Consulting business - thoughts?

[Pete799p]

The other thing about consulting is that it can be a very high margin low overhead business. Therefore it can be a great place to start for those with more time then money etc. or as mentioned above a great way to get out of a job and still bring in income, often with a significant pay raise. Plus there are always tons of opportunities that can arise while consulting. Working in an industry and solving problems should provide you ample new business ideas and the industry connections to quickly validate it and take it to the market.

Sometimes its not about doing the fastestlane thing all the time but doing something. Especially something that you can build on that will take you closer to where you want to go. Plus, I dont know about all of you but if I was trading my time for $500k or $1mil+ per year it wouldnt take long for me to hit the fastlane and yes I know many "slowlane" consultants making several million a year.

 

[Andy Black]

As others have said, consulting is a good way of getting to know (finding?) your market better, and maybe earn more doing so.

Keep your eyes and ears open. As a consultant helping a business, you have a great opportunity to find pain points. You'll grow your network. You'll find clients who might want ongoing services/products that you can deliver fastlane style.

Check these two podcasts out:
www.tropicalmba.com/consulting
www.tropicalmba.com/services

They recommend the following order:
1) Learn a skill
2) Sell the skill
3) Scale the skill

Try different models of using your skill to deliver value.

Get burnt, and burnt out.

Iterate from your learnings.

That's my circular route so far out of the consulting/freelancing/contracting lane.

Good luck!

 

[Mr.B]

Thanks. Do you think there's anyway you can adapt your consulting business (using your current network of clients, or your brand), and use it as platform to create something more automated? For example generating content to a niche of clients, charging a membership, or maybe creating software that through your experience you know will generate value for the audience you are used to serve..

I wonder if consulting is kind of a 1st step for me to confidently leave my job (where I currently make good money, so I need to have some level of certainty before leaving), and then I can adapt the business to something more fastlane..

Consulting can be a good way to transition from working a J.O.B. to creating a fastlane business. In my case, consulting has allowed me to earn more than double the money I used to make in less than half the time I used to work as an employee. This then gives me more time and money to work on my other business ideas, spend time with my family and enjoy life...

If you are looking for ways to adapt a consulting business to something more automated, you may find this workshop on productizing your consulting interesting (here is the supporting presentation if you want a quick overview). Note that this workshop is partially a sales pitch for a paid course, but I think you'll still find it interesting.

 

[Ranger81]

Thanks. Do you think there's anyway you can adapt your consulting business (using your current network of clients, or your brand), and use it as platform to create something more automated? For example generating content to a niche of clients, charging a membership, or maybe creating software that through your experience you know will generate value for the audience you are used to serve..

I wonder if consulting is kind of a 1st step for me to confidently leave my job (where I currently make good money, so I need to have some level of certainty before leaving), and then I can adapt the business to something more fastlane..

Not directly, no. My clients are big companies that need my knowledge and services in projects with 20 and up to 100 people in them to get a product from one point to another. They pay me to lead other people, transfer knowledge (so yes, that part I could make something for and sell many times), and coordinate when issues arise.

This also means that I could hire someone to do basically the same job but for just a bit less money than what I charge my customer. The problem is that we are in big demand and the biggest companies pay top dollars for people like us now, and have been for the past 6-8 years. In addition, that will not be fastlane either as I would just have to get my people job and run a "people-company".

Regarding the part with the security you need to leave your job (I did exactly that in 2008) I called and visited potential clients. This resulted in that I finally got hired by a big company for 6 months. 1 week after I signed the contract, I delivered my letter of resignation to my employer at the time. I would not have done this without something else to go to.
You should keep calling, asking for leads, call «consultant brokers» that make a living from taking x% of the fee from people like you when they get you a job. That is my top advice to start a consultant business.

But as others have pointed out, it's good money and I see it as seed capital for other ventures. It's not "impossible" to make a consultant business fastlane. It just requires you to not be a "regular" consultant - but think a lot more outside the box.

Good luck!

 

[Wal-Mart Vendor]

I have been a consultant for 20 years and can say it's more of a slow lane thing. You are your business and people will depend on you for "you". As you build clients you build trust and friendships so expanding has it's limits. You can only do so many things in one day. If you do hire people and expand then it becomes tricky because there are very few people who really care enough to worry more about pleasing the client then making a quick buck. Just saying...

