Consultant vs Contractor: Transitioning to High-Value Solo Consulting

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Table of contents

• What you will learn
• What is the difference between a contractor and a consultant?
• What is a contractor?
• Shared advantages of consulting and contracting
• What is an independent consultant?
• Why do companies hire consultants instead of contractors?
• How to make the switch from contractor to independent consultant and realize your potential
• Get expert help to make the switch from contractor to consultant and grow your independent consulting business

 

What you will learn in this article

Are you stuck working in staff-augmentation-type roles when you want to be consulting?

This is a common challenge for consultants. 

You take on contractor roles because they’re the type of roles that land on your desk, and you don’t want to leave money on the table. You land this contractor work and feel stuck working for an hourly bill rate, knowing it’s possible to make more money while working fewer hours on more challenging projects.

But you’re not sure how to move forward to land consulting engagements.

You’re not alone.

So many consultants get stuck in this same spot.

In this article, I’ll:

• Walk you through the differences between contracting and consulting so you know how to avoid continuously booking contractor roles when you prefer consulting engagements. 
• Then, I’ll share the five (5) steps to switch from contractor to independent consultant so you realize your full potential as an independent consultant.

 

What is the difference between a freelancer, a contractor, a consultant, and a fractional professional?

The distinctions among contractors, consultants, and freelancers are nuanced yet crucial for anyone aiming to establish a sustainable and predictable consulting business. These terms are often mistaken and used interchangeably, which can lead to confusion and misalignment in your business. Understanding the differences between these roles is essential to avoid being pigeonholed into less rewarding and lower-paying contractor engagements, missing out on the more lucrative, impactful, and autonomous opportunities typical of consulting positions.

To clarify these distinctions and help you strategically position yourself in the market, let’s define each term. 

Contractors

Contractors are primarily engaged for their ability to execute specific, often well-defined tasks within a project. They work under the direction of others, focusing on delivering tangible results according to predetermined specifications. This role is characterized by its temporary nature and limited decision-making autonomy, often resulting in a compensation structure that is tied directly to hours worked or tasks completed. Contractors are typically not involved in the strategic planning of projects, which limits their influence and potential for higher earnings.

Freelancers

Freelancers are independent professionals who manage their own work across a variety of fields, often blending skills from different disciplines to meet the needs of multiple clients. They maintain full control over their schedules and the nature of their work, making freelancing highly flexible and varied. This role is popular in creative and technical industries where project demands can vary significantly. Unlike contractors, freelancers can choose projects that align more closely with their interests and professional goals, often leading to greater job satisfaction and the opportunity to build a diverse portfolio.

Consultants

Consultants are experts in a particular field who provide strategic advice to enhance business outcomes. Their work is highly autonomous, and they are often brought in to solve complex problems or help clients achieve specific, strategic goals. Consultants are valued for their deep knowledge and the ability to provide high-level insights that are not readily available within the client's organization. This role demands a higher rate of pay due to the significant impact of their recommendations and the specialized nature of their expertise.

Fractional Professionals

Fractional professionals typically engage with organizations in a senior advisory or executive role, providing expertise that a company needs but cannot justify on a full-time basis. They offer strategic guidance and leadership on an interim or part-time basis, filling critical gaps in expertise without the long-term financial commitment of a full hire. This role is ideal for businesses that require seasoned expertise in areas like financial planning, marketing strategy, or technological innovation but at a fraction of the cost of a full-time executive.

 

Why the difference between consultants, contractors, fractionals, and freelancers matters

 

Understanding the difference between a consultant, a contractor, a fractional, and a freelancer can be important for several reasons:

1. Aligned Business Model: Recognizing which role fits your skills, services, and business goals helps in structuring your business model effectively. For instance, consultants offer high-impact strategic advice, leveraging their deep industry knowledge to drive significant improvements in client outcomes. Freelancers provide a versatile array of services across multiple projects, adapting to diverse client needs with a flexible, project-based approach. Fractional professionals contribute their expertise in leadership or specialized areas through part-time roles, delivering critical strategic input and guidance without the need for a full-time commitment.

