9 Steps to Turn Your Skills Into a Career as a Consultant

You've built a very successful career, and while "working for the man" has proven to be a lucrative and rewarding experience for you so far, you are ready to branch out on your own. Since so many people come to you for advice, starting a career as a professional consultant seems like the logical next step. After all, if other people see the secrets of your success as valuable, shouldn't you get paid for them?

While the idea of becoming a consultant in your field may seem like the perfect goal, pursuing it isn’t a decision to me made lightly or too quickly. Plenty of people who thrive in their respective fields crash and burn when they decide to become full-time consultants. That’s why it pays to prepare and ask yourself the right questions before you start.

Follow this step-by-step plan to turn your skills into a fulfilling and profitable career as a consultant.

1. Expertise and Certifications Are Absolutely Required

You need to have vast experience, proven success and a sincere love of the skill you plan to build your consulting business around. You may love givingsales presentations or building websites, but if you aren't exceptional when it comes to doing either of those things, you have more training to do before you can become a consultant in those fields. People are only going to hire you if you have a proven track record of excellence.

Your potential clients will also want to see relevant education or certification related to your field, especially when you’re starting out. This might pose less of a problem for the stellar programmer with a decade-long career and a high school diploma. But for rookie consultants, make sure to research the types of education or certifications that others in your field hold. These will go a long way in demonstrating your credibility.

2. Ensure That You Are Ready

Even if you have already started doing a bit of business on the side, it will likely take time before you are making enough money to support yourself. Know for certain that you can handle the financial burden of stepping away from your full-time career, especially if it takes you months to shore up business. Do this by creating a business budget.

Think about your startup costs and what it will take to launch your business. This should include costs for marketing efforts and promotional materials as well as healthcare bills and any other expenses. You will also be liable for taxes and insurance. You might feel it is necessary to maintain an office separate from your home in order to present a professional image, but remember that rent and utilities can drastically eat up your profits. Because of this, consideroperating from a home office or renting a co-working space.

It will take a great deal of time, effort, energy and cash to market your business and close deals with clients. If you aren't ready to invest everything required to make the business work, it's likely not the right time to strike out on your own.

3. Set Goals

Before you do anything, establish a plan for yourself. Where do you want your business to be in one month, a year or five years? Be realistic about your goals. While making $500,000 in your first year sounds amazing, for most people, it likely isn't achievable. Focus instead on smaller, attainable goals, such as "Obtain at least three new clients per month." 

4. Obtain the Proper Permits and Licenses for Your Jurisdiction and Industry

Chances are you will need to obtain some sort of business license from the county, city or state in which you conduct business. Checking the SBA’s “Permit Me” online tool will provide you with information about the licenses or permits you may need based on your business type and location; a service like License123.com will also help you find, fill out and acquire any required licenses and permits for your business.

In addition, check to see what certifications or licenses you might need in order to consult in a specific field. For example, the healthcare or engineering industries require that you obtain industry certifications before you can bid on projects. Do your research, and know which permits, certifications and licenses are required for you to consult in your industry, field and locality.

5. Understand Your Market

First, you have to know exactly whom you want to consult and whether that type of client will actually pay for your services. Is your expertise likely to be used by individuals or companies? If it’s the former, will you be working with wealthy people or those with modest bank accounts? If it’s the latter, will you work with large corporations or small businesses? You need to profile yourtarget customer so that you can begin to build your marketing, pricing andsales strategies.

Conduct your own market research to know exactly what challenges your ideal client is facing, and then craft a perfectly tailored sales pitch that explains exactly how you can help the client overcome those problems.

6. Know How to Properly Set Your Rates

How much you charge clients will be contingent on your reputation and experience. This will be determined, in part, by gauging how much other consultants charge for their services. You shouldn’t expect to charge $3,000 an hour if you’re just starting out. However, you don’t want to undersell yourself. An asking rate noticeably lower than your competition can make you look like an amateur or, worse, incompetent.

Do some research before coming up with a proper rate. What are other consultants with similar expertise charging for their services? How much money are you saving the company, or how much would it cost them to do the same work in-house? These questions may provide you with a starting point, after which you can adjust your rate based on demand.

7. Set Your Pricing Structure

Experts recommend that new consultants opt for project-based pricing as opposed to hourly pricing. With a project-based fee, you determine the amount of hours you will need to invest and establish an overall fee for completing the project. You may invoice the total sum at the end of the project or set up monthly payments. Another option is to add a retainer fee, where the client pays you a set monthly fee and you make yourself available for a specific amount of hours every month. 

Whichever payment method you choose, just don't expect to be able to charge the big bucks if you first have to prove yourself to potential clients.

8. Create Marketing Collateral

A professional-looking website goes a long way. Don't skimp on this. If you can't afford to hire a site developer, choose one of the many do-it-yourself options on the market. 

In addition to a site, consider creating a brochure that details your services and the benefits you can bring to your clients. Include your credentials and background information, and add testimonials from other satisfied clients. The brochure will serve as something to hand out at industry events, trade shows and other networking events. In addition, you can drop copies in the mail to potential clients and present the brochure during sales calls. You can even make the brochure available as a download on your website.

If you don't want to go with a do-it-yourself option, hire a designer and pay to have the brochure professionally printed. Just plan for that expense, and opt to print small batches initially.

9. Hit the Ground Running

Once you have established a plan, you need to head full-force into marketing your new business. The scope of your marketing campaign will rely heavily on your budget, but there are a few ways you can spread the word about your business without breaking the bank:

• Reach out to your network through social media and other channels to share the news that you have started a consulting business, and ask your contacts for referrals.LinkedIn is a great starting point.
• Cold-call and email potential clients using contact information you obtain through online research.
• Advertise in industry-specific journals or magazines.
• Publish a newsletter or e-letter that provides valuable content that readers will want to subscribe to and share.
• Find and take advantage of public speaking opportunities (even if you do them for free) to build your reputation as an expert in your field. This could include speaking at local Chamber of Commerce events, presenting as part of a webinar or serving as a speaker at a trade show or industry event.
• Offer to write guest blogs and articles for relevant publications to build your credibility as a thought leader.

Becoming a consultant has many advantages, but make sure you are aware of the drawbacks as well. Working for yourself may sound glamorous, but it is not for everyone. However, if you are truly an expert in your field and love project-based work, it may be the perfect next step in your career.