The consulting business is one of the best business to start in this 21st century.
Are you looking for an extra way to make money, do you love the idea of being your boss or you love the idea of helping people and organizations grow while also making money at it? Whatever your reasons might be, starting a consulting business is probably the best choice for you. When it comes to a business that gives you the freedom of expression in terms of expending your knowledge capability, consulting business is the right business for you. It is one of the many few businesses that require little to no capital to start, there are no restrictions to your earning capability, and you get to spend your time the way you want. Like we all know, time is the most precious commodity on earth. Being able to manage your time gives you the freedom to do whatever you love and want.
Consulting business is probably one of the few lucrative careers out there with huge earning potential. The business has grown significantly over the past couple of decades, and it is estimated to even grow bigger in the next coming years due to advances in technology. The need for consultants is increasing due to the increase and complexity of problems around us. Some might be trivial while some complex, the ability for you to solve and provide solutions to these problems can help you earn a lot of money in today’s economy called the knowledge-based economy.
This is probably the best time to be alive because technology has oversimplified everything around us including how we do business and interact with one another. With the internet, you can confidently run and operate your business anywhere in the world with no limit to your earning potential.
Consulting business is one of the few businesses in the world that you can run or operate from anywhere in the world with little to no overheads, it only requires you and a few gadgets like a computer set, and a phone to make it work.
It is estimated that the consulting business is worth over 300 billion dollars and it is expected to grow much larger same as the coaching business. Looking at the figure and the promise of growth and expansion, isn’t it a worthwhile idea to join in this wonderful and lucrative market? Won’t it be wise to invest in a business that gives you freedom and also high chances of earning a huge amount of money? I am sure you can agree that it is a great idea to earn money on your own terms and condition. And it is worth noting that this is the best time to start your own consulting business since the market is still expanding.
In this article, we shall explore what consultancy/consulting is all about, and why you should start your very own consultancy business. Also, we shall explore the various lies about consulting a business, these lies are what prevent people from exploring the prospect of earning money as a consultant.
Who is a consultant?
A consultant is anyone who earns money by simply giving advice or suggestions to people and organizations on how to improve. Simply put, a consultant solves problems by giving suggestions.
A consultant improves their client’s condition by providing relevant content, advice, skills, or experiences unique to the client over a period of time. The time period is dependent on the gravity of the problem.
Consultants operate in all sectors of today’s economy and life, there’s no specific range when it comes to consultancy. The key factor is to be able to solve problems within a specified niche or sector.
How do People Become Consultants?
To be honest, there’s no straight path to becoming a consultant, different people have their stories on how they became consultants. The main thing about consulting business is to have a skill(s), knowledge, or experience.
In 2016 after completing a master’s degree, I ran a couple of businesses in the agricultural sector, and also importations. With time I started helping people manage their business better while building my skill as a public speaker. With my knowledge of business, process improvement, and as a public speaker, I opened up a consulting business that has given me the opportunity to consult for start-ups in countries like Canada, the USA, Philippines, Malaysia, Nigeria, U.K, and Kenya.
The most important thing I mentioned is to have special knowledge, skill, or experience.
Myths About Consulting Business
There are so many misconceptions about the consulting business, most of these misconceptions are the reasons why people shy away from the consulting business. Now let’s look at some of the erroneous ideas about the consulting business.
- You Have to Have Certificates.
Having a certificate is not a prerequisite to successfully run a consulting business. Personally, I have met a lot of consultants without formal education yet they earn a lot of money giving services to individuals and organizations.
Becoming a consultant requires basically your knowledge, skill(s), or experiences. It doesn’t matter if you acquire them through formal education. The basic idea of consulting is for you to be able to solve problems.
- You require a lot of capital.
The beauty of the consulting business is the low overhead. As a consultant you can decide to work alone or have employees, it’s up the consultant. A consultant can work from home or have an office it doesn’t really matter.
Running a consulting business requires little capital to start, and it’s flexible to operate.
- You Have to be Old to Run a Consulting Business
Technology has opened the door for different opportunities for both young and old. Starting a consulting business isn’t dependent on age, there are a lot of young people who are very successful in the consulting business.