2. Pricing: Each role commands different pricing strategies based on value, demand, and deliverables. Consultants often charge higher rates due to their specialized knowledge and the strategic nature of their advice. Contractors might have set rates per hour or project, reflecting the more task-oriented nature of their work. Fractional professionals can leverage their part-time yet impactful roles to command substantial fees, particularly in executive or specialized functions. Freelancers need to balance their rates against the diversity and scope of the services they offer.

3. Positioning: How you position yourself in the market can dictate the type of clients you attract and the projects you undertake. Consultants are often positioned as experts in a specific field, attracting clients who need strategic insights and solutions. Contractors are seen as reliable and skilled workers for specific tasks, appealing to businesses needing temporary assistance. Fractional professionals are positioned as cost-effective alternatives to full-time hires, ideal for organizations needing expertise without long-term commitments. Freelancers might position themselves as versatile and adaptable, suitable for various short-term projects across different industries.

4. Client acquisition: Select the label—consultant, contractor, freelancer, or fractional—that not only reflects your skills and business model but also resonates with your client’s expectations and needs. Aligning your role with your client’s objectives ensures that you are viewed as the ideal fit for their specific challenges.

Understanding these distinctions helps in making informed decisions about how to develop your career or business, ensuring alignment between your professional identity and market expectations.

 

What is a contractor?

A contractor is typically a non-employee who is engaged by a client to complete specific tasks.

Key characteristics that define a contractor include:

• Payment by the hour.
• Working for a client through a third party, such as a staffing agency or marketplace.
• Work details, including tasks, deadlines, and responsibilities, are directed by the hiring manager.
• Serving as an "extra pair of hands" to fill gaps in the full-time workforce, often in staff augmentation roles.

To further clarify the roles and distinctions within the workforce:

• Freelancer vs. Contractor vs. Consultant: Freelancers often handle a variety of tasks across multiple industries and typically manage their own schedules and workflows, offering flexibility. Contractors are generally more restricted to specific tasks directed by others, while consultants provide expert advice and strategic planning, often with more autonomy and higher impact.

• Consultant vs Full-Time Employee: Unlike full-time employees who are integrated into the company’s structure with fixed roles and benefits, consultants operate externally, bringing specialized knowledge to address specific challenges without long-term commitment.

• Contractor vs. Consultant Pros and Cons: Contractors benefit from the flexibility and a variety of short-term projects but may face lower pay. Consultants, while often engaging in more complex and higher-stakes environments, enjoy greater autonomy and potentially higher earnings.

• Legal Difference Between Contractor and Consultant: Legally, both contractors and consultants are considered non-employees, but the specifics of their contracts can vary significantly. Consultants often have more control over how they achieve the end result, whereas contractors might be more tightly bound by the client’s specifications and schedules.

• Freelancer Contractor: This term may refer to contractors who operate similarly to freelancers, maintaining control over their work but within the constraints of the contracting terms set by clients or intermediaries.

 

Shared advantages of consulting and contracting

 

Whether you decide to work as a consultant, contractor, freelancer, or fractional, there are many shared benefits of this non-employee working model.

Autonomy: Both consultants and contractors enjoy the autonomy of being their own bosses. This independence allows them to choose projects that align with their skills and interests, offering a sense of control over their professional lives.

Potential for Higher Earnings: As independent professionals, consultants, and contractors have the opportunity to negotiate their rates based on the demand for their skills, which can often lead to higher pay compared to salaried positions. The Consultant's Guide to Advanced Negotiation Tactics

Tax Advantages: Operating as an independent professional can offer tax benefits. Both roles allow for deductions such as home office expenses and business equipment depreciation, which can reduce taxable income.

Flexible Work Schedules: The ability to set their own schedules is a crucial benefit for consultants and contractors. This flexibility supports a better work-life balance, allowing professionals to manage their time according to personal and professional demands. How to Master Work-Life Balance as a Consulting Business Owner

Entrepreneurial Spirit: Working as a consultant or contractor embodies the essence of being an entrepreneurial consultant. It requires self-motivation, resilience, and the ability to manage one’s business effectively.