 

[OscarDeuce]

I'm a consultant, and a successful one. I service a very specific niche and my clients are typically companies rather than individuals. That said, I still trade hours for dollars, just at a higher level than most. I'm in demand, but my business is built on my skills which, while probably not unique to me, are scarce. So, I can't really scale. That is one of the reasons I'm here - to break out of that trap!

Best,
O-2

 

[Mr.B]

Well I am also a business man,and as far as I know, all of the companies that registered with this kind of service have no complain about their business failed. So for me its an advantage if you build your business with them.

I am also a business man, and as far as I know, all of the companies that are based within a block of Starbucks have not failed. Therefore, if you really want to have a successful business, you must rent an office within a block of Starbucks.

 

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[Vigilante]

The consulting gigs I have done are harder than a lot of other cash flow mechanisms, because as a consultant I was expected to be the smartest person in the room.

 

[Ninjakid]

A consulting business ... teaching personal finance ...?

Sounds slowlane to me.

Dude consulting business is totally fastlane. Some firms end up being worth millions and millions.

Not only that, but there is A LOT of demand for consulting.

I don't know much about the business, but here's an article that could help you out.
http://www.entrepreneur.com/article/41384

The concept of consulting is rather vague, so there's many many ways you could approach it.

 

[Esquire]

Dude consulting business is totally fastlane. Some firms end up being worth millions and millions.

Not only that, but there is A LOT of demand for consulting.

That's like saying ... "Dude ... selling hambugers is totally fastlane. McDonalds has sold billions of em. There is a LOT of demand for hamburgers. "

I don't think so.

9 times out of 10 ... "consultant" ... is just a polite way of saying "unemployed."

That is what comes to mind when someone tells me they are a consultant.

Opinions are like assholes. Everyone's got one. But very few people can make a living "giving advice."

MJ (for example) ... could be a legitimate consultant. MJ is a best selling author ... and a self made deca-millionaire. MJ has credibility.

What's the OP's claim to fame ...? Why would I give him $10 for an hour of his advice ...?

Answer: I wouldn't. He'd have to come down in price another $9.95 before I'd even consider it.

If anything ... I'd likely charge HIM for taking the time to listen.

Absent a track record of accomplishment that makes my jaw hit the ground ... I see no future (or demand) for sharing your opinion. Slowlane with a capital S.

 

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[Ranger81]

I've been a "consultant" for 8 years. And I'm sick of it. It's slowlane. I'm trading my time for money. Even though I make quite good money on the business - I don't get anything if I don't show up. I'm dedicated to go fastlane and using this business to invest in my fastlane adventures. I'd suggest you do the same.

 

[OscarDeuce]

Ddkalfa,

As others have hinted, a consulting business can be a stepping stone to other business opportunities. That's what I am doing. Because my consulting business provides me with more than enough income to meet my lifestyle needs, I am channeling the excess into another business opportunity that, were I working a job, I wouldn't have the capital to pursue.

Cheers,
O-2

 

[Flora]

It depends on how you work with your consulting business. Go visit Alan Weiss's website http://www.alanweiss.com/about-alan-weiss/. Look at how he has packaged his process and who he circles around him. Study it and read his book the Consultant's Bible and that will get your mind working on the path of charging value based pricing instead of trading time for money. I do value based pricing for my clients and they love it.

 

[Kinsey6287]

I think a decent way to make consulting a fastlane business would be to first, get your name out there and build credibility (this would be a time for money exchange) and then when you have a decent client base that all have the same goals and are striving to excel in the same market, you set up a web conference. You are sitting in your office, on a webcam and giving a lecture on a topic while adding value to multiple clients all at the same time.

You could still have time for question/answers and also if any client wanted to schedule direct one-on-one sessions with you, then you could schedule another tele-conference or video conference with them...

This way you get multiples of $ for your time while adding value to a wider range of clients all at the same time. Then opening a venue for further discussions and furthering your business.

This may not be "fastlane" in the idea of a totally passive income, but after building even more credibility you could then build online self paced courses for your market or industry and have the client pay to attend the course from your website. For the aviation industry an example of one of these courses could be something along the lines of "Dealing with the Defense Logistics Agency".

