The business idea for a consulting company is super simple, you sell your time to help another company or in some cases individuals with an assignment. The trick to becoming a consultant and succeeding as a self-employed person is to offer skills that are in demand by your potential clients. It is primarily the competence they pay for. See it from your future customer’s perspective for a moment, the customer has a concrete need or problem that requires a certain skill set.
What goes faster, that your customer finds, hires and trains someone, or that you bring in a consultant. The former may be the cheapest in the long run, but it will probably take longer to solve the task. When it comes down to it, consultants are really just civil servants who rent out their skills and expertise. Since it is your brain that customers pay for, no special start-up capital is really needed. The expenses are basically limited to computer, software, etc. And money for the start of the company itself if you choose a limited company, more about the choice of company form later.
Depending on how busy you are with client assignments, you may also need to spend some money on marketing your new consulting firm. Of course, there may be certain consulting operations that require more purchases, but generally a consulting company does not involve large financial commitments. Starting your own business as a consultant is perhaps the most flexible business idea. Since you will probably be doing what you already do or have done on your own, there should already be a clear market out there.
Often you can also combine your consulting activities with employment, which can be important at the beginning when you haven’t signed a huge number of clients yet. Just remember to check this with your employer so that it is OK. And you know! In many cases, you don’t even need to start your own business to become a consultant. Consultancy is ideally suited for the self-employed, i.e.
Where you invoice without your own company. Consulting companies can be turned into agencies with fairly simple means, and often you immediately feel when the jobs become too many and you yourself do not have time to do everything you could have undertaken. If you want to scale up the company, it’s basically just hiring more people like you. Do you instead want to broaden your business and offer consulting services in more areas then you instead look for skills that complement yours.