consulting

1. Management consulting

Management consultants play a critical role in helping businesses improve their overall performance. They meticulously assess existing organizational issues, devise strategic improvement plans and aid in executing those strategies. Their solutions typically span various business functions, including operations, H.R., finance, and IT. They also collaborate with international contractors to ensure a global perspective is incorporated into their recommendations and to navigate the complexities of international contracting.

Skills needed: Problem-solving, business strategy, change management.

Typical clients: Large corporations like McKinsey and Bain & Company, where they may work with C-suite executives to streamline business processes.

Common SMB Problems: A local restaurant chain struggling to manage operations across multiple locations; an online retailer failing to optimize its supply chain efficiency.

2. Strategy consulting

Strategy consultants are the architects of high-level, strategic business decisions. They help companies devise growth strategies, enter new markets, and make informed business choices. They analyze a company’s strengths and weaknesses , assess market conditions, and help formulate a winning strategy.

Skills needed: Strategic thinking, industry-specific expertise, decision-making.

Typical clients: Large-scale organizations such as Coca-Cola and IBM, where strategic decisions have far-reaching consequences.

Common SMB problems: A brick-and-mortar bookstore considering expansion into the e-commerce space; an artisanal coffee shop struggling to differentiate itself in a competitive market.

3. I.T. consulting

I.T. consultants are technical wizards that help businesses implement and manage new technologies. They tackle system integration, software development, enterprise architecture, cybersecurity, etc. Their work is essential in today’s digital age, where technology plays a pivotal role in business success.

Skills needed: Technical knowledge, problem-solving, and project management.

Typical clients: Tech companies, manufacturing firms, and educational institutions.

Common SMB problems: A local bookstore trying to set up an online sales platform; a small travel agency experiencing difficulties with their booking system.

4. Operations consulting

Operations consultants are the mechanics of business processes. They help organizations streamline operations by enhancing supply chain management, procurement, manufacturing, and service delivery. They identify bottlenecks, propose improvements, and may even assist in implementing these changes.

Skills needed: Project management, process improvement, analytical thinking.

Typical clients: Large logistical companies like Amazon and FedEx, where efficient operations directly influence the bottom line.

Common SMB problems: A local craft brewery struggling with inventory management an online fashion boutique experiencing difficulties with order fulfillment.

5. Business consulting

Business consultants wear many hats, depending on their clients’ needs. They could advise on financial matters one day and resolve operational bottlenecks the next. Their ultimate goal is to help businesses run more efficiently and profitably.

Skills needed: Business understanding, problem-solving, and communication skills.

Typical clients: Small to medium-sized businesses, entrepreneurs, and startups.

Common SMB problems: An independent fashion retailer struggling with business growth; an online fitness trainer unsure how to scale their business.

6. Financial strategy consulting

Financial strategy consultants guide businesses in making sound financial decisions, focusing on corporate finance, risk management, financial restructuring, and real estate. Their expert financial advice helps companies maximize returns, manage financial risks, and comply with legal requirements.

Skills needed: Financial acumen, risk management, understanding of laws and regulations.

Typical clients: Multinational corporations, financial institutions, and property developers .

Common SMB problems: A growing neighborhood bakery unsure of how to manage its financial growth; an online health supplement retailer struggling with pricing strategy.

7. Sales consulting

Sales consultants are sales performance enhancers. They develop effective sales strategies , refine sales processes, and boost team morale, aiming to optimize sales team performance and, ultimately, increase revenue.

Skills needed: Sales expertise, communication skills, motivational abilities.

Typical clients: Companies with sales teams, ranging from technology firms to consumer goods manufacturers.

Common SMB problems: A small electronics store with stagnating sales figures; an online handcrafted jewelry shop failing to meet sales targets.

8. Human resources consulting

Human resources consultants are experts in managing a company’s most valuable asset—its employees. They guide H.R. processes, such as talent management, conflict resolution, training and development, benefits administration, and compliance with employment laws.

Skills needed: Understanding H.R. practices, interpersonal skills, and knowledge of employment laws.

Typical clients: Corporations of all sizes, startups, and nonprofit organizations.

Common SMB problems: A family-owned grocery store grappling with high employee turnover; a small digital marketing agency striving to develop a comprehensive employee benefits program.

9. Marketing consulting

Marketing consultants work magic with a company’s marketing strategy , enhancing brand visibility , customer engagement, and sales conversions . They specialize in diverse areas, including digital marketing, content creation, SEO , social media marketing, and more.

Skills needed:   Marketing expertise, creativity, analytical skills.

Typical clients: Any company needing marketing help, including tech startups, retail businesses, and service providers.

Common SMB problems:   A small café struggling to attract customers; an online clothing boutique experiencing low web traffic.

10. Career consulting

Career consultants serve as career architects, helping individuals set career goals and build successful careers. They assist with skill development, resume writing and enhancement , job applications, interview preparation, and market understanding.

Skills needed: Job market knowledge , interpersonal skills, H.R. expertise.

Typical clients: Job seekers, career changers, and businesses looking to support their employees’ career growth.

Common SMB problems: A small architectural firm looking to improve employee skillsets; an online tutoring company wanting to assist tutors with professional development.

11. Financial consulting

Financial consultants help individuals, families, and businesses manage their finances. They offer guidance on investments, budgeting, tax planning, insurance, and more. They help their clients make financially savvy decisions to achieve their monetary goals.

Skills needed: Financial knowledge, analytical skills, trustworthiness.

Typical clients: Individuals, families, entrepreneurs, and businesses of all sizes.

Common SMB problems: A family-owned bed and breakfast struggling with budgeting; an online art store owner uncertain about investment strategies.

12. Environmental consulting

Environmental consultants help businesses assess and minimize their environmental impact. They offer advice on sustainable practices, regulatory compliance, waste management, etc. Their work often intersects with the construction, energy, and real estate sectors.

Skills needed: Knowledge of environmental regulations, scientific expertise, and analytical skills.

Typical clients: Construction companies, energy producers, and manufacturing firms.

Common SMB problems: A local brewery looking to reduce water waste a small online furniture retailer aiming to source more sustainable materials.

13. Real estate consulting

Real estate consultants provide expert property buying, selling, and management advice. They analyze market trends, assess property values, and help clients make informed real estate investment decisions.

Skills needed: Deep understanding of the real estate market, analytical skills, and negotiation skills.

Typical clients: Individual investors, real estate developers, and commercial property firms.

Common SMB problems: A local coffee shop considering expansion needs advice on location selection, and an online business ready to establish a physical headquarters requires guidance on property acquisition.

14. Risk management consulting

Risk management consultants are an organization’s fortification experts. They identify potential threats to a business’s financial health, operational efficiency, or reputation and devise strategies to mitigate these risks.

Skills needed: Risk analysis, strategic planning, problem-solving skills.

Typical clients: Financial institutions, manufacturing companies, and businesses exposed to significant risk.

Common SMB problems: A small construction company grappling with safety compliance issues; an online travel agency struggling with data security risks.

15. Education consulting

Education consultants work with schools, educational institutions, or individuals to enhance learning experiences. They advise on curriculum development, educational policies, and strategies to improve student performance.

Skills needed: Knowledge of educational systems and policies, curriculum development, and interpersonal skills.

Typical clients: Schools, universities, and educational technology companies.

Common SMB problems: A local private school struggling to improve student outcomes; an online tutoring platform seeking advice on curriculum enhancement.

16. Legal consulting

Legal consultants provide expert advice on legal matters. They help with contract drafting, legal compliance, dispute resolution, and other legal complexities businesses may face.

Skills needed: Legal knowledge, analytical skills, attention to detail.

Typical clients: Businesses across industries require legal guidance without a full-time attorney.

Common SMB problems: A small brewery  is having difficulty understanding licensing laws, and an  e-commerce platform is  unsure about customer data usage compliance.

17. Digital transformation consulting

Digital transformation consultants help businesses adapt to the digital age. They guide companies in integrating digital technology in all operations, enhancing efficiency and competitiveness.

Skills needed: Proficiency in digital technologies, change management, and strategic planning.

Typical clients: Traditional businesses looking to digitize their operations and tech companies aiming to update their digital strategies.

Common SMB problems: A local bookstore wanting to create an online presence; an established online clothing retailer seeking to streamline order processing with advanced technologies.

18. Sustainability consulting

Sustainability consultants assist businesses in incorporating sustainable practices into their operations. They help clients reduce environmental impact, comply with sustainability regulations, and build a green brand image.

Skills needed: Understanding environmental science, corporate sustainability strategies, and regulatory compliance.

Typical clients: Manufacturing companies, energy firms, and businesses aiming for greener operations.

Common SMB problems: A local organic grocery store wants to reduce its carbon footprint, and an online eco-friendly clothing brand needs help with supply chain sustainability.

19. E-commerce consulting

E-commerce consultants guide online businesses toward success in the digital marketplace. They assist in website optimization , digital marketing, customer journey mapping , SEO consulting , and conversion rate improvement .

Skills needed: Digital marketing, SEO, UX design, data analysis.

Typical clients: Online retailers and businesses transitioning from brick-and-mortar to online.

Common SMB problems: A small local artisan wanting to sell their products online; a niche online beauty store struggling to increase site traffic and conversion rates.

20. Healthcare consulting

Healthcare consultants focus on optimizing healthcare organizations’ operations and outcomes. They scrutinize all aspects, from personnel and profits to processes, offering valuable insights to enhance efficiency and tackle complex challenges.

Skills needed: Deep understanding of healthcare systems , analytical skills, and problem-solving abilities.

Typical clients: Hospitals, clinics, healthcare tech companies, and pharmaceutical firms.

Common SMB problems: A local dentist office struggling with patient scheduling efficiency; an e-health startup looking to improve their telehealth service delivery.

21. Diversity, Equity, and Inclusion consulting (DEI)

DEI consultants promote diversity, equity, and inclusion within organizations. They bring an unbiased perspective to companies’ equity issues and help devise strategies that nurture an inclusive and respectful workplace culture.

Skills needed: Deep understanding of DEI issues, sensitivity to cultural differences, and practical communication skills.

Typical clients: Businesses across all sectors committed to improving diversity and inclusivity.

Common SMB problems: A local bakery with a culturally diverse staff experiencing communication issues; an online software development company aiming to build a more inclusive work culture.

22. Public relations consulting

P.R. consultants are crisis managers and image guardians for organizations. They strategize how to present the company in the best light, deal with potential crises, and facilitate effective communication with the public and media .

Skills needed: Excellent communication skills, crisis management expertise, and ability to think independently.

Typical clients: Enterprises, celebrities, political entities, or organizations needing to maintain a positive public image.

Common SMB problems:  A small town family restaurant facing negative press over a food safety issue; an online retail brand dealing with customer complaints going viral on social media .

23. Brand consulting

Brand consultants act as brand sculptors, carving out a company’s brand identity in the market. They conduct competitor analysis , initiate market research, and devise creative strategies to enhance brand perception and customer loyalty.

Skills needed: Creativity, market research skills, and understanding of consumer psychology .

Typical clients: Businesses looking to launch, rebrand , or strengthen their market position.

Common SMB problems: A local gym failing to differentiate its brand from competitors; an online pet supplies store struggling to connect with its target audience .

24. Nonprofit consulting

Nonprofit consultants assist charitable organizations in achieving their mission and improving their effectiveness. They help with fundraising strategies, volunteer management, marketing efforts, and organizational structure.

Skills needed: Understanding the nonprofit sector, fundraising strategies , leadership, and management skills.

Typical clients: Charitable organizations, educational institutions, and advocacy groups.

Common SMB problems: A small local animal shelter struggling with volunteer retention; an online nonprofit aiming to improve donor engagement and fundraising .

25. Food service consulting

Food service consultants advise restaurants, cafeterias, and other food establishments. They help with menu development, supply chain management, health and safety compliance, and operational efficiency.

Skills needed: Understanding the food industry, culinary expertise, and supply chain management.

Typical clients: Restaurants, hotels, catering businesses, and food delivery services.

Common SMB problems:  A small town café needing menu innovation to compete with larger chains; an online food delivery service struggling with logistical and supply chain issues.

26. Retail consulting

Retail consultants work with businesses to optimize their operations, sales strategies, inventory management, and customer service. They help brick-and-mortar stores transition to e-commerce and cope with the challenges of the digital era.

Skills needed: Understanding the retail industry, sales and marketing expertise, and knowledge of e-commerce trends.

Typical clients: Retail stores, e-commerce businesses, and department stores.

Common SMB problems: A local bookstore struggling to compete with online retailers; a clothing store facing inventory management issues.

27. Franchise consulting

Franchise consultants help businesses become franchisors or help potential franchisees select the right opportunity. They also help with legal matters, business plans, marketing strategies, and location selection.

Skills needed: Franchise business models, legal expertise, and business development skills.

Typical clients: Potential and existing franchisors and franchisees.

Common SMB problems: A small fast-food restaurant looking to franchise their business; an online tutoring service considering becoming a franchisee.

28. Agriculture consulting

An agriculture consultant assists farmers and agribusinesses in making informed decisions that improve their farm operations’ profitability and sustainability. They can provide expert advice and assessments on crop management, soil health, livestock care, sustainable farming practices , and modern farming technologies.

Skills needed: Deep knowledge of farming techniques, environmental regulations, and agricultural economics. Furthermore, an understanding of biotechnology and proficiency in data analysis can be beneficial.

Typical clients: Farm owners, agribusinesses, agricultural technology firms, agrarian nonprofits, and government agencies.

Common SMB problems: A small family-owned vineyard might struggle with soil health, which affects its grape yield. Alternatively, an organic vegetable farm could explore ways to enhance sustainable farming practices to meet increased demand without compromising its organic status. These situations call for an agriculture consultant’s expertise.

29. Hospitality consulting

Hospitality consultants assist businesses in the tourism and lodging industries. They help with business development, customer service strategies, facility management, and creating memorable guest experiences.

Skills needed: Understanding of the hospitality industry, customer service expertise, and facility management skills.

Typical clients: Hotels, resorts, travel agencies, and event planning businesses.

Common SMB problems: A boutique hotel struggling with online booking management; a local tour agency facing marketing challenges in attracting tourists.

30. Logistics consulting

Logistics consultants help businesses streamline their supply chain, distribution, and transportation processes. They assist in optimizing warehouse operations, reducing shipping costs, and improving delivery times.

Skills needed: Supply chain management, transportation logistics, analytical skills.

Typical clients: Manufacturing companies, e-commerce businesses, and logistics providers.

Common SMB problems: A local craft brewery having issues managing distribution logistics; an online clothing retailer struggling with international shipping costs and regulations.

31. Payroll management consulting

Payroll management consultants streamline and optimize a business’s payroll process, ensuring employees’ accurate and timely payments. They help create efficient payroll structures, integrate payroll systems, ensure regulatory compliance, and manage payroll taxes.

Skills needed: Extensive knowledge of payroll systems and payroll services , tax regulations, auditing skills, numerical proficiency, and a thorough understanding of local and international labor laws.

Typical clients: Any organization that manages a workforce, from small businesses to multinational corporations, across industries.

Common SMB problems: An e-commerce startup might struggle with managing payroll for its remote workers across different states or countries, creating issues with tax compliance and payment schedules. In another scenario, a local retail business may experience errors in calculating overtime, leading to discrepancies in employee pay.

Finally,  remember to consider the size of your target market. Not every niche will be lucrative. Once you understand each niche’s  total addressable market (TAM) , you can make more informed decisions .

2. Write a business plan

Starting a new business is quite an adventure, and like any good journey, it can be helpful to have a map. That’s where a business plan comes in.

It’s not a must-have, but it can help clarify your thoughts and dodge some rookie mistakes.

Believe it or not, studies show that folks who take the time to jot down a business plan when kick-starting a business are 2.5 times more likely to see their dreams turn into reality. Not only that but crafting a business plan also helps you sharpen skills that’ll be a tremendous asset down the line.

Don’t sweat over making every little detail perfect in your business plan.

You certainly don’t need to lose sleep over writing a 100-page document. There are tons of practical one-page business plan models out there that can guide you in writing a concise, one-page business plan.

Different consulting business models

The independent consultant model.

As an independent consultant, you are the captain of your ship. You work directly with clients, deliver projects single-handedly, and manage all aspects of your business operations.

This model is an excellent fit if you prefer maintaining flexibility and having hands-on involvement in every project. It requires a high level of expertise in your niche and solid business and time management skills.

The consultancy firm model

In the consultancy firm model, you set up a team of consultants, each contributing their unique expertise. You focus on leading the organization and contributing to client projects.

This model allows for scalability and an expanded service offering, making it a viable option if you’re targeting large businesses and complex projects. However, it also comes with increased team management responsibilities, including hiring, training, and retention.

The productized consulting model

Productized consulting takes a unique approach to consulting services.

Instead of delivering bespoke advice and solutions, you build a standardized “products” suite based on your expertise. These could range from online courses and digital tools to books and webinars. You sell these to clients at a fixed price, creating a scalable source of passive income.

This model allows you to leverage your knowledge and reach a wider audience, but it requires product development and marketing skills.

The hybrid consulting model

A hybrid model is a fusion of two or more models tailored to your preferences and business goals. For example, you could combine independent consulting with productized services, delivering personalized consulting while offering pre-packaged digital resources.

This model gives you the flexibility to design a business that aligns with your skill set, work style, and the needs of your target market.

The networked consulting model

In the networked consulting model, you collaborate with other independent consultants, forming a network of specialists. You refer work to each other, collaborate on projects, or even pitch together as a virtual firm for more significant contracts.

This model allows you to extend your service offering and reach without the overheads of running a firm. It requires strong networking skills and forming mutually beneficial professional relationships.

The subscription consulting model

In this model, instead of charging per project, you offer your consulting services for a regular subscription fee. Clients get a certain amount of your time or specific services each month.

This provides steady recurring revenue and allows you to form deeper client relationships. It suits consultants whose services involve ongoing work, like business coaching, digital marketing, or I.T. support.

Each of these models has advantages and challenges, so choosing a model that aligns with your goals, preferred working style, and the needs of your target clients is crucial.

Need some help getting started? Check out our no-nonsense guide to writing a business plan . It’s packed with insights and free downloadable business plan templates designed to help you take your business from a dream to a reality.

3. Choose your legal business structure

Embarking on your consulting business journey, you’ve got to make a few critical decisions – like the kind of business type you want your business to be.

It might seem a bit dry, but this stuff is essential, as it affects everything from tax filings and liability to local, state, or national rules you need to follow.

There are different legal business structures to choose from, and for those starting, it can feel like trying to order food in a foreign language.

Here’s the thing – don’t feel pressured into registering your business immediately. Sure, becoming a sole proprietor might be easy on the wallet and quick to set up, but it could leave you open to more risk and potentially create a tax headache.

Forming a Limited Liability Company (LLC) could be smarter for most consulting gigs.

