How to Be an Independent Consultant

Editor's Note: Take a look at our featured best practice, Organization Design Toolkit (103-slide PowerPoint presentation). Recent McKinsey research surveyed a large set of global executives and suggests that many companies, these days, are in a nearly permanent state of organizational flux. A rise in efforts in Organizational Design is attributed to the accelerating pace of structural change generated by market [read more]

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Many professionals have full-time jobs, while others are into freelancing or consultancy. If you want to get away from the confines of a 9-5 job, being an independent consultant is an ideal option for you. Being your own boss is undoubtedly a great idea. You can work at your own pace without having an employer to answer to.

What is the role of consultants? Consultants provide services to help other people solve their problems. A business owner may seek consultancy services to generate more income or see faster growth. A consultant is valuable since he or she can look at the business from a different perspective and can analyze it more effectively. With expertise and knowledge, he or she will be able to see essential aspects that the business owner fails to see, given his or her attachment to the company.

Being a consultant brings freedom and convenience that a typical office worker does not have. However, as with any other business in any industry, starting a consulting company is never easy. Before you can cash that six-figure paycheck you’ve been dreaming of and maintain client list, you need to exert a lot of effort, patience, discipline, and hard work. It surely is no walk in the park, but the rewards can be significant.

There are several ways to become a successful independent consultant, and attract big clients. And in this digital age, you have access to relevant information or courses that will help you realize your career goals. Take a look at these tips that will help you on your journey towards owning a consultancy firm:

• Know your area of expertise. The world of consultancy encompasses different categories that you can specialize in. By choosing your niche, you can establish your reputation as an expert and promote your services to your target market. Concentrating on one category in the industry likewise calls for higher rates, so it’s beneficial to specialize in one area. There are different niches to choose from but to make the selection process easier, identify what you are interested in and passionate about. Assessing your experience, knowledge, and skills will also help you determine which area to focus on.

• Know and understand what your target market needs. Clients seek professional help from consultants to address a need. If you do not know what their possible needs are, how can you promote your services and be known as an expert in your industry? There’s no way you’ll be able to keep your consultancy business running without knowing the reasons clients are looking for a consultant like you. One of the things to help you stay relevant with your audience is to keep up-to-date on what’s happening in the industry and your area of expertise. Go through various community websites and read related articles. Have a meeting with your potential clients to assess his or her requirements. Gather as much information as you can to help you provide the best service for the client.

• Decide on your value proposition. Once you’ve determined your target market and the possible needs of your clients, you need to define your value proposition. It’s a statement that gives an overview of what you offer and why potential customers should hire you. There are so many independent consultants out there – so what value can you bring to the table? Keep in mind that unlike major consultancy companies that have the manpower and resources to promote their services and make a mark in the industry, independent consultants do not have the reputation yet to attract major clients. But you can easily promote your services if you clearly identify your main selling point. First of all, showcase your knowledge and skills. Customize your message in a way that your target audience will easily understand what message you’re trying to convey.

• Carry the right insurance. Just like any other business, regardless of industry, starting and running a consultancy business is no easy task. There are many factors to take into account, not to mention the amount of time and effort that goes into making sure that your company will stay afloat. Purchasing insurance may be the last thing on your mind, but it’s one of the key ways to ensure that your business will run smoothly even if an accident happens. If you want to grow your company, carrying the right insurance is crucial as it will protect you against substantial financial losses due to claims from third parties.

There are different types of insurance to take into account, but in your line of business, one of the first things to look into is Professional Liability insurance. This is designed to cover those who provide consultancy or professional services. What if you give a client some professional advice and it resulted in a financial loss on the part of the client? Professional Liability insurance will take care of the legal fees and other expenses if that client files a claim.

Another type of insurance that you should consider is General Liability insurance. It protects your business against financial losses due to claims associated with bodily injury,or property damage.

If you want to save some cash, you can opt for a Business Owners Policy. This is a combination package of General Liability insurance and Commercial Property insurance. It will be less expensive than if you purchase each policy separately.

Meeting with clients can mean driving your vehicle to and from their office. In case of an accident, Commercial Auto insurance will protect your business from losing a lot of money.

These are just some of the things to consider if you want to be an independent consultant. Success relies on your ability to understand your clients’ needs and come up with solutions to solve their problems. It takes a lot of hard work and discipline to stay on top of your field but over time, you’ll be able to reap the benefits of what you do and at the same time, be a valuable instrument to resolving other people’s business woes

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