Why Does Anyone Need a Consultant?
You might be asking yourself right now why does anyone need a consultant or is the consulting business really for you?
A simple answer is that there are countless of reasons why people hire consultants, some reasons as already started might be trivial while some might be complex, as long as there are problems around us, the need to hire a consultant will always arise. It might interest you to know that problems are endless in this world and that the more we grow, the more problems arise. So, don’t worry, there are plenty of reasons why the service of the consultant is needed.
Now let’s look at a few reasons why anyone would hire a consultant, kindly note that the following reasons aren’t definite, there are countless reasons.
1. People/Organizations Hire a consultant to Bring in Fresh Ideas.
People/organizations often find it difficult to solve their personal problems due to the fact that they are too close to the problem that they tend not to see that there’s a problem. When a consultant is hired, it’s usually because people/organizations desire fresh ideas on how to solve their problems, they require a new perspective and solutions. The consultant has the ability to spot problems by merely interacting with the client.
2. The Need to Improve Sales.
No business can exist today without sales. No matter how skilled an individual or company is, no matter how innovative they might be, without sales the business will cease to exist. Understanding this alone should motivate you towards starting your own consultancy business.
We all know that today’s world is becoming more competitive as the day goes by, to be able to survive requires special skills when it comes to marketing. A company or individuals will always seek the service of a consultant in order to increase their revenue.
3. The Need to Generate capital.
Every company and individuals need money, some to establish a new business while some might be to finance existing business. No matter the need, the fact is that everyone needs money. Anyone who has the ability to source for funds or can help people make or generate money will continuously be in demand. So, if you have the skill, knowledge or expertise on how to generate funds, you should seriously consider starting your own consulting business because there are tremendous opportunities for you in today’s economy.
4. To Help in Negotiations
Negotiating for a deal can be quite tedious and strenuous for some people and organizations. Negotiation is the only way to get what you truly desire in business and also in life. Since negotiations are important, having the skills, experience, or knowledge on how to properly negotiate is truly valuable.
Companies and individuals look for people who have good negotiation skills every day and the demand keeps getting higher every day.
5. To Improve Relationships
Building and maintaining relationships today can be quite challenging especially in work environments, and also in personal lives. People everywhere seek out the service of a consultant to help build a relationship and also to improve on existing relationships within an organization and also within families, couples, and so on.
Build a business around this niche is a great way to earn money as a consultant especially if you have the necessary skills, knowledge or experience.
6. The need to Train Employees
We can all agree that our world is getting more complex by the day, there are new challenges every day. Due to the increasing complexity of today’s environment, the need for continuous growth has been greatly increased because the only way to remain relevant is to continuously learn.
Consultants are sought after daily to train people and organizations on different subject areas, it could be on leadership, marketing, effective planning, improving relationships, public speaking, and so on. Areas in which people and organizations need training are endless.
Having the expertise, knowledge, or teaching skills in any area in demand within your environment is a great way to earn a lot of money. It is another reason why people and organizations require the service of a consultant.
7. To Help with Technological Installation/Advice
There are different areas when it comes to technology that people and organizations need help. People need help to deal with their internet issues, computer issues, data processing problems, mechanical problems, and so on. As long as there are challenges when it comes to different technologies, there will always be a need to hire a consultant to solve the problem or suggest ways to solve the problem.
8. To Diagnose Problems
As already established, problems are an integral part of consulting. It is the main reason why people and organizations hire consultants. The ability to find problems in people’s lives and in organizational structure and process is an important skill that sets consultants apart. Problem-solving skill is a skill that can be learned and cultivated.
9. Change Management
Change as we know is constant and the ability to manage the changes going on around is very crucial. As simple as it might seem, managing change can be quite difficult especially in organizations as well as in our personal lives. Having the ability to help people/organizations deal with change or implement change can set you apart and also provide you with lots of opportunities.
Change management is considered among the top reasons why people and organizations hire consultants.
10. The Need for Extra Staff
There are many organizations that hire a consultant to help out on a project on a temporal basis. This situation always arises when an organization or sometimes an individual is overwhelmed by a particular project or job and needs assistance just for that particular period of time. A consultant is usually hired to help out over the agreed period of time.
