Starting your own consulting business is like taking your profession to a whole new level. Not every consultant who has exemplary skills and expertise in a certain field can or should establish his own consulting business. Putting up your very own business requires more than just being a consultant. Instead, it demands the talents and skills of an entrepreneur.
Establishing a consulting practice demands skills in business management, human resource management, advertising skills, and more. As such, before you set up your own firm, you should ask yourself the following questions:
Are you capable of running your own business?
To be a consultant, you have to be an expert. You should have excellent skills and knowledge in your field. However, if you are planning to set up your very own firm, you should be a good business manager. You have to realize that running a business demands more than just monetary resources. Instead, you should have a good grasp of finance management, labor control and supervisory skills. Many new consultants underestimate the challenge of running even some of the day to day tasks because they never had to do it at their previous firm.
Do you need a license or a business permit?
While most if not all states require you to have some sort of a business permit to establish your firm, the industry itself is loosely regulated and there are no standard licenses or degrees.
Most consulting specialties provide a variety of different ways to enter the profession. Whereas very few universities or colleges offer formal programs of study in management consulting, many fields provide a suitable background. These fields include most areas of business and management, such as marketing and accounting, as well as economics, computer and information sciences, and engineering. Also, many business schools have consulting clubs that offer exposure to consulting firms or opportunities to provide consulting services to businesses.
Some schools offer programs in logistics and safety that relate directly to consulting jobs in those areas. Some college graduates with a bachelor’s or master’s degree and no previous work experience are hired right out of school by consulting firms and go through extensive on-the-job training. The method and extent of training can vary with the type of consulting involved and the nature of the firm. Some college students might have an advantage over other candidates if they complete an internship with a consulting firm during their studies. Other workers with related experience are hired as consultants later in their careers. For example, former military or law enforcement workers often work for security consulting firms. Similarly, some government workers with experience in enforcing regulations might join an environmental or safety consulting firm. Consultants in scientific fields often have a master’s or doctoral degree, and some previously have taught at colleges and universities.
The Institute of Management Consultants USA, Inc. (IMC USA), offers a wide range of professional development programs and resources, such as meetings, workshops, interest groups, and national conferences that can be helpful for management consultants. The IMC USA also offers the certified management consultant (CMC) designation to those who meet education and experience requirements as well as pass an interview and oral and written examinations. Management consultants with a CMC designation must be recertified every 3 years.
Can you market yourself?
Putting up your own consulting firm equates to self-promotion. You have to realize that in order to have clients and be profitable, your business needs marketing and advertising. If you put up your own business, you should know that gaining clients is one of your prime responsibilities. You will be in charge of advertising, marketing, and networking. You should have the necessary skills in identifying, searching, attracting, and maintaining clients.
How much will you charge?
Pricing is important in any type of business. Your charge for your services largely defines your firm’s competency and marketability. As the owner of your own consulting firm, you should be able to determine your cost and finance charges for your services. To determine your fee schedule, you should analyze the fees charged by other consultants. Note that various services will incur varying amounts of fees. Prices will also be based on your level of expertise and the level of profitability you want to gain from the engagement.
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