Starting a consulting business can be a very exciting endeavor, but one that requires all your professional expertise, and your careful commitment to the success of your clients. Many people consider the entrepreneurial route, but it is a risky road to take, especially if you don't set yourself up for success. You don't have to offer a unique product, but you should offer a one-of-a-kind service.

Anyone can open a consultant business with the right attitude and financial backing. Competition will be fierce. You can't expect to put your feet up because it's your own business. On the contrary, you should expect to work very hard in the beginning. Before quitting your full time job to set up consulting company services, ask yourself the following:

1. Are you committed? It takes more than just a good idea to launch a consulting small business. It takes time, money and hard work.

2. If applicable, do you have the right partners? Friends are not always good business partners. Vet potential collaborators as objectively as possible.

3. Have you done your research to make sure there's demand for your product or service? You may have a great idea, but how many others have the same idea?

Action Steps
The best contacts and resources to help you get it done

Launch consultant small business with credibility and get licensed

Businesses are legally required to obtain certain government licenses. Your state may regulate consulting businesses via zoning and land use permits, federal and state employer tax ID numbers, and a business name certificate. Regulations vary from state to state, as do state agencies that do the regulating. There are online resources that can help you file these documents.

I recommend: Business Licenses is a fee-based online resource that provides you with access to permit information, including home occupation permits for owners who wish to launch a consulting business from home. Business.gov can help you obtain the necessary federal, state and local permits, licenses, and registrations for starting your business successfully. Use its “Permit Me” tool for efficiency.

Join an association and build industry credibility when you create consulting business

When you open a consulting service, you don't have to go it completely alone. Consider joining an industry association for support. Organizations bring together professionals with the same goals and challenges. As a member, you'll have access to educational opportunities, in addition to networking events, so you can meet industry peers, vendors and suppliers.

I recommend: The Association of Professional Consultants and the Association of Management Consulting Firms both organize events for educational and networking opportunities. They also offer access to publications and other tools to assist you toward business success.

Market your services when you open consultant small business services

Starting a new business is a challenge, but marketing that business is a necessary effort. There are many avenues in which a business can market itself. Just remember that your marketing efforts should reflect the size of your business and budget.

I recommend: DirectMail.com is an online promotional company that can assist you in developing a variety of printed marketing efforts. Ace Promotions offers promotional items that can assist in marketing your business at trade shows and conferences.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When you first open consulting business services, you may decide to balance your own finances. But as your business grows, consider partnering with an accountant who can help you with tax issues, and help you build a financially sound company.

If you’re an expert in a field and have a passion for sharing that expertise, you’ve aced two of the most important qualities of a successful consultant. It’s also critical to have a knack for working with a wide variety of personalities, and an unflagging drive to market your services. Whether your specialty is helping corporations recruit chief executives or developing ad campaigns for the automotive industry, there are certain steps that nearly every consultant needs to take before launching his or her own business.

Those business-building steps include:
1. Define the services you have to offer.
2. Identify your target markets.
3. Establish your consulting fees.
4. Create a marketing plan.

Action Steps
The best contacts and resources to help you get it done

Develop a business plan

There is no one-size-fits-all business plan. Get the best fit for your consulting firm.

I recommend: Business Plan Pro is designed for start-ups. It includes more than 500 sample business plans and a step-by-step guide to creating your own plan. You can also download award-winning business plans at BusinessPlans.com.

Prospect for clients

You’ve pinpointed your target markets in your business plan. Now it’s time to connect with those markets.

I recommend: Trade association conferences provide a great opportunity to meet and mingle with people who might be interested in your services. Identify the associations that serve the industries you’re targeting. Check the associations’ Web sites for a schedule of events. If you are willing to pay a setup fee and commission, you can find consulting projects through eWork Markets. Consulting firms that qualify get access to consulting-project listings that are posted by a wide range of organizations, including Fortune 500 companies.

Polish your networking skills

Learn how to leave a positive impression with the people you meet at industry and social events. Nail down your “elevator pitch.” It should be a quick and memorable overview of your business plan that introduces listeners to what you have to offer.

I recommend: Sign up for networking events held nationwide from organizers like Networking for Professionals and NetParty (geared to young professionals who want to mix business and socializing). Bone up on your networking skills with the American Marketing Association's detailed guide to networking. To develop your elevator pitch, start with a brainstorming session, then check out these elevator pitch tips.

