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How to Start Your Own Consulting Business
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Recently, I interviewed Chris Morton who started a successful consulting business with little cash. Now he trains others on how to succeed as consultants. He is also the creator of Start Consulting: Your Guide to a Successful Future in Consulting
Raynay Valles' Interview with Consulting Business Expert Chris Morton
I think this interview is timely and relevant. Businesses are having layoffs. People are concerned about a slow economy.
Many people may be surprised that they may already have skills to be a successful consultant
Chris Morton gives some golden nuggets of advice about starting a consulting business. (He even gives a tip on how to earn the most in the consulting business).
Raynay: Chris, you started a consulting business from scratch and without cash. Could you tell us a little about your consulting business?
Chris: My business is focussed on the hospitality industry, mainly on business development and marketing aspects. I employ two other people and we have traded now for 17 years. By the way, I do not recommend the 'without cash route' if you can help it. It probably slowed my progress for several years, though if you have no option but to succeed, it focuses the mind!
Raynay: Earning a living as a successful consultant is what you call a Lifeboat Plan. What is a Lifeboat Plan?
Chris: It is always having an option available to you as a back up. Times change and if you only have one service, things
can become very difficult when some external factor, such as the economy for example, changes.
Raynay: Who can be a consultant?
Chris: Any one can do this, providing they have confidence in their ability to help other people and/or businesses AND they
recognise the need to give best advice. Over-confidence can be a problem when you profess to have skills or knowledge you do not possess merely to earn a fee. Typically a consultant is someone who takes a problem off someone else and provides a solution. This sounds to remote however, and good
communication is important. The results of any project should never surprise a client - either because they are too good or bad. This only means that the
client should be involved in the process.
Raynay: What's a typical day like as a consultant?
Chris: Every day is different. Marketing your business remains a key element all of the time. Outside of this the variety, at least for me, is immense. I get to work alongside some fascinating people and businesses and I freely admit that I often learn more than anyone else on many projects.
Raynay: What if I am laid-off and I want to start consulting?
Chris: How do I find that first client? You need to work out what people want first and foremost. That is the only place to start. Identify what you can do
well and then see how that can be applied to provide solutions and value. Once you start from that angle, the clients will become apparent to you.
Raynay: How much do I charge?
Chris: This is where confidence comes in! In my experience, giving free offers up front does not work. Once you give for free, clients will not value your work.
Fees can reflect a 'market rate' in some cases, although this shows you are a 'me too' consultant. If your service is truly unique in some way, decide what the value is to the client and then go for it. This is key. Many people set out targeting small businesses. Think about it, many of these businesses have less cash than you do. How can they afford your service? There are two types of consultant. Those that sell their time and those that sell knowledge and solutions. The latter always earn the most.
Raynay: What's the most important skill I would need in this business?
Chris: Empathy, not sympathy. Understand the issue as well as you can but do not get sympathetic. After empathy, the ability to analyse and communicate are not far behind.
Raynay: What holds people back from starting a consulting business?
Chris: Fear of the unknown, the very thing that stops most people doing anything. Too much thinking time also causes action paralysis - paralysis by analysis is a killer. I have a very good friend who says 'be a doer and a thinker in that order'.
Raynay: What would surprise me if I started consulting?
Chris: How easy it can be, providing you have a clear plan, service and a clear idea of your target customer.
Raynay: What are some mistakes people make when starting a consulting business?
Chris: Thinking like an employee and following the 'that's not my job' syndrome. Wasting money on a smart office and brochures - I travel to clients premises or meet them in a local hotel. Brochures - and now over elaborate websites - can be an incredible waste of time and money. Ignoring the need to keep marketing and promoting what you do rather than the results that your client will achieve. You must be customer focussed - and be prepared to work in 'cost effective' surroundings. Even today I spend as little as possible on my office and its fitting and fixtures. The chair I am sitting in now, I got
for free when someone else bailed out of their business. The last big mistake is trying to get everything absolutely right before you start.
Whatever you start off doing will be probably be modified quite quickly, so 'nearly right' is often good enough.
Raynay: Is there anything else you'd like to share with us?
Chris: Yes, at the start accept that things will go wrong and that you will solve the problems as they arise. Just keep going!
For more information, take a look at Chris Morton's Start Consulting: Your Guide to a Successful Future in Consulting
Make Money withYour Own Consulting Business
Complete guide to help you easily and quickly start your own profitable consulting business.
