How to Become an Independent Consultant: A Success Blueprint

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Table of contents

• Part A: Understanding what is an independent consultant and if it is the right path for you
  
  • What is an independent consultant?
  • What do independent consultants do?
  • How is an independent consultant different from a contractor?
  • Self-assessment: How to know if independent consulting is for you
• Part B: How to become an independent consultant
  
  • Why becoming an independent consultant requires a business owner mindset
  • Expert resources to help you become an independent consulting business owner
• FAQ
  
  • What are the initial steps to becoming an independent consultant?
  • What strategies can an independent consultant use to build a strong client base?
  • What best practices should an independent consultant follow for managing their business?
  • How should an independent consultant structure their pricing and fees?
• Get the help you need to become an independent consultant and grow your business the right way

 

Who is this guide for

Are you considering a leap into independent consulting but feeling overwhelmed by the uncertainties and challenges ahead? This article is crafted specifically for you. It directly addresses the real-world problems you face as an aspiring or practicing independent consultant, offering practical solutions that stem from both my personal experience and the collective wisdom of those I've helped in this field.

 

I've navigated this path myself, transitioning from an executive role in corporate to the uncertainties of independent consulting. I understand the fears around income instability, the complexities of client acquisition, and the challenge of wearing multiple hats. This guide is not just theoretical advice; it's a practical blueprint forged from real struggles and successes.

 

Drawing on my journey and the experiences of numerous clients I've coached, this article delves into crucial topics such as making a smooth transition from employment to consulting, mastering client acquisition, and managing the unpredictable nature of consulting work.

 

This is more than an informational piece; it's a roadmap to empower you with the confidence and strategies needed to thrive as an independent consultant. Let's dive in and explore the actionable steps and insights that will help you navigate and succeed in the world of independent consulting.

 

Part A: Understanding what is an independent consultant and if it is the right path for you

What is an independent consultant?

An independent consultant is a professional who operates their own business, offering expert advice and solutions to clients across various industries. This role involves a high degree of autonomy and flexibility, allowing consultants to choose their projects, set their schedules, and decide who they want to work with.

 

The core of being an independent consultant is not just providing expertise but also actively solving clients' problems. These consultants need to be versatile, adapting their skills to different challenges and environments. They are responsible for every aspect of their business, from generating leads and closing deals to delivering results and handling administrative tasks.

 

Unlike employees who work within the confines of a single organization, independent consultants bring an unbiased perspective to their work. This independence enables them to tailor their advice and solutions specifically to each client's needs, often leading to more effective and innovative outcomes.

 

However, this role also demands significant responsibility and self-management. As an independent consultant, you are essentially running a small business. This includes not only the delivery of consulting services but also managing sales, marketing, finances, and other operational aspects.

 

In summary, being an independent consultant means being your own boss, with the freedom and responsibility that come with it. It's a role that requires not only expertise in your field but also skills in business management, client relations, and continuous personal and professional development.

 

What do independent consultants do?

When you’re an independent consultant, you're essentially the captain of your own ship. It’s a role that's as dynamic as it is demanding, involving a diverse array of responsibilities and engagements. Let’s break it down to get a clearer picture.

 

Responsibilities of an Independent Consultant:

1. Client Acquisition: Firstly, you're in charge of finding your own clients. This often involves networking, marketing your services, and sometimes cold outreach. It's about selling not just your skills, but also the unique value you bring to the table.

 

2. Problem-Solving and Strategy Development: Once you've got clients, your primary job is to solve their problems. This could mean analyzing business processes, identifying inefficiencies, or developing strategic plans.

 

3. Implementation and Follow-Up: Unlike some consultants who only provide recommendations, as an independent consultant, you might also be involved in implementing your strategies and ensuring they deliver the desired outcomes.

 

4. Business Management: Beyond client work, you're running a business. This includes managing finances, handling administrative tasks, and constantly updating your skills and knowledge.

 

Typical clients:

Independent consultants often work with a wide range of clients, depending on their background and expertise. This could include:

- Startups looking for strategic direction: These clients need help setting up structures or scaling their businesses.

- Established companies seeking specialized expertise: Perhaps a company needs an IT overhaul or a new marketing strategy and doesn’t have that expertise in-house.

- Non-profits requiring operational efficiency: These organizations might need help streamlining their processes to better serve their missions.

