Do you dream of being your own boss? Starting your own consulting business can provide freedom and flexibility in addition to potential unlimited income. To understand if your background is well-suited to this career, check out the different types of consulting businesses and what it takes to get one off the ground.
Types of consulting
- Management consulting
- Financial consulting
- IT consulting
- Marketing consulting
- Legal consulting
- Sales consulting
- Education consulting
- Health care consulting
- Human resources consulting
- Environmental consulting
- Public relations consulting
- Brand consulting
Consulting businesses often are geared toward a specific market or interest. Focusing on a single industry allows consultants to work in areas where they can offer true expertise. Here are some examples of different types of consulting businesses:
Management consulting
Management consulting firms partner with organizations to provide strategic advice on overall performance. These firms can assist in a variety of areas, including business model selection, business plan development, market research, and organizational restructuring. Management consultants may come from a diverse variety of career backgrounds. They often work with company leaders to make high-level decisions.
Financial consulting
These firms provide expert advice on business finances. This type of consultant can help offer financial advice or assist in areas such as investing, wealth management, and business risk assessment. Financial consultants often have a background in related fields such as finance or accounting. Financial accounting firms may also employ experts in fields like economics, regulatory compliance, or financial advising.
IT consulting
Information technology (IT) consulting firms focus on developing and implementing technology solutions. A technology consultant can help businesses manage their existing technology infrastructure, assist in selecting and onboarding new tech products, and analyzing their computer systems and business accounts security levels. For example, an IT consulting firm could help your team select and learn how to operate the best video conferencing software.IT consultants generally come from a technical background and may have experience creating software, working in cybersecurity, or developing enterprise systems.
Marketing consulting
These firms offer consulting services to help teams build solid marketing strategies. Companies may hire marketing consultants to conduct research on their target audience or industry trends. In addition to research, they can assist in areas such as marketing campaign development, product launch strategy, and brand development. Marketing consultants often have a background in various types of marketing, such as digital or print.
Legal consulting
Legal strategy consultants typically have a background in law, often as a lawyer or legal professional. Individuals, companies, and government agencies may hire a legal consulting company for help in areas such as litigation, intellectual property (IP) development, and contracts. These businesses sometimes work in partnership with law firms to meet a business’s needs.
Sales consulting
These consulting practices aim to help businesses succeed in sales and achieve their overall business goals. They can assist in market research or sales coaching in addition to sales team performance evaluation, process optimization, and sales forecasting. Sales consultants may have a professional background in business or sales.
Education consulting
Education consulting firms may work with educational institutions, lawmakers, or other organizations in the field. They can support curriculum development, offer teacher training, and help with educational planning. These consultants often have a background in education or administration.
Health care consulting
These firms can provide advice related to multiple aspects of the health care industry. Hospitals, technology companies, or policymakers may choose to work with health care consulting firms to optimize their business operations. Consultants may advise in areas including regulatory compliance, patient safety, and clinical performance. They often have a background in medicine, hospital administration, or public health.
Human resources consulting
Human resources, or HR, consultants can help companies improve their HR operations. Companies could choose to hire an HR consulting firm to advise on employee compensation and benefits such as payroll, hiring and retention, and other HR management functions, or to implement a new employee communication strategy. These firms may also offer training services for HR professionals. Consultants often have a background in HR.
Environmental consulting
Individuals, businesses, or government agencies may work with environmental consultants to help you navigate regulations or create more sustainable development strategies. Since these firms have expertise in environmental issues, they can assist with work including impact assessment, site assessment, and sustainable business strategies. Consultants may have a background in science or engineering.
Public relations consulting
PR consulting companies can provide public relations services and offer strategic advice to help you keep a positive public image. Individuals or organizations may hire a consulting firm in place of, or in addition to, an internal PR team. Consultants often have a background in PR, and they can assist in media relations, crisis management, or high-level strategy development.
Brand consulting
Brand consultants are focused on brand management and helping organizations develop their overall brand image. They can assist with market research, provide advice on brand positioning, and help craft strategic messaging. Consultants can come from fields including design, communications, and advertising.
How to start a consulting business
- Identify your strengths
- Research the market
- Set up your business
- Choose a pricing strategy
- Begin marketing
- Grow your client base
Starting your own consulting business can be a lot of work. But it can be easier if you break down the initial process into the following steps:
1. Identify your strengths
Evaluating your professional expertise can help you determine which services your firm will offer. Successful consultants know how to market their experience and position themselves as experts within a specific industry.
2. Research the market
Identify your target market and think about their needs and any common pain points. Conduct a competitive analysis and research other firms working in the same field—if you understand the services that your competitors offer, you can make a case for why your firm is superior.
3. Set up your business
Don’t forget to take care of the legal framework, which can vary by state. Select an official business name and choose the type of structure for your new business. As a self-employed consultant, you may consider setting up a limited liability corporation (LLC) to protect your personal assets in the event of a lawsuit. Set up your office space and purchase business insurance coverage.
4. Choose a pricing strategy
Determine the hourly rate or project rate that you’ll charge for consulting work. Consider the value of your expertise and the consulting fees charged by competitors.
5. Begin marketing
Develop a digital marketing strategy to create an online presence for your company and promote your business. Build a professional website to show to potential clients. Determine your budget for online advertising.
6. Grow your client base
You need customers to build a profitable business. Focus on networking and referrals to help find new clients.
Tips for growing a consulting business
According to marketing consultant Nik Sharma, known as “The DTC Guy,” there are a few tips that can help your consulting business thrive. Whether you’re just starting your consulting career or you’re branching out from a big agency, these business practices are relevant:
Network
Get to know the people working in your industry. Reaching out to small business owners in your area can be a great start.
Consider digital marketing
Email marketing and social media marketing can help increase awareness of your new consulting business. On the Shopify Masters podcast, Nik speaks about the power of content, saying, “I have this thing I call ‘the broke man’s content playbook,’ which is, essentially, you use these social platforms that give you a ton of reach: TikTok, Reels, and YouTube Shorts, and then of course channels like YouTube or Instagram.”
Optimize your website
A well-designed website makes you look professional. Following best practices for search engine optimization (SEO) and mobile performance can make it easier for new clients to discover and learn about your business.
Focus on service
Providing excellent service to your first few clients could help your business grow. Happy clients may refer new customers or leave positive reviews—these can be a powerful word-of-mouth marketing tool. “Social proof is a big one that a lot of people tend to forget,” Nick says. The strategy resonates, since first-hand reports from satisfied clients offer social proof that supports your services. The same clients may return if pleased with your work.
How to start a consulting business FAQ
What is the difference between a consultant and a contractor?
Contractors are hired to work with your team in a hands-on capacity—delivering work that contributes to execution. In contrast, companies hire consultants to offer strategic big-picture advice.
How much does it cost to start a consulting business?
The cost of starting your own consulting business can vary widely depending on the size, location, and market of your company. Startup costs may include business registration and license fees, office expenses, and insurance.
Can anybody start a consulting business?
Anyone can start their own business, but not everyone can run a successful consulting business. Building a profitable consulting business requires industry expertise, problem-solving skills, and the ability to attract clients—and retain them.
Do you need a consulting license?
Many states require a license for a consulting business to operate, but the exact type of license may vary depending on your industry and location. Local government websites, small business development centers, and industry-specific chambers of commerce can help you determine which license your business requires.