Invest some time into researching the business structures that could suit you. Consider which will benefit your business now and align with your future professional and personal ambitions.

Let’s look at the four main types of business entities:

• Sole proprietorship. This is the simplest entity. As a sole proprietor, you’re the lone ranger responsible for your business’s profits and debts.
• Partnership . This is when two or more people team up, sharing liability and responsibility for a business.
• Limited Liability Company (LLC). This structure allows owners, partners, or shareholders to limit their personal liability while reaping a partnership’s tax and flexibility perks.
• Corporation . This is a separate legal entity from its owners. A corporation can own property, get sued, pay taxes, and enter into contracts.

Consider what will work best for your current needs and future ambitions.

Hire an expert to form your company and save time. Our trusted partners can help: Northwest ($39 + state fee) or Bizee ($199 + state fee) . We recommend Northwest. After evaluating the leading registration companies, Northwest stands out as our top choice due to its competitive pricing, exceptional customer support, and commitment to privacy. Pay just $39 + state fees and you'll get a free year of registered agent service, articles of organization, privacy, and client support from local experts.

And a heads up – in most states, if you’re planning to run your consulting firm under a different name than your legal business name, you need to register this with the secretary of state or county clerk.

For instance, if your registered company is an LLC named “Three Brothers, LLC,” but you’re selling services as “Three Tigers,” you might have a problem. That’s because your registered name and your trade name don’t match.

But don’t worry, this is not as scary as it sounds. You can sort this out by registering your trade name with your state (and or local government) by filing a “doing business as” (DBA) certificate. Also known as an “assumed name,” “fictitious business name,” or “trade name.” Need help? Check out this super handy resource that breaks down what a DBA is, the state requirements for a DBA, and how to file a DBA in all 50 states and U.S. territories .

3. Set up business accounting and bookkeeping

Let’s talk about something I find less cool but super important – business accounting and bookkeeping . This stuff is vital to understanding your cash flow and filing taxes correctly.

Accounting is all about recording, organizing, and presenting your financial info. It’s the backbone of your business’s financial health, helping you make informed decisions.

Bookkeeping is more about recording, storing, and retrieving your financial data.

Sure, the two overlap. But the significant difference? Bookkeeping is about recording and categorizing financial info, while accounting uses that info for analysis, strategy, and tax planning.

Hire a bookkeeper – your new best friend

Unlike accountants, bookkeepers have a simple mission: keep things organized, pay bills, track an invoice financing loan , and prep work for the accountant. They’re typically more wallet-friendly than CPAs (certified public accountants) and can handle day-to-day transactions, bank account balancing, basic reports, and keeping your financial records tidy.

Many consultants hire an external bookkeeper, paid hourly, who swoops in regularly to manage entries, bills, invoices, and receivables. The best part? They don’t need to be in your office 24/7. They can work remotely or drop by every couple of weeks.

An experienced bookkeeper isn’t just handy; they’re a lifesaver, especially when setting up invoice financing to speed up client payments. Plus, with the help of tools, a free invoice template , or invoicing software from Billdu for creating and managing invoices, they can help you be more efficient and less stressed.

Organize your financial information

Every business generates heaps of data; if it’s not organized and accessible, it’s as useful as a chocolate hammer. This is doubly true for your consulting gig. Even a few weeks of unrecorded transactions or a month of unmailed invoices can drown a small business.

A sharp bookkeeper can help you set up a filing system, keep bills organized, ensure invoices are sent out promptly, and introduce a disciplined, organized approach. They can even help set up and track invoice financing loans if clients are slow on payments.

Perform an annual health check

Don’t underestimate the value of a yearly review of your bookkeeping, accounting, and tax strategies. Give a hard look at your systems and the people managing them, and ask some critical questions.

Are you being cost-effective and productive with your accounting? Does your CPA understand your industry enough to give solid advice? Is your tax preparer skilled enough to keep you on the right side of the law? Most importantly, can you trim expenses while maintaining high-quality controls?

Take the time to reevaluate and bolster your accounting strategy. It might seem like a chore, but trust me, it’s worth it!

4. Assess your finances and secure startup capital

Let’s talk money. Assessing your finances is super important – it’s not just about tracking sales and profits but getting a complete picture of your financial health.

So, here’s the rundown on business finance:

Business finance is like your company’s personal trainer. It uses your financial data to help you manage your funds, making your operations profitable and sustainable.

And you’ve got plenty of business financing options.

You must figure out how to fund your business and fuel its growth. You’ll struggle to build a sustainable, profitable business if you’re not on top of your numbers.

Starting a business is exciting, but don’t let the excitement push you to overspend. Be careful with your funds and make purchases that make sense.

Expensive and unnecessary equipment? That’s a no-no. They might seem cool, but they could put your small business’s survival on the line.

Your startup costs may include the following:

• your brand design (logo, business cards , and website)
• any license or permit fees
• deposits and rent for a physical work location (if you plan to lease your own office space)
• basic infrastructural costs like VoIP phone and internet service, scheduling and invoicing software , etc. You can reduce costs by picking invoicing software that includes automated tax compliance.
• marketing and advertising costs

Here’s the upside – most successful consultants can run their businesses with low costs until they’ve built a solid client base, then they can spend more on equipment and supplies.

Securing startup funding

Securing sufficient capital is a major hurdle for new businesses. While self-funding is ideal, it’s often not feasible, making business partners or outside investors essential.

Before engaging potential partners or investors, clarify your expectations:

• What do you want from this partnership or investment?
• How involved should they be in decision-making?
• Is the relationship short-term or long-term?

Your partnership can take various forms: pure capital investment, cost-sharing, leads generation, or associating with a reputed brand. Knowing your goals upfront helps in selecting the right partner or investor.

Consider these relationship options:

• Crowdfunding. Platforms like Kickstarter and Indiegogo allow raising funds from the public without granting them business control. However, it requires fulfilling commitments made to backers. Crowdfunding may not suit consulting businesses, but its growing popularity, projected to exceed the global venture capital industry, makes it worth exploring.
• Angel investors and venture capitalists. These traditional funding sources suit those planning a consulting agency. Convincing investors about your business viability is challenging, particularly for startups. However, finding investors becomes easier if you have a profitable consulting business looking to scale, particularly in technology. Remember, they may want significant involvement in your business to safeguard their investment.
• Partnerships. True business partnerships involve an equal investment of finances, resources, and labor. Alternatively, you can establish temporary partnerships with existing brands or consultants who complement your services. Here are two examples: (a) Partner with a consultant in a related field to offer combined services to a broader client base; (b) Collaborate with a software business in your field to create a lead exchange program, driving well-qualified leads to each other. The crux is finding a partner who shares your goals and fostering mutual motivation to succeed.
• Strategic alliances. This is a collaboration where you and another business agree to combine resources to achieve a common goal. For example, a marketing consultant might form a strategic alliance with a graphic design firm . Together, they could offer a more comprehensive service to their clients. Both businesses retain their independence but might share costs, risks, and rewards.
• Joint ventures. A joint venture (J.V.) is a business agreement in which parties agree to pool their resources to accomplish a specific task or business activity. Unlike a strategic alliance, a J.V. often results in the creation of a new business entity. For instance, two consulting firms might create a J.V. to tackle a market segment neither could own. This type of arrangement typically involves more commitment and investment than a strategic alliance but can lead to greater rewards due to the combined strength of the partners.

Finally, remember that accounting and bookkeeping system we discussed earlier? It’s back in play here. You need to set up one to keep tabs on your finances. It’s essential for understanding cash flow and filing taxes, but it also helps you track income, expenses, capital expenditures, profit, loss, EBITDA, and so on.

5. Develop your brand identity

Think brands are only for the big corporations?

They’re super crucial for small businesses, especially independent consultants.

A solid brand adds a layer of professional polish that can be tricky for small outfits to establish. So, don’t leave your brand identity to fate – building a successful consulting biz requires serious attention to branding .

Let’s rewind – your brand is your company’s public persona. Ideally, it should reflect your business’s best and most vital traits.

For consultants, credibility is king. A lackluster brand identity undermines that.

Good design isn’t just a luxury – it’s essential for you and your clients.

Picture this – you’re selling $10,000 projects and want to double the price. To do that, you must articulate the value differently, and design can help.

Before you dive into networking, ask yourself some key questions. What persona do I want my brand to project? Who needs my services? What unique value do I offer? What are my brand values ? What’s the core part of my client’s experience? Your answers will shape your brand’s core and influence your future branding decisions, from your company name and logo design to your website design.

And remember, you don’t have to break the bank to create a strong brand identity. Here’s a guide to help you figure out the sweet spot for pricing:

• How much should a logo design cost?
• How much does a business card cost?
• How much should brochure design cost?
• How much does website design cost?

These guides cover various price points, so you’ll find something that fits your budget.

Ultimately, building a successful consulting business is about brand authenticity and connection . A compelling brand can make that happen. Whether you’re starting or thinking about a rebrand , take the time to think about your brand. It might make all the difference.

For more on establishing and maintaining a consistent brand identity, check out Grow Your Small Business with Consistent Branding .

Marketing psychology can help you increase revenues

Marketing Psychology can help you boost your revenues by incorporating psychological principles into your marketing strategy.

6. Create an effective fee structure

Creating an effective fee structure starts with understanding your operating costs – rent, utilities, subscriptions, taxes, supplies, and salaries. But don’t forget to factor in profit, which is crucial for business sustainability. And remember to pick a an appropriate consulting model.

Envision how you want to run your consulting business – a brick-and-mortar agency, a home office, or a global setup while traveling. Your fees should support this style. For various strategies, see this article by Andrea Coutu of Consulting Journal.

Thoroughly dissect your operational costs, which stretch beyond fixed and variable expenses like rent, utilities, and supplies, to incorporate aspects like:

• Time investment. Calculate the non-billable hours spent on marketing, administration, and skill enhancement.
• Risk mitigation. Factor in a buffer for unforeseen circumstances or potential risks, such as project overruns or unexpected costs.
• Profit margin. Explicitly ascertain a profit margin that compensates for your expertise and ensures business growth.

Next, conduct a robust analysis of:

• Competitor pricing. Understand competitors’ pricing strategies and identify market gaps or opportunities.
• Clients’ paying capacity. Evaluate the financial bandwidth of your target audience and what they’re willing to pay for your services.
• Unique Value Proposition . Gauge how your unique offerings and expertise can justify a premium or competitive pricing strategy.

Your pricing should resonate with the tangible and intangible benefits clients derive. To augment your perceived value:

• Showcase expertise. Use case studies, testimonials, and certifications to validate your expertise and results.
• Brand positioning . Ensure your branding, from website design to communication, exudes professionalism and competence.

Next, explore, understand, and select a pricing strategy that aligns with your services and client expectations:

• Hourly rate. Transparent and straightforward, this method is often suitable for consultants with clearly definable hourly services, such as legal consultants or I.T. troubleshooters. However, tracking hours is essential; questions may arise if work takes longer than estimated.
• Project rate. Ideal for projects with clear deliverables and defined timelines, like marketing campaigns or project management services. This could be risky if the work takes longer but beneficial if completed quicker. Adjustments may be needed for scope changes.
• Retainer. Suitable for ongoing, long-term services, such as H.R. consulting or business advisory, where clients require access to your expertise over a period.
• Value-based pricing. Charging is based on the value provided to the client, which can be highly profitable for consultants who significantly impact client revenues or costs, such as business strategy consultants or revenue growth advisors.

Additional revenue streams

Beyond direct consulting, explore alternative revenue avenues:

• Online courses. Leverage your expertise to educate others, ensuring a revenue stream decoupled from your consulting hours.
• E-books or guides. Create comprehensive guides or e-books based on your area of expertise, providing a low-cost option for those unable to afford your full services.
• Affiliate marketing. Recommend tools or services and earn a commission for each sale made through your referral.

Periodic review and adjustment

Ensure your fee structure remains viable and competitive through:

• Client feedback. Understand client perceptions and reservations about your pricing.
• Market trends. Stay attuned to shifts in market rates or emerging pricing strategies.
• Business evolution. As your expertise and offerings evolve, ensure your pricing reflects these advancements.

For more on fee setting, check out this online mini-course by Consulting Journal.

Consider offering online courses if you have unique expertise. It’s another revenue stream for your consulting business. Here’s a guide on how to sell online courses .

7. Launch your website and market your business

Your business website is not just a digital address; it’s your brand ambassador. Use your site to effectively communicate your brand ethos, values, and services to your target audience.

It’s crucial that your website truly personifies your consulting brand. For example, suppose you’re running a leadership consulting service emphasizing transparency and innovation. In that case, the site should have a modern, clean design with easy-to-navigate menus and transparent information about your services.

The website’s visual design elements should resonate with your brand’s voice and identity. For instance:

• Use your brand’s colors. If your brand colors are turquoise and white, these colors should be prominently displayed in your site’s design. For example, a sustainability consulting company might use green and earth tones to reflect their environmental commitment.
• Feature your company logo. Your logo is a visual shorthand for your brand, and it should be prominently displayed, preferably in the header or corner of every page.
• Write marketing copy for your target audience. Your website copy should speak directly to prospective clients’ needs and interests. If you’re a technology consultant, use language that tech-savvy visitors will appreciate and understand.
• Showcase your consulting style. Whether you’re more hands-on or prefer to guide from the sidelines, ensure this is evident. For example, a dynamic, interactive website may indicate a more engaging consulting approach.

Beyond these design elements, your website is an ideal platform to highlight your consulting achievements.

Feature testimonials and case studies from past clients to showcase your expertise and success. For example, a healthcare consultant might include a case study on how they helped a hospital streamline its processes for better patient care.

Including an online store on your website can be a strategic move, especially if you have proprietary consulting tools, books, or digital resources to sell. For example, a marketing consultant might sell eBooks or webinars on the latest marketing strategies.

Passive income can bolster your bottom line and is an important safety net for lean seasons.

Marketing your consulting business

Being an exceptional consultant is only half the battle; marketing yourself effectively ensures your talents don’t go unnoticed.

If you’re not selling your services, there’s a good chance that no one is. So, you’ll complete your current contracts to find an empty calendar with no income looming ahead. As a result, you’ll miss many opportunities to generate ongoing online marketing income and may need to start from scratch.

Establishing a steady pipeline of clients and potential clients involves spreading the word about your consulting services to your target market.

Ultimately, you’ll write many client proposals , so get used to doing so early in your consulting practice.

Client proposals are your chance to show how you can help clients solve their problems. You’ll need to be clear about the project’s scope, the services you provide, what you’ll charge for the services, the deliverables, and the time frame, and use an electronic signature tool to bind clients legally. And be sure you show how you and the client can measure the results.

One proven method to gain traction in consulting and attract clients is to share your expertise extensively.

Networking at industry events relevant to your clients can be a goldmine for insights about industry trends, networking with current and prospective clients, and leveraging word-of-mouth referrals to generate fresh consulting leads. For example, if you’re a technology consultant, participating in tech expos or conventions can put you directly in contact with potential clients.

Participating in events catered to the consulting industry could also be beneficial, as you can build connections with other consultants and potential clients. This could also expose you to different approaches to delivering a persuasive value proposition when offering your consulting services to clients.

When attending these events, carry business cards and brochures about your services, complete with contact information, including a phone number. While email communication is prevalent,   other tactics like an email signature can help strengthen your business communication and establish trust with prospective clients.

In your marketing collateral, include the following:

• A comprehensive overview of your services
• A persuasive argument about why you’re the best choice
• Convincing reasons to hire you
• A concise biography containing relevant information
• A snapshot of your existing client portfolio

Also, consider exploring content marketing strategies tailored for consultants. Writing an ebook about your field of expertise or maintaining a regular blog can help establish you as an authority in your niche, improve your search ranking through SEO practices, and gather email leads. For example, a leadership consultant could blog about the latest trends in leadership and management, drawing from their own experiences and insights.

As a burgeoning business owner, capitalize on the exposure offered by social media marketing . Platforms such as Twitter , Facebook, and LinkedIn can help build an audience of followers.

Regularly post helpful tips, insights, and articles related to your services. By engaging with your followers and participating in relevant discussions, you present yourself as a subject matter expert, reinforcing your reputation as a knowledgeable and reliable consultant.

Invest in a social media management tool like Buffer for scheduling posts beforehand, freeing up your day to focus on clients. However, regular check-ins are essential to address client inquiries promptly.

Consider collaborating with micro-influencers in your industry, as aligning your brand with theirs can boost credibility and accelerate growth.

Here are other marketing strategies and tactics that can help you grow your consulting business:

Host free workshops or webinars

Free educational content through workshops or webinars can exhibit your expertise and attract potential clients.

Best for: I.T. consultants, marketing consultants, and management consultants. Not good for: Legal consultants, financial advisors, medical consultants.

Collaboration and partnerships

Join other consultants or businesses to expand your client base by providing complementary services. Best for: Technology consultants, business strategy consultants, marketing consultants. Not good for: H.R. consultants, independent financial consultants, health & safety consultants.

Whitepapers and case studies

Publishing in-depth whitepapers and client case studies demonstrates your skills and past successes. Best for: Data analytics consultants, research consultants, and financial consultants. Not good for: Image, lifestyle, or social media consultants.

Leverage client testimonials

Use your positive feedback and testimonials from past clients in your marketing materials to build trust. Best for: Management consultants, education consultants, H.R. consultants. Not good for: Cybersecurity consultants, legal consultants, crisis management consultants.

Join online forums and groups

Engage in online communities related to your niche, offering advice and establishing your expertise. Best for: Tech consultants, SEO consultants, freelance writing consultants. Not good for: Medical consultants, corporate strategy consultants, or tax consultants.

Implement a referral program

Reward existing clients for referring new clients to your consulting business. Efficient referral program software can streamline this process, making it easy to track and reward referrals. Best for: Career consultants, small business consultants, fitness consultants. Not good for:  Forensic, industrial safety, and agricultural consultants.

Pitch to local media

Offer your expertise for free to local media in exchange for publicity.

Best for: Personal finance consultants, relationship consultants, wellness consultants. Not good for: I.T. consultants, biotech consultants, energy consultants.

Speak at conferences

Presenting at conferences can establish you as an authority and help network with potential clients.

Best for: Environmental consultants, scientific researchers, marketing consultants. Not good for: Personal shopping, etiquette, or hobby consultants.

Engage in direct email marketing

Sending targeted emails with valuable content to a segmented audience can generate leads. Best for: Sales consultants, digital marketing consultants, and e-commerce consultants. Not good for: Grief consultants, child behavior consultants, or art consultants.

Local business community involvement

Engaging with local business communities or chambers of commerce can help foster local client relationships. Best for: Retail consultants, local marketing consultants, and hospitality consultants. Not good for: International trade, space, and research & development consultants.

Sharing regular posts about industry insights or tips showcases your expertise and improves your website’s visibility on search engines. Best for: Marketing consultants, career coaches, nutrition consultants. Not good for:  Privacy consultants, forensic consultants, chemical consultants.

