Business Overview

Business consultants provide a necessary service to startup businesses and entrepreneurs. They help the business get off to a good start by providing the know-how and resources necessary for success. A business consultant usually retains a book of clients and may limit his or her business to just several hundred (or fewer) businesses or entrepreneurs.

Who is this business right for?

This business is perfect for seasoned business owners or upper level managers who are looking for a career change. A business consulting firm must be experienced in business management, marketing, and team building and management. They must also understand how to generate revenue from a wide range of businesses and expand existing streams of income.

What happens during a typical day at a business consulting firm?

Day-to-day activities of a business consultant include meeting with clients in person, via video conferencing application or services, and making recommendations to their clients. Most business consultants spend a majority of their day building business plans for clients and giving advice.

Scheduling and project management is a major part of the job also. Companies that provide business consulting need to be able to coordinate multiple schedules, since even small businesses can have several officers who need to be present for all meetings.

What is the target market?

A business consultant firm makes money by charging a fee for advice or for business plan construction. This fee can be either a flat fee, hourly fee, or a revenue-share fee.

How does a business consulting firm make money?

Preferred customers and clients are large corporate clients who can serve as “anchor clients.” These clients have deep pockets and a need for ongoing consulting. The hardest type of clients to keep are those that have little to no resources.

What is the growth potential for a business consulting firm?

Consulting firms are usually small, due to the nature of the business. This is not an industry that scales very well since the business owner is usually the one with the expertise required to make the business run. With that said, some consulting firms expand by hiring additional talent — managers or business owners who want to join the firm and take on clients.

The business owner may move into a managerial position or continue meeting with clients under this scenario.

Typically, a larger firm employs several consultants. If only one consultant exists (the founder), then the business expands by hiring support staff, including bookkeeping and accounting, HR, managers to oversee business operations, a CFO to manage the finances, and assistants to coordinate schedules.