What Is Consulting Business? and How to Expand It? - Part I

It is expected that the strategic consulting market will expand by $70.08 billion from 2022 to 2027. This is great news for those looking to start their own consulting business this year.

A consulting career may be ideal for you if you are passionate about helping others in your field succeed and are an expert in your professional area. It is anticipated that consulting jobs will rise by 11% between 2021 and 2031, making consultants more in demand than ever.

What Is a Consulting Business?

Consultants are experts in their fields, with valuable knowledge that can be paid for by another individual, department, or even an entire organization. Consulting involves many activities beyond just providing guidance, including diagnosing problems, collecting data, giving feedback, building strategies, and implementing them.

Consultants' talent is their unique characteristic. It is an intrinsic ability to see past appearances, connect dots that others might miss, and motivate people to take initiative and believe in themselves.

Business executives occasionally require a new viewpoint when addressing an issue. As a consultant, you can offer this objectivity. Consultants and consulting firms are highly sought after for offering new insights on pressing business challenges. Simply put, consultants strive to help their clients succeed more.

Consultants Vs. Contractors

You may have heard these terms used interchangeably: consultant, contractor, and even freelancer. While all these parties work with companies and are not full-time employees, their similarities end there.

• Contractors (including freelancers) work independently and are contracted by companies to provide services.
• Consultants can work for a third-party consulting firm or independently, primarily providing assessments and advice.

However, you could be employed in a role similar to that of a contractor if asked as a consultant to provide a service or product.

Let's now discuss how to launch your own consulting business.

1. Assess your skills and strengths to choose the right specialization.
2. Analyze the market's needs and issues.
3. Develop your brand, website, and service offerings.
4. Launch the project.
5. Market your business to attract new clients.
6. Organize and expand your work.

Are you specialized in a certain field or niche industry and believe you can offer sound advice to others? You might consider starting your own consulting business.

6 Steps to build a successful consulting business

Here are six steps to build a successful consulting business:

1. Assess Your Skills and Strengths to Choose the Right Specialization

A good smart step in starting your consulting business is brainstorming ideas and identifying the valuable skills and strengths you have that make you a great consultant. Consider the following questions:

• What makes you an expert?
• What topics do you enjoy discussing and doing?
• Which subject would you choose if you had to stand in front of a class to teach it?
• What guidance are your coworkers, friends, and family looking for from you?

2. Analyze the Market's Needs and Issues

After identifying your consulting specialty, you should better grasp the industry and market you will target.

Narrowing down your market as a consultant allows you to understand your potential clients' needs, challenges, and issues. This may help clarify how you can use your skills to provide solutions.

You should define your specific services just as you specialize in a specific skill set as a consultant. This data may help you market better to clients, which we will discuss below.

3. Develop Your Brand, Website, and Service Offerings

The next step is to develop your business's external components, such as your website, branding, and services. These tools can help clients distinguish you from competitors.

You should name your business officially and create a website, whether you choose to name it after yourself or something else. Consider what valuable services you make and highlight them.

This step involves determining your consultation's cost. Be clear about the services included in the price.

4. Launch the Project

First, consider your business's legal structure. Legitimizing your business gives you credibility and guidance regarding employment, taxes, and other legal matters.

Next, consider the equipment you'll need to run your business and communicate with clients. This may include tools to help find new clients and jobs, such as a LinkedIn membership and video conferencing software like Zoom.

The more talk about your new business, the better. Ask your friends, LinkedIn contacts, former clients, and others to share your new venture. Consider offering them a discount on future services in return.

At this stage, you should also open a business bank account, hire an accountant (and eventually an assistant), and design business cards that include your branding and contact information.

5. Market Your Business to Attract New Clients

After launching, it’s time to expand. Effective marketing is essential to reaching new clients.

Marketing consulting relies on a variety of marketing methods, including:

• Blogging.
• Webinars.
• Podcasting.
• Speaking and teaching.
• Social media marketing.
• Print or digital advertising.
• Referrals.
• Email marketing.

Invest in marketing methods that will connect you directly with potential clients regardless of which one you choose.

Blogging, podcasting, and social media marketing may not immediately result in more sales, but they are effective in increasing awareness and building expertise. Content marketing is often a long-term process, so be sure to create a consistent publishing schedule.

Create a brief promotional pitch once you reach potential clients. Providing advice is half of the consulting work; selling that advice is the other, main half.

Use a Customer Relationship Management (CRM) system to help you keep track of client data and your relationship with each of them as your clientele grows.

6. Organize and Expand Your Work

Remain consistent and organized as you grow and refine your consulting business. High-quality results are the best way to attract referrals from past clients, which can be the best source of new sales.

As you build successful relationships with clients, don’t hesitate to ask for referrals to gain new clients. Set aside time once a month or so to analyze your consulting business. Look at your client list, software tools, and other business practices. Analyze what works and what doesn’t.

Identify where you can reduce effort and extra resources to save money in the long run. Finally, keep up with industry trends to stay informed about the challenges and trends your clients face.

Let's now discuss the various consulting specializations available.

16 Consulting Types

1. Management consulting.
2. Strategy consulting.
3. Operations consulting.
4. Financial strategy consulting.
5. Human resources consulting.
6. Information technology consulting.
7. Business consulting.
8. Sales consulting.
9. Marketing consulting.
10. Environmental consulting.
11. Financial consulting.
12. Professional consulting.
13. Healthcare consulting.
14. Diversity, equity, and inclusion consulting.
15. Public relations consulting.
16. Branding consulting.

The term "consulting" describes a broad spectrum of experts in practically infinite fields of endeavor.

This section will cover some of the most sought-after consulting types, any related specialized opportunities that fit under them, and potential career paths in these various fields.

1. Management Consulting

Management consulting is the most common consulting type, including a wide range of specialty consulting fields.

Companies like McKinsey, Bain & Company, and Deloitte primarily operate in the management consulting field. The industry's estimated value as of 2023 is $366 billion.

Management consultants work with business executives to help their companies run smoothly. This typically involves assessing specific processes and advising on how to improve them or introduce new ones.

Not all management consultants are the same. Some take a general approach and assess the organization holistically, while others specialize in specific departments or areas.

2. Strategy Consulting

This is an important subset of management consulting, where these consultants review key business strategies and provide specialized advice on improving or developing new ones.

Strategy consultants are usually experts in a particular sector or field and offer advice on high-level strategic business decisions, such as the company's vision, resources, and investments.

In Conclusion

This part discussed the consulting definition, the difference between a contractor and a consultant, how to start a consulting business, and two types of consulting. Part II will discuss the 14 remaining types and how to expand a consulting business.