Demand for Skills: The market for non-employee professionals, especially those with niche expertise, continues to grow. Independent consultants and contractors can leverage this demand to secure engagements that are not only profitable but also enhance their professional development.

By embracing the roles of independent consultants or contractors, professionals can maximize their career potential through strategic negotiations, enjoy significant autonomy in their work, and benefit from the financial and personal advantages of running their own consulting business.

 

What are the pros and cons of being a contractor?

Some may look down on being a contractor, thinking that working as an independent consultant is better. And, while it’s typically true that working as an independent consultant is more lucrative and more autonomous, there can be advantages to working as a contractor.

 

Advantages of being a contractor vs. an independent consultant

 

There are several advantages to being a contractor, especially when you’re first launching your business.

Easier Access to Opportunities: Contractor positions are often more readily available and advertised through recruiters and platforms like LinkedIn, making them more straightforward to pursue compared to consulting roles. This accessibility makes it an attractive option for those transitioning into independent work.

Lower Learning Curve: For those accustomed to employment, starting as a contractor involves a familiar process—submitting resumes and attending interviews—similar to applying for a full-time role. This similarity reduces the initial learning curve, easing the transition from employee to independent professional.

Proven Launching Pad: Embarking on your career as a contractor is a tested method for generating initial revenue as you build your business. This experience can be invaluable as you transition from contractor to consultant, where you can leverage enhanced expertise and pursue higher-paying, more autonomous roles.

Consultant Career Path: The shift from contracting to consulting is a significant aspect of the consultant career path, marking a transition towards more strategic and impactful engagements.

Consulting vs Employment Benefits: This transition also introduces the benefits of consulting over traditional employment, such as greater flexibility, autonomy, and the potential for higher earnings based on one’s expertise rather than a fixed salary.

Consultant Roles in Companies: Understanding the distinction between consultant expertise vs contractor skills is crucial as you progress. Unlike contractors who focus on specific tasks, consultants provide strategic advice that can influence company-wide decisions and operations.

By starting as a contractor and gradually moving into consulting, you can develop a deep understanding of different industries and client needs, setting a strong foundation for a successful consultant career path.

 

Disadvantages of being a contractor vs. an independent consultant

 

There are several disadvantages to being a contractor, especially as you gain more experience working independently versus being a full-time employee. These disadvantages highlight important distinctions between contracting and consulting roles:

Competitive Nature of Contractor Roles: Finding contractor roles typically involves recruiters, marketplaces, or job boards, making these positions highly competitive due to their accessibility. Unlike consulting, where opportunities can arise through networking, building trust, and demonstrating expertise, contracting lacks the “know-like-trust” factor that can set you apart.

Lower Pay: Contractor positions generally offer payment on an hourly basis and are perceived as highly negotiable. Employers often compare these rates to what they would pay a full-time employee without accounting for benefits or other intangibles. Additionally, contractors often bear the cost of recruiter or marketplace fees, which are deducted from their earnings.

Challenges with Taking Time Off: Since contractor income is directly tied to hours worked, taking time off can lead to a direct financial loss. This model can lead to burnout, as contractors may find themselves working continuously to maximize earnings, often without taking significant breaks.

Reduced Autonomy: Contractors usually have less control over their work compared to independent consultants. They are often hired to manage overflow work, fill gaps, or perform tasks outside their primary scope, which limits their autonomy and strategic influence.

Pseudo-Employee Status: Contractors often find themselves in a quasi-employee role—working closely within a company but without the associated benefits or cultural inclusion. This can lead to a lack of job satisfaction and professional identity.

Lack of Business Development Skills: Relying on third-party platforms for contracting work can impede the development of crucial marketing and sales skills needed for a successful transition to independent consulting.

To overcome these challenges, aspiring consultants should focus on developing distinct consulting skills, strategically positioning themselves in the market, and learning from independent consultant success stories. By understanding consulting client expectations and positioning yourself effectively, you can transition from contracting to consulting, aligning your career path with long-term success and fulfillment in the consulting field.