Stay in touch with your contacts

Keep in touch with people who have expressed interest in your services. Send an e-newsletter or other electronic direct mail pieces that provide tips to help your contacts deal with their business challenges.

I recommend: Create your own e-newsletter with Constant Contact's templates, then distribute the newsletter using Constant Contact’s e-mail delivery and management services. Another way to stay visible is to share your business knowledge and observations on a blog. Send highlights from your blog to your contact list (always use permission-based, opt-in e-mail lists). Two of the most popular business-blog platforms are Typepad and WordPress.

Take the podium

Look for opportunities to deliver speeches to groups that might include prospective clients. Organizations ranging from the local chamber of commerce to international associations are always looking for professionals who can deliver an engaging talk related to their field of expertise.

I recommend: Contact conference planners at trade associations that serve your target markets. To find business groups close to home, conduct a search for “business organizations” on Local.com. If you’re an experienced speaker, sign on with a speaker’s bureau that will find speaking gigs for you. The International Association of Speakers Bureaus provides a list of bureaus with contact information. Need some guidance in how to deliver a great speech? Join a local Toastmasters International club.

Stay up-to-date

Be a news hound on behalf of your clients. You can’t serve them well if you don’t know what’s going on in their field.

I recommend: Google News and Yahoo Finance make it easy to get the latest news on developments in the industries of your choice.

Decide on a business structure

When deciding on your business structure, consider how vulnerable you might be to legal liabilities. A sole proprietorship is simple and inexpensive to set up, but it won’t protect your personal assets in the event that your company is sued. Protect your assets by incorporating as a Limited Liability Company (LLC).

I recommend: Go to The Company Corporation for affordable incorporation packages.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  It’s tough for new consultants to find out what other consultants in their field are charging. In general, the more specific your area of expertise, the more you can charge. It can also help if you have worked with a company that is highly respected in your field, authored a book, or have earned an advanced degree or special certifications.
• •  Consider charging an hourly or daily rate when first starting out. Once you’re established, you can charge a per-project fee or ask for a retainer.
• •  Working out of a high-rise office space might lend an air of sophistication to your image, but when you tally the rent, parking fees and commuting costs, a home office might be sophisticated enough for your needs.

At the start, consulting business matters require you to remember to rely on facts - not your intuition or a disorganized style. Take time to define what a consultant is and what a consultant does from your perspective. In general, a consultant is an expert in his or her field and advises others based on his or her experience and knowledge. In today's business climate, consultants who truly are experts are incredibly valuable.

As you create consulting small business, you are the consultant, and you must prioritize that as your responsibility to the business, though not your only responsibility. Exhibit a passion for excellence with a self-motivated drive to achieve positive results. Starting a consulting business, for beginners, requires some basic knowledge, so continue reading to gain useful information.

1. Consider key questions before you create a consulting business.

2. Master the basic steps to start a consulting company as a beginner.

3. Launch consultant small business with an understanding of costs involved.

Action Steps
The best contacts and resources to help you get it done

Think about key questions before you open consulting service

When you plan your consulting business, it is important to know what knowledge you have to offer another business. Create consulting business with clear expectations of your abilities. Know where to find your target customer. Examine and write down your reasons for starting a consulting business. Contact other professionals for experienced insight.

I recommend: The Sideroad asks pointed questions to assess your position for starting and marketing your business. Explore basic concepts of going independent with Independent Consulting Bootcamp. Consultant Journal offers an entire series on starting a consulting business from the very beginning. TechRepublic has a step-by-step plan to help start your consulting business.

Know what you need to open consultant small business

Start consultant company with proper information and forms. Find answers to legal questions regarding a license, taxes and other possible local, state or federal requirements for your consulting business.

I recommend: Business.gov provides answers about starting a business, license, taxes and more by location. Check out the tough questions at gaebler.com. Six Steps to Starting A Consulting Business provides just that - six steps.

Launch consulting small business by being fully aware of potential costs

Check into other consulting businesses to find out how much consultants are charging their clients. Be aware of sporadic paychecks. Clients may not pay on time, and that is your direct income. Be ready to support yourself in the beginning of your business. Explore possibilities for locating clients and begin to target your business leads. In the beginning or if a client seems hesitant, consider offering a free introductory meeting, so your clients have a chance to see what you have to offer.

I recommend: Check out Mike Taber's Blog about starting your business by the bootstrap. PowerHomeBiz.com offers pointers for building a profitable business.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Create a consulting small business by focusing on the long term; pay attention to the details that make a difference.