 

Examples of types of work:

1. Business Strategy Consulting: Assisting businesses in developing long-term strategies to increase profitability or market share.
2. Marketing and Branding Strategy: Crafting marketing strategies or rebranding initiatives for businesses looking to enhance their market presence.
3. Fractional Consulting: Providing advice, expertise, and work product on a part-time or limited basis.
4. IT Consulting: Helping businesses implement new technology systems or improve their IT infrastructure.
5. Human Resources Consulting: Advising on HR policies, employee engagement strategies, or talent management.

 

Each day in the life of an independent consultant is different. One day you might be deep-diving into market research for a new startup, the next you're presenting a strategic plan to a board of directors. It's this variety that keeps the role exciting and continually challenging. But remember, it's not just about the work you do; it's about the value you add. 

 

How is an independent consultant different from a contractor?

An independent consultant is different from a contractor in that they primarily offer expert advice and strategic planning rather than directly executing tasks or projects. 

 

An independent consultant typically engages with a business to provide specialized knowledge, strategic insights, and expert guidance. Their role often involves analyzing problems, identifying opportunities for improvement, and offering recommendations on how to proceed. Consultants are usually involved in the higher-level planning and decision-making processes. They might help a company restructure its organization, develop a new business strategy, or advise on adopting new technologies or practices. Their work is more about shaping strategies and guiding decisions rather than hands-on implementation.

 

On the other hand, contractors are generally hired to perform specific tasks or complete particular projects. They are the doers who execute plans, build products, or provide services. For example, a company might hire a contractor to develop a piece of software, manage a construction project, or carry out a marketing campaign. Contractors are focused on delivering the outcomes defined by their contract, and they usually work under the direction of the client, following the plans and specifications provided to them.

 

While both independent consultants and contractors offer flexibility and expertise, their roles in an organization are distinct. Consultants are more like advisors who bring their expertise to diagnose problems and recommend solutions, whereas contractors are the skilled professionals who execute those solutions or perform specific, often tactical tasks. This difference is crucial for businesses to understand so they can choose the right type of professional for their needs.

Click here to read the Pros and Cons of Being an Independent Consultant vs. a Contractor article. 

 

Self-assessment: How to know if independent consulting is for you

Deciding whether independent consulting is the right path for you involves a thoughtful assessment of various personal and professional factors. Here are ten criteria to consider when making this decision:

 

1. Expertise and Knowledge: Do you have specialized skills or knowledge that are in demand? Successful consultants often have deep expertise in a particular field that organizations need but don't have in-house.

 

2. Self-Motivation: Are you able to self-motivate? Independent consulting requires a high level of self-discipline and motivation, as you'll need to manage your tasks, find new clients, and meet deadlines without external supervision.

 

3. Comfort with Uncertainty: Can you handle uncertainty and instability? Unlike a regular job, consulting work can be unpredictable, with fluctuating income and varying workloads.

 

4. Networking Skills: Do you have strong networking skills? Building and maintaining professional relationships is crucial for finding and retaining clients.

 

5. Business Acumen: Are you knowledgeable about running a business? As an independent consultant, you're essentially a business owner, responsible for marketing, billing, taxes, and other administrative tasks.

 

6. Financial Stability: Do you have the financial stability or savings to handle periods without steady income? It's often important to have a financial cushion, especially when starting out.

 

7. Adaptability: Are you adaptable and flexible? Consultants often need to quickly understand new industries or business problems and adapt their approach accordingly.

 

8. Communication Skills: Do you have excellent communication skills? Effective consultants must be able to clearly articulate ideas, present findings, and persuade stakeholders.

 

9. Desire for Flexibility and Autonomy: Do you value flexibility and autonomy over a structured work environment? Consulting can offer control over your schedule and the type of projects you take on.

 

10. Resilience to Stress: Can you manage stress and workload effectively? Independent consulting can be demanding, with tight deadlines and high expectations from clients.

 

If you find that these criteria align well with your skills, personality, and professional aspirations, then independent consulting could be a rewarding professional path for you. However, it's important to weigh these factors carefully and realistically assess both the opportunities and challenges that come with being an independent consultant.

 

With this said, you don’t need to have all ten of these criteria in place before diving into consulting. You just need to be willing to develop them. 

 

For example, let’s take Sarah. She had been considering consulting for years but never felt it was the right time to pull the trigger. Her main concern was the potential income instability compared to her full-time job. 

 

Sarah started by building a financial nest egg. She considered it the seed money for her business. 

 

Simultaneously, Sarah understood the importance of a strong professional network in the consulting world. She began reconnecting with former colleagues and actively participating in industry events, which helped her begin building a pipeline. 

 

Alongside this, she realized the need to enhance her business owner skills. She hired me as her coach to help her truncate the learning curve and minimize mistakes. Through our work together, she landed her first two clients, who she supported in parallel with her corporate job.

