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What should you do with all of your consulting experience if you’ve been working at a consulting business and are now prepared to go it alone?
Perhaps you’re sick of spending all of your free time flying to and from client locations rather than spending it with your loved ones. Have you had enough of dining out and sleeping in hotel rooms while your health is suffering?
Or perhaps you’re fed up with not being compensated fairly. Despite completing the majority of the work, you are only getting a small portion of what your firm charges clients and earning just a small portion of what you believe you should.
Is it possible that you feel trapped doing client work or tasks you don’t really like? Are you prepared to reach your full potential, which includes working with carefully curated clients while having more freedom and a limitless revenue potential?
If any of these apply to you, leaving your company to launch your own consulting firm is probably the wisest course of action you can do at this time.
What Is An Entrepreneurial Consultant?
A business owner who offers professional guidance in a particular subject or industry is known as an entrepreneurial consultant.
A consultant…
- Professionally offers knowledgeable counsel
- Performs work in a particular subject or sector;
- Identifies issues and makes recommendations for actions and fixes
An entrepreneur…
- Runs a business
- Solves issues and takes advantage of opportunities
- Looks to profit from the sale of their goods or services
Consequently, an entrepreneurial consultant is a business owner who offers professional guidance in a particular area or field
Advantages & Challenges
You have several advantages establishing a consulting business as a consultant coming from a reputable consulting firm. You do, however, also experience certain drawbacks and encounter some difficulties.
Advantages
- Frameworks and Tools: You possess the abilities, strategies, and equipment necessary to interact with your clients and, most importantly, to produce outcomes for them. You are skilled at completing projects.
- Best Practices: You are aware of the ideal procedures for consultation. You are skilled at comprehending the client’s issues, examining their circumstances, advising them, and resolving their issues.
- Network: You have access to a network of other consultants and previous clients. You might get in touch with former customers and convince them to become your first customer. (NOTE: Before you do this, make sure to review your employment agreement.)
- Global Access: You have access to people from all over the world if you are coming from a larger company. You won’t have any trouble reaching important contacts even if you move.
- Insider Information: You are aware of the benefits and drawbacks of working for a larger company. You are aware of the areas in which larger companies excel and fail. By doing so, you can “fill the gap” and make up for the faults of your prior company.
Disadvantages
- Branding: You don’t have much of a reputation to rely on. You use it in your marketing when you claim to be with McKinsey or BCG. But you don’t have the same authority today. You must build your own brand from scratch because you are not your former company.
- Dependence on Systems & Infrastructure: In a bigger company, you have access to all the resources you require. The business gives it to you. However, just because you previously had that infrastructure does not imply that you would require it when you launch your own consulting firm. When working for a company, you are trained to concentrate on systems right away. But when launching a consulting business, your first day’s work is to secure your first three to four clients.
- Client Acquisition: You worked with a company that assisted you in client acquisition and business development. When you work for yourself, marketing and sales are entirely in your hands. When you work for a big company, you’re selling big company. That is simpler than advertising for yourself. Starting your own consulting company allows you to showcase your skills, experience, and accomplishments which is challenging as potential clients have to earn your trust.
Transitional Measures From Employed Consultant to Consulting Firm Owner
If you want to become a consulting business owner, you need abandon the business plan. Obtain your first three to four clients. This is “service-market fit” – confirmation that there is a need for your knowledge and you can build a profitable business around it. Here are six methods to assist you in doing so.
Select Your Transition Plan
You can either begin consulting while still employed (the side transition), or you can quit your job and launch a consulting business (the all-in transition). Sixty-five percent of consultants employ side transition. 35 percent opt for the all-in transition. The option you choose will rely on your connection with your company, risk tolerance, and financial runway.
Identify Your Ideal Client
Being a specialist is the easiest and most efficient strategy to get your first few clients. In addition, this requires obtaining “Ideal Client Clarity.” Consider which clients you enjoy dealing with the most. What industry do they belong to? What size is their organization? Where can I find them? What is their seniority level? What is their occupation? This is among the most challenging aspects of launching a consulting business.
Articulate Your Unique Advantage
As a new entrepreneurial consultant, you must conduct a market analysis. What do you offer that no other company does? Where are the opportunities for wealth generation that they are not exploiting? Or, how can an existing service be marketed to a different demographic? You will need to determine what you contribute to the market that is distinctive or unusual.
Develop a persuasive message
You will now compose your “elevator pitch.” It’s also frequently called as the “unique sales pitch” or “unique value proposition.” This is what consultants refer to as their Magnetic Message. Here’s the formula: I assist [WHO] in [solving WHAT problem] in order for them to [see WHAT outcomes]. My [WHY choose me? Magnetizes the attention of your ideal client with this message. And it assists in initiating talks with them. Consider it the cornerstone of your marketing: the communication you use to grab the interest of potential customers.
Reactivate Your Network
Networking is the easiest marketing you will ever perform. Create a list of everyone you know to begin (you never know who will provide a referral). Send each of them an email inquiring about their well-being and informing them on your activities (your magnetic message). Third, follow up with those who respond through phone call. With a tailored message, your coworkers will naturally consider individuals to whom they can introduce you. This “Network Reactivation Campaign” will likely result in your first consulting client.
Create and distribute compelling content
As an entrepreneurial consultant, content marketing is an effective method of self-promotion. It enables you to expand your knowledge, establishes you as a thought leader, and provides value to your market. By developing and distributing content, you create a marketing asset for your business. However, it only works if you are committed. However, we have worked with clients who provide little material. Instead, they concentrate on networking and direct outreach to initiate dialogue with buyers. Utilize both techniques, and you will have a potent marketing engine that generates several calls per week with your ideal customers.
