Are you excellent at what you do? Do people tell you that you should build your own business? It’s not easy, but if you know how to start a consulting business on the side, you can create a meaningful, thriving brand.
If you’re eager to get it going, but not sure what practical steps to take while still working fulltime, then you’re not alone! Many professionals find themselves in a similar situation, seeking independence, flexibility, and the opportunity to leverage their expertise for additional income. In this blog post, we’ll explore 10 practical steps to make your consulting dreams a reality.
How to Start a Consulting Business on the Side: 10 Steps to A Successful Transition
Making the leap to your new brand and career won’t happen over night. When people ask how to transition to consulting, they have to expect things to take months or even years to develop.
With that in mind, approach each of these steps as its own mini-project. Perhaps give each a week or two, or even a month, to get resolved. Learning how to start a consulting business on the side requires patience, attention to detail, and a keen sense of the right timing.
Let’s dive in!
Step 1: Define Your Value Proposition and Target Audience
Before diving into entrepreneurship, start by clarifying your value proposition.
What unique skills, knowledge, or experiences do you bring to the table?
Define your consultancy’s ideal target client, identifying who will benefit most from your services. Be specific and tailor your offerings to meet their needs.
And when I say specific, I mean specific. Give them a name and a long list of details to help you niche down. (I did that exact thing for this article.)
Once you have your ideal prospect identified, design a clear offer that will set your consulting business apart from the competition.
Step 2: Find the Pain Points
When you understand your target audience’s needs and preferences through thorough market research, you start speaking their language. If you want to lead prospects to trust you and invest their time and money with you, you have to create a message that addresses their needs in a clear and meaningful way.
While most prospects wouldn’t refer to their needs as “pain,” this is exactly how you should think of it. People open their wallets when they can’t solve problems themselves. The more difficult the problem, the faster they open their wallet.
Whether, and how fast, they invest in you will be proportional to how well you identify your prospect’s pain, describe a satisfying solution to it, and deliver proven results.
Start that process now by developing clear language that describes your prospect’s pain, and your solution to it.
Step 3: Develop a Comprehensive Business Plan
Every successful venture starts with a well-structured business plan. Outline your business goals, target market, marketing strategies, financial projections, and growth plan. A well-thought-out plan will be your roadmap to navigate the journey from full-time employee to successful consultant.
While it’s impossible to know every variable along the path to starting your own consulting business, you need to identify certain quantities before taking the leap to a new career.
What will your rates be? Will you finance the business infrastructure yourself, seek investors or partners, or take out business loans? How many clients will you need per month or year to break even or make amazing profits?
These are basic questions, but they’re essential to designing the remaining elements of your business so it achieves success year-in and year-out.
Step 4: Build a Professional Network
Leverage your existing network, including former clients, colleagues, and industry connections, to inform them about your consulting venture. Networking is key to gaining referrals and potential clients. Engage in industry events and LinkedIn groups related to your field to expand your network further.
A great way to build your professional network prior to leaving your employer is to help your network partners here and there. Hand out small favors. Seat yourself in the good graces of as many people as possible so when you do start off on your own, the world will be happy to help you.
Step 5: Establish a Strong Online Presence
In today’s digital age, a professional online presence is a must. Create a standout LinkedIn profile that showcases your expertise and services (start converting your LinkedIn profile toward your future consultancy with my free kickstart guide!).
>>> Click here to get the free LinkedIn Profile Consultant Kickstart Guide!
Also, a well-designed business website will reinforce your credibility and allow potential clients to learn more about your consultancy. Create a newsletter or free “cheat sheet” that gives your clients some immediate value, then lock it behind an email sign up. Start collecting email addresses now so when the time comes to launch, you’ll have a long list of prospects to start recruiting for your services.
Step 6: Obtain Necessary Certifications and Licenses
Ensure you have all the required certifications and licenses to operate as a consultant in your industry. Compliance with regulations is crucial for maintaining trust and professionalism with your clients.
This varies depending on your chosen market or niche, so I’m trusting you know what to acquire. Still, do some due diligence here and make sure you’re in compliance with all local, state, and national requirements prior to transitioning to consulting fulltime.
Step 7: Start Part-Time Consulting
Avoid diving headfirst into full-time consulting from the start. Begin by offering your services part-time to a limited number of clients. This approach will help you gain experience, refine your offerings, and manage your workload while juggling your full-time job.
It’s up to you whether you disclose this part-time work to your employer, but I advise honesty in every possible situation. If you keep the truth from your supervisers, you could lose the income you need to buid your business and credibility in the marketplace for dealing double.
Is it technically your employer’s business? No.
But it establishes a healthy line of trust when you live your life with integrity. Start now so your life and business are still whole and intact when it’s time to live off your own name and its reputation.
Step 8: Set Realistic Goals and Milestones
Set achievable goals and milestones for your consultancy’s growth. Establishing clear targets will keep you focused and motivated during this exciting transition to consulting.
Along with this should be sales projections. Prepare for feast and famine, and set prices and rates accordingly. Don’t force yourself to work 80 hour weeks in order to survive or sustain your family’s lifestyle. At the same time, be a factor of justice and don’t overcharge or deal deceptively with your clients.
When it comes to milestones, goals need deadlines. Without a deadline, a goal is just a dream.
Set realistic but firm deadlines for these steps, especially those regarding your business plan, networking, and legal compliance. If you procrastinate now, odds are you’ll procrastinate later.
Which leads us to…
Step 9: Master Time Management
Effectively manage your time to balance your full-time job and consultancy. Create a dedicated schedule for your consulting business, ensuring you allocate enough time to nurture and grow your new venture.
Many side-hustling professionals have discovered that the early hours of the morning are ripe for the harvest. In the words of Jon Acuff, “No one needs me at 5am.”
While 5am may not work for you (especially if you exercise during that time, or suffer through a long commute), seek the hours of the day that you normally surrender to your phone, Netflix, or (in my case) a video game like The Legend of Zelda.
Time management is another term for self-discipline, so get in the habit of being ready for business whenever the opportunity is available.
Step 10: Seek Mentorship and Guidance
Don’t hesitate to seek guidance from experienced entrepreneurs who have successfully navigated the transition to consulting. Their insights can be invaluable as you embark on this new journey.
I recommend writing a list of your life’s history on a pad of paper, working backward from the present to the past. Include any organization with which you have had a significant connection. Then start thinking of people you know, even in passing.
This worked for me recently when I needed help solidifying my niche and creating a lead generation plan. I texted and emailed a handful of extremely successful entrepreneurs from my old church; a few hours later, my head was spinning from all the incredible advise they had just shared.
You know how much that cost me?
Zip. Just a couple of minutes on the phone.
You can also invest some capital in courses and mentorships; just be careful to vet these, as they tend to be a dime-a-dozen. Make sure the “expert” is the real deal and is offering content you can’t get with a thorough Google or ChatGPT search.
How to Know When Your Consulting Business Should No Longer Be “On the Side”
Learning how to start a consulting business on the side can be a transformative journey. By following these practical steps, you can lay a solid foundation for your consultancy while working full-time. With dedication, persistence, and a clear vision, you can confidently make the transition to consulting and create a thriving, fulfilling business that aligns with your passion and expertise.
Remember, success rarely happens overnight, but with consistent effort and a commitment to your goals, you can achieve great things in both your full-time job and your consultancy.
You’ve got this.
Here’s to your exciting new venture!
Start your transition to consulting today by updating your LinkedIn profile to kickstart the process.