 

Finally, with a robust financial buffer, a strong network, and practical experience, Sarah made the leap into full-time consulting. Her story demonstrates that a strategic approach, involving financial planning, networking, skill development, and a gradual shift into the field, can lead to a successful transition into independent consulting, even if one doesn't start with all the ideal attributes in place.

 

Part B: How to become an independent consultant

To become a successful independent consultant, following these 12 steps can provide a structured and strategic approach:

 

1. Decide You’re Going to Succeed at Building a Successful Consulting Business: Commit fully to your consulting career. Believe in your ability to succeed and be ready to overcome challenges. This mindset is crucial for long-term success.

 

2. Put the Consulting Business Basics in Place: Ensure you have the fundamental elements of a business set up. This includes choosing a business name, registering your business, setting up a professional email address, and creating basic business cards.

 

3. Choose Your Consulting Business Model: Decide whether you’ll work as a solo consultant, partner with others, or create a consulting firm. Consider factors like your working style, goals, and the types of clients you want to attract.

 

4. Determine Your Offer and Pricing: Clearly define what services you will offer and how you will price them. Consider various pricing models like hourly rates, project-based fees, or retainer agreements.

 

5. Land Your First Consulting Client: Start networking and marketing your services to land your first client. Utilize your existing contacts, attend industry events, and use social media to reach potential clients.

 

6. Get Clear on Your Niche and Ideal Client: Define your area of specialization and the type of client you serve best. This clarity will help in tailoring your marketing and services to meet the needs of your target market.

 

7. Create a Business Plan for Your Consulting Business: Develop a detailed business plan outlining your business goals, strategies, target market, financial projections, and marketing plan.

 

8. Establish a Weekly Business Routine for Attracting Your Ideal Clients: Set aside regular time each week for business development activities such as networking, content creation, or attending events.

 

9. Get the Tools You Need for Your Consulting Business to Thrive: Invest in essential tools and technology for your consulting business. This may include project management software, CRM systems, accounting tools, and communication platforms.

 

10. Put in Place a Consulting Sales Funnel: Develop a sales funnel to attract and nurture potential clients. This could involve lead-generation tactics, a process for initial consultations, and follow-up strategies.

 

11. Get Professional Assistance (VA, CPA, Bookkeeper, etc.): As your business grows, consider hiring professional assistance like a virtual assistant (VA) for administrative tasks or a bookkeeper for financial management.

 

12. Systematize Your Consulting Business: Create systems and processes for various aspects of your business, such as client onboarding, project management, and invoicing. This will help in streamlining your operations and maintaining efficiency as your business grows.

 

Each of these steps builds upon the others, forming a comprehensive roadmap to establishing and growing a successful consulting business. Remember, the journey requires persistence, adaptability, and continuous learning.

 

Click here to download the 12 Steps to Launch an Independent Consulting Business.

 

Why becoming an independent consultant requires a business owner mindset

When I resigned from my full-time role, an unexpected turn of events led me to become an accidental consultant. My company asked me to stay on as a strategy and management consultant. At that moment, I didn't fully grasp that I was stepping into the shoes of a business owner; instead, I saw myself merely as a consultant fortunate to have income. 

 

This mindset came with its drawbacks.

 

Because I didn't view myself as a business owner, I relied heavily on my existing network for client work. This approach resulted in peaks and valleys, and oftentimes led me to take on less interesting projects. It was a reactive way of working, being dependent on opportunities coming my way rather than actively seeking them out and strategically positioning my business in the market.

 

This experience taught me the importance of adopting a business owner mindset as an independent consultant. It's not just about the skills and expertise in your field but also about how you manage and grow your consulting practice.

 

Why a Business Owner Mindset is Important:

 

1. Decision-Making Autonomy: As a business owner, you are in the driver's seat, making strategic decisions that shape the future of your consulting practice.

 

2. Responsibility for Success and Failures: Unlike being an employee, the success and sustainability of your business rest entirely on your shoulders. This requires a proactive, resilient approach.

 

3. Continuous Adaptation and Learning: The business landscape is ever-evolving. Embracing continuous learning helps you adapt your services to the changing market needs, keeping your business relevant.

Key elements required from an independent consulting business owner:

A successful business owner mindset is critical for navigating the challenges and opportunities of entrepreneurship. Here are five key elements of this mindset:

 

1. Willingness to Experiment and Fail: Embracing a trial-and-error approach is essential. Understanding that failure is not a setback but a learning opportunity can lead to innovation and growth. It's about testing new ideas, learning from the outcomes, and adapting strategies based on those experiences.