Hosting online seminars can display your knowledge to a wide audience and attract potential leads. Best for: Financial consultants, I.T. consultants, marketing consultants. Not good for: Art consultants, fashion consultants, or local retail consultants.

Creating or participating in podcasts can help you reach new audiences and discuss industry trends and insights.

Best for: Personal development coaches, financial advisors, and health consultants. Not good for:  Cybersecurity consultants, data privacy consultants, industrial consultants.

Speaking and teaching

Leading workshops or courses and speaking at events can build your reputation and network. Best for: Business consultants, educational consultants, leadership consultants. Not good for:  Legal consultants, risk management consultants, chemical safety consultants.

Social media marketing

Using platforms like LinkedIn, Twitter, and Facebook to share content and engage with followers can enhance your online presence and credibility.

Best for: Social media consultants, branding consultants, travel consultants. Not good for:  Data security consultants, industrial safety consultants, forensic consultants.

Print or digital advertising

Placing ads in newspapers, magazines, or online platforms can promote your services to a broader audience.

Best for: Event planners, small business consultants, real estate consultants. Not good for: Scientific research consultants, aerospace consultants, and biomedical consultants.

Cold calling and emailing

Directly contacting potential clients might generate quick leads, but it might also have low conversion rates.

Best for: B2B service providers, sales consultants, and marketing consultants. Not good for:  Childcare consultants, mental health consultants, art consultants.

Remember, marketing becomes more straightforward once you’ve established a client base. According to this study , “43.7% of consultants reported that referrals were their top-earning marketing strategy”. Don’t hesitate to ask satisfied clients for referrals, as they can be a significant marketing asset.

Starting out, covering as many marketing channels as possible is wise. As you grow, you’ll naturally discover what methods work best for your consulting business.

8. Grow your consulting business

Starting a consulting business is thrilling, but it’s just the beginning. Here are five exciting steps to take your consulting business to the next level:

Study your competitors

Get your magnifying glass out and take a good, hard look at what other consultants or firms in your space are up to.

You’ll uncover their secrets to success and spot areas they’ve missed, carving out unique opportunities for you. Notice their marketing approach, service offerings, and how they price their services. A competitive analysis will give insights into your customers’ journeys and ways to make your service the top pick.

Be a storyteller

Starting a blog is like opening a window into your consulting world. It gives your business a voice, helps you become a trusted authority in your field, and boosts your online visibility.

If you’re scratching your head about what to write, your clients are your best inspiration. Address their challenges and questions in your blog posts. Plus, sharing these posts with potential clients can convince them of your expertise.

Be the thought leader

Beyond blogging, sharing your insights on social networks can amplify your reach. Use platforms like HARO to connect with journalists and bloggers who can quote you in their stories. This way, you can gain your consulting niche’s recognition as a thought leader.

Broaden your horizons

Your competitive analysis might reveal services your competitors offer that you don’t. Can you fill these gaps?

For example, if you’re a content marketing consultant, could you extend your services to include email or social media marketing? But remember, only add services that align with your expertise.

Make friends

The world is full of potential connections, and they’re only a click away from the internet. Networking online might seem tricky, but with platforms like Twitter and LinkedIn, you can spark conversations with industry peers and potential clients. Regular interaction can rekindle old connections and forge new ones.

Test these strategies and find the ones that boost your client base and help your consulting business thrive. Remember, it’s not about copying others but learning from them and building a brand that reflects you.

Grow your team

The life of an entrepreneur can often feel solitary, especially when you’re launching your consulting business. While the journey may start with you at the helm, remember the goal is to grow and expand, which calls for additional hands on deck.

After all, time is a finite resource, and you can’t run a successful consulting business burning the midnight oil every night. As your business scales up, you must delegate tasks to ensure you continue delivering exceptional service to your clients.

However, expanding your team doesn’t mean hiring without a strategy. Each new member should bring immediate value to your business. This decision is highly specific to your business, as every consulting venture has unique challenges and requirements.

Reflect on your strengths and weaknesses to determine who your first hire should be.

For instance, if marketing isn’t your strong suit, consider hiring a marketing manager to help map your business plan. Just ensure you validate their credibility, perhaps through references or evaluation letters , to guarantee they’re the real deal.

If dealing with numbers gives you a headache, a billing specialist could be your saving grace, managing accounts and ensuring payments are collected on time.

In essence, your first employees should fill the gaps in your expertise. Building a well-rounded team ensures a sturdy foundation for your business.

For many entrepreneurs, the first hire is often a part-time virtual assistant – a jack-of-all-trades ready to dive in, learn, and grow with the company. This person should be reliable, proactive, and have a strong work ethic. Having someone dependable on your side will make your journey less stressful and more enjoyable.

So, take a moment to reflect: what does your business truly need? Who could help turn your weaknesses into strengths and pave the way for your consulting business to thrive?

Start your consulting journey today

Venturing into entrepreneurship, especially after years of enjoying the safety of a salaried job, can be daunting.

The fact that you’ve made it this far in the article indicates a spark within you, a desire for something more fulfilling, more liberating.

Starting a consulting business can be a transformative journey, not just a decision. It’s a courageous step, a move that speaks volumes about your passion, expertise, and readiness to shape your destiny.

Are you ready to embrace this adventure, empower others with your knowledge, and define your own path?

The world of consulting awaits your unique perspective and innovative solutions. Will you rise to the challenge and create your own consulting legacy?

Associations

• Airport Consultants Council
• American Marketing Association
• Association of Management Consulting Firms
• Canadian Association of Management Consultants
• Canadian Marketing Association
• Direct Marketing Association
• Direct Selling Association
• Information Technology Association of America
• Institute of Management Consultants USA
• International Advertising Association
• International Association of Registered Financial Consultants
• International Association for Wedding Professionals
• International Branding Association
• IWA – International Webmasters Association
• National Retail Federation
• Professional & Technical Consultants Association
• Public Relations Society of America
• Search Engine Marketing Professional Organization
• SMEI The worldwide professional association for sales & marketing
• The National Association of Sales Professionals
• The Society of Professional Consultants
• Word of Mouth Marketing Association

Frequently Asked Questions (FAQs) about consulting

1. where can a consulting business identify government contracts to pursue.

You can find government contracts on official government procurement sites such as SAM.gov in the U.S. This platform lists federal business opportunities. Remember, each country has its own respective platform.

2. Can I establish a consulting business while still employed elsewhere?

Absolutely! Starting a consulting business as a side venture is possible. It allows you to test the waters and build a client base without risking your current employment. Just ensure that there’s no conflict of interest with your present job.

3. Which are promising sectors to launch a consulting business in?

The best field for your consulting business depends on your skills, experience, and passion. However, industries like I.T., H.R., business strategy, healthcare, and environmental sustainability are seeing high demand for consultants.

4. What credentials are required to start a consulting business?

While there are no specific requirements to start a consulting business, having relevant qualifications, certifications, and experience in your chosen field will boost your credibility and attract potential clients.

5. How can I price my consulting services?

Pricing can be based on factors like market rates, the complexity of the work, the client’s budget, and your experience. You can choose an hourly rate, a per-project fee, or value-based pricing.

6. How do I market my consulting business?

Multiple channels to market your consulting business include networking, social media marketing, blogging, speaking engagements, and email marketing. Highlight your unique value proposition and expertise.

8. Is a business plan necessary for a consulting business?

It’s not necessary but highly recommended. It provides direction, helps you understand your market and competition, and is necessary if you seek funding.

8. How can I differentiate my consulting business from competitors?

Differentiating your consulting business requires you to clearly articulate your unique value proposition, leverage your unique skills or experience, specialize in a niche, provide excellent customer service, and build a strong personal brand.

9. Should a consulting business be incorporated?

Incorporation can provide benefits such as limited liability, tax advantages, and a professional image. It’s advisable to consult with a legal professional or business advisor to understand the best structure for your business.

More About Small Business:

Google ads: the ultimate small business guide [2024], the 19 best small business marketing blogs you should read in 2024, 16 crucial website design factors that help your small…, how to start a property management company, 15 low-cost small business ideas you can start with a small budget, make every second count by crafting the ultimate elevator pitch, how to start a clothing line or clothing brand: the definitive…, how to start a medical marijuana dispensary business in 2024, 99 best small business ideas for 2024, how businesses can use chatbots to increase profits, how to plan, start and grow a real estate business: the…, 8 proven psychological strategies to deal with angry,…, how to start a brewery: the definitive guide, the complete guide on how to name a business, maximizing profits: the art of selling your small business, design done better.

The easiest way to get affordable, high-quality custom logos, print design, web design and naming for your business.

Learn More About Small Business

• Business Ideas
• Business Plans
• Starting Your Business
• Growing Your Business
• Content Marketing
• Customer Service
• Managing Customers
• Office Setup
• Small Business Tools
• Getting Financing
• Online Business
• Taxes & Accounting

Actionable business & marketing insights straight to your inbox

Subscribe to the crowdspring newsletter and never miss a beat.

How to Start a Consulting Business

ON THIS PAGE

• How to Start Your Own Consulting Business
• How To Start a Consulting Business FAQs

Helpful Slideshows, Videos & Images

• Additional Resources in the Consulting Business Market

How to Start a Consulting Company

Starting a consulting business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful consulting business.

Importantly, a critical step in starting a consulting firm is to complete your business plan. To help you out, you should download Growthink’s Ultimate Consulting Business Plan Template

Download our Ultimate Consulting Business Plan Template here

16 Steps To Starting Your Own Consulting Business

• Choose the Name for Your Consulting Business
• Develop Your Consulting Company Business Plan
• Choose the Legal Structure for Your Consulting Business
• Secure Startup Funding For Your Consulting Business (If Needed)
• Secure a Location For Your Consulting Business
• Register Your Consulting Business With the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get the Right Insurance for Your Consulting Business
• Buy or Lease the Right Consulting Business Equipment
• Develop Your Consulting Business Marketing Materials
• Set Prices For Your Consulting Services
• Purchase and Setup the Software Needed To Run Your Consulting Business
• Hire Employees For Your Consulting Business
• Open Your Consulting Business

1. Choose the Name for Your Consulting Business

The first step to starting a successful consulting business is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business.

Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your consulting business:

• Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing. Come up with a name that reflects the desired brand and/or focus of your consulting firm.

2. Develop Your Consulting Company Business Plan

One of the most important steps in starting a consulting business is to develop your consulting business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

To enhance your planning process, incorporating insights from a  sample consulting firm business plan  can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your consulting business.
• Company Overview – this section tells the reader about the history of your consulting business and what type of consulting business you operate. For example, are you a management consulting, technology consulting or strategy consulting business?
• Industry Analysis – here you will document key information about the consulting industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products or services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Product: Determine and document what products/services you will offer
• Prices: Document the prices of your products/services
• Place: Where will your business be located and how will that location help you increase sales?
• Promotions: What promotional methods will you use to attract customers to your consulting business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Consulting Firm Business Plan Template and complete your plan and financial model in hours.

3. Choose the Legal Structure for Your Consulting Business

Next you need to choose a legal business structure for your consulting business and register it and your business name with the Secretary of State in each state where you operate your business. Below are the five most common legal structures:

1) Sole Proprietorship

A sole proprietorship is a business entity in which the owner of the consulting business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a consulting business together. The partners share in the profits and losses of the business. The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a consulting business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a consulting business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your consulting business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding For Your Consulting Business (If Needed)

In developing your consulting business plan, you might have determined that you need to raise funding to launch your business. If so, the main sources of funding for a consulting business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a consulting business that they believe has high potential for growth.

5. Secure a Location for Your Business

Having the right space can be important for your consulting business, particularly if you’d like to meet clients there and do not plan on running your consulting business from home. To find the right office space, consider:

• Driving around to find the right areas while looking for “for lease” signs
• Contacting a commercial real estate agent
• Doing commercial real estate searches online
• Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space

6. Register Your Consulting Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Consulting Business Plan Template and complete your plan and financial model in hours.

7. Open a Business Bank Account

It is important to establish a bank account in your consulting business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your consulting business to help you separate personal and business expenses. You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

Every state, county and city has different business license and permit requirements. Nearly all states, counties and/or cities have license requirements including:

• General Business License : Some states may not require you to obtain a business license if you work as an independent consultant, but you might need one if you have any employees.
• Zoning Permit : You will need this permit if you plan on operating your business from a commercial space.
• Sales Tax Permit : You will need this permit if you plan on selling physical products or taxable services.

Depending on the type of consulting business you launch, you will have to obtain the necessary state, county and/or city licenses.

10. Get Business Insurance for Your Consulting Business

Business insurance policies that you should consider for your consulting business include:

• General Liability Insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Workers’ Compensation Insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial Property Insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business Interruption Insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional Liability Insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy or Lease the Right Consulting Business Equipment

Most consulting companies don’t need much equipment. To start a consulting business, you probably only need a computer, phone and internet access. Make sure to invest in the right webcam if you plan on doing many virtual meetings with clients. You might also need office furniture.  

12. Develop Your Consulting Business Marketing Materials

Marketing materials will also be required to attract prospective clients and retain relationships with existing consulting clients. The key marketing materials you will need are as follows:

• Website : Likewise, a professional consulting business website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : Establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your consulting business.
• Logo : Spend some time developing a good logo for your consulting business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.

13. Set Prices for Your Consulting Services

Your pricing strategy will depend on a variety of factors, including your level of experience and the services you offer. However, you can get an idea of what to charge by looking at the rates of other consultants in your area. You may also want to consider offering a free or discounted consultation to potential clients in order to win their business.  

14. Purchase and Setup the Software Needed To Run Your Consulting Business

There are a few essential types of software that any consultant needs in order to run their business. The first is accounting software such as Quickbooks for managing your finances. You will also need word processing and spreadsheet software. The most popular options are Microsoft Office and Google Workspace. It’s also helpful to have a customer relationship management (CRM) system such as Salesforce to help manage client relationships. Research the software that best suits your needs, purchase it, and set it up.

15. Hire Employees for Your Consulting Business

If you are just starting out, you might be working solo or with a very small team. If you have the resources to hire additional employees, consider writing up job descriptions and posting them online with sites such as LinkedIn or in more local places. You might also chat with your existing connections to see if anyone is available or knows someone who might be interested in joining your growing team. As you interview candidates, be sure their skills are a good match for your needs and they seem like a fit with the company culture you want to build.  

16. Open for Business

You are now ready to open your consulting business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Consulting Firm Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Consulting Firm Business Plan Template you can finish your plan in just 8 hours or less!

How To Open a Consulting Business FAQs

Is it hard to start a consulting business.

There is no one-size-fits-all answer to this question, as the ease or difficulty of starting a consulting business will vary depending on your skills, experience, and resources. 

However, if you follow the steps above, you should be able to start your consulting business without too much difficulty.

This is true for any consulting business, including an IT consulting business, Management consulting, healthcare consulting or any other consulting company.

How Can I Start a Consulting Business With No Experience?

The best way to start your own business in the consulting industry with no experience is to start small. You can offer your services to friends and family members, or to local businesses. Once you have a few clients, you can then start marketing your business more aggressively.

What Type of Consulting Business Is Most Profitable?

The profitability of a consulting business will vary depending on the specific industry and services offered. However, some of the most profitable types of consulting firms include IT consulting, management consulting, and marketing consulting.

How Much Does It Cost To Start a Consulting Business?

There is no set cost to start a consulting business. The amount of money you'll need to get most any new business will vary depending on the services you offer, the size of your business, and other factors. However, you'll likely need to invest in some basic equipment and supplies, such as a computer, printer, phone, and office supplies. You may also want to consider purchasing advertising or marketing materials, or investing in training or certification courses.

What Are the Ongoing Expenses for a Consulting Business?

The ongoing expenses for a consulting business can vary depending on the type of services you offer. Generally, you will need to invest in marketing and advertising to attract clients, as well as office supplies and equipment. You may also need to pay for membership fees to professional organizations or networking groups. The biggest expenses are typically staffing costs and office lease fees.

How Does a Consulting Business Make Money?

A consulting business makes money by charging clients a fee for its services. The amount of the fee depends on the type of service offered, the experience and qualifications of the consultant, and the client's needs. Some consultants charge an hourly rate, while others may charge a flat fee for a specific project. The consulting business model you choose should work for how you want your business to earn money.

Is Owning a Consulting Business Profitable?

Yes, you can certainly own a profitable consulting business. 

The profitability of a consulting business will vary depending on the specific industry, geographical location, and other factors. However, there are a few things you can do to increase the chances of your consulting business being profitable. 

Some of the key things you can do to make your consulting business more profitable include: 

• Narrowing your focus to a specific niche market. This will allow you to become an expert in a specific area, and clients will be more likely to trust your advice and recommendations. 
• Offering add-on services that complement your main offering. For example, if you're a marketing consultant, you could offer to manage clients' social media or design campaigns in addition to your core offering.
• Taking time to understand the needs of your target market. Ask yourself, "What are they trying to achieve? What problems do they face? How can I help them overcome these challenges?" By understanding these key questions, you will be able to identify different client problems you can solve with your consulting service.
• Optimizing your website for SEO to increase online visibility. This will allow you to attract the right kind of client to your business, who are actively searching for a consultant in your niche market.
• Signing up for Google AdWords or Facebook Advertising if appropriate, to target potential clients on their own platforms.
• If appropriate, attend trade shows and networking events to connect with potential clients at these events. 
• Networking on social media channels so you can get in touch with potential clients or even find jobs through word-of-mouth referrals from your existing network of contacts.
• Creating a unique selling proposition. Be clear about what you can do that other consultants in your niche market cannot, and communicate this to potential clients.
• Treating each client relationship like a partnership, so they are more likely to recommend you to their connections or return for additional consulting work in future. 
• Keeping your costs low by using cloud-based software and outsourcing tasks to virtual assistants.
• Targeting a growing niche market that you can expand into in the future. 
• Testing out different strategies with a limited budget, so you can see which methods work best before investing heavily in these areas of your business.
• Building references from clients who are willing to recommend you to their friends. This is more valuable than testimonials on your website, as it builds social proof in the eyes of potential clients that you offer great value for money. 
• Investing in training in order to keep up with industry trends, and increase your knowledge about your niche market.
• Providing outstanding client service

Why Do Consulting Businesses Fail?

Even a good consultant can run into problems that make their company fail. One of the main reasons that consulting businesses fail is a lack of planning. This can include not having a detailed business plan, not doing research on the industry, and not targeting the right customers.

Another reason is a lack of marketing and sales skills. This can include not creating a sales process and not have a clear and strong value proposition.

The last main reason is a lack of financial management skills. This can include not having a realistic budget, not tracking expenses, and not investing in the business.

How Much Do Successful Consulting Business Operators Make?

The average salary for a consulting business operator is $107,553.

What Are the Typical Startup Costs for a Consulting Business?

Startup cost for new consulting companies range from $10,000 to $50,000.

What are the Keys to Launching a Consulting Business?

