If you’re an expert in your field and like the idea of being your own boss, then you’re ideally placed to start your own consulting business.
Consulting services are in demand, and consulting is a rapidly expanding sector.Before you embark on your self-employed consulting journey, here are some key considerations you’ll want to contemplate first.
Identifying Your Niche and Expertise
Before setting up as a self-employed consultant, you’ll need to undertake a period of self-reflection during which you assess your skills, strengths and passions. This will allow you to identify a niche where you can provide the most value in your consulting services.
Market research is also a key factor in choosing a niche. You want to be sure that your services will be in demand, and have a good understanding of the competitive landscape in your chosen field.
Building a Professional Network
Building a robust professional network both off and online is instrumental, not only in finding clients but also in gaining valuable industry insights and making connections in your chosen niche.
Networking isn’t just about acquiring new clients through word of mouth, it’s also a great way to meet other consultants and form professional relationships. You may even find more experienced consultants who can offer you mentorship, whether formally or informally, to help you establish yourself as a new consultant.
Developing a Business Plan
A well-researched and thorough business plan is the foundation of any successful self-employed venture. Start by clearly defining the consulting services you plan to offer, and the clients you want to attract and set goals that will allow you to measure your progress. Your business goals should be SMART goals, meaning that they are:
Financial planning is vital. You’ll need to undertake market research and calculate your overhead costs before you can set rates. You’ll also need to budget for business expenses such as buying used cars or renting an office space, and establishing a system for invoicing and payments.
Legal and Regulatory Considerations
When setting up a new business in the UK, you need to choose your structure. The two main options are setting up as a sole trader or as a limited liability company (LLC) also known as a limited company (abbreviated to Ltd).
A sole trader is the simplest structure and means you are the owner and sole employee. In this structure, both you and the company are treated as one in the eyes of the law meaning you are entirely financially liable. It’s incredibly easy to set up as a sole trader and there are fewer tax requirements.
However, as a professional consultant, you may be working for clients on a contractual basis and this may require you to operate through a limited company. To do this you’ll have to register with Companies House and become both an employee and employer. There is far more admin involved in running a limited company due to the increased tax obligations, such as VAT and Corporation Tax.
In the eyes of the law, you and your business are separate entities, so any debts your business may accrue won’t affect your personal assets (such as your home or savings, for example).
Depending on your chosen niche, you may also be subject to regulatory requirements, such as licences or certifications that might be required in order to operate as a consultant in your specific field.
Marketing and Branding Strategies
As a self-employed consultant, you’ll need to build a strong online presence, including a professional website and be actively engaged on relevant social media platforms, such as LinkedIn.
Consider how you’re going to present and market yourself and your services. You should establish a personal brand that reflects your specific expertise and values to help you stand out in a competitive market.