 

2. Willingness to Experience Negative Emotion: Running a business can be an emotional rollercoaster. The ability to cope with stress, anxiety, and uncertainty, and still move forward, is crucial. It involves facing challenges head-on and not letting fear or discomfort deter you from your goals.

 

3. Commitment to Success: A successful business owner relies on their own drive and decision-making abilities rather than depending on others for success. This self-reliance means taking initiative, being resourceful, and owning the responsibility for the outcomes of your business.

 

4. Overcoming Imposter Syndrome: Many entrepreneurs struggle with feeling like a fraud or not good enough. Overcoming this imposter syndrome is about building confidence in your skills and abilities, acknowledging your accomplishments, and understanding that self-doubt is a natural part of the entrepreneurial journey.

 

5. Continuous Improvement and Learning: The willingness to continuously improve and adapt is vital. This means staying informed about industry trends, upgrading skills, seeking feedback, productizing your unique frameworks and methodologies, and being open to new ways of thinking and doing business.

 

You might be wondering how to build up a business owner mindset.

 

This is what I do with my clients.

 

In my coaching program, drawing from my extensive personal experience and insights gained from working with hundreds of independent consultants, I provide a comprehensive toolkit for successful business ownership. 

 

We delve deep into crucial areas like business management, pricing strategies, and the art of defining and productizing services. This program is specifically designed to transform consultants into confident and capable business owners, well-equipped to tackle common challenges like imposter syndrome. With a focus on practical skills and a strong business mindset, you'll be empowered to navigate the consulting world with greater confidence and strategic acumen. To discover how this program can take your consulting business to the next level, click here to learn more.

 

Expert resources to help you become an independent consulting business owner

Here’s ten handpicked resources to help you become an independent consultant.

 

1. The Grow Your Independent Consulting Business Podcast

A wealth of practical insights and expert advice, benefiting consultants by sharing successful strategies and real-world experiences to help them expand and thrive in their consulting ventures.

 

2. Grow Your Consulting Business: The 14-Step Roadmap to Make Your Independent Consulting Goals a Reality

A clear, step-by-step guide, equipping you with actionable strategies to effectively build and grow your consulting practices into a vision you never realized was possible for you.

 

3. How To Create A Consulting Business Plan (Incl. Free Template): 

A consulting business plan is essential for defining your business's direction and goals, serving as a roadmap for growth. Using a free template simplifies this process, ensuring you cover all critical aspects of your business effectively.

 

4. The Definitive Checklist for Starting a Consulting Business:

A comprehensive and organized approach for aspiring consultants to ensure they cover all essential steps and considerations in establishing their business successfully.

 

5. The 12 Steps to Start Your Consulting Business [Free Checklist]:

An actionable checklist to help you organize your approach and avoid missing important steps

 

6. The Routine to Fill Your Consulting Pipeline in 26 Minutes Per Day 

A time-efficient and structured strategy to consistently generate leads and build a robust client base

 

7. The Ultimate Guide to Personal Branding for Consultants

Provides expert strategies to effectively establish and communicate your unique value proposition, enhancing your visibility and credibility in a competitive market.

 

8. How Independent Consultant Rates and Retainer Fees Work

Offers crucial insights into pricing strategies and fee structures that are fundamental to establishing a profitable and sustainable consulting business.

 

9. The Independent Consultant’s Pricing Assessment

Understand the four pillars of a successful consulting pricing strategy, and how your pricing compares to industry best practices

 

10. Consulting Sales: Tips & Tools To Help You Get More Clients

Provides practical advice and effective strategies to enhance your sales skills, crucial for attracting and securing a steady stream of higher-paying client engagements.

 

Frequently asked questions

I’m frequently asked questions about becoming an independent consultant.

 

What are the initial steps to becoming an independent consultant?

This may sound like it’s backwards but it’s not.

The initial, and most important step, to becoming an independent consultant is to focus on landing your first client so you’re generating revenue. This can be easy to do, and doesn’t require any marketing material, website, or specific offer. 

Then, after you land that first client, you can start setting up the business basics such as an LLC, a bank account, and insurance.

Next, you’ll focus on continued lead generation so you don’t have a gap in your cash flow.

Finally, after you’ve had a few clients under your belt, you can focus on building out your business infrastructure such as a formalized service portfolio, a website, an updated LinkedIn profile, and a marketing one-pager.

 

What strategies can an independent consultant use to build a strong client base?