• Know Your Expertise - Identify the field where you can use your skills and knowledge and study everything that you need to know about it. Maximize your strengths and work on improving your weaknesses so you’ll be sure to provide excellent service to your clients.
• Secure Your Certifications - Consider taking certifications that are related to your specialization. This will build your reputation and increase your client’s trust and confidence in your business. This also gives you an advantage over non-certified consultants.
• Consider Hiring an Employee - Have someone reliable who can work on the administrative tasks that need to get done in your business. This will save you time and effort and keep you focused on taking care of your client’s specific and technical needs.
• Set Your Rates Right - Determine whether you are setting reasonable rates by looking up other consulting companies’ rates before giving your clients a quotation. Make sure to include in your computation all of the expenses that you would incur in a project especially your professional effort’s worth.
• Sell Yourself - Bump up your marketing efforts and let yourself be known by your potential clients. Advertise the services that you offer and your edge over competitors through word of mouth, print ads, and phone, email, and social media marketing.
• Value Relationships - Remember that you are not your own boss so make your client’s needs a priority. Pay attention to their demands and always be ready to offer solutions that work. Most importantly, establish personal connection with your clients by meeting with them as often as needed.
• Be Emotionally Ready - Starting a consulting company also means dealing with a lot of meetings with potential clients that do not end up hiring you. Be prepared on how to deal with such failures professionally. Your target clients will remember you in the way you deal with them and a positive attitude towards an unclosed deal might redeem you the next time they need a service that you offer or meet a friend that needs your expertise.

What Are the Key Costs in the Consulting Industry?

Running a profitable business requires spending some money. Here are the most common expenses in the consulting industry.

• Wages – Over half of the consulting industry’s revenue last year is used for wages. It is expected to drop in the next five years.
• Purchases and depreciation – Purchases make up almost 10% of the consulting companies’ revenue, while depreciation is 0.9%.
• Rent and utilities – Last year, almost 4% of the industry’s revenue is comprised of rent and utilities.
• Other – Marketing costs make up 1.8% of consulting industry.

What are the Key Customer Segments in the Consulting Industry?

The key customer segments in the consulting market are Financial services companies, Consumer products companies, Government organizations, Manufacturing companies, Technology and media companies, Individuals and non-profit organizations, Life science and healthcare companies, and Energy and utilities companies organizations.

Who Are the Key Competitors in the Consulting Industry?

The market leaders, in terms of market share are Accenture PLC (3.3%), McKinsey & Company (2.6%) and Deloitte Touche Tohmatsu (2.7%).

How Big is the Consulting Industry?

There are approximately 779,699 consulting businesses in the US, and $200.6 billion in revenue was been generated by the consulting industry last year. Over the past 5 years, its annual growth rate has reached 5.2%.

What Are the Key Segments of the Consulting Industry?

The two largest segments of the industry are Corporate strategy and Marketing and sales. Organizational design makes up the next largest segment, followed by Process and operations management, Human resources consulting, Financial advisory and IT strategy.

What External Factors Affect the Consulting Industry?

A number of factors affect the performance of the consulting industry. These drivers include:

• Corporate Profit -   An increase in the corporate profit signifies that there is a high demand for consulting services among businesses. This also increases the industry revenue.
• Aggregate Private Investment -  This refers to the value spent by business owners for equipment, properties, and software. When businesses expand their investments, they tend to need more help from consulting companies, so an increase in aggregate private investment is good for the consulting industry.
• Number of Businesses -  An increase in the number of businesses also indicates a high demand for services and provides more prospect clients for consultants.
• Government Consumption and Investment -  As the government expands its investments, the demand for consulting services also increases thus the industry revenue also rises. Government consumption and investment has increased over the last year.

Where Can I Download a Consulting Business Plan PDF?

You can download our consulting business plan PDF template here. This is a business plan template you can use in PDF format.

Best Business Model for Consultants

Consulting Firm Names: How to Choose the Best One

What the Heck Does a Consultant DO, Exactly? – Management Consulting 101

The Economics of Becoming a Consultant

Marketing for Consultants

For additional information on the consulting market, consider these industry resources:

• Top-Consultant’s Consultant-News: www.consultant-news.com
• Institute of Management Consultants USA: www.imcusa.org
• Consulting Magazine: www.consultingmag.com
• How to Start a Consulting Business: www.consultingmavericks.com

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

• Consultancies
• Professional services

How to start a software consulting business (updated)

If you are planning to start a software consulting business, you will be in for a nice surprise. Working as a software consultant can be very profitable, especially with the IT industry becoming so important.

Every small business owner will need software advice at some point. Therefore, starting your own business will bring you, numerous clients.

You just need to set up the consulting firm correctly. This guide will give you a few tips on how exactly you can do that.

Note: If you are starting your software consulting business, try Bonsai's full suite of small business tools to help you run your business. We have small business bank account, task management, time tracking, tax, and a library of pre-made invoice, contract, software proposal templates you can try. Claim your 7-day free trial here .

What Is Software Consulting?

As a consultant in general, your job is to offer knowledge and advice to a third party against a fee. If you own a software consulting company, your expertise is obviously in the IT industry.

That being said, as a software consultant, you don't just offer advice. Some may say that you sell software development labor to consulting companies with this job.

In a way, it is true, mainly because of the nature of software. Regardless, you are not working for that company. You are simply offering your expertise on a certain idea.

Steps to Start a Software Consulting Business

When you are starting a consulting business, there are certain steps that you need to follow. These include:

Assess Your Skill Set and Strengths

As a consultant, you will offer advice and solve problems that your clients cannot fix on their own. Even so, the hiring company wants the security that you know what you are doing.

This is why it is recommended you assess your skillsets and strengths. Pick the niche that you want to get into, and then serve it well.

You may want to offer a little bit of everything, but this may end up backfiring. Broader niches may mean bigger competition. A smaller niche will bring much smaller competition, and subsequently a steady flow of clients.

Set the Documents Straight

As a software consultant, you may have various documents to exchange with your clients. This can include anything from engagement letters to proposals to contracts and invoices.

The more clients gather around, the more difficult it will be to write each document from scratch. This is why programs like Bonsai can be so helpful, as they can offer templates. You just need to customize them to your liking.

Note: try Bonsai's full suite of invoice, proposal and software contract templates today . We have pre-made templates you can use to edit and send these documents to clients. Claim your 7-day free trial here .

Design a Software Consulting Business Model

To open your own software consulting business, you need to know where you want to be on the market. What kind of business do you wish to start?

For instance, you may work as an independent contractor or a solo client, talking with potential customers yourself. You may also open your own consulting firm in the form of an LLC, which allows you to hire people. Read more about the right time to set up an LLC .

Decide on the business model and determine exactly how you wish to run your company. If you are not sure, a hybrid model can bring the best out of every world for you.

Note: Try Bonsai, the best software for consulting businesses , today. Our suite of business tools has everything you need from tax, task management, time tracking to pre-made templates (invoice, contract, proposal) to grow your business. Claim your 7-day free trial here .

Create a Security and Defense Protocol

When you work in IT, you will be exposed to a lot of virtual threats. This is very serious, as you have your client's information to protect. This is why you need to create security and defense protocols.

This will help you on the consulting part as well. Nowadays, most clients are looking for cybersecurity-niched consultants. Knowing about this will bring your business up a notch.

Bring an Elevator Pitch

Once you set everything straight, it is time to create an elevator pitch . Also known as the value proposition, this pitch will tell your clients everything they need to know about you.

Elevator pitches are short and take no more than five sentences. They will tell your clients exactly what they can achieve by working for you. To put it simply, an elevator pitch tells them why you are a better choice than your competition.

Create a Pricing Strategy

You have your business model set up, and you also have a pretty good idea about what you want to offer. Now, you need to figure out a pricing strategy.

Software consultants usually get paid at an hourly rate, project-based or by performance. Hourly rates are the most common, as the consultant gets paid an accurate fee.

If hourly rates are not your thing, you may set up a flat fee for every project. This may be a good solution if you have consistent projects all around. Flat fees are great if the specifications are clear and you have good time management skills.

Keep in mind that pricing may also depend on the attitude of the customer. For example, if the client never pays on time and disputes every single line in the invoice, this causes you trouble. A higher fee would be necessary to make up for the lost time.

If the client has enough technical expertise and understands the need for changes, your job is made much easier. This can lead to lower prices.

Arrange for Payment and Accounting Software

You have your pricing plan, payment terms for consulting and know exactly how much you expect to get paid. The other problem now is how you are going to get that money in the first place.

You need to arrange for a good payment medium. For instance, Bonsai's business account can be a very good option for professional clients that prefer credit cards.

Plus, Bonsai allows you to save money and keep your accounting. For instance, the "Envelopes" feature enables you to set money aside for your needs. This may be equipment expenses, worker's pay, or money owed on taxes. Bonsai also lets you manage invoices and has billing software for consulting services .

Note: Open a small bank account with Bonsai today. Our online account has no hidden fees or monthly minimums and lets you organize/separate your finances for taxes. Manage all of our finances in one bank account with Bonsai's business account today. Claim your 7-day free trial here .

Be Careful About Taxes

As someone from the software industry, you need to be very careful about your tax handling. Consulting work comes in smaller batches, and your expenses may also be all over the place.

Once you register with the IRS, you must find a way to manage your taxes. Bonsai Tax can be very helpful here, as it tracks your expenses and points out potential deductions. You can save up to thousands from your tax bill.

Note: If you are looking for an automatic expense tracker to scan your bank/credit card receipts to discover potential tax write-offs, try Bonsai Tax. On average, users save $5,600 from their tax bill with our tax deduction tracker. Claim your 7-day free trial here.

Look for Potential Clients

Last but not least, now that you set up your small business, it is time to look for prospective clients. You can only be your own boss as long as people are buying from you.

In the beginning, you should start locally. There will definitely be some small businesses in the area that could use your expertise. Perhaps there are even some companies that you previously worked for.

Make sure not to create generic proposals. They need to be company-specific and personalized to the tasks. You may use the proposal templates provided by Bonsai to customize a letter.

Once you've covered the local area, you should try going further. The Internet is your best friend here - so, you can join social media groups and forums, promoting your content there.

It is also recommended to buy a domain and create a website. WordPress is usually very popular in this regard. Still, if you do not have the funds yet, you can start a blog instead.

Tips to Make Your Software Consulting Services A Success

Going through the steps by the book can lead you on the path to success. However, there are some cases in which you should take the extra mile. Here are some things you could do to improve your sales funnel:

Start Working with a Software Consulting Company

If you want something concrete and gain more consulting experience, you may try working with an agency. They'll teach you what needs to be done, and then you may use that knowledge to start your own company.

Once you have the basic knowledge and a pool of clients, you can get your consultant certification. You'll know how the business works, which will help you look more professional.

Consider Moonlighting as a Consultant

If working for an agency is not your thing, perhaps you may want to start moonlighting. Keep in mind that this is an achievable solution only if you are a consultant.

If you work with software development, it may be too much trouble. This applies even more if you still have your day job. Moonlighting can help get you integrated with the domain until you start securing clients.

Minimize the Startup Costs

This might seem obvious, but if you want to succeed as a tech-savvy entrepreneur, you need to learn how to manage your money. Each startup will require a certain capital, so it's up to you to determine how big it should be.

Rather than thinking expensive, go for smart. Go for small business suite tools such as Bonsai that offer you all the basics at a very good price. As for the domain, getting a template and custom-building it yourself may turn out more affordable.

Money saved during startup can be invested in the actual product. This can help you raise more success in the long run.

Let the Bad Clients Go

Not every relationship is bound to work. Sometimes, you need to learn when to let go. Maybe you are not able to communicate effectively, or perhaps they are too demanding. There is a chance that what you have to offer is not exactly what you are looking for.

Bad clients will only make your life miserable if you are not a good match. If it's not worth the trouble, you may want to refer them to other people. With that in mind, remember to always maintain a professional attitude .

Arrange Proper Time Management

Working hours are changing for consulting firms. More and more of them are trying out the flexible pattern. For some, this may be a good thing - it allows them to take care of personal matters during "work days."

The problem is that this schedule may also be inconvenient. Since there are no fixed hours, you may no longer be able to differentiate between personal and professional life.

This is why you need a good time management system. For instance, Bonsai has a consultant time tracker that keeps a record of your hours. This will also help you bill your clients accordingly.

Note: try Bonsai's time tracking tool today. Organize and see what tasks take the most of your time to bill or charge accordingly. Our software does not get in the way of your productivity when it records hours for each task. Claim your 7-day free trial here .

Use a Task Management Tool

When you are working within a software consulting company, you may lose track of your tasks at some point. And when your workers cannot properly manage their projects, they may lose sight of the goals.

A task management tool, such as the one provided by Bonsai, can help you map out your software consulting services. You will know what tasks to address as a service provider, helping you finish your job with as little delay as possible.

Ask for Referrals

Once you finish working with a client, you may consider asking for referrals. New clients will always look for reviews, to see whether you can bring value or not. If they see that you have successfully helped others, this may improve your leads.

You may start a referral program as well. For instance, each time a client refers you, they get a bonus. This will be beneficial for both of you.

The Bottom Line

Starting a consulting business is not necessarily that difficult. You just need to be organized and follow the steps. Whether you want to be a freelancing sole proprietor or a bigger business owner, software consulting can be very rewarding.

Learn how to effectively use the 7 functions of marketing—promotion, selling, product/service management, information management, pricing, financing, and distribution—to boost your business.

Discover the significance and steps of project documentation. Learn how to effectively document your projects to enhance clarity, and success in your team's workflow.

Discover how matrix organizations function and their implications. Learn about the benefits and challenges of this structure to optimize team performance and project management.

Related Articles

• Announcements
• Inside Copilot

Back to Blog Home

How to start a consulting business in just 7 steps

• 12 min read

What is a consulting business?

• steps to start a consulting business in 2024

Can anybody start a consulting business?

Copilot: how consultants manage their consulting business.

Start your consulting business

Copilot gives consultants the tools they need to start, run, and grow their business. Try it for free!

Two years ago, I realized that what I was doing at my 9-5 job could easily be turned into a consulting business where I made my own hours and decided who I wanted to work with.

Time flexibility, autonomy, and income potential were at the top of my list of things I wanted to accomplish.

But, I also noticed that there were many consultants and agencies in my niche giving lackluster advice. I wanted to bring a new approach and be a guiding light to business — which is what essentially allowed me to consistently bring in new clients and help me achieve what I wanted in terms of time freedom and finances.

However, starting my consulting business isn’t something that happened overnight. In fact, when I quit my job, it took me almost a full year to figure out what I was doing and to make any sort of living income.

But, don’t let this discourage you. I clearly made A LOT of mistakes. When I first started, it felt like trying to scale Mount Everest barefoot. Though it seemed like an impossible task, the journey need not be so daunting.

This guide is your sherpa up that mountain, offering practical steps on identifying your niche expertise, creating an effective business plan based on client pain points, and managing finances like a pro. We'll even dive into legal aspects and relationship-building strategies for long-term success.

Intrigued? Let’s make this journey together!

A consulting business, at its core, is about problem-solving. It's where an expert in a specific field offers advice and strategies to individuals or companies who need it.

This kind of business opportunity can be highly rewarding since businesses are always looking for ways to enhance productivity, generate more revenue, and find solutions to intricate issues.

The essence of being a consultant lies not just in having specific knowledge, but also knowing how to apply that knowledge effectively. That's why experience plays such a crucial role here — the more problems you've solved before, the better equipped you'll be to tackle new ones.

In addition to solving problems, consultants often help with implementing solutions too. This might involve coaching team members on new processes or helping set up systems that facilitate improvement.

Consulting spans many industries — from IT and management, all the way to finance and HR. What ties them together? The fact they're built around offering specialist insight others don't have access to.

Now, let’s get into the steps you can take to start your own consulting business. These steps are based on my own experience of starting my marketing consulting business two years ago.

7 steps to start a consulting business in 2024

Here are nine steps on how to start a consulting business:

• Master a craft in a specific niche
• Create a business plan based on pain points
• Setting up your online workspace
• Marketing your business to acquire clients
• Managing cash flow and your finances
• Building relationships and referrals
• Taking care of the legal stuff

Okay, let’s dive deeper into each step.

1. Master a craft in a specific niche

Before you launch your consulting business, hone your skills to become a master in the specific niche. It's insufficient to just be familiar with an industry or field — you need to excel .

Your clients will rely on your expertise and advice for their business decisions. If you aren't fully equipped with deep knowledge of the field, it might lead to ill-advised guidance which can harm both parties involved .

This doesn't mean spending decades working in that particular field before taking the plunge into consulting though. But yes, having years of experience would certainly add credibility.

Finding your niche

Choosing a niche isn’t as complicated as it sounds — it’s all about identifying where your passion meets proficiency. Start by analyzing what interests you most and then look at how proficient or skilled are in that area. Here’s some help if needed.

Becoming an expert

To achieve mastery in any given domain, consistent learning is crucial along with hands-on experience. HubSpot has detailed insights on how anyone can grow from being good at something to becoming great.

Avoid client disservice

If I’m honest here, entering consultancy without sufficient expertise may do more harm than good to your client’s businesses due to its high-stakes nature (depending on the industry). This reinforces why mastering a craft within a chosen niche is non-negotiable when thinking about starting your own consultancy business.

2. Create a business plan based on pain points

Building your consulting venture starts with a solid game plan. A solid business plan addresses the real issues potential clients face in their businesses.

To start, you need to know what keeps your target market up at night. Your expertise should align with these concerns and provide solutions that alleviate them.

The next step is setting goals for your consulting business that directly address these pains. This will not only guide the direction of your services but also show prospective clients how valuable you can be to their success.

You'll then want to map out strategies for attracting new customers who experience these specific problems. The aim here is to position yourself as an expert problem-solver within this space.

Try looking in online communities for what problems and conversations are happening in your niche. Reddit is a great place to start if you’re not sure where your community hangs out. Try Googling something related to your niche and type in “reddit” after to see what conversations show up.

And last but not least, sketch out financial projections considering all these factors into account. Here’s where you’ll outline anticipated income streams and expenses tied specifically to solving client problems — this helps ensure sustainable growth for both parties involved.

Note: Don't forget tools like Copilot make managing finances easier by offering features such as invoice templates and third-party integrations like QuickBooks.

Once you have a general idea of what your goals and objectives are, it’s time to take some tangible action.

3. Setting up your online workspace

If you're about to start a consulting business, getting organized is crucial. But it doesn't mean having papers and sticky notes scattered all over your desk.

Your workspace needs to be as digital and streamlined as possible. This is where Copilot , a modern client portal for service businesses, comes in handy.

The power of Copilot: Everything at your fingertips

Copilot offers an intuitive platform that lets consultants manage everything from contracts , invoices, files, messaging, intake forms, and more in one place. Imagine having a clutter-free desktop but with access to every essential tool needed for your work.

