The New Business of Consulting

Everything you ever wanted to know about consulting—a practical roadmap for aspiring entrepreneurs

Seismic changes occurring in the workforce are leading to more and more people entering the world of contract, freelance, and contingency work. Rapid changes in demographics and advances in technology have led companies and talent to engage in profoundly new ways and consulting is one of the keys to success.

The New Business of Consulting is authentic and practical, and shares the knowledge and skills required to start and grow a successful consulting business. From how to make a smooth career transition, to how to determine a consulting fee, to how consultants inadvertently create a bad reputation, it covers everything you need to know to thrive and flourish in this competitive field.

• Covers contemporary topics, such as how to achieve success in the gig economy
• Discloses a reliable technique to land the clients you want
• Presents options to help you balance your life and your business
• Prepares you for naming your business, managing critical financial issues, and building a client relationship
• Shows you how to take your income and impact beyond working as a solopreneur

The crucial start-up days of a consulting business may be frenetic and fraught with questions. This new edition provides sanity and answers all the questions. It includes practical tools, templates, and checklists that you can download and implement immediately.

Exhibits and the Companion Website xi

Foreword xv

Acknowledgments xix

Introduction xxi

One So You Want to Be a Consultant 1

What Is Consulting? 3

Why Consulting Now? 4

Four Ways to Get Started 10

Myths About Consulting 17

Realities and Rewards of Consulting 22

Just What Are You Getting Yourself Into? 23

For the Consummate Consultant 29

Two Talents and Tolerance 31

Your Skills for Success 33

Roles You May Play 40

Signs of a Mediocre Consultant 42

Your Personal Situation 43

Caution: Business Owner Ahead 45

Entrepreneurial Characteristics 45

For the Consummate Consultant 50

Three Dollars and Sense 51

How Much Income Do You Require? 52

How Much Should You Charge? 56

Selecting a Pricing Structure 64

Other Pricing Decisions 68

Other Charges 70

Fee Increases 71

Ethics of Pricing 73

Money Discussions 75

Value of a Guarantee 76

For the Consummate Consultant 77

Four Starting . . . 79

Why Some Start-Ups Succeed and So Many Fail 81

What’s in a Name? 82

Selecting an Accountant 86

Selecting a Legal Entity 87

A Business Plan to Guide You 89

Plan to Use Your Business Plan 95

Start-Up Costs 100

Finding Your Niche 102

Your Image Is Everything 105

Experiencing the Experience Maze 108

For the Consummate Consultant 113

Five . . . And Staying in Business 115

Marketing from Day One 117

Creating Your Marketing Plan 118

Using the Internet 128

Surprising but Practical Th oughts on Marketing 131

Tactics for Low-Budget Marketing 136

Contacting Potential Clients 141

Proposals Lead to Contracts 148

Why Would You Refuse an Assignment? 150

For the Consummate Consultant 151

Six The Cost of Doing Business 153

Keeping Records for Your Consulting Business 155

Watch Your Cash Flow 156

Track Your Expenses 164

Set Aside Petty Cash 172

Charge Your Client 175

Project Revenues 179

Deal with Bad Debts 179

Keep an Eye on Your Numbers 181

For the Consummate Consultant 186

Seven Building a Client Relationship 187

Relationships: It’s Why You’re in Business 189

The First Meeting 191

Four Phases of Building a Client-Consultant Partnership 193

Adding More Value 204

How Many Clients Do You Need? 211

How to Improve the Relationship Continuously 211

It’s the People 214

Maintain the Relationship Aft er the Project 215

Ensure Success 216

For the Consummate Consultant 218

Eight Growing Pains 219

Adding People 221

Growing Without Adding People 238

Expand Your Geographical Market 247

Doing Everything You Can to Grow Your Current Business 249

For the Consummate Consultant 253

Nine The Ethics of the Business 255

Consultant to Client 258

Consultant to Consultant 265

Client to Consultant 269

Parting Ethics Shots 270

For the Consummate Consultant 272

Ten Exude Professionalism 273

Competencies to Boost Your Consulting Success 275

Continuing to Learn 286

Balancing Your Life and Your Business 289

Managing Your Time 291

Giving Back 297

For the Consummate Consultant 299

Eleven Do You Still Want to Be a Consultant? 301

A Week in a Consultant’s Life 304

Visualizing Success 316

Taking Action 317

Get Ready, Get Set . . . 318

For the Consummate Consultant 324

Appendix 325

Helpful Resources and Links 325

Reading List 327

About the Author 331

Index 333

ELAINE BIECH is a dedicated lifelong learner who believes that excellence isn't optional. She has been consulting for more than 35 years helping global organizations and individuals reach their potential. Elaine has been featured in The Wall Street Journal, Harvard Management Update, Investor's Business Daily, and Fortune. She has published more than 85 books, including Training and Development For Dummies, The New Consultant's Quick Start Guide, and the Washington Post #1 bestseller, The Art and Science of Training.