This would then be passive and fastlane.

 

[Pete799p]

Being a consultant is a tough racket.
What have you been so GOOD at that your time is worth so much?
They are INVESTING in you... Not paying you.

Since you are employed in the field may I suggest you plan a way of demonstrating your expertise.
How would you go about doing that??

Consulting can be a very tough gig to get into as you eluded to. People need to know you are that GOOD to invest in you. Things like establishing a track record and gaining credibility in a market place can be a long hard process.

That being said building a successful consulting business is often more sales then anything else. In order to make it you need to get out into the market place and start meeting with prospective clients. This takes sales skills. Then once you meet them you need to sell them on why you are that good, also sales. It is only after you have succeeded in selling that you are able to go to work. Once your track record is establish many enjoy frequent referrals or repeat business but it seems that getting start is very much a sales business. This might be different for other industries I am unfamiliar with and I am sure there are other ways to acquire business through marketing etc. but at the end of the day it seems that most client centric businesses are sales oriented.

 

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[J. van Driessen]

I have quit my job just a few weeks ago, and I'm now a consultant (Salesforce consulting). The consulting firm I was working for has hired me back in as a subcontractor. I now have work guaranteed for the next 5 months and make more than 10.000 euro per month that I'm staffed.
It's still trading time for money, so I wouldn't consider it fastlane.
However, you can do like me and do this to finance the fastlane business you're building on the side. My plan is to try to get my fastlane business to the highest point possible while consulting, then try it full time. If it doesn't work out, I can still pay myself a wage for quite a while from the consulting work done before, and when the money runs dry I'll just take up another consulting gig for a while.

 

[OscarDeuce]

I have been a consultant for 20 years and can say it's more of a slow lane thing. You are your business and people will depend on you for "you". As you build clients you build trust and friendships so expanding has it's limits. You can only do so many things in one day. If you do hire people and expand then it becomes tricky because there are very few people who really care enough to worry more about pleasing the client then making a quick buck. Just saying...

You are correct. Not long ago, a client approached me about a project. The client asked if I could do it. My truthful answer was "yes, but I have an associate who is much better suited to this task than I am," and I proceeded to rattle off the gentleman's outstanding qualifications, not the least of which was he is married to the former CIO of the organization my client wanted to sell IT services to. The client's CEO interrupted and said something to the effect "I'm sure he's very capable, but I would prefer you."

If I have to do everything, it's impossible to scale beyond my physical abilities.

Cheers,
O-2

 

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[Kingsta]

What makes you better than all the other consultants? What have you done that's so great? Are you an expert in your field?

The problem is, most people think becoming a consultant is easy money and it is...if you're the best at what you do. I have consultants for my business that get paid in excess of 3 and in some cases 4 figures AN HOUR. I'm into finance and so the advice and help benefits my business 10-20 fold but what you have to remember is that I am paying these guys so much money because I'm expecting/I know they are the best at what they do and they can command that much money because of that.

The opportunity to make a huge amount of money is there but its a lot of hard work, also I don't know if you can consider it fastlane because a lot of my consultants/advisor are a lot older, I'm assuming this is how they became experts in X field. Also I'd never hire a business consultant if they hadn't created a business that generated at least a million revenue, which nowadays isn't even that great, but I'm feeling kind.

 

[Norm]

I am currently building an online consulting business.

I have included a recurring income into the business with "online services" which is all outsourced which I charged a premium markup on it.
I have services ranging from 197-1997 per month/

Plus in addition I am paid for my consulting which has a retainer component if I find a business which is large enough to retain my services on a monthly basis.

My service is not rocket science, but it is a need in the market. If you find a need or pain you have an awesome business.

I cant wait to begin scaling the business, but right now I am loving been in the trenches of building it.

 

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[JosephSr]

New to the forum, however I must concur with Wal-Mart Vendor. I have, and continue to work as an Engineering Consultant. Although my income is 6 figures, there are several problems in this type of business model...

1. Tied to my time.
2. Scale ability is limited.
3. Does not serve the masses.

IMHO, based upon 10 years in the trenches, I intend to continue the consulting route, because it does generate fair cash flow (better than flipping burgers etc) only until I can exit the slow lane with a business model that qualifies on multiple levels as fast lane.