A community you can count on

You might be wondering if this setup works for other consultants too. Absolutely. In fact, one of the largest customer bases of Copilot consists of successful consultants who decided to streamline their operations digitally.

Copilot isn’t just about managing paperwork, it's also about fostering relationships with clients through seamless communication features built into the system. It keeps conversations flowing smoothly while making sure important messages don't get lost in translation or buried under heaps of emails.

Say goodbye to disorganization chaos

To say starting a consulting business can be chaotic would be an understatement. But thanks to tools like Copilot, keeping track becomes less daunting and more efficient — letting you focus on what truly matters: providing exceptional services for your clients.

4. Marketing your business to acquire clients

Realizing who requires your services is the key to advertising them successfully. To stand out in the crowded market, you need a unique selling proposition (USP) . This is what sets you apart from others and makes clients choose you over competitors.

Once you figure out who you want to speak to, and what you want to speak about, it’s time to figure out how you’re going to reach your ideal clients. Many consultants initially take an outbound approach — usually reaching out to prospective clients via LinkedIn.

Social media platforms are excellent places for promoting your consultancy. You can use these channels to share valuable content related to your niche, positioning yourself as an expert.

However, note that taking the “content creation” route on social media can take a while to see some tangible results. This is definitely the route to go down for the long term. But, if you’re just starting out, you need to sign your first client as quickly as possible. And, to do this, many consultants (myself included) do a cold reachout approach.

Email remains one of the most effective ways to reach potential clients directly. An email newsletter filled with insightful advice can be just the thing that converts prospects into paying customers.

If you have the time, you can also go to events related to your industry and network with people. The rate of how efficient this will be depends on your industry. For me, as a marketer, this wasn’t the best option as it is very time-consuming (and I’m sort of an introvert). But, for non-tech-related industries, this is often a great place to start.

Some things you can do to network include:

• Nurture relationships within professional networks such as LinkedIn or industry-specific forums.
• Join local business groups and attend events where prospective clients might hang out.
• Talk at conferences or webinars — sharing knowledge helps build credibility and attract potential leads.

As your business grows, you can shift your focus to acquire clients “passively.” By passively, I mean inbound marketing. Here are some strategies:

• A well-optimized website attracts organic traffic; consider SEO blogging regularly on topics relevant to your expertise.
• Publish whitepapers or case studies demonstrating how you've helped previous clients achieve their goals. It’s proof that gives confidence.
• Copilot's client portal software , a powerful tool used by many consultants like myself, integrates smoothly with other marketing tools, letting you automate processes and focus more on delivering value.

5. Manage Cashflow and Your Finances

Running a successful consulting business isn't just about your expertise. It's also about smart money management. In the early days of your business, you’ll most likely act as the CEO, CMO, COO, and CFO — yeah, it’s a lot. But you’ll gain a lifetime of experience in a short amount of time.

One of the most crucial “roles” early on will be the CFO (chief financial officer). Most businesses die because they run out of capital. So, don’t take this aspect lightly.

When starting out, consider packaging your services . Determine the appropriate pricing for your consulting services that is competitive yet does not undervalue yourself. Don't undersell yourself but make sure you're still competitive.

Invoicing made easy with Copilot

Sending invoices shouldn’t be a chore. With Copilot’s invoicing feature , it doesn’t have to be. Create branded invoices and even set up recurring subscriptions — no sweat.

Also, to manage cash flow effectively, keep track of all expenses – both big and small. From office supplies to travel costs, every penny counts. This is where integrations with your back office platform, like Copilot, comes in handy.

Copilot integrations make life easier

Fumbling between different apps? Let Copilot do the heavy lifting by integrating with third-party applications like QuickBooks for seamless financial management.

6. Building relationships and referrals

You might be wondering how to get more clients for your consulting business. The secret? It's all about building solid relationships.

People trust people, not businesses . So it's crucial that you focus on developing genuine connections with your clients. They're much more likely to recommend someone they like and trust — that could be you.

In my marketing consulting business, after just two years of dedicated relationship-building, I started seeing a consistent stream of client referrals from past customers I'd done great work for. This is the power of word-of-mouth.

The power of networking

Beyond individual clients, don't forget the potential power within professional networks too. Connect with other consultants or professionals in related fields — these contacts can also provide valuable client referrals if they know and respect your work.

Maintaining client relationships

Maintaining those strong bonds even after projects end is equally important because happy clients are the best advertisers for your services. Regular check-ins let them know you value their partnership long-term.

Acing customer service

Finally, ace customer service at every step along the way. Delivering high-quality results is a given but being responsive, respectful, and easy to work with gives added reasons for referral recommendations.

Remember: Happy clients = more referrals.

7. Take care of the legal stuff

To start a consulting business, you'll need to tackle some paperwork first.

Make sure to check your local laws and register your company name with the authorities in your area so they know you're ready to conduct business and pay taxes. Registering your small business with the local government informs them that you're in operation and prepared to pay taxes. It might sound daunting, but it's not as scary as it seems.

Choose your business structure

The type of structure can affect how much you pay in taxes and your personal liability. Do some research or get help from an attorney or CPA. In the US, many consultants operate with an LLC (Limited Liability Company). But, this will all depend on your preference and practice.

You’ll also want to open a separate business bank account to separate your personal finances from that of your business. This will help you avoid headaches when it comes to tax season.

Nail down licenses and permits

You may also need specific licenses or permits depending on what kind of consulting work you do. For example, if environmental consultancy is your thing, certain certifications are required.

Tax obligations

Avoid any unpleasant surprises by understanding tax obligations upfront. Are you aware that consultants often have self-employment tax?

Breathe easy with liability insurance

Last but certainly not least, consider getting liability insurance for peace of mind because accidents happen even when we wish they didn't. This isn't everything there is to starting a consulting biz legally, but these steps will set solid foundations.

Well, the short answer is yes. But it's more about who should. The truth of the matter is that anyone can technically become a business owner and start a consulting firm. You don't need any special license or degree to hang up your shingle and call yourself a consultant.

This may seem like great news for those itching to escape their nine-to-five grind and set off on an entrepreneurial adventure.

However, there's more than meets the eye

Becoming successful in this field requires something money can't buy — expertise. It’s not just about having knowledge; it’s also about being able to apply that knowledge effectively for clients' benefit.

Your success hinges on demonstrating your skills in tangible ways. This could be through past work experience, professional certifications, academic achievements, or even client testimonials praising your abilities.

To really hit home with potential clients and succeed as a consultant you'll need a solid business plan. This helps demonstrate how you're going to solve problems for clients — essentially why they should choose you over someone else.

Above all else though, remember confidence counts. To thrive as a consultant you must believe in yourself before expecting others (clients) will too.

The journey of starting a consulting business is an adventure filled with twists and turns. But one tool that can help smooth out the bumps in this road is Copilot.

Crafting your workspace with Copilot

A well-organized workspace is essential for success, and that's where Copilot shines. This client portal platform lets you keep track of contracts, invoices, files, messaging, and forms all in one place.

Financial management made easy

No need to dread financial management anymore. Copilot makes it simple by letting you create branded invoices and recurring subscriptions right from your dashboard.

Bonus? It even integrates seamlessly with third-party apps like QuickBooks so you have everything under control without breaking a sweat.

Fostering client relationships

I've been running my marketing consultancy for two years now — believe me when I say relationships are key.

If done right using platforms like Copilot can get consistent referrals from past clients who loved working with us because we did an amazing job managing their projects smoothly through the portal.

Growing Your Consulting Business With Confidence

In conclusion, there’s no doubt about it: Starting a consulting firm isn’t easy. But, having tools such as Copilot on your side gives both newbies & experienced consultants the confidence they need to grow their businesses effectively and efficiently.

Launching a consulting startup is a complex adventure that goes far beyond just announcing your readiness to serve. Finding your niche where your expertise aligns with industry trends and new business needs is key.

If you’ve made it this far into the article, you've mastered the art of crafting an effective business plan that's not just a document, but a strategic roadmap addressing the real pain points of new clients. We've dove into client portals, equipping you with robust online workspace setups and innovative marketing strategies to captivate and retain clients .

We navigated the financial landscape, providing practical advice on project management tools like Copilot, designed to streamline your invoicing and financial tracking — crucial for any entrepreneur eager to maintain a healthy cash flow. We also shed light on the significance of relationships in the consulting industry — these connections are not merely advantageous but are the lifeblood of referrals and sustained growth.

Legal stuff? Consider it covered. Everyone is now equipped with the knowledge that diligent attention to legalities and choosing the right business name from the outset can prevent future legal entanglements.

Whether you're eyeing a niche in management, IT consulting, or any of the other types of consulting, this guide has laid the foundation. You're not just starting a new consulting practice — you're sculpting a beacon in the consulting industry.

Launching your consulting business is no longer akin to scaling Everest barefoot — it's an exhilarating climb we've prepared for together. With the toolkit you've assembled, the path to success is clear, and the summit is within reach.

Share this post

Sign up for our newsletter

Subscribe to our newsletter to receive emails about important announcements, product updates, and guides relevant to your industry.

The new standard for modern services business.

• Messages Billing Files Contracts Forms Helpdesk Client Home Profile Manager
• Developer Home Custom Apps API Reference Copilot on Zapier Copilot on Make
• Accounting and Bookkeeping Marketing Agencies Startups Consulting Firms Real Estate Freelancers Law Firms Small Businesses Designers
• Brand Pricing Jobs Terms Privacy
• Blog Guide Video Tutorials What’s New Find an expert Security System Status Experts Program Affiliates Program Glossary Compare Sitemap
• Introducing Copilot's App Store and Platform Copilot 2024 Winter Release Announcing our Series A

Build A Profitable EComm Business For Just $1

• Skip to primary navigation
• Skip to main content

A magazine for young entrepreneurs

The best advice in entrepreneurship

Subscribe for exclusive access, how to start a consulting business.

Written by Mary Kate Miller | July 26, 2021

Comments -->

Get real-time frameworks, tools, and inspiration to start and build your business. Subscribe here

Want to start a consulting business but not sure how? You’ve come to the right place. At Foundr, we’re not about fluff. We’re about giving you the actionable information you need to turn your million-dollar idea into a million dollars worth of revenue.

We’re also all about helping you learn in the way that works best for you. Do you prefer to get your information by reading? Buckle up. This guide is for you, and we are going to dig in and show you how to start a consulting business brick by brick.

Time is ticking. Let’s dig in so you can start your new business and be on your way to becoming a highly successful consultant.

How Much Does It Cost to Start a Consulting Business?

Startup costs for a consulting business can range anywhere from a few hundred dollars to around $10,000.

What to Consider Before Starting Your Consulting Business

Before starting your own consulting firm, consider these 3 questions.

Are you qualified to be a consultant?

Before beginning, ensure that you have the qualifications to consult in your desired industry. You want to ensure that you’re selling services that you can deliver. If you plan to work as a marketing consultant, do you have a proven track record of success? If you’re working as a computer consultant, do you have specific experience and training to ensure you can do the job?

Do you have the necessary licenses or certifications?

Even if you’re starting your business from home, you will likely want to procure a business license for your consulting work. A business license provides a few key benefits. First, it demonstrates the legitimacy of your business to customers, which can help attract potential clients. Some clients will even require it.

Some consulting niches may require certifications. Even if your specialty doesn’t, certifications may prove your expertise and bolster your marketing efforts.

Do you like to network and work with other people?

While introverts and ambiverts can make highly successful consultants, the consulting industry is best suited to extroverts—especially if you’re going out on your own. Networking, specifically, will be a crucial element of growing your business.

Steps to Creating a Consulting Business

You came here to learn how to start a consulting business, and we’re here to help you make it happen. Here are the 8 concrete steps you need to take to get your consulting service up and running.

1. Determine Your Consulting Specialty

You will determine your specialty by considering the expertise you possess in relation to market demands.

• Begin by taking inventory of the skills and expertise you’ve cultivated throughout your career, the industries you’ve worked in, and the customers you’ve helped. Now is the time to brainstorm. Write down anything that comes to mind. Pay special attention to the big wins you’ve had and the KPIs you’ve consistently outperformed.
• Look for patterns that emerge from your list.
• What work do you genuinely enjoy doing? The benefit of being a consultant means you get to determine your scope of work. You can choose to do the work that makes you feel engaged and inspired.

Types of Consultants

These in-demand niches will give you a leg up in building a successful consulting business.

• Operations consultant
• Marketing and sales consultant
• IT consultant
• Project management consultant
• Human resources consultant
• Management consultant
• Social media consultant
• Business coach

2. Choose a Business Model That Best Fits Your Business

There are 3 options to choose from when starting your consulting business.

Independent Contractor

If you’re working as an independent consultant, you may want to work as an independent contractor. As a 1099 consultant, you’re incredibly agile. You can begin offering consulting services today, and it may be easier for some clients to onboard you. (For example, a company may require review for hiring an agency but not a contractor.)

On the flip side, there are some drawbacks to this business structure. Some larger enterprise clients may prefer to work with a consulting firm, plus you’ll likely have to pay higher tax rates as an independent contractor.

Sole Proprietorship

As a sole proprietor, you can offer consulting services with the agility of an independent contractor and the apparent credibility of a full-scale consulting firm.

Consulting Firm (S-Corp, C-Corp, or LLC)

If you’re planning to start a consulting company, you’ll definitely want to go with a business model that’s built to accommodate employees. You can learn more about the different options for incorporating your business and weigh advice from expert attorneys with our guide .

3. Identify Your Target Client

Your marketing will be most successful if it’s targeted toward your ideal client. While it may seem counterintuitive, beginning with a narrow focus may open you up to more potential business. That’s because once you get specific about who your ideal client is, you can create a marketing plan directed toward that person or company, addressing their particular pain points and needs.

For the full rundown on how to identify your ideal client, check out our complete guide to defining your target market .

4. Create Your Consulting Brand

Your brand determines what differentiates you from other consultants. When starting a consulting business, you’ll want to assess your brand identity, name, logo, tagline, design, and voice. For an in-depth walkthrough of branding, check out “The Small Business Guide to Branding.”

It’s likely that as your consulting business grows and evolves, your brand will evolve with it. That’s OK! You still want to outline your brand guidelines now to have clear, consistent messaging when reaching out to a prospective client. This will build credibility and make you look like the expert that you are.

5. Develop a Consulting Proposal

Your consulting proposal works as a sales tool to attract new clients and as a document that outlines everything you will deliver for a potential project or client. For step-by-step directions, check out our guide to writing the perfect consulting proposal .

You will need to tailor your proposal for each individual client and project, but you can create a template that outlines the basic consulting services you plan to offer. This preparation will streamline the proposal process and allow you to provide quick turnarounds when pitching prospective clients.

Within each proposal, you’ll want to ensure you do 3 things. You want to ensure you understand the client’s wants and needs, create a unique value proposition, and outline the scope and timeline of the project.

Each consulting proposal should include the following elements:

• Executive summary
• Project outline/scope of work
• Timeline for the deliverables
• Payment terms
• Client requirements
• Expiration date of the proposal

As you begin pitching clients, you’ll work to refine your proposal, identifying what works and weeding out what doesn’t until you’ve crafted a proposal that wins every time.

6. Determine Your Consulting Pricing

Determining your pricing is the final step before launching your consulting business. You can follow these 5 best practices for defining your pricing.

• Estimate your value: Your value is determined by the results your consulting work provides to a client rather than the work you put into it. What will your work give to the client? Increased web traffic? Leads? Business-changing insights? A streamlined talent acquisition process? Technological improvements that reduce lead time? These impacts all have a direct effect on revenue. Determine what impact your work will have on the client’s bottom line.
• Determine the scope of work: Predict the amount of work and labor required to deliver what you’ve offered the client.
• Calculate your hourly rates: In light of the value you provide to clients (as determined in step one), consider the yearly salary you want to make, divide that to an hourly rate, then mark it up by at least 20%.
• Determine the cost per project: When working with a fixed fee, you want to determine the number of hours you anticipate working on the project and calculate the project cost based on your hourly rate. You may also want to add 10% to the anticipated amount to protect yourself from potential scope creep.

For absolutely everything you need to know about setting your pricing (and we mean everything), check out our guide, “Consulting Fees: How Much Should You Charge as a Consultant?”

7. Create a Web Presence

You want to have a strong online presence to market your consulting practice. You need to have a domain to represent your brand, hosting that will give it a home, and a website that highlights what you can offer.

Building a Consulting Website

Start by picking a domain that’s representative of your brand. If your company is called “John Doe Enterprises,” your domain should be “johndoeenterprises.com.” If you can’t find a .com for your exact company name, then use a variation with the help of the prefix “the” or suffix “agency”. If you need, you can get an alternative top-level domain like a .org or .co.

Next, you’ll need to set up web hosting. While budget web hosting services might seem attractive price-wise, stick to a premium VPS host like WPengine if you’re serious about your online business. Speed and load times are ranking factors that can either make or break your online business.

Now you have all the technical stuff set up, you need to write some copy. Start by explaining what you do and who it serves. This information is known as your value proposition. Make sure to include examples of past work, recommendations, or previous clients as evidence of your skill. If you have no past clients, consider your past employers. If you have a day job doing work similar to what you plan on offering as a consultant, you can ask your former bosses and coworkers for testimonials.

8. Market to Your Audience

Now that you’ve narrowed down your target audience, it’s time to create a marketing plan and roll it out. How do you do that? As we mentioned before, networking is going to be a big part of it.

Ben Baker of Your Brand Marketing , a corporate branding consultancy, says networking was the key to building his client base. “I joined a couple of chambers of commerce, got involved in Business Networking International , and became involved in different marketing organizations,” Baker says. “99% of my clients today still come through referrals.”

Find Consulting Clients Online

If you’re not into the whole “schmoozing at networking events” thing, networking opportunities in online groups are a tap away. Here are some great places to start:

• Facebook groups
• Online forums
• LinkedIn hashtags
• Slack channels
• Twitter chats

How to Leverage Social Media for Marketing

Social media marketing is essential for a consulting entrepreneur. To get as much out of it as possible, we recommend you follow these steps.

• Research the top Facebook groups around your niche. This can be a matter of a Google search, but a great way of grabbing the attention of the people you’ll be interacting with is to post to LinkedIn or Twitter asking for recommendations.
• Join all the recommended groups and follow the group owners. While you’re first starting out, expect to spend quite a bit of time in these groups. Becoming a prominent member of a community within your niche will build recognition and trust.
• When people post a question or ask for help, broadcast amazing advice to the group. Your role in these communities is to help fellow members, not to sell your services. Be generous with your knowledge, offer excellent resources they can use, even refer them to other members who specialize in areas outside your expertise.
• Only promote your services when invited to. Again, focus on building goodwill in your community before reaching out to people with your product. Most Facebook groups have a weekly post where members can pitch their services. And if you’re in the right groups, there are always members asking for recommendations for freelancers, consultants, and coaches.
• Reach out to each prospect with a one-to-one “give.” After you’ve had a positive exchange with a prospect in the group, ask if it’s OK to message them directly. Then give them an offer they can’t refuse: a free live consultation, walkthrough, or feedback session.