 

What is an independent consultant?

An independent consultant operates as a business owner, structured as either an LLC or S-Corp, and is distinguished by several key practices within their consulting business model:

1. Direct Client Engagement: Unlike contractors who may depend on third parties to find work, independent consultants typically engage directly with their clients, enhancing their ability to control work scope and build lasting relationships.

2. Pricing Models: Independent consultants often utilize fixed-fee or value-based pricing models. These methods do not directly correlate with the number of hours worked, allowing consultants to focus on delivering value and achieving specific outcomes rather than merely trading time for money.

3. Consulting Agreements: In contrast to contractor agreements, which are often standardized and task-based, independent consultants develop tailored consulting agreements, usually in the form of a Statement of Work (SOW). These agreements outline the expected outcomes and the process for achieving these results, providing clarity and structured expectations for both the consultant and the client.

4. Outcome-Oriented Delivery: Independent consultants direct both their own efforts and the client’s focus toward achieving the agreed-upon outcomes, ensuring that all actions are aligned with the goals specified in the consulting agreement.

5. Expertise-Based Engagement: Clients engage independent consultants specifically for their deep knowledge and subject matter expertise, recognizing the value of specialized insights that consultants bring to their projects.

By adopting these strategies and maintaining a consultant business owner mindset, independent consultants can effectively differentiate themselves in the marketplace, deliver substantial value to their clients, and operate with a high degree of professional autonomy and satisfaction. These practices form the foundation of successful independent consulting strategies, fostering sustainable business growth and strong client relationships.

 

What are the pros and cons of being an independent consultant?

Independent consultants are typically paid more, have more autonomy, and have the opportunity to take on more fulfilling work.

Advantages of being an independent consultant vs. a contractor:

• Higher-paying engagements. Independent consultants generally make more money because they’re able to charge based on the value of the outcomes they help their clients achieve. They’re also seen as experts and thought leaders who are able to charge a premium for their services.

• More flexibility. Because of their pricing model, independent consultants are able to take more time off on a weekly, monthly, quarterly, and yearly basis without worrying about leaving money on the table.

• More autonomy. Independent consultants are seen as the owner and CEO of their own company. They set the rules of engagement with their clients instead of waiting for the client to take the lead on when, where, and how they work.

• Shorter, less hands-on type of work. Independent consultants are able to take on strategy-type work where they come in, help diagnose problems, and build out plans and roadmaps to address those problems. They don’t need to be the ones doing the implementation work unless they want to do it themselves.

• More impact and professional fulfillment. Because independent consultants have the ability to pick and choose the clients they work with, the type of engagements they take on, and the nature of the work they agree to do, they have control over the level of impact and fulfillment they enjoy.
• Additional revenue streams. Independent consultants are able to set up flexible delivery models where they bring in subcontractors and even their own employees if they wish, in order to satisfy the client’s Statement of Work.

 

Disadvantages of being an independent consultant vs. a contractor

Some might say there’s a disadvantage to being an independent compared to being a full-time employee because it can be less stable and predictable when you’re an independent, whether it be a consultant or contractor.

When it comes to the disadvantages of the contractor versus independent consultant models, there truly isn’t a disadvantage to being an independent consultant. Whether you’re an independent consultant or a contractor, you’re ultimately responsible for finding new clients and generating revenue and income for yourself. 

With this in mind, there aren’t any disadvantages to being an independent consultant versus a contractor. 

 

Why do companies hire consultants instead of contractors?

It’s crucial to recognize that companies often lack clarity on their specific needs and are uncertain about whether to hire a contractor or a consultant. This ambiguity provides a strategic opportunity for the independent consultant. You can educate potential clients on the benefits of engaging an independent consultant over a contractor, emphasizing the advantages specific to their situation.

Reasons for Hiring: Companies typically opt for contractors to fill immediate gaps in their workforce or to increase capacity on projects that are lagging behind schedule. In contrast, consultants are sought after for their specialized expertise and strategic problem-solving capabilities, particularly for tasks that require a deeper understanding than what the current team possesses.