In your case, using an online model, with outsourcing may work well... I wish you the best.

 

[Andy Black]

Joseph,

With all your years of experience, and trusted position with your clients, are you able to see problems that they have that outsiders can't?

Can you use all your current skills, experience, and network as an "unfair advantage" over competutors who might try and sell a solution to these businesses?

 

[JosephSr]

Andy,

good thinking!

Using the tactics you mention above, I have been able increase my gross significantly over industry averages, but I am looking for much larger numbers. The problem is that most manufacturing companies rely on 4 primary supplier lines. 1. Raw materials (commodities) with low margins. 2. Labor (very low margins) 3. Engineering (best margins) and 4. Machinery purchases (good margins).

I currently supply my clients with 3 and 4. I am not too far away from maxing out those two items, and like I said, that is going to max out well below my goal, which is why I am looking at other options.

Thank you for the input!

 

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[16thCylinder]

The big money in consulting is being made by those using automation throughout most of the process, from lead gen to the actual consulting work.

Something like this:

highly targeted Facebook ads ==>
Landing Page with opt-in form ==> High Converting Value-Packed Automated Webinar which over-delivers ==> Offer of Free Strategy Session at end of webinar with form for entering suitable date/time ==> Upsell to Full Consultancy service.

The actual training is in a membership area, usually videos. Around 80% of the training is relevant to all members. Once a week a live Q&A session is held to personally work with members to cover the remaining 20%. Email help is available all the time.

This strategy is a proven force-multiplier and allows the consultant to work on marketing the business instead of being the business.

 

[Mr.B]

If you are good at what you do, anything is possible, especially if you productize your services.

Just keep in mind that those who need help with personal finances are less likely to have money to spend.

I think you probably should spend some more time thinking this through. Have you read TMF ?

 

[Mr.B]

Thanks for the answer. I actually happen to know quite a number of well-off people that struggle to manage their money (doctors, marketeers, lawyers, etc) and seem quite interested in learning how to better invest/take control of their finances.

Yeah, I also know quite a lot of well off people who struggle to manage their money. Just because they are doctors or lawyers or whatever doesn't necessarily mean that they have money to spend on personal finance consulting.

As I'm sure you know there is a lot more to money management than the acquisition of knowledge. It's about changing habits, changing mindset and managing emotional states as much as it is knowing that you should spend less than you earn and invest the difference. How can you help people address the issue on all of these levels? I think to turn a personal finance consultancy into a fastlane business, you'd want to approach it from a different angle.

All the best.

 

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[Esquire]

A consulting business ... teaching personal finance ...?

Sounds slowlane to me.

 

[Daniel M.]

If in a long term you can build up an automatized system which doesn't need your implication in order to make money then we can talk about Fastlane ... If the time you stop working the money stops coming it is definitely Slowlane .

Maybe there is a demand but you have to decide if you want to do this seriously and you have to have a long term goal, you have to know what you want to achieve.

You could also start this activity in order to make money for other businesses. If this is what you are good at, it definitely worth a try.

 

[Tommy Venable]

IMO. Read the 5 Commandments here on The Fastlane Forum. You may be able to answer your own question with confidence whether your venture is a slowlane or fastlane.

 

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[ddkalfa]

As was said before, if you're trading time for money, then it's not an ideal fastlane business.
However, if you - for example - hired someone to teach those group classes for you while you build your following, then branched out to other cities, maybe even turned it into a franchise, then why not? It all depends on the angle.
It probably helps to finish reading the book first.

Hi, yes that is kind of the idea on the mid-term. I'm currently well employed in the finance sector, and for me consulting seems a fastlane compared to a 9-6 job I have today, however I can see how the fact that trading hours for money is still slowlane.

But you are right, the idea would be to scale up the classes thing and using it as platform to generating a network of potential clients of the consulting business.

Thanks!

 

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[MVDH]

Consulting is a lucrative way of generating live long customers for ventures that are attached to your consulting business.. E.g. I consulting in the digital marketing field.. I consult with them.. sometimes for months.. then lead them into my team of people that service the digital marketing needs...

 

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