Get Your Consulting Business Started

You’re one step closer to your dream of becoming a small business owner. Now that you have everything you know, the only thing left is to get started.

About Mary Kate Miller

Mary Kate Miller writes about small business, real estate, and finance. In addition to writing for Foundr, her work has been published by The Washington Post, Teen Vogue, Bustle, and more. She lives in Chicago.

Related Posts

The Power of Storytelling in Marketing

5 Ways to Leverage Customer Reviews to Increase Sales

Brand Authenticity: How User-Generated Content Can Give You a Much-Needed Boost

Ways to Build a Community Around Your Brand

Bootstrapping vs. External Funding: What’s Right For You?

7 Steps to Turn Your Hobby into a Profitable Business

6 Time Management Hacks for Busy Entrepreneurs

5 Ways to Use Generative AI to Scale Your Startup

Customer Engagement: The Secret to Long-Term Success

Giveaway Ideas: 4 Tried and Tested Approaches from a 7-Figure Ecommerce Expert

How to List Products on Amazon: Everything You Need to Know

Is Selling On Amazon Worth it? Get Your Questions Answered

Amazon FBA Fees: How to Calculate What FBA Will Cost You

The Complete Guide to Getting Clients for Your Consulting Business

What’s the Most Profitable Business to Start in 2024?

FREE TRAINING FROM LEGIT FOUNDERS

Actionable Strategies for Starting & Growing Any Business.

• 1000+ lessons.
• Customized learning.
• 30,000+ strong community.

• Newsletters
• Best Industries
• Business Plans
• Home-Based Business
• The UPS Store
• Customer Service
• Black in Business
• Your Next Move
• Female Founders
• Best Workplaces
• Company Culture
• Public Speaking
• HR/Benefits
• Productivity
• All the Hats
• Digital Transformation
• Artificial Intelligence
• Bringing Innovation to Market
• Cloud Computing
• Social Media
• Data Detectives
• Exit Interview
• Bootstrapping
• Crowdfunding
• Venture Capital
• Business Models
• Personal Finance
• Founder-Friendly Investors
• Upcoming Events
• Inc. 5000 Vision Conference
• Become a Sponsor
• Cox Business
• Verizon Business
• Branded Content
• Apply Inc. 5000 US

Inc. Premium

How to Write a Business Plan for a Consulting Business

There are four key areas that you should focus on when developing a business plan for your consulting business..

If you've found yourself holding a pink slip from your corporate employer or perhaps are just tired of the old 9 to 5 grind, one of the best ways to get back on your feet might be turning your experience and skills into a consulting gig since just about anyone who possesses specialized skills can hang out a shingle of their own. But before you do, you might want to consider taking the time to create a business plan for your new venture, which will not only help you map out the opportunities before you, but also the threats. While business plans doesn't appeal to everyone, especially if you don't ever expect to raise capital for your business, it can be a critical factor in getting your business off the ground, says Jennifer Leake, a certified management consultant and founder of Consultants Gold , an online community dedicated to helping consultants run their ventures successfully. That's why, as you get started, Leake offers the following tips for developing a plan:

• Write it! "Putting it on paper requires far more thought than just having it in your head," says Leake.
• Keep it simple so that you revisit it often—so don't make it too long or too complex, she warns.
• Spend the lion's share of your time defining your niche and why you are uniquely situated to serve it. "If you can't succinctly articulate what your business is selling, you'll never get people to buy," says Leake. 
• Don't create your plan in a vacuum. "You'll develop a better business plan if you have feedback, and you'll be more likely to take action if you have accountability from mentors, coaches, or success partners," she says.

But crafting a business plan for your new consulting company doesn't mean you should stick to the average template you can find online, as you should spend your time focusing on the elements that most often make or break companies in your industry. "Writing a business plan for a consulting firm sounds fairly straightforward because there are so many who call themselves 'consultants,' but it can be quite difficult for many reasons," says Michael Hermens, president of Finance Forward , a financial advisory firm in Dallas. That's why Hermens says that you should focus on four key areas when fleshing out your business plan: 1. Value Proposition Answer this question: What is your specific value proposition? "Thousands of ex-IT programmers are now 'Social Media Consultants,' " says Hermens. "What do you do that thousands of other people don't?" The keys to building a solid value proposition are to give decision makers solace that they made the right decision, he says, which can be done in three ways: 1. Offer a service guarantee, 2. Build and take prospects through a well-defined methodology, or 3. Specialize so narrowly that it is easier to increase your stature. "The challenge with a guarantee is that larger firms don't normally purchase on that basis and smaller firms generally take a service guarantee as a tacit admittance of being mistake prone," says Hermens. "A well defined methodology or approach takes a while to build, but is well worth it for prospects who do not know you. Narrow focus helps potential consultants gain exposure, increased stature helps clients be satisfied with their hiring decision."

Dig Deeper : Nobody Buys a Value Proposition 2. Target Market Answer this question: What is the best target market for you, or do you hunt every potential client that might possibly need your services? "Understanding your target market is the most difficult planning activity," says Hermens. But developing an understanding of the competitive landscape is crucial, particularly go-to-market and pricing strategies, as well as the specific problems that the industry or market segment is trying to solve. "Gaining insight into how companies in your industry go to market, the basis on which consulting firms compete, matters," he says. "In strategy consulting, it might be references of former clients or the published knowledge share that gets clients interested. In large IT deployments, it is probably the strength of the methodology. With forensic consulting, your name and personal credibility is a huge selling point." In other words, determining how you should go to market, how (or how much) you charge your clients, and your familiarity with specific industry jargon and problems the industry is trying to solve, are crucial in planning your consulting business, according to Hermens. One approach offered by Beth Corson, founder of Your FundingKey Advisors , is to choose a few industries and then outline the size and type of businesses that you'd like to work within those industries. "Rather than the desperate approach of taking any client that comes along, be selective and create a clear road map of where you want to go," she says. "Several years from now, your client roster should be fairly close to the plan that you make now. By working with similar clients in a specific industry, your company creates a level of expertise that makes it easier to perform well and get new clients because you understand their unique challenges and how to overcome them."

Dig Deeper : How to Define Your Target Market 3. Marketing Answer these questions: How do you market your consulting business? What tactics do you employ to get in front of decision makers to evaluate your offering? There's no question that in order to get your new consulting venture off the ground, you'll need to market your skills and experience to potential clients. That can be difficult, though, when you're a sole proprietor, since time spent marketing is time you're not billing for. While you can always hire an outside firm to help, your fledgling business might find the cost prohibitive. The answer, then, is to be creative in finding ways to promote your offering. One way to do that could be through landing public speaking engagements, which can be very effective at promoting your knowledge and point of view on your industry's challenges, says Hermens. Another option can be to partner with other companies that might offer complementary services to your own, a tact that may also help you build experience in new areas. But, at some point, you must develop your own client relationships independently if you want to keep your company growing.

Dig Deeper : How to Promote Your Consulting Business 4. Employees Answer these questions: If you have employees, what is the best way to deploy them, given the reality of project work? Do you plan to pay them hourly, by confirmed project, or salaried? "The issue here is how do you leverage yourself to grow revenue?" says Hermens. "Consultants who develop their brand can write books and charge an hourly rate, but they still cannot serve two clients simultaneously. Leverage allows your consultancy to flourish as your company takes on more projects." The key, then, is to think about how you align revenue arrangements with employee compensation and how to pay employees to ensure they are available when you need them by asking yourself questions like: Do you pay a salary and risk a lull in projects? Or, perhaps you pay employees on a project basis, only when they work, risking their availability when you get a new contract? "The goal here is to align revenue with employees compensation in the beginning as your consultancy grows," says Hermens. "Once your business becomes large enough, put key people on a salary, with performance bonuses. They will stick with you, have learned your go-to-market strategy, and know your methodology inside and out."

Dig Deeper : The New Rules of Employee Compensation

The Daily Digest for Entrepreneurs and Business Leaders

Privacy Policy

Start a Consulting Business in 6 Steps [+Ideas for Your Venture]

Learn about the types of consulting and how to start a lucrative, successful consulting business.

8 FREE CONSULTING TEMPLATES

Access 8 templates for consultants in The Complete Consultant's Success Kit.

Updated: 02/08/24

Published: 12/11/19

Did you know the strategy consulting market is expected to grow by $70.08 billion between 2022 and 2027? This is great news for those wanting to start their own consulting business this year.

A career in consulting may be a good fit for you if you’re passionate about helping others in your industry succeed and you are considered an expert in your career field. In fact, consultant jobs are predicted to increase by 11% from 2021 to 2031, making consultants more in demand than ever.

We’ve compiled this guide to dig deeper into the world of consulting and how to start marketing your own consulting business. Learn about the types of consulting and how to start a lucrative, successful consulting business.

Table of Contents

What is consulting?

How to start a consulting business in six steps, the 16 different types of consulting, how to grow your consulting business.

Consultants are experts in their field. They possess knowledge so valuable that someone else — an individual, department, or entire organization — is willing to pay for it. Consulting can include many activities beyond simply giving advice , including problem diagnosis, data collection, feedback, strategy-building, and implementation.

“The defining characteristic of a consultant is their talent. It’s an intrinsic capacity to look beyond the apparent, make connections that others might miss, and motivate people to take initiative and be confident,” says Hrair Tcholakian , founder of eksperts.net.

Sometimes, business leaders need a new set of eyes when approaching an issue. As a consultant, you can provide that unbiased perspective. Consultants and consulting firms are highly sought after for their fresh perspectives on a pressing business problem or challenge. Simply put, consultants work to make their clients more successful.

Consultant vs. Contractor

You may have heard the words consultant, contractor, and even freelancer used interchangeably. While all of these parties work with businesses and aren’t full-time employees, that’s where their similarities end.

• Contractors (including freelancers ) are self-employed workers that companies contract to provide services.
• Consultants, however, primarily offer assessments and their expert advice. They can be self-employed or employed by an outside consulting firm.

However, if, as a consultant, you were asked to provide a service or deliverable, you could be hired into a contractor-type role.

Now, let’s explore how to begin your own consulting business.

• Assess your skills and strengths to choose your niche.
• Analyze your market needs and pain points.
• Develop your brand, website, and service offerings.
• Open your business.
• Market your business to attract new clients.
• Stay organized and scale.

Are you specialized in a certain field or niche industry and believe you could offer quality advice to others? You may consider opening your own consulting business. Here are six steps to follow to start a consulting business that helps both you and your clients succeed.

1. Assess your skills and strengths to choose your niche.

A good first step to starting your consulting business is to brainstorm and define which valuable skills and strengths you have that make you a great consultant. Ask yourself these questions:

• What makes you an expert?
• What do you love to do and talk about?
• If you had to stand in front of a classroom and teach any subject, what would that be?
• What do your friends, family, and coworkers ask for your advice on?

I consider myself to be an expert in content marketing, so during this step, I would explore which skills I’m often asked about, such as SEO, website and user optimization, and more. Consider what skills were key in getting you hired in the past, as these could be your most lucrative offerings.

2. Analyze your market needs and pain points.

Once you establish your consulting niche, you should better understand what industry and market you’ll be targeting.

Narrowing your market as a consultant allows you to understand your potential clients’ needs, challenges, and pain points. This can help clarify how you can use your skills to provide solutions.

For example, content marketing is a wide field, but my niche experience is in tech content marketing, like SaaS companies and cybersecurity firms. I can position myself in a niche industry because this is where I will do the most good.

Just as you specialize in a certain skill set as a consultant, you should also specify what services you provide for your clients. This information can also help you better market to clients, which we’ll talk about below.

3. Develop your brand, website, and service offerings.

Next, create the external-facing components of your business, including your website, branding , and services. These resources can help clients distinguish you from competitors.

Whether you identify your business with your name or with another name, you should give it an official name and website to boot. Ask yourself what you bring to the table that makes you so valuable, and highlight this offering.

Another important part of this step is outlining how much your consulting costs. Be clear about what services are included in your price.

4. Open your business.

This step is more complicated than flipping a proverbial sign from Closed to Open.

First, consider the legal structure of your business. Legitimizing your business gives you credibility and direction when it comes to taxes, staffing, and other legal details.

Next, consider what tools you need to conduct business and connect with clients. These might include tools to help find new clients and jobs — like a LinkedIn membership — and video conferencing software like Zoom or Skype.

In my experience, the more hype you can generate around your new business, the better. Ask your friends, LinkedIn contacts, previous clients, and others to share your new business. Consider offering a discount on future services if they do.

At this stage, you should also open a business bank account, invest in an accountant (and eventually an assistant), and order business cards with your branding and information.

8 Free Consulting Templates

• Management Consulting Plan Template
• Business Plan Template
• Sales Plan Template

Download Free

All fields are required.

You're all set!

Click this link to access this resource at any time.

Download The Complete Consultant’s Success Kit to access eight free templates for planning, researching, and client onboarding.

5. Market your business to attract new clients.

Now that you’ve opened your business, it’s time to grow . Marketing yourself correctly is key to reaching new clients.

Consulting marketing can adopt a variety of marketing methods:

• Podcasting .
• Speaking and teaching.
• Social media marketing.
• Print or digital advertising.
• Cold calling and emailing.

Regardless of how you promote your consulting business, invest in consulting marketing methods that will get you in direct contact with your potential clients.

Methods like blogging, podcasting, and social media marketing don’t necessarily draw a direct line to new revenue, but they are powerful for growing awareness and establishing expertise. Content marketing is often a marathon, not a sprint, so be sure to create a consistent publishing schedule.

Once you get in front of potential clients, have an established elevator pitch and client proposal template ready to go. Half the consulting “battle” is providing advice. The other half is selling your advice in the first place.

As you grow your client base, use a CRM like HubSpot’s all-in-one CRM platform (which comes in a free version for small-to-medium businesses or a paid version for enterprises). It can help you keep track of client information as well as the context of your relationship with each client.

6. Stay organized and scale.

As you grow and master your consulting business, stay organized and consistent. High-quality results are the best way to incite referrals from previous clients — and referrals can be your best source of new sales .

In fact, as you build successful relationships with clients, don’t be afraid to ask for referrals for new leads.

Once a month or so, sit down and analyze your consulting business. Look at your client list, software tools, and other business practices. Analyze what’s working and what’s not.

Understand where you can cut extra effort and resources to ultimately save money. Lastly, subscribe to industry trends to keep your business relevant to the challenges and trends your clients face.

6 Free Blog Post Templates

Save time creating blog posts with these free templates.

• "How-to" Post
• "What is" Post
• Listicle Post

Download our free guide to starting a successful blog and receive an 8-part planner to get your blog up and running.

Another source of great blog content is your client base. Pay attention to what issues or questions your clients face and gather feedback about what information would be helpful to write and share.

In the same vein, blog content can also serve as sales enablement content — sharing a popular blog post or two with potential clients can help them understand why they should hire you.

4. Share thought leadership content.

Like starting a blog, publishing thought leadership content can help you establish your authority. Consider platforms like Medium that already have an audience. Publish your most authoritative, data-driven content on there to boost your brand awareness.

You can also use tools like HARO to connect with journalists and bloggers looking for expert quotes, anecdotes, and stories for their content. Respond to queries to get your voice featured as a thought leader in your consulting niche.

5. Network and make new connections.

Between social media, dedicated Slack channels, and online masterminds, you are the only thing standing in your way of making new connections and friends online.

Networking in person is pretty straightforward. But networking online can be tricky. Thankfully, with today’s technology, there are countless ways to network and make new connections.

One of my favorite spots to network is on Twitter. It’s the easiest platform to engage with folks and start interesting conversations. I’m also reminded of old connections that I can revive with a short Tweet or email.

Angelique Rewers , founder of Premier Global Community, argues that clients need a compelling ROI story.

“Employee experience is reportedly on the budget chopping block this year, as are a lot of other things. That means every dollar companies invest needs to go a long way. Decision makers need and want to see big, visible dents being put in their problems quickly, and they want to see those results last for longer than sizzle on a steak,” Rewers says.

When you network, you need to share what exactly organizations will get from their investment in you.

Test a few platforms and programs and see which one helps you get connected, attract clients, and build a community.

Start Consulting Today

Consulting may be a fascinating, lucrative career, but it’s also a mindset. Successful consulting businesses begin with an individual or team of experts passionate about helping others.

Regardless of your firm’s size, keep your passion and expertise centered, and you’ll always find success. Top consultants are great at planning, presenting, and marketing their services. Start your consulting business plan by downloading our free consulting templates below.

Don't forget to share this post!

Related articles.

Consulting Fees: How To Price Your Expertise In The Market

How to Write a Consulting Proposal [Templates & Examples]

30 Consulting Buzzwords that Work (and Don't Work) in Conversation

What a Retainer-Based Approach Can Do for a Consulting Business

Healthcare Consulting: What It Is & How to Succeed in It

9 Essential Certificates for Consultants

Building a Career in Consulting — The Ultimate Guide

Innovation Consulting: Everything You Need to Know

15+ Interview Questions for Consultants [+ Sample Responses]

Consultative Selling: 7 Ways to Win Deals With Consultative Sales

Powerful and easy-to-use sales software that drives productivity, enables customer connection, and supports growing sales orgs

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Start a Consulting Business

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Starting any kind of business is a challenge, but starting a business where your goal is to help others run their own more efficiently is doubly challenging.

A niche tends to be a good place to look when determining how to start a consulting business, whether your area is HR (managing the workforce of a company, including sourcing, selection, hiring, and ensuring compliance), strategy (improving performance, perhaps through workflow management), technology (delivering and implementing new software solutions), or some other consulting service that will help other businesses improve and grow.

In any of these categories, the client wants guidance but doesn't want to bring on the advice-giver full time. That’s where you come in. If you've got expertise and knowledge to offer and you like the idea of being your own boss, then you could be on the brink of starting your own consulting business.

How to start a consulting business in 9 steps

As work processes become more complex and our economy becomes increasingly globalized, the need for good consultants has never been greater. According to IBISWorld, revenues in the consulting industry will exceed $261 billion in 2020.

“It’s hip right now to tell people you’re an independent consultant,” says Christy Hopkins, the founder of 4 Point Consulting in Chicago. “I do human resources consulting for various small businesses throughout the country, and I provide various services that change depending on the client. The same thing can be done different ways if the culture and needs are different.”

Once you identify a niche for the kind of consulting you do, consider the following steps to establishing yourself as a leading voice across the industry.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 1: Assess your strengths and skill set

Often, consultants are hired to solve problems that businesses can't solve themselves. Otherwise, why would they pay you, someone who doesn't know anything about their company, to come in and tell them what to do? When starting a consulting business, it's important to have deep knowledge in a specific area so that you can offer value to your clients.

