Low costs, simple organization and high margin – consulting has many advantages that attract more and more people to this area. How to make money on business consultations? We answer the basic questions.
What is consulting and why is it profitable?
Consulting is the provision of expert advice in a particular area. Simply put, solving the problems of business and individuals: for example, scale up a startup, build a marketing strategy, help motivate staff, or choose a weight loss program.
Each consultant is an expert in a narrow field, who has knowledge, skills, experience, daily follows the news and trends of the market. The body of knowledge is easily converted into a product for which people are willing to pay for one of three reasons:
- could not figure out the topic on their own;
- do not want to waste time;
- want to rely on someone else’s experience.
Imagine that the owner of a law firm plans to implement CRM, but he does not have time to understand the nuances. Or the startup founder cannot achieve the desired profit, although he tried different strategies. In both cases, the consultant will issue a ready-made solution or draw up an action plan for the task. This is precisely the value of consulting.
Do you know what you need to start a consulting business?
It is believed that a consultant’s career has a low entry threshold: you need to have knowledge, take into account market needs and be able to promote services. Let’s see how simple it really is.
Knowledge and skills
The core value that you offer your customers is the solution to the problem. Therefore, your in-depth knowledge and skills in a specific area are the key resource. To evaluate your resources, answer the following questions:
- Which industries you are familiar with
- what skills have you developed during your career;
- what measurable results have been achieved;
- if areas you haven’t professionally, but sincerely interested in;
- what are your strengths;
- what skills you lack.
When you understand what personal resources you have, select a specific niche, and find its intersection point with the interests of the target audience. This will be your UTP.
Successful consulting companies strategically target a specific niche. You will not succeed in helping everyone: it is important to stand out from the competition and formulate a unique value proposition. For example, the slogan “Helping to develop a business” does not solve specific problems of clients. And “in half a year I’ll help a medical startup double profit” – a specific specialization that will attract the target audience.
Studying the interests of Central Asia
Your goal is not to come up with a problem, but to offer a solution to a problem that interests potential customers. To study the needs of the market, first of all, determine who you will work with: individuals, small businesses, or large corporations.
The next step is to study the needs of the target audience: what problems it most often faces, what questions it asks. To understand this:
- study thematic forums;
- track what content is gaining popularity in your niche: YouTube videos, books, articles;
- Ask questions directly to potential customers.
Consider which channels you use to attract consumers. We offer several ideas:
- Continuing your hired activities? Tell clients that you provide private services and ask them to recommend you.
- Be active online: maintain social networks, fill out a profile on LinkedIn, collect a database of contacts, communicate on forums, create a landing page, blog or website;
- Run ads on social networks, Google or offline – depending on where your target audience spends time;
- Take care of branding, thanks to which you will be recognized visually: logo, corporate colors, and fonts. Online generators, for example, Logaster, will help you quickly create a logo and other identity elements.
How to calculate the budget?
The consulting business model is quite simple and does not require large investments:
- All you need to get started is a telephone and Internet connection.
- Operations can be conducted alone. If necessary, you will subsequently hire an assistant for routine tasks (gathering information, phone calls, documentation, etc.).
- It is not necessary to rent an office – you can organize a business online, from home or coworking.
- Since you do not have a physical product, you will not need to organize production, delivery, and sales.
Consider a fee for your services: a low price can cause distrust, and too high can scare away potential customers:
- Evaluate your experience: are you just starting to understand the chosen field or have you already developed a portfolio?
- Find out the average market price for your specialty.
- Be sure to consider all costs: for example, access to paid resources that you will need to analyze the situation or courses at which you are upgrading your skills.
What courses will be helpful to consultants?
Before starting a business, consider whether you have enough knowledge and skills. Even if everything is all right at the initial stage, do not forget that you can’t stand still: study, improve, and increase income.
Consulting success / Coaching-For-Consultants
Eight-week courses will help optimize the business model: find the ideal customers, attract their attention, and convey the value of the product. You will receive personal advice from successful businessmen, relevant recommendations, ongoing support, and develop a marketing strategy for promotion.
Consulting success / Momentum
Want to improve your business? On a 30-day walkthrough, you’ll get proven to consult templates and scenarios to help you increase your annual revenue by several times. At the same time, the course creators promise: you will not waste time on cold calls, a website redesign, or advertising on social networks.
Extension.Harvard / Consultants-Toolkit
Harvard University takes a solid approach. The program offers data collection and analysis tools that will teach you how to generate effective solutions and cope with complex tasks. Lectures, thematic discussions, and interactive exercises teach analytical methods. You will be able to apply them to work with any clients: small and large business, commercial, and non-profit organizations.
The program is fully built on practical exercises and solving real problems in the community of entrepreneurs. The organizers promise that you will take a fresh look at the world, change habits, and reprogram the brain for better performance.