This method is frequently used by most large organizations because they don’t have to worry about compensation plans and retirement benefits, all they worry about is the consultancy fees.
11. To Improve Work Efficiency
Everyone needs to operate efficiently whether in business or in personal lives. Not operating with efficiency can result in different problems. Efficiency ensures we cut costs, manage resources, and operate effectively.
Consultants are always hired on a regular basis to help individuals and organizations improve on work efficiency and so on. Having the skills, knowledge, or experience on how to improve work efficiency can earn you a lot of money as a consultant.
12. To Lobby
Government policies usually determine the rate of success of most businesses in our environment. An individual who has the knack to influence lawmakers in favor of an organization can become a successful consultant. Currently, there are many people engage as a lobbyist for most organization and they earn a lot of money doing so.
Why You Should Start a Consulting Business
There are many reasons as to why you should dive into the business of consulting. The following are some few reasons:
· There is Huge Potential for Growth.
Unlike many businesses out there, the consulting business offers individuals the ability to expand their knowledge and capabilities. Being in the consulting business will help you develop many useful skills because you’ll encounter and interact with different people and problems over. The people you’ll encounter as well as the problems you solve will broaden your knowledge and also offer you more opportunities to increase your earning potential.
· Freedom for you to do other things
Unlike most businesses that tie you down and drain a lot of your energy, the consulting business offers the individual the flexibility to work base on their own terms, they have the choice to work full time or part-time. Time is a precious commodity and should be traded carefully.
As a consultant you can venture into other business areas and still run your consultancy business successful, in fact, one of the main reasons why consultants are preferred over other professionals is because of their vast knowledge in handling different businesses, people and situations.
· There’s No Limit to your Earnings
The ability to earn a huge amount of money while having the freedom to do other things is one of the desirable facts about the consulting business.
When you work for someone, they get to decide how much you earn and also, they control your time. The earning potential in the consulting business is enormous, it all depends on the individual and the level of work they intend to do.
· You can run your consulting business from anywhere in the World
The beauty of the consulting business is that you can operate from anywhere in the world. There are a lot of consultants all over the world who run internationally recognized consulting business from the comfort of their homes. With an internet connection, you can comfortably communicate with anyone around the world and help solve their problems without traveling.
Having the ability to operate from anywhere also offer the consultant the freedom to travel and live anywhere they like.
Other Ways Consultants Make Money
The beauty of the consulting business is that you are not restricted in terms of ways in which you can make money. There are so many ways consultants make money these days, the following are few of the common popular ways most consultants make money:
1. Through Authorship
Writing a book is a great way to earn extra money as a consultant, it also establishes a consultant’s credibility and makes them more valuable in the market place.
2. By Teaching
Teaching is another great way a consultant can earn extra money. Since a consultant is experts in a particular domain, they can easily share their knowledge and earn money doing so. This could be in the form of a seminar, workshops or formal learning settings. Teaching part-time is another great avenue most consultants earn money. Thanks to technology, you can develop courses and upload them to the internet and have people pay to learn as they need.
A lot of organizations today hire consultants to facilitate their meetings or workshops especially meetings that require segmentation and guidance. As an expert in a particular domain, you’ll often be required to help in coordinating meetings and discussion sessions. It is a great avenue to also earn money as a consultant.
A consultant can also be a coach due to a lot of similarity in their mode of operations. Just like the consulting business, coaching is another lucrative business venture that is wide open to consultants. As a consultant, you’ll find yourself often acting as a coach to individuals and also organizations. A coach is simply a person who works together with an individual or organization towards achieving a specified goal or objective.
Looking at the definition of a coach, we can all agree that it falls under the scope of a consultant.
Consulting business is a fast-growing business that offers a lot of benefits and opportunities. It is one of the very few businesses that offer individuals the ability to earn base on their own terms, it requires little to no capital to set up, and doesn’t require certifications to be successful. Although some certifications are important, it isn’t a prerequisite in running a consulting business.
The need for consultants is growing tremendously hence it is advisable for people with relevant skills, knowledge, or experience to key into and earn by using those knowledge, skill or experience.