There are many different kinds of consulting that you can consider for your business. For example, if you know a lot about computers, you can set up shop as a computer or IT consultant.

There are also plenty of opportunities for PR mavens, accountants, digital marketers, and people who have a mind for business strategy.

Assess your strengths to figure out where you can be of help. It's also worth taking an objective look at any weaknesses or missing skills you may have so that you can work on filling those gaps. Also keep in mind that, depending on your area of expertise, you may need special certifications or licenses before becoming a consultant. For example, if you're a fundraising consultant it helps to have a certification from the National Society of Fund Raising Executives.

Step 2: Figure out what your market needs

Once you've identified your niche, think about what kinds of questions, problems, and pain points businesses in your chosen area of expertise have. It's not enough to simply have a strong skillset and a lot of knowledge in your field. If businesses don't have problems that your consulting business can solve, then you will find yourself treading water.

The best way to figure out what your market wants and needs is to ask. Start by doing an online search for blogs in your niche. What are the thought leaders writing about? Where does there seem to be a lot of confusion? Is there heated debate in any forums or comment sections over a particular topic?

You can also find pain points in your market by tapping your network. For example, if you want to start a digital marketing consultancy, then who can you think of that either owns their own business, works closely with digital marketers, or is a digital marketer themselves? Chances are, you know a lot of people. Ask them about challenges they face in meeting their short and long term goals. Then figure out how you and your business can help.

Step 3: Ride the organic marketing train

As an independent consultant, it will be all on you to grow your client base and make sure the business rolls in at a consistent pace. This is best done with marketing—but as always, the best marketing is organic marketing.

Hopkins started her business with a simple post on Upwork , the freelancer site that a few years ago was less well-known and had, according to Hopkins, more lucrative contracts. Hopkins says her first client is still with her today, and she has grown almost exclusively without having to advertise.

“I’ve been very fortunate that my business has built organically. I don’t know if that’s typical, but my personal experience is that I do the best I can. I’m very honest, I’m ethical, I don’t overcharge, I’m willing to work within budgets, and that has led to a lot of organic referrals,” she says.

Business owners have two distinct advantages with organic marketing. The first is that business owners tend to know each other and can make referrals for you. Like tends to be with like, so if you work well with somebody, you’ll probably work well with one of their friends.

The second upside with organic marketing is the cost—there isn't any. “I’m biased on how well it works for business, because it’s free,” Hopkins says with a laugh.

Step 4: Invest in the tools of the trade

Hopkins built her business with technological tools of the trade that let her forge and maintain connections with clients, prospective employees, and her assistant.

“I use three types of recruitment software—web-based software that helps you to post jobs,” she says. There’s MightyRecruiter, which has a system that feeds to Indeed, Monster, LinkedIn, and all the job sites you can think of, which saves time and concentrates applicants into one space. There’s ZipRecruiter, which is good for low-level jobs. LinkedIn has a two-tiered recruiter service for propositioning applicants or referrals.

MightyRecruiter is $300 a month, while ZipRecruiter is $1,000 for the year. LinkedIn’s RecruiterLite is $150 and Corporate is $700. In total, Hopkins pays about $500 a month for these recruiting tools, which give her access to people searching for everything from culinary jobs to data scientists.

Hopkins also recommends video conferencing software, at about $200 per year, for making a better connection with clients.

“They click in and they feel like they know me," she says. "They know I’m 5'2", big personality, blue eyes, talk with my hands, and they get all that even though I don’t have an office space.”

Beyond these consultant-specific tools, new consultants should also invest in the kinds of things almost all new small business owners do: develop a website ($2,000 for a great, navigable site plus around $200 for hosting), order business cards, set up an LLC (prices vary from state to state), open a business checking account and business credit card , and hire an accountant to check on the books and file taxes (around $700 annually for a small business).

» MORE: Best accounting software for consultants

Step 5: Staff wisely

Whether you need (or want) a staff to help you depends on the amount of work you have to do. Working seven days a week and 12-hour days isn’t sustainable no matter how zen you might be, and is certainly a possibility if you’re successful at growing your company.

Hopkins personally doesn’t see the upside in taking on more work than she can handle at this point. She did hire an on-demand assistant, who lives overseas and handles the dirty work of consulting on a part-time basis.

“I can do the work with the client, get the spec [job description] together, and he can find the résumés, the people, the LinkedIn profiles, which is the arduous uphill battle, and I can outsource those hours to him,” she says. “He has his own business, as well, and we have a B2B relationship. Some months he logs 50 hours to me and some he logs none.”

She communicates with her assistant via Skype, since he’s an American living in Budapest. She wouldn’t normally hire someone outside the U.S. since “there's a ton of talent right here,” but the two of them hit it off right away over Skype. She might otherwise hire an intern or two from her old graduate school to help with sourcing.

Step 6: Practice your elevator pitch

There's no use in having an impressive skill set, a rock solid marketing plan, and the most up-to-date tools if you can't make and close the sale. Convincing potential clients to choose your consulting business starts with your elevator pitch.

Your elevator pitch should be a short and sweet explanation of your target audience's problem, the solutions you offer, and how you are different from the competition. Although you may be very passionate about the services you offer and the industry problems you see, it's important to keep your pitch to around three sentences max.

A big-picture way of looking at your elevator pitch is that it is your value proposition. Once you deliver the concise version of your value proposition and a potential client wants to learn more, you can proceed to tell your story and talk about your consulting services more in-depth.

Step 7: Write client proposals

Often, the final step in bringing on a new client is writing a client proposal. This tends to occur right before the client signs on, effectively closing your sale. As such, writing proposals is an important part of getting business for your consultancy.

Client proposals are your chance to illustrate how you can serve your client and solve their problem. As such, it's necessary to be clear about what the project is, why you're lending your consulting services, and when you'll complete the project. It's also important to be very clear about all the details that will go into the project, including deliverables, budget, and how you'll measure results. Be clear, be convincing, and close that client.

Step 8: Set your pricing

Along with your proposal, you'll need to include a price. When starting out in consulting, it can be difficult to know how to price your services. Luckily, Hopkins has a pretty easy formula to follow.

“When I first started moonlighting, I took my HR manager salary and turned it into an hourly rate. For a consultant, that’s undercharging. Now I charge double that hourly rate, and that’s been a progression,” she says.

When it comes to progressing past that starting converted hourly rate—because as an independent, you are assuming more risk and should be billed higher than an in-house option—Hopkins suggests showing clients just how much value you bring to their company.

“For [existing] clients I had... I made each of them a cost/benefit write-up to show them how much money they saved versus either working with a traditional recruiter or a different independent consultant," she says. "From there, I told them my rates were going up 25%, this is the new hourly rate, and every single one of them said 'done, fine.' I just showed them the math. Now... I’ve only pitched clients at the new rate and no one has told me I’m overpriced. I’m probably still undercharging, but I like to work with small businesses and startups, and if I want to work with them, I can make it work. If they have a good mission and vision, if they’ll be ethical and treat the new hires well, I want to help them because I know there are a lot of recruiters and consultants that won’t.”

Step 9: Stay organized and deliver results

Once your consulting business is on track, be sure to stay organized and deliver results so that you can get repeat clients and referrals. Staying organized is important to ensure that you don't lose valuable information, deliver past deadlines, or forget to remind clients to pay you. Start by seeing where you can automate certain processes. Perhaps you can get paid electronically rather than by check or switch to an online bookkeeping system such as QuickBooks. Software such as Infusionsoft can help you manage your clients. If all else fails, consider hiring a virtual assistant.

Delivering results is a bit harder to give advice on, but very important to the vitality of your consulting business. Be sure to stay on top of industry trends, and to check in with your clients to be sure you're delivering results that they want and that help their businesses achieve their objectives. If you successfully help your clients achieve their goals, then your consulting business will be set up for success.

LLC Formation

Consulting niches to consider

Say you have expertise that applies to multiple industries—how do you pick an area to specialize in? When you're just starting out, you might want to consider focusing in a space that has consistent demand. On the other hand, you could identify an emerging field of business, and hone your reputation as an expert in that industry. Here are some suggestions for consulting niches to consider specializing in:

Yes, being an independent accountant is a type of consultant. As an accountant, you'll help businesses manage their books and financial needs. It helps to be a CPA if considering striking off as an accounting consultant, but anyone with a bookkeeping background is eligible to enter this field of consulting.

As a brand consultant, you can work with businesses to identify and refine their brand voice and image. As a brand consultant, you'll work to learn about a business's customers, then craft a brand that will help the business resonate with its target market. To become a brand consultant, it helps to have a background in marketing.

Another area of need for many businesses is web design. As a web design consultant, you'll work with businesses to create a website that is on-brand and functions to their specifications. A background in computer engineering is helpful here.

Human resources

Like Hopkins, you can become an HR consultant—assisting businesses with their staffing and employee management responsibilities, and advising them on best practices for keeping their workforce happy and engaged. This job could include everything from writing job descriptions to helping with onboarding.

Green living

As more and more businesses commit to going green to protect the environment, consulting on how to lower carbon emissions can be a lucrative field without a lot of competition. As a green living consultant, you can help businesses accomplish a variety of tasks that lower their carbon footprint, such as developing more green-friendly office environments or manufacturing processes.

Organization

Organization consultants advise individuals and businesses on how they can reduce organizational red tape, clutter, and distractions in order to operate more efficiently. This is an area of increased focus, as technology has created new distractions and blurred the lines between work and home life.

The bottom line

Whether your consulting business is going to be big or small, brick-and-mortar-based or online-only, expensive or economical, you need to have the experience, resources, and confidence to help other business owners get back on track. Everything else is about managing workflow and expectations.

On a similar note...

LIMITED TIME OFFER

Ink Business Unlimited® Credit Card

• Best Business Plan Software

10 Best Business Plan Software In 2024

Updated: Sep 24, 2024, 3:33pm

Writing a business plan not only helps you stay on track as you start a new business but it can also help you secure funding. You can create one from scratch with a simple template, but business plan software often has features to make it easier, more nuanced and overall better. It could even make the difference between bringing investors on board and going it alone. Forbes Advisor found the best business plan software that has the features you need at an affordable price.

• Best Project Management Software
• Best Construction Project Management Software
• Best Project Portfolio Management Software
• Best Gantt Chart Software
• Best Task Management Software
• Best Kanban Software

The Best Business Plan Software of 2024

Forbes advisor ratings, methodology, how to choose a business plan software, benefits of business plan software, frequently asked questions (faqs), next up in business.

Featured Partners

From $8 monthly per user

Zoom, LinkedIn, Adobe, Salesforce and more

On monday.com's Website

Yes, for unlimited members

$7 per month

Slack, Microsoft Outlook, HubSpot, Salesforce, Timely, Google Drive and more

On ClickUp's Website

$9.80 per user per month

Salesforce, Adobe, Miro, Netsuite, Quickbooks, SAP

On Wrike's Website

Yes, for one user and two editors

$9 per user per month

Google Drive, Slack, Tableau, Miro, Zapier and more

On Smartsheet's Website

• Wrike: Best overall
• Smartsheet: Best for goal management
• LivePlan: Best for financial forecasting
• Aha!: Best for roadmapping
• Bizplan: Best for beginners
• IdeaBuddy: Best for ideation
• iPlanner: Best for no-frills business planning
• Enloop: Best for automatic business plan creation
• AchieveIt: Best for consultant groups
• Business Sorter: Best for teams

Best Overall

Starting price

Free; $9.80 per user

Team messaging

Roadmapping

Wrike is a project management (PM) tool that works well as business plan software because it gives you tools to help you gather and compare your data. Wrike makes it easy to start your business plan with its collaboration tools, business plan templates , drag-and-drop interface and goal management features. Another benefit of using Wrike to build your plan is that you see your ideas and goals from multiple views: Gantt chart, calendar or board views.

There are a few reasons why it’s a good idea to use Wrike for your business plan. First, you can map out exactly what your business goals are in a project, invite teammates to collaborate and message business partners to discuss everything. Plus, you can export your data when you’re ready to put all the details into a presentation to hand over to potential investors.

Wrike offers a free plan that’s good for putting your vision down in task and project form, but you may want to upgrade to a paid plan to invite collaborators, get custom workflows and add more views and automations. Paid plan pricing ranges from $9.80 per user, per month, to $24.80 per user, per month, both billed annually.

Learn more: Read our full Wrike review .

Who should use it:

Wrike makes it easy for any new business owner to create a business plan and collaborate with others on the financial and operational goals. Plus, it provides value after you finalize your business plan because it’s a good pick for a PM tool.

• Roadmapping ability
• Multiple views (Gantt, calendar and board)
• Business plan templates included
• Goal management via projects and tasks
• Free plan available
• Affordable plans
• No pitching tools
• No financial tools

Best for Goal Management

$9 per user, per month

(billed annually)

(added cost)

Using PM software like Smartsheet is a good idea for starting a business plan because it includes all the tools you need to collaborate and plan across multiple teams or stakeholders. It’s especially good for real-time goal management. Get your ideas in place, go over market and competitive research from other teammates and finalize everything together.

Smartsheet won’t help you write your business plan, but it does give you a place to compile all the data and then you can use one of its free business plan templates. As you figure out your milestones, you can invite an unlimited number of viewers to see how it’s going. The only downsides are that Smartsheet doesn’t have a native messaging app (you’ll have to use an integration), only commenting allowed and there’s no free plan.

Paid plans from Smartsheet cost $9 per user, per month, or $19 per user, per month (billed annually for both). The low-priced Pro plan limits you to 10 editors, but the Business plan allows unlimited editors (but it also has a three-user minimum).

Learn more: Read our full Smartsheet review .

Smartsheet lets you make changes in real time, so it’s a good option for those who are just starting to piece together a plan and looking for a way to manage ideas and goals before finalizing a business plan.

• Discounts for nonprofits available
• Automations on every plan
• Popular integrations allowed on low-tier plan
• 30-day free trial
• No free plan
• Only 10 viewers allowed on low-tier plan
• Three-user minimum on Business plan

Best for Financial Forecasting

$15 per month

One of the strongest cases for using LivePlan to create your business plan is its financial forecasting. It isn’t just a single feature, rather it’s a tool that lets you turn your balance sheet and cash flow statements into charts, graphs and what-if situations to help you show possible investors the best- and worst-case scenarios for your business.

There are two plans available: Standard or Premium (there is no free plan). The low-priced plan, which costs $15 per month (billed annually), doesn’t limit your contributors or guests and includes instructions to help you complete a business plan. It even includes the financial forecasting features and more than 500 sample plans to get you started.

The Premium plan costs $30 per month (billed annually), but it’s full-featured. You get a milestone planner and industry benchmark data, which can save you research time. Another timesaver: At this plan level, you can integrate QuickBooks or Xero to add your financial data seamlessly.

LivePlan is business plan software that includes prompts and accounting software integrations, making it great for new business owners that want easy financial forecasting.

• Unlimited guests and contributors
• Export finished business plan as PowerPoint presentation
• Includes step-by-step instructions with prompts
• 35-day money-back guarantee
• No free trial

Best for Roadmapping

$59 per user, per month

Every business plan starts with strategy and Aha! makes it easier to map out what you plan to do to get from point A to point Z. Aha! is primarily roadmapping software that product teams use to plan features, products or bug fixes. Any business in any industry can use it to shape ideas and strategy into plans and milestones.

Much like product development, business plans have phases and Aha! is ideal for the first few phases of business planning. Although you won’t find a scorecard feature with Aha! Roadmaps, you can score and prioritize your business vision and goals. Finally, you can present your plan to viewers (stakeholders) before you create your official business plan and secure funding.

There are three plans from which you can choose: Premium at $59 per user, per month; Enterprise at $99 per user, per month; and Enterprise+ at $149 per user, per month, all billed annually. The only reasons to upgrade to either Enterprise plan is if you want to add on automation, development tools and custom worksheets and tables.

Aha! Roadmaps is a great tool to help you strategize and get your ideas for your business in one place. You can use the presentation feature to share your business’s roadmap on your way to creating your finalized business plan.

• User-friendly interface
• Ability to score and prioritize ideas
• Share roadmaps with others
• Expensive for business plan creation
• Has a bit of a learning curve

Best for Beginners

$20.75 per month

Bizplan is specifically for business plan creation. It offers a guided walkthrough of each section you need for a complete business plan to use for funding or pitching to partners. Plug in the information, from your mission and goals to financial forecasts, and Bizplan will do the math and create the visual charts you need to get your point across.

Bizplan is very easy to use because it includes prompts and questions that take away the manual effort of figuring out what you need, so you can simply focus on providing the answers. When you’re satisfied you included all the data needed, you can invite stakeholders and consultants to look it over and add comments for approval or change requests. A unique feature of Bizplan is it gives you access to Fundable, a crowdfunding platform, on which you can share your business plan to try to generate funding.

Monthly pricing costs $29, but you can opt for annual pricing that averages to $20.75 per month. If you expect to need business plan software for much longer than a year, there’s a lifetime access option for $349 flat. All plans come with all features and access, including business courses, business planning tools and a route to investors.

If it’s your first time creating a business plan, Bizplan is a great choice to help guide you through all the sections you need to include in your plan for potential investors and partners.

• Monthly, annual and lifetime plans
• Unlimited business plans
• Unlimited collaborators
• Step-by-step instructions
• Modular, drag-and-drop interface
• Online business courses
• Access to Fundable
• Financial forecasting
• No roadmapping tools
• Lack of customization
• Only integrates with Xero

Best for Ideation

Free; $6 per month

IdeaBuddy is a basic business plan tool that lets you start for free, which is great for beginners who aren’t quite ready to create a plan. The idea plan feature is great because it lets you lay out your business plan on one page, giving you an overview. There are built-in sticky notes for brainstorming and custom templates to start you off with a bit of a guide (or just create your own).

Another great feature of IdeaBuddy is the whiteboard, which lets you drag and drop various elements, draw on it and collaborate with others to come up with your perfect business idea. That feature is locked behind the highest tier, so you’ll have to pay $22 per month (billed annually) to use it. However, that plan also gives you up to 10 collaborators and 10 ideas.

Other plans are more limiting: The free plan is for a solopreneur who has a single idea to work on and the Dreamer plan is $6 per month while the Founder plan is $12 per month, both billed annually. The Dreamer plan is also limited to one idea, but you get one collaborator while the Founder plan gives you up to three ideas and three collaborators. Plus, you’ll get access to the paid plans to export and share your plan with viewers.

IdeaBuddy is just what it sounds like: It’s best for ideation. You can create a full-fledged business plan, but this program is best suited for the very beginning stages of business creation.

• Free forever plan
• Affordable paid plans
• Monthly and annual billing options
• Easy to use
• Export to Word, Excel or as PDF
• Flexible whiteboard feature
• May be too basic for some users
• Doesn’t offer much guidance

Best for No-Frills Business Planning

$55 for one year

Business plan software doesn’t have to be fancy to be effective, and iPlanner certainly fits that bill. It’s been around since 2007 and it doesn’t appear to have updated its look or functions. The browser-based business planning software gives you a place to build out your business model and a business plan.

