Wednesday, December 19, 2012

How to start your own consulting business

I've been a consultant for 15 years now and every so often people ask me how they can do the same. The question is somewhat annoying because it suggests that what I do is easy enough that there's just a formula to it. But nonetheless there is some wisdom that applies across the board to any area of consulting that you may get into. The basic question always becomes: How do I get customers?

The answer depends on the type of consulting you're looking to do of course...
But the old fashioned ways are still best. Forming relationships with customers is the only great way to get new clients. Word of mouth is basically your best tool.

Here are some general ideas that have helped me put my consulting business together over the years (and some things I would still love to do):

1) Attend user groups and seminars in your related industry and meet people. Make sure you listen to what they're doing so you can spot trends and understand where the needs are.
2) Get to know your competitor - And offer to subcontract work through them at a reasonable rate so they're still meeting their margins. These are typically larger outfits that have been in business several years and have an established client base. It goes without saying, NEVER try and steal a client from anyone who is open to giving you work. 
3) Contribute on related forums online until you're viewed as an expert and make sure your contact information is visible in your signature
4) Contribute to existing blogs in your area of expertise. Most bloggers will welcome contributors who are contributing actual information.
5) Look for full time job postings in your area and offer your services as a temporary solution until they have found someone to fill the role.
6) Simplify and target your offering so that you're not viewed as the jack of all trades. You want to have a focused niche as much as you can so that clients can believe you're an expert in the area.
7) Use your LinkedIn network (and others) to reach out to people that may do the hiring and share your work with them.
8) Project based consulting is by far the best way to get your foot in the door. Try and understand the capital planning process at potential clients, this will help you with your timing. There are several services online that list RFPs online. Some are fee based and some are free.
9) Don't discount yourself. You're only worth what you say you are. And if you're saying you charge 25% of your competitor then you're 25% as good in the eyes of those who don't know your work well.
10) Keep up with trends in your industry and use them in your writing. Don't bombard your potential customers (even if it's a very small list) with e-mails. Wait until you have something that can contribute and then send an email to them. Write about upcoming events and what they should do to prepare (year-end, new regulatory events...)
11) Offer training webinars online in areas that you're an expert and give away 20% of the solution in 30 minutes. Then, even if poorly attended, make them available online for later viewing. Make sure your contact information is always easy to find.
12) Get to know all the other consultants in your niche. This is perhaps the most important. Form a relationship with them. As a consultant in the IT industry, I often come across work that I cannot take on and I refer that work to others that I know well and trust. Don't look at anyone as a competitor, they're your referral network, nothing else. Share with them what you're doing and listen to what they're up to. Offer to help whenever you can and become part of their trusted network of people they can reach out to when opportunities arise. 
This of course applies both ways. Be sure to go out of your way to forward opportunities to others when you come across them. 

And lastly...
13) When you get new clients, never lose them. This means going out of your way to make projects successful. You must become the reason and the possibility for project success if you want the benefit of referrals. Get to know everyone you can at the client site and be respectful and courteous to everyone you meet. Don't involve yourself in politics at your client's company. Get the job done. Keep up with people at old clients ESPECIALLY when they change jobs. This is a new opportunity for your to use the same contacts to get new clients.  

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