Andre Alonzo Chambers Shares Some Tips For Starting A Consulting Business

Andre Alonzo Chambers wants to help you start your own consulting business. He has put together some helpful tips that he hopes you will keep in mind as you go through the process of starting your business. His tips are listed below with the first tip being his most important piece of advice.

Consider your end game

This may seem like an odd starting point, but starting at the end can help guide your business planning and the direction of your new business.

Is your goal in becoming a consultant to:

replace your current job (with an eye to returning to paid employment if the right opportunity arose)?

run the consultancy as a one-person operation or bring in other consultants to work for you?

create a saleable product (with a client list and contracts) that you can then sell for a profit when you decide to move on from the business or retire.

There are many different models of consultancy and knowing which one you want to implement will help you design a business that suits your needs and goals.

Determine the best use of your time

Andre Alonzo Chambers says running a consulting business involves more than just doing the work. You’ll need a number of additional skill sets, including:

being able to market and sell your services to prospective clients

managing your financial and tax obligations

reviewing legal documents and contracts

gathering requirements and preparing accurate quotes

scheduling appointments and communicating with clients

issuing invoices and chasing up debts. 

Develop a systematic approach for each step in your process: If you’re going to have an organized approach to running your business, then you need to be as systematic about it as possible.

Plan your financials

Once you’ve determined which tasks you will do yourself and which you will outsource, you can start planning your business financials. This can include:

determining start-up costs

forecasting operating expenses

calculating your hourly rate

calculating your daily breakeven point. 

Write a great elevator pitch: You only have a short time to make an impression on potential clients so it's important to practice what you want to say when they ask What do you do? To stand out from the competition, develop a concise explanation of what distinguishes your consulting services from others in the marketplace.

Consider the diversity of your client base

In business, having a diverse client base can help you maintain multiple streams of income and ensure you aren’t solely dependent on work from one industry/sector. The economy and business environment can change rapidly, so having a range of clients can be a good way to reduce risk.

As part of your marketing plan ask yourself:

Who are your clients?

Does your consultancy lend itself to both the public and private sectors?

What do clients need from you/what particular benefits can you provide?

What sales and marketing strategies will you put in place to get your foot in the door with prospects?

Who do you know who can introduce you to your ideal clients?

Managing clients and quoting

Two of the most important aspects of running a consulting business include managing clients and accurate quoting. This will help you maintain a happy customer base (who are then more likely to recommend you to others) and run a profitable business.

Get to know your potential clients and their needs before accepting the work. This way, you can ensure you understand their business (including how mature the business is, how prepared they are to proceed with the work after you’ve quoted, and their capacity to pay you once the work is complete) and if they are the kind of client you’re looking for.

Think back to your business plan. Part of being a business owner is not being afraid to say no to work that won’t help you achieve your goals or people wanting to ‘pick your brains’ for no financial return. Remember, you are selling your expertise built over many years, so don’t give it away for free.

Have the right systems in place when preparing quotes. This includes having a process for handling any variations to the original scope of the work, having a strategy if clients aren’t ready to start on your planned commencement date, and ensuring you have communicated clearly defined milestones and outputs, including billing stages.