There are two different software options from iPlanner: Strategy Designer and Startup Framework. The Strategy Designer costs $59 for three plans, but it’s a one-time fee for the year. Choose it if you want a more condensed and no-frills kind of business plan. You can export it to Word or as a PDF.

The iPlanner Startup Framework is $55 per year, which gives you one plan to create. It’s similar to the Designer version, but you can create a business model, separate financials and build a team with various roles (view only, project owner or consultant).

iPlanner is best for those who have created a business plan before and don’t need hand-holding or fancy features.

• Business modeling option
• Samples on site for demoing
• Export to Word or as PDF
• No free plan or trial
• Not a lot of guidance
• Outdated interface

Best for Automatic Business Plan Creation

$11 per month

Enloop is a unique business plan app that generates a business plan for you based on information you provide. You can edit the text Enloop writes for you to make it more specific or change numbers in your financial forecasts as you see fit. Enloop offers a scorecard that updates as you change things, finish sections and make your business plan overall better.

Then Enloop compares your financial forecasts to industry standards, so you don’t have to do the research. The software shows you up to 16 ratios, such as sales, inventory and payables and then shows you what the average is for your industry as it compares to your financials. Enloop then gives you either a pass or fail so that you can modify your plan before you put anything into play.

Although Enloop doesn’t offer a free plan, there is a free trial for one week so you can see if it’s right for you. The Detailed plan costs $11 per month while the Performance plan is $24 per month, both billed annually. The biggest difference between the two plans is how many financial ratios Enloop analyzes: The Detailed plan only gets three ratios and Performance plan gets 16.

Enloop is best for those who have some experience creating business plans, not necessarily for those who are starting from scratch as there are no brainstorming or strategizing tools included. Use Enloop to create business plans quickly.

• Three business plans for each tier
• Generates a business plan automatically
• Compares your financials to industry standards
• Seven-day free trial available
• Scorecards indicate odds of success
• No messaging team members through app
• Not meant for strategizing

Best for Consultant Groups

$80 per, user per month

Not everyone wants to go it alone when creating business plans and consultants are often hired for industry expertise and business plan creation. AchieveIt offers generous plans that won’t limit the number of plans and projects you can create, so you can work on multiple business plans at one time.

Specifically, AchieveIt is planning software meant for medium to large teams to work on projects simultaneously. For business planning, it’s a great option for those strategizing and analyzing a variety of data points with multiple people—all of AchieveIt’s plans have a minimum requirement of 20 users.

Plans are pricey, especially when you consider the user minimum. Core, the lowest-priced plan, costs $80 per user, per month, and Plus is $90 per user, per month, both billed annually. So, it’s going to cost $1,600 per month, at least, which puts this software out of reach for most small businesses.

AchieveIt is a good choice for large businesses that need planning software and for business plan purposes, it makes most sense for established consultant groups.

• Unlimited plans and projects
• Collaboration tools
• Goal management
• 20-user minimum
• Pricier than most competitors
• Integrations at added cost

Best for Teams

Business sorter.

$10 per month

When you’re ready to craft your business plan, it can help immensely to have business planning software like Business Sorter. The cloud-based app makes it easy for you to start a plan and kicks off your business planning with a SWOT analysis (strengths, weaknesses, opportunities, threats). Then, you can follow a guide to build your plan with each section divided by areas. After which, you can choose cards to help steer you toward the right objectives and goals for your business.

You won’t find roadmapping tools in Business Sorter, but the card system keeps you on track (and even gives you goals you may not have considered). As you prioritize goals, you’ll find steps you need to take that guide you to completing your business plan. Every plan allows multiple users, so you can collaborate on what takes precedence.

Plans start at $10 per month, billed annually, and allows you to have three users on board. For 10 users, the Medium plan costs $30 per month, billed annually, and if you need 30 users, the Large Team plan will run you $80 per month, billed annually. It’s one of the most affordable business planning apps for teams.

Although Business Sorter doesn’t offer a messaging tool, it’s still one of the best options for teams. You don’t have to pay per person, but you can add multiple people to the account to work on creating business plans.

• Easy-to-use business plan templates
• Free trial available
• Card system helps guide your goal setting
• Create up to 40 business plans
• Plans limit user count
• No messaging in app
• Very limited integrations

Forbes Advisor carefully considered a variety of software to choose the right business planning apps for this ranking. We compared features, ease of use, costs and collaboration. We ranked each company based on these factors using a 5-star rating system. The highest possible score is 5 out of 5 stars.

Here are the details of the factors we considered:

• Features: We looked at general and unique features of each app and gave more credit to software that provides better functionality for business planning.
• Cost: Regardless of your business size, cost is an important factor to consider when you’re adding new software to your tech stack. We awarded a higher score to those that offer free trials, free plans and affordable options.
• Ease of use: Programs that have a steep learning curve aren’t likely to be adopted by you or your team, so we chose software that’s user-friendly. Drag-and-drop interfaces or guidance through features and tools are helpful for any team.
• Customer reviews: An important factor for any software is how the general public views the program. We considered other ratings and studied the pros and cons listed by other users of the software to help us with our ranking.

Technically, you don’t need business plan software, but using it can make the entire experience easier and you’ll have better odds of creating a solid plan. You don’t even have to choose software made specifically for business planning—project management software is great for roadmapping and goal management. Aside from looking for software that includes financial forecasting, you’ll want collaboration tools, a user-friendly interface, affordable plans and ways to brainstorm or roadmap for your business idea.

One of the most important sections of any business plan is the financials. If you haven’t already done the research and calculations, look for a business plan app that automatically calculates these numbers for you.

Collaboration is also key if you’re working with a partner, team or consultants. At the very least, look for software that lets you invite viewers to see the work you’re doing, but the best business plan software lets users leave comments or work on a plan in real time simultaneously.

Ease of use is nearly as important as pricing. You’ll need software you and your team will use without spending too much downtime learning how to use it. It also makes no sense to choose a cost-prohibitive tool for creating a business plan—most of the software Forbes Advisor suggests is appropriate for small business budgets.

Finally, depending on the stage you’re in of business planning, you may want a tool that offers features that make it easy for you to create a roadmap for your business. If you’re in the early stages, these tools can help with brainstorming, prioritizing goals and managing your goals before you finalize your actual business plan.

Most business plan software helps guide you through the creation of a business plan with prompts, suggestions or tips. So, using business plan software is especially helpful for new business owners who don’t know all the sections to include to increase the odds of getting funding or luring a partner to join your operation.

Business plan software can also automate some processes, such as calculations of financials or comparisons of those finances with industry standards. Some business planning apps give you whiteboards or editable cards you can use for brainstorming. Other features may include scorecards to let you know if you’re on the right track or roadmapping tools to give you an overview of your business plan.

The biggest benefit of business plan software is that it helps you organize and prioritize all of your goals so you can more easily analyze and then compile the data you need to create your business plan. After that, you can create your plan from scratch or if you’re using business planning software made specifically for crafting plans, you can piece it all together and then export it as a PDF or to Microsoft Word.

Which business plan software is the best?

Forbes Advisor suggests Wrike, Smartsheet or LivePlan to help you write your business plan. Depending on the stage you’re in of business planning, one tool or another may be better for you.

How do I create my own business plan?

There are several steps you should follow to create a good business plan, but there are different types of plans you can create. Every business plan starts with a strong executive summary and includes your business goals and financial forecasting. Follow a guide on how to create a business plan to ensure you include all the sections needed.

What are the different types of business plans?

There are many types of business plans you can create and the one that makes the most sense for you depends on your situation. A standard business plan is meant for when you need to present to investors or a bank for financial help. A lean plan doesn’t include all the summaries and background information a standard plan does, so it’s more suitable for established business owners. There are also one-page business plans that are more like pitches. You may also run across operational, tactical, strategic and contingency business plans. We created a simple business plan template that you can use to get started when launching a side gig or small business.

Is business plan software secure?

As  with most types of software, the best business plan software programs offer many levels of security. When choosing this type of software, you want to look for security features that include multifactor authentication (MFA), intrusion detection, the monitoring of user activities, documentation that shows frequent security updates and patches, data encryption and privacy protection.

• Top Asana Alternatives
• Best Scheduling Apps
• monday.com Review: Features, Pros & Cons
• Asana Review: Features, Pricing & More
• Trello Review: Features, Pricing & More
• Monday Vs. Clickup

Amy Nichol Smith spent more than 20 years working as a journalist for TV and newspapers before transitioning to software and hardware product reviews for consumers and small businesses. She has been featured in publications such as L.A. Times, Tom's Guide, Investopedia and various newspapers across the U.S.

How to Start a Healthcare Consulting Business

Below you will learn the key steps to starting a healthcare consulting business.

Download the Ultimate Consulting Business Plan Template

10 Steps to Starting a Healthcare Consulting Business

1. conduct market research to determine demand.

An important step to starting a healthcare consulting business is conducting market research. To begin, you must learn what services your clients want and how much they are willing to pay for them. There are two ways you can go about conducting this research:

• Survey your target market . This can be done through online surveys, focus groups, or interviews with potential clients.
• Perform a competitive analysis . This involves studying your competition and understanding the consulting services they offer, as well as what prices they charge.

Once you have analyzed the survey data, determine which types of businesses are likely to hire you and how much they are willing to pay. Use this information to set your consulting prices.

2. Name Your Healthcare Consulting Firm

Once you have analyzed your market and determined what services clients want, it’s time to name your business. While naming a business can be difficult, there are a few rules of thumb to keep in mind:

• Keep it Short : Your business name needs to be short enough for clients to remember and say.  
• Keep it Relevant : Your business name should be relevant to the healthcare consulting services you offer and your ideal client’s needs.
• Keep it Memorable : Using clever ideas and words, help your audience connect with your business.
• Focus on Your Target Audience :  Make sure that whoever sees or hears your company name understands who you are targeting as clients.

Read our article about choosing the right business name .

3. Choose Your Business Structure and Set-Up Your Company’s Legal Entity

As with any business, the type of legal entity you set up is critical.  After all, you want your company to be treated as a separate entity, not just an extension of yourself.  There are several types of structures in which you can start your healthcare consulting company. Three popular options are sole proprietorship, S-corporation and LLC (limited liability company).

• Sole Proprietorship :  A sole proprietorship is one in which the business and the owner are considered to be one entity. Therefore, you are personally responsible for all debts and liabilities your healthcare consulting firm may incur. One benefit of this type of structure is that it’s easy to set up and there are no formal filings required.
• S-Corporation : An S corporation is a type of C Corporation that was designed by the IRS to help small corporations minimize their paperwork while still gaining many of the tax benefits of incorporating. It also offers protection for business owners in case of lawsuits and other liabilities.
• Limited Liability Company (LLC) :  An LLC is a structure in which the company is considered a separate legal entity from its owners. This means that the company is responsible for its own debts and liabilities. This type of structure offers protection for business owners in case of lawsuits.

Read our article comparing the most common consulting business structures .

4. Write a Healthcare Consulting Business Plan

A business plan is a document that outlines your business goals, strategies, and how you plan to achieve them. For a healthcare consulting company, your business plan should include the following:

• Business Description : Describe what your company does, who your target market is, and how you will differentiate yourself from the competition.
• Industry & Market Analysis : Detail your research on the healthcare industry and what consulting services clients are most likely to want.
• Financial Plan : Outline your estimated income and expenses for the next three to five years.

Other sections of your plan will answer other key questions such as the following:

• What are your areas of expertise?
• What services can you offer your clients?
• Who is your target audience?
• How will you differentiate yourself from the competition?

Your business plan should also include several sections that detail your company’s history, current financial situation, and future goals. These sections will allow an investor to learn more about your company before they commit to investing in it.

Read our article about how to write a consulting business plan .

5. Apply for a Business License and Necessary Health Licenses

You must register your healthcare consulting company as a legal entity with the state in which you plan to do business.

To file your business with the state, obtain the necessary forms from the Secretary of State’s website or local County Clerk’s office. You will be required to pay a small fee for filing your business with the state.

Registering with the federal government may or may not be required. You can register your business on the federal level by obtaining an Employer Identification Number (EIN) from the IRS.

Read our article about obtaining the proper consulting business licenses .

6. Determine Your Budget & Apply for Funding as Needed

As with any business, you will need to use your own capital to finance the initial stages of your health consulting business.  Your budget may also include several other costs including marketing expenses and the salary you wish to pay yourself.  

After determining how much money you will invest in starting your business, review some options for financing your business.  Here are several financing options that may be available to you:

• SBA Loans : The Small Business Administration (SBA) is a government agency that provides financial assistance to small businesses in the U.S.  
• Bank Loans : Many small business owners are able to secure loans from their local banks. Often, you can borrow money for any purpose that relates to the growth of your company.
• Friends and Family : You can consider getting loans and/or equity investments from friends and family members..
• Angel investors : Angel investors may provide debt or equity funding to you.

Read our article about the costs associated with starting a consulting business to help you determine if funding is needed.

7. Get the Technology & Software Needed to Run Your Healthcare Consulting Company Efficiently

As a healthcare consulting firm, you will need different types of technology to complete projects and keep track of your company’s operations. To simplify the process of starting a consulting business, we’ve provided a list below detailing some items that you’ll need:

Computers : Even if most of your work is done remotely with clients on the other side of the country or world, you will need at least one computer that is dedicated to your healthcare consulting company.

Software : Software is an essential component of any consulting business. The right software can help you manage projects, track expenses, and communicate with clients more effectively.

Here are some popular software platforms that may be beneficial to your business:

• Microsoft Office : This software suite includes a variety of applications that can help you manage your company, including Word, Excel, and PowerPoint.
• QuickBooks : This software is designed for small businesses and can help you track income and expenses, create invoices, and manage payroll.
• Basecamp : This project management software can help you manage multiple projects simultaneously and keep track of deadlines and milestones.
• Gmail : Google’s email platform offers several features that can be helpful for consulting firms, including the ability to access the same email from multiple devices.
• CRM : Customer relationship management software can help you track customer communication, manage leads, and create reports that detail your sales activities.

Additional software specific to healthcare consulting may include:

• EHR software : This software is used by healthcare providers to manage patient data.
• HIPAA compliance software : This software helps organizations comply with the Health Insurance Portability and Accountability Act (HIPAA).
• EMR software : This software is used by healthcare providers to manage patient information and track medical appointments.

Read our article about the technology and software you need to run a consulting business .

8.  Market Your Healthcare Consulting Firm to Potential Clients

Once you’ve established your healthcare consulting company, the next step is to market it to potential clients.

Here are some common marketing strategies used for healthcare consulting firms:

• Website : A website is an essential component of any marketing strategy. It provides potential clients with information about your company, including the consulting services you offer and the team of professionals who work for you.
• Online marketing : Marketing your business online, such as through a business website and pay-per-click and/or social media marketing, can help you reach a larger audience looking for your services.
• Direct Mail : Direct mail is a traditional marketing strategy that can be used to reach potential clients. You can send flyers, brochures, or letters to potential clients that provide information about your company and the services you offer.
• Trade Shows : Trade shows are a great way to connect with potential clients in person. You can exhibit at healthcare-focused trade shows or attend trade shows in other industries to reach potential clients who may need your services.
• Networking Events : Networking events are a great way to meet potential clients and connect with other professionals in your industry. Attending events such as Chamber of Commerce meetings or breakfast meetings can help you build relationships with potential clients.

You should also consider ways to incentivize potential clients to choose you over another healthcare consulting firm. Some incentives that work well include:

• Lower rates : Many healthcare consulting firms offer lower rates on their consulting services to attract new clients.
• Discounts on services : Offering discounts on certain projects may help you win bids against other healthcare consulting firms.
• Free consultation : Providing potential clients with a free consultation can help them determine if your company is the best one for their needs.

Learn more about how to market your consulting business .

9.  Establish a Price Structure and Billing System

There are a few factors to consider when establishing your price structure:

• Hourly rates : Charging by the hour is a common way to price consulting services. This allows clients to budget for your services and gives you the flexibility to charge more for complex projects.
• Project rates : Charging a flat fee for a project can be beneficial for both the client and the consultant. It ensures that clients know what they are paying up front, and it allows healthcare consultants to charge more for more complex projects.
• Retainers : A retainer is a set amount of money that the client pays upfront for consulting services. This can be a good option for clients who need regular consulting services.

No matter which pricing structure you choose, be sure to clearly communicate it to your clients. Additionally, have a detailed invoice template that includes all the healthcare services you provided so the client knows exactly what they are paying for.

10.  Manage Client Relationships and Deliver Projects

After finding new clients and marketing your healthcare consulting business, you should begin delivering the projects and getting paid. This means managing client relationships and making sure that clients are happy with your work. Some of the ways to manage relationships with your healthcare clients include:

• Regular communication : Make sure to stay in touch with your clients, even if there is not a lot of work to be done. By keeping in touch regularly, you can ensure that they know you are available and that they will be the first ones you contact when new projects arise.
• Project updates : Keep your clients updated on the progress of each project. This can be done in a variety of ways, such as through emails, reports, or presentations.
• Frequent contact : In some cases, it may be necessary to contact your clients more often than usual. If there are major changes to the project, for example, or if you need additional information from them.

Delivering projects on time and within budget is essential for a healthcare consulting business. It can be beneficial to create a project management plan that outlines how each project will be completed. This will help ensure that all deadlines are met and that the client is happy with the final product.

Learn more about how to effectively manage client relationships .  

Starting a Healthcare Consulting Business FAQs

Why start a healthcare consulting business.

Healthcare consulting is a growing industry, and there are many reasons why starting a healthcare consulting business might be the right move for you. Some of the benefits of owning a healthcare consulting company include:

• You get to be your own boss
• The work is interesting and varied
• There is potential for high income
• You can help people 

What is Needed to Start a Healthcare Consulting Business?

There are a few things you will need in order to start a healthcare consulting company. These include:

• A clear understanding of the healthcare industry
• Marketing materials
• An office space or home office
• Healthcare consulting software

What are Some Tips for Starting a Healthcare Consulting Company?

The following tips can help you to start a healthcare consulting company:

• Do your research : Before you launch your business, be sure to do your research and understand the industry inside and out. This will help you to develop a strong strategy and provide valuable services to your clients.
• Establish relationships with healthcare professionals : One of the best ways to grow your business is to establish relationships with healthcare professionals. Attend conferences, meet-ups, and other events where you can network with these individuals.
• Offer a range of services : In order to be successful, it is important to offer a variety of services to your clients. This will help you to meet the needs of a wider range of clients.
• Keep up with industry changes : The healthcare industry is constantly evolving, so it is important to keep up with the latest changes. This will help you to stay ahead of the competition and provide valuable services to your clients.
• Market your business : Marketing is key when it comes to a successful healthcare consulting company. Be sure to create a strong marketing strategy and use a variety of marketing channels to reach your target audience.