Thinking about branching out and starting your own consulting business? Here are a few things you should consider before pulling the trigger.
1. Regulations and Taxation
Your business may need to acquire licenses and permits from the federal, provincial and municipal levels of government. If you have legal questions, you should contact a lawyer who deals with business regulations. Depending on your location and the type of products or services being offered, federal, provincial and/or municipal business taxes may apply.
2. You will be selling yourself.
This may sound strange, but a consultant not only sells their services, they sell themselves. As a consultant you will need to convince people they want to do business with you, therefore if you want to build your business you need to be prepared. Here are some pointers:
-Dress the part. You’ve got to look as good as the services you provide.
-Don't be afraid to place a big price tag on yourself. Higher cost is usually associated with higher value.
-Be honest and correct in all your dealings. Deliver what your promise and your clients will come back for more.
3. The day your client signs is the day you start losing them.
Some consultants may claim that they never lost a client in their life, but this is unlikely. It is hard to keep clients over a long period of time, many will come and go. However there are ways to avoid a large turn-over. You should prove your dedication to your clients not only by delivering excellent service but showing that you care for their individual needs and are ready to provide customized solutions when necessary. Make sure that before commencing any project for them, you perfectly understand their needs. It is crucial that you also set expectations for them right from the beginning. Maintain a friendly rapport with them so that they are comfortable doing business with you. Provide them with incentives to return.
4. Clients are always right, except when they are wrong
Although to keep your clients it should be your job to keep them happy and listen to their demands so that you can meet them as best you can, you must also be prepared to tell them when they are wrong. They have hired you because you have a specific expertise they do not have. This is why advising them as to what is best also includes telling them when they are wrong. If you give them a point-blank 'no' you could run the risk of upsetting the relationship, the best way to explain things is to show them data or evidence so as to reason with them and then provide an alternative solution.
5. You need to always be closing.
To achieve in the consultancy world, you cannot spend all your time on the projects you've been hired to do. You will need to spend as much time acquiring new business so as to ensure you can reap a profit. Some businesses might have slower sale cycles than others, regardless of this, both your time and resources should be constantly reinvested into business development.
