Ready to Jump into Consulting?

Becoming a Successful Independent Consultant

I used to tell a story about going to the community swimming pool when I was a kid some 60 years ago. There were kids who’d dip their toes in the water to test the temperature and then slowly walk down the steps to adjust to it. There were others who would jump in at waist depth, stand there and then scrunch into a ball and fully submerge themselves. I was the one who ran and jumped off the deep end, then looked to see if there was any water in the pool. While that was exciting and an expression of my total commitment to getting in the pool, jumping into the deep end is not a good way to start a consultancy.

Here’s a business case that highlights the need to do your upfront research to learn about a market and develop custom products to meet market needs and wants. Starbucks sought to enter the Australian market and dominate like they have in China and the U.S. They opened their first store in 2000 and by 2008 had 87 locations. At the end of 2008, they only had 23 stores. That was a decline of 74%. Business magazines list several reasons why the chain failed Down Under, but the main reason was they didn’t understand the Australian coffee culture. Simply put, they dove in headfirst, without doing enough research, and failed to tailor their products to the market.

Similar advice about not jumping in was shared by Arnold Schwarzenegger in a recent Inc. article (https://tinyurl.com/bduzjy44 ). His rationale is different. He says that it’s a good idea to keep your current job when starting a business. His main reasons are that you have income and stability which allows you to prepare without the stress of financial insecurity, and that having money provides options. Again, a slow methodical approach that emphasizes preparedness.

Starting a business is all about making the right decisions and having the resources to support those decisions. Here are the three most important decisions you will make at the beginning of your dive into independent consulting:

1)?????What services are you going to offer?

2)?????What market segment are you going to target?

3)?????How are you going to differentiate yourself from the competitors in that market?

For most people, the answer to the first question is a no-brainer. “I’ll consult in the field I’ve worked in.” That makes sense. You have experience and expertise. Good. It’s the other two questions that get aspiring consultants into trouble. Like Starbucks in Australia, they don’t research the market or industry to see if, 1) there’s any interest at all in what you offer, 2) who is already offering that, 3) what makes them successful), and 4) what can you do to successfully penetrate that market.

These are obvious questions for marketing professionals, venture capitalists, or entrepreneurs. But they aren’t top-of-mind for consultants. Consultants think about their experience, expertise, and ability to solve problems. They don’t see themselves as marketers or entrepreneurs or venture capitalists. But, as soon as they decide to go on their own, they become all three.

You may already know all you need to know to start your consultancy. You may have done all the necessary research and developed a business plan. You may have 6 months of income stashed away somewhere. But do you know how to select a value-added topic that prospective clients are clamoring for? Do you know how to find and develop successful business partnerships? Do you have a good idea of what to charge and how to write a proposal that sells? Maybe you do. Good on ya, Mate!

But if you don’t, you may want to sign up for my workshop on Becoming a Successful Independent Consultant. Send me an email and let’s talk. [email protected]

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