Companies may engage consultants for well-defined projects like an ERP upgrade or more nebulous challenges where the path to resolution isn’t clear. Whether the need is for a specific solution or for guidance on a broader strategic issue, consultants offer the necessary skills and a different perspective that can significantly alter the course of a project.

Value Proposition of Consultants and Contractors:

• Flexibility and Affordability: Both consultants and contractors offer flexible engagement terms that can be aligned with changing workloads and organization budgets. This flexibility often proves more cost-effective than hiring full-time employees, particularly when dealing with fixed costs and contract extensions.
• Expertise and Skills: While contractors are effective in operational roles to support daily tasks, consultants bring in-depth expertise that is critical for strategic initiatives and specific projects. Their ability to navigate complex issues makes them invaluable as strategic problem solvers.
• Project-based Needs: For projects requiring specialized knowledge or a unique skill set for a limited time, hiring a consultant or contractor can be more sensible than expanding the permanent workforce. This approach allows companies to manage costs efficiently while still achieving high-quality outcomes.

Strategies for Consultants:

• Consulting Business Tips and Lead Generation: Independent consultants should focus on how to sell consulting services effectively, utilizing consulting lead generation strategies to attract the right clients.
• Scaling a Consulting Business: As your consulting practice grows, consider how to scale your operations to handle a larger volume of work without compromising on the quality of service or client satisfaction.

By understanding these dynamics, you can position yourself effectively in the market, ensuring that potential clients see the distinct value you bring as a consultant over traditional contracting options or full-time hires.

 

How to make the switch from contractor to independent consultant and realize your potential

Transitioning from a contractor to an independent consultant can lead to increased earnings, greater autonomy, and enhanced professional satisfaction, and the process is more straightforward than many contractors might assume.

I describe the process in Episode 098 of the Grow Your Independent Consulting Business Podcast. Click here to listen to the episode on Consulting vs. Contracting.

To summarize, here are the steps:

 

Step 1: Define Your Consulting Business Model and Offerings

The initial step in transitioning from contractor to independent consultant involves clarifying your consulting business model, service offerings, and market positioning. By defining your specific consulting niche, you differentiate yourself from generalists and become known for providing targeted solutions to your ideal client types. This clarity helps you stand out and attract clients who are looking for the specialized expertise that you offer.

As a contractor, you may have taken on a wide range of tasks to maintain a steady income. However, as an independent consultant, you have the opportunity to be more selective about the projects you accept, the pricing you agree to, and the clients you engage with. This selectivity is not only beneficial for targeting higher-value projects but also allows you to align your work with your professional strengths and interests.

Consulting Niche Development: Invest time in identifying and refining your niche—this could be an industry you are knowledgeable in or a particular type of business challenge you are adept at solving. Your niche will guide your consulting business tips and strategies, helping to position you as an expert.

How to Price Consulting Services: Develop pricing strategies that reflect the value you bring to your clients rather than the time spent. Transitioning away from hourly rates to value-based pricing or retainer models can significantly enhance your revenue streams and make your income more predictable.

Consulting Revenue Models: Consider various revenue models that could fit your consulting practice. Whether it’s project-based fees, retainers, or performance-based pricing, selecting the right model is crucial to align with your consulting niche and client expectations. This strategic approach not only supports financial stability but also aligns with the premium nature of consulting services.

By focusing on these elements—niche development, pricing strategies, and revenue models—you lay a solid foundation for a successful consulting career that not only meets your financial goals but also brings greater satisfaction and professional growth.

 

Resources to help you create your consulting offering:

• Megatutorial on how to price your consulting services: ​​How Independent Consultant Rates and Retainer Fees Work 
• Develop a consulting business plan: How To Create A Consulting Business Plan (Incl. Free Template) 
• Independent Consultant Success Stories: Consultant Success Stories
• Defining your consulting niche: Finding a Consulting Niche Step-By-Step (Incl. Free Checklist)

 

Step 2: Shift the way you think of yourself, so you’re thinking as a consultant instead of as a contractor

The next step to transition from being a contractor to being a consultant is to start thinking of yourself as an independent consultant instead of as a contractor. Adopting the consultant business owner mindset is crucial because you cannot expect potential clients to view you as a consultant if you do not see yourself as one.

