One of the many reasons that independent consulting has been such a stellar career move for me is the rich complexity of both providing your professional services and running a small business. I like the variety of tasks; I like way it stretches me and continually provides me with new things to learn.
But best of all is when this complexity meshes together in an integrated whole. When my expertise fits a need in the market. When I’m able to add to my skill set in something that both I and the market are interested in. When my business model enables me to do good work and at the same time to live a good life.
In broad swaths, this post outlines the path to building an independent consulting practice. Some are absolutely sequential, for example developing expertise HAS to be number one. Others are less so – I launched without a big network. None-the-less, in an ideal world, here is the sequence that takes you from employee to entrepreneur.
The 10 Steps to Start Your Own Independent Consulting Business
1. Develop an expertise
Ideally your expertise intersects three dimensions: you like it, you’re good at it, and there is a market need. Expertise does not require that you are a global thought leader, but it does demand that you are skilled and practiced in a certain something. Enough so that you know the field deeply and that you are recognized by others for doing good work in this space. So that you’ve actually “done” the work rather than merely studied it or pined for the opportunity to do that type of work.
You’ll want to develop “proof” for your expertise. Proof can be presented in a variety of ways – work experience, certifications, advanced degrees, portfolios, writing, speaking or thought leadership.
2. Build your network & reputation
Your network needs to be broader than just the other professionals in your organization. You’ll want to build out a network in your profession and also with those who may be in a position to need your services at some future time. Add in some fellow independent consultants and entrepreneurs. It never hurts to have some people in your network that are smart, talented and accomplished – and ones that will challenge your thinking.
3. Build a financial safety net
You may have a high income potential with independent consulting. You WILL have cash flow uncertainty. During the time you take to find the work, sell the work, do the work and finally get paid for the work, you must be able to put food on the table. At best, the time between substantive conversations about an engagement and getting paid is 2 to 3 months. At worst, it can be a year (or more). At times you’ll have plenty of cash coming in; at others you might have a quarter where you have no incoming funds.
If you are just starting – there are two questions you must answer:
- How can I create an emergency fund that can get me through launch and normal business cycles?
- What expenses am I incurring that can be eliminated or reduced until I’m solidly launched?
4. Develop skills in consulting
Many new consultants are flabbergasted to find themselves in a strange new place – one in which title and position are no longer means of making things happen. It’s a place where they must lead by sheer influence, where their help is met with skepticism and stone walling, and where there are no existing networks to facilitate progress. In this place, status quo appears to be the most attractive option to many.
Consultants need a variety of skills – for consulting is not the same as supervising, managing, or directing. The list is long but a few that come to mind are analyzing the situation with a whole systems view, designing solid solutions that work in that particular environment, making recommendations that can be heard and then acted upon, and implementing solutions that stick.
5. Create your business
Think about all the functions that happen in a large corporation – and then realize you’ll need them too, albeit on a much smaller scale. You’ll set up a legal entity and must decide which is best for you. You’ll need a name and you’ll need to determine what services you offer and what to charge for them. You’ll need to set up a way to account for money out and money in. You’ll purchase your own tech, troubleshoot it and maintain it. You’ll claim some office space and you become the interior designer and custodian as well.
6. Market your services
No matter how wonderful you are, people need to be able to find you. This is not the shameless self-promotion that many think. Instead it is being articulate about who you are and the value you bring. It is about being in the right places with the right messages. That may be the web or in person or in professional organizations. It is easy to exhaust your efforts and drain your pocket with unfocused and scattered marketing efforts. Which is why you’ll need to get savvy in marketing early and then be willing to commit to making marketing a part of your day to day routine.
7. Sell engagements
Only secondary to your skill set, selling is your make or break activity. This may be the one area that makes us squeamish, especially if you are someone that equates selling with the forceful parting of a person with their money to purchase something of questionable value. Without selling you have no business – hence the reason to add learning to sell to your skill set and comfort level.
8. Build trust with your clients
Trust is the foundation of doing important work with a client who has voluntarily engaged you to help them solve a difficult problem. Trust is built with every interaction and is something great consultants do with intention. Believe me, no matter how wonderful your solution, without trust all is lost. With trust, the work is easier, more likely to be adopted and more likely to be the right solution for them. Understanding how trust is gained and lost is critical – and can be learned.
9. Deliver / Deliver / Deliver
Now that you are finally working with a client doing the work that you want to do, it’s time to do that work to the best of your ability. Do what is in the client’s best interest. Give extra if needed and not to fuss about what was in the statement of work. You’ll soon learn that delivering as a consultant is a different game than delivering as a leader on the inside of an organization. This can be a hindrance and it also can be freeing. Enjoy this part – it is where you can shine, and doing this part well leads to opportunities to do even more with this organization or to be referred in to others.
10. Evaluate and strengthen all the steps again
Now we circle back. After every engagement, be intentional about reviewing what went well, what stunk, and what you will do differently going forward. If possible, include your client in this debrief. Your work will improve dramatically with your focused effort on this step. Those that fling themselves into the next engagement without learning from the previous ones stay at the same level of performance. Don’t be them. Each engagement will help you build depth in your field, will sharpen your marketing, sales and delivery skills.
But only if you take the time to pay attention.
Starting Your Business with LEAP
Start your independent consulting business swiftly, smartly, and with support. The first step is to join the Prosper Consulting Community to find like minded individuals to help you as you grow your consulting or freelancing business.
Our Launch Series then takes you through the rest. If you’d like to learn more, you can also read Kris Taylor’s book Owning It: Take Control of Your Life, Work, and Career.