The world of work has undergone immense changes over the past decades. The digital economy, new technologies, and increased global competition have given rise to new business realities. Predictions that more than half of the U.S. workforce will have non-traditional jobs in the next few years are common. More and more people are looking for new ways to earn their living. Freelancers, contractors, free agents, gig workers, on-demand labor, and many more terms are all basically describing the same business—consulting. A lucrative $250 billion industry, consulting is growing at a phenomenal pace. Millions have taken the initiative to create their own livelihood and do what they want, when they want, and how they want. The timing couldn't be better.

Consultants are more respected and in higher demand than ever before. Companies actively seek people with the expertise they need for any number of projects. Technology has empowered consultants to work from anywhere, to connect with clients, close a big deal, or build a brand from their home offices. We are all consultants to varying degrees, experts in something. The New Business of Consulting: The Basics and Beyond helps you transform your personal expertise into professional consulting success, sharing the practical know-how and entrepreneurial skills necessary to thrive in this dynamic field.

Author Elaine Biech shares the knowledge gathered over her 35 years of experience as a management consultant, trainer, and designer to guide new and aspiring consultants through every crucial stage of their business. Engagingly written chapters, beginning with relatable real-life stories from the world of consulting, present information in the same order that you will most likely need as you move into a consulting role. Practical tips and insights help to spark ideas for your specific needs, point to resources where you can search for more ideas, and give you a preview of the day-to-day life of a professional consultant. The section, "For the Consummate Consultant," offers actions that go beyond the content in the chapter—beyond the basics. A multitude of checklists, assessments, templates, financial forms, and online tools prepare you to project cash flow, plan marketing campaigns, track your time, measure your business aptitude, and much more.

Focusing primarily on the business side of consulting, The New Business of Consulting provides everything you need to start and manage a successful consulting business, including how to develop a business plan, how to market your business, how to charge for your services, how to grow the business, and how to prosper in this rewarding profession.

PRAISE FOR THE NEW BUSINESS OF CONSULTING

"Practical, compassionate, and a good alternative to an MBA."
—Peter Block, author of Flawless Consulting

"If you want to start a business—and stay in business—The New Business of Consulting is an essential read."
—Daniel H. Pink, author of When, Drive, and Free Agent Nation

"Is it time to start your own consulting business? Don't start without first reading Elaine Biech's??The New Business of Consulting.??The book, paired with her 35 years as a successful consultant, forms a perfect guide for your success."
—Marshall Goldsmith, #1??New York Times??bestselling author of??Triggers, Mojo, and What Got You Here Won't Get You There

Are you thinking about starting your own consulting business? More and more people are entering the world of contract, freelance, and contingency work. The days of lifetime employment, regular salary increases, generous benefits, and full pensions upon retirement are largely a thing of the past. The dream of being your own boss and charting your own path is more attainable than ever for those willing to pursue their passion and to do the work they love.

The New Business of Consulting shares the skills and knowledge required to start and grow a successful and profitable consulting business. The specifics of your consulting are entirely up to you—if you have expertise that is in demand, it is relatively inexpensive and easy to break into consulting. Wherever your expertise lies, entrepreneurial skills are essential to your success.

The initial days of your new endeavor may be hectic and riddled with questions. Elaine Biech provides the answers from creating your business plan and naming your business, to managing critical financial issues, as well as building client relationships and expanding your business. This book covers everything you need to know to thrive in this competitive field.

Work with the people you choose, increase your sense of meaning and fulfillment in your professional life, control your time and commitments, and take charge of your own future.