Consultant vs Contractor Mindset:

• Employee vs Business Owner Lens: Contractors often view themselves through an employee lens, perhaps calculating their worth based on an hourly rate equivalent to a full-time position and seeing themselves as subordinate to their clients. In contrast, independent consultants adopt a business owner perspective, taking full responsibility for their business development, marketing, and sales. This shift in mindset changes everything from how they find potential clients to how they propose and price their work.

• Positioning and Expertise: Consultants position themselves not just as service providers but as strategic partners. This involves demonstrating consultant expertise vs contractor skills, where consultants offer specialized knowledge and strategic guidance rather than just executing assigned tasks. This strategic positioning helps consultants establish themselves as trusted advisors and impartial third parties, which is in stark contrast to contractors who often fill immediate and specific gaps.

• Marketing Strategies: The approach to marketing also differs significantly; consultant marketing focuses on establishing thought leadership and demonstrating value through case studies and success stories, whereas contractor marketing might be more about showcasing reliability and availability to take on work.

Consultant vs Contractor Pros and Cons:

• Autonomy: Consultants enjoy greater autonomy in how they manage their work and client relationships, steering projects based on outcomes rather than detailed directives.
• Control Over Business Results: Unlike contractors who may take what is offered to avoid leaving money on the table, consultants evaluate opportunities based on alignment with their business goals and the value they can deliver.

Guiding Questions to Foster the Consultant Mindset:

1. How are you currently viewing yourself in terms of contractor expectations and limitations?
2. Who are you as a consultant, and how does this role enhance your autonomy and influence with clients?
3. In what ways can you shift your marketing and client interactions to reflect your consultant positioning versus contractor positioning?

Embracing this consultant mindset and understanding these dynamics will empower you to make informed decisions that align with your long-term professional goals, ultimately leading to a more fulfilling and successful career as an independent consultant.

 

Resources to help you cultivate your consultant mindset:

• Marketing playbook for consultants: Consultant's Marketing Strategy Playbook: From Launch to Scale
• Roadmap to grow a consulting business: Grow Your Consulting Business: The 14-Step Roadmap to Make Your Independent Consulting Goals a Reality

 

Step 3: Shift the way you think about and approach your consulting clients

The way you think about your consulting clients shapes your interactions, how you establish expectations, enforce boundaries, and ultimately, how you feel during engagements—whether you shrink and react, or feel confident and lead.

Contractors typically think:

• They’re interviewing me.
• I need to explain how my experience matches what they need.
• The client should set me up for success.

Whereas independent consultants typically think:

• I offer a specific set of services that my ideal clients engage me to deliver.
• Clients view me as an independent, third party who will advise them without having an agenda or political goal.

Shifting Mindsets and Strategies:

• Consulting Client Expectations: As a consultant, it’s important to set clear expectations early on that reflect your role as an advisor and expert, not just as an implementer. This shift helps you move out of the "contractor" or staff augmentation zone.
• How to Sell Consulting Services: Selling your consulting services effectively involves demonstrating the unique value and specialized expertise you bring. This requires a deep understanding of consultant expertise versus contractor skills.
• Consulting Skills vs Contracting Skills: Emphasize your consulting skills, which typically involve problem-solving, strategic thinking, and advisory capabilities, as opposed to the more task-oriented skills of a contractor.
• Consulting Lead Generation Strategies: Develop and refine lead generation strategies that target your ideal client base, focusing on those who appreciate and require the strategic value consultants provide.

Guiding Questions to Foster the Consultant Mindset:

1. How is the way you’re thinking about your clients positioning you in the “contractor” or staff augmentation zone?
2. As a consultant, how do you view your clients and their needs in ways that differentiate from a contractor's perspective?

By internalizing these perspectives and strategies, you can more effectively position yourself in the marketplace, ensure that your interactions with clients reflect your consulting capabilities, and enhance your overall consulting practice.