 Building a strong client base as an independent consultant requires a strategic approach. Here are key strategies to consider:

 

1. Networking and Relationship Building:

• Attend industry events, conferences, and seminars to connect with potential clients and peers.
• Join professional associations and online forums relevant to your expertise.
• Leverage your existing network and ask for referrals from colleagues, friends, and past clients.

 

2. Leveraging existing audiences:

• Explore informal joint ventures with businesses that offer complementary services. You can cross-promote each other's services to your respective clients, expanding your reach.
• Engage in industry-specific online communities and forums where your potential clients gather. Provide valuable insights, answer questions, and discreetly mention your consulting services when relevant.

 

3. Content Marketing and Thought Leadership:

• Create valuable content that showcases your expertise, such as blog posts, whitepapers, or webinars.
• Share your content on your website, social media, and industry-specific platforms.
• Position yourself as a thought leader by contributing articles to industry publications and speaking at conferences.

 

4. Exceptional Service and Trust Building:

• Deliver outstanding results and exceptional service to your clients.
• Maintain open and transparent communication throughout projects.
• Provide value during initial meetings or informational interviews to build trust with potential clients.

 

By combining these strategies, you can create a strong foundation for your independent consulting business and attract a steady stream of clients. Building lasting relationships and consistently showcasing your expertise are key to success in the competitive consulting industry.

 

What best practices should an independent consultant follow for managing their business?

Managing an independent consulting business effectively requires a combination of strategic planning and operational excellence. Here are some key best practices:

 

1. Business Planning: Start with a clear business plan outlining your goals, target market, and services. This roadmap will help you stay focused.

 

2. Financial Management: Keep a close eye on your finances. Set a budget, track expenses, and maintain a separate business account for financial clarity.

 

3. Sales Process: Build a repeatable process to navigate a potential client through qualification, discovery, solution development, and to an executed contract.

 

4. Marketing and Branding: Invest in marketing efforts to build your brand and online presence, and a pipeline of potential clients.

 

5.  Business Owner Mindset: Implement a practice to continuously cultivate and strengthen your business owner mindset, to increase your confidence and set yourself up to continuously improve.

 

6. Time Management: Efficiently manage your time to balance client work, marketing, and administrative tasks. Tools like calendars and project management apps can help.

 

7. Networking: Cultivate relationships within your industry and with potential clients. Networking can lead to referrals and valuable collaborations.

 

8. Tax Compliance: Understand tax regulations for self-employed individuals and ensure timely payments. Consult a tax professional for guidance.

 

9. Client Relationships: Focus on excellent client relationships by delivering high-quality work and maintaining open communication.

 

10. Feedback and Improvement: Seek feedback from clients and continuously improve your services based on their input.

 

Following these best practices will help you run your independent consulting business smoothly and increase your chances of long-term success.

 

How should an independent consultant structure their pricing and fees?

When it comes to structuring your pricing and fees as an independent consultant, it's essential to strike a balance between competitiveness and profitability. Here's some personalized advice for you:

 

1. Quantify The Value You Bring: Start by understanding the value you bring to your clients. What problems do you solve, and how does it impact their business? Your pricing should reflect this value.

 

2. Hourly vs. Project-Based: Decide whether you want to charge hourly rates or offer project-based pricing. Hourly rates are straightforward but can cap your earning potential. Project-based fees provide more predictability for both you and your client.

 

3 Value-Based Pricing: Consider value-based pricing, where you tie your fees to the specific results or outcomes you deliver. This approach can often justify higher rates.

 

4. Consider Expenses: Account for your overhead costs, such as tools, software, and marketing, when setting your rates. You need to cover these expenses while still turning a profit.

 

5. Retainers and Upfront Fees: Offering retainer agreements or requesting upfront fees can provide financial stability and ensure clients are committed to the project.

 

6. Review and Adjust: Periodically review your pricing strategy. As you gain experience and your client list grows, you may need to adjust your rates to reflect your expertise.

 

Remember that pricing is not static; it can evolve as your consulting business grows. Be confident in the value you provide, and don't be afraid to adjust your pricing structure accordingly.

 

Get the help you need to become an independent consultant and grow your business the right way 

The Launch-IC Coaching Program is your ticket to success if you aspire to become an independent consultant or are in the early stages of your consulting journey. My program provides personalized guidance, practical strategies, mindset transformation, and accountability to help you establish a thriving consulting business. 

 

But don't just take my word for it – read the testimonials from past and current clients who have transformed their businesses through this coaching program. 

If you're ready to dive into independent consulting or want to enhance your current practice, click here to book a consultation to determine if it’s a good fit for you.