 

Resources to help you pivot your business development approach:

• How to find consulting clients: How to Get Consulting Clients with this Weekly Routine
• SOP for landing consulting clients: Fill Your Consulting Pipeline in 26 Minutes Per Day

 

Step 4: Shift the way you think about your business

When you identify primarily as a contractor, you might miss crucial elements of being a business owner. Consequently, contractors often fail to define a sales process, properly position themselves, or create visibility through strategic marketing efforts, which are essential for being recognized and sought after for their expertise.

Shifting Your Mindset: To transition from a contractor to an independent consultant, it's vital to start thinking like a business owner.

• Separation of Identity: Understand that you are not your business. Recognizing the separation between you and your business allows you to objectively evaluate and strategically develop your business operations.
• Process Development: Develop and refine intentional processes for marketing, sales, and service delivery. This approach is fundamental to scaling a consulting business and ensuring sustainable growth.
• Setting Expectations and Boundaries: As an independent consultant, you will define clear expectations and boundaries with your clients, distinguishing your role as a strategic advisor rather than a temporary staff member.
• Outsourcing: Identify and delegate lower-value tasks, such as administrative duties or project management, to focus more on high-value activities that directly contribute to your consulting success.

Integrating Key Business Concepts:

• Consulting Business Model: Adopt a business model that supports the way you offer your consulting services, aligning with your unique value proposition and the specific needs of your clients.
• Consulting Revenue Models: Explore and implement various revenue models that can enhance the financial stability of your consulting practice, such as retainer fees, project-based pricing, or performance-based payments.
• Consultant Business Owner Mindset: Fully embrace the mindset of a business owner who is responsible for the overarching strategy and growth of the consultancy.
• Consulting Lead Generation Strategies: Develop effective lead generation strategies that attract the right clients and projects, emphasizing the importance of quality over quantity.

Guiding Questions to Foster Business Owner Thinking:

1. In what ways am I currently thinking about my business that might be leading to a staff augmentation result?
2. How does my future self, fully embodying the mindset of an independent consulting business owner, view my business now that I am no longer taking on staff augmentation work?

By embracing these perspectives and strategies, you can position yourself effectively in the market, ensuring that your interactions with clients reflect your capabilities as a consultant and enhance your overall business practice.

 

Resources to help you transform the approach to your consulting business:

• Roadmap to grow a consulting business: Grow Your Consulting Business: The 14-Step Roadmap to Make Your Independent Consulting Goals a Reality
• Grow your consulting business: How to Scale Your Consulting Business with a Sales Funnel

 

Step 5: Sell your consulting services

Contractors typically let the consulting buyer lead the process to engage them. Those consulting buyers, or hiring managers, most commonly treat the process like an interview for a full-time employee and you’re left explaining your background and negotiating a rate based on comparable full-time salaries. 

This is not the position you want to be in. 

Instead, as a consultant, you take the lead in helping the client understand what they want, what they need, and how the project is best approached.

Lead the process to uncover, define, and price the solutions you recommend to your consulting buyer. When you take the lead to navigate the client to clearly understand their problems and best solutions.

Resources to help you sell your consulting services:

• How to get consulting clients: How to Get Consulting Clients With This Weekly Routine 
• Consulting sales: Consulting Sales: Tips & Tools To Help You Get More Clients 
• Consulting lead generation: The Ultimate Guide to Lead Generation for Consultants  

 

Get expert help to make the switch from contractor to consultant and grow your independent consulting business

The next steps to switch from contractor to independent consultant:

1. For more on how to move out of contracting and into consulting, listen to Episode 098 of the Grow Your Independent Consulting Business Podcast. Click here to listen to the episode on Consulting vs. Contracting.

2. Get the help of an expert. You know your clients benefit from your expertise. The most successful independent consultants take their own advice and hire an expert to help them uncover their blindspots, minimize their mistakes, and make the conversion from contractor to independent consultant more quickly. Click here to learn more about Coaching for Consultants.

3. Hear from other independent consultants who have made a successful transition from contractor to independent consultant, and to growing their consulting business. Click here to listen to other independent consultants’ success stories.