People come to you for advice, ask for your help, and trust your ideas. Deep down, you know you could turn that knowledge into a real business, but you’re not sure where to start.
Let’s dive into how to turn your skills into income, your experience into value, and your confidence into action.
The TL;DR About Starting a Consulting Business
- Pick a niche: Focus on solving one specific problem for a target group
- Set up the basics: Choose your business plan and structure
- Build your brand reputation: Create a solid online presence before selling
- Develop a pricing strategy: Build packages based on the value you offer
- Protect your passion: Choose consultant insurance that protects your hustle
What You Actually Need to Start Your Consulting Business
You don’t need a slick website, a perfect logo, or a stack of business cards to start a consulting business. What you actually need is to stop overthinking and start taking action. Most aspiring consultants don’t get stuck because they don’t know enough. They get stuck because they doubt themselves.
But here’s the truth: no one feels ready at the start. You just need to be clear on what you help people with and confident enough to say, “I can help with that.” What matters most is knowing what problem you solve, who you help, and why it solves a real problem.
Find Your Starting Point: 3 Types of New Consultants
No two consulting businesses start the same way. Some leave long careers to go out on their own. Some try it as a side job while keeping their full-time work. Others begin by offering help informally and then realize they’re already doing the work of a consultant.
Knowing where you are right now will help you take the right next step. Here are three common starting points. Which one sounds like you?
| Consultant Type | Who You Are | What to Focus On |
|---|---|---|
|
The Corporate Escapee |
A seasoned professional looking to break free from the corporate grind. You have experience, industry knowledge, and a network to lean on. |
Base your offer on real experience and solutions, not your job title. Leverage your network for warm leads and referrals, and start with high-value, project-based work instead of low-fee hourly gigs. |
|
The Side Hustler |
Still working full-time, but testing the waters. |
Keep it simple. Offer services that fit your schedule. Use automation tools and stay mindful of employment agreements. |
|
The Accidental Consultant |
Helping people informally – and now realizing it could be a real business. |
Clarify your service. Collect testimonials. Create a booking / payment system and begin offering paid help. |
How to Start a Business Consulting Firm From Scratch
1. Define a Consulting Niche You Can Own
Trying to help “everyone” is the fastest way to burn out. If you want to get paid consistently, focus on solving one clear problem for a specific group.
Look at your past work experience. What problems did you solve? Who did you help? What skills do people keep asking you about? Thinking through the types of consulting you’ve already done, even informally, helps you pinpoint where you’re most valuable.
Examples of niches:
- Human Resources (HR) compliance for small teams
- Onboarding systems for early-stage software as a service (SaaS) startups
- Operations planning for digital marketing agencies
2. Build a Solid Business Foundation
Don’t overcomplicate the setup. You only need a few things to legally and professionally start offering your services.
Start with the basics:
- Choose a business structure (limited liability company [LLC] or sole proprietorship).
- Choose your business name and register it through your Secretary of State’s website or local county clerk’s office.
- Get consulting business insurance and simple contracts.
- Set up basic tools (email, payment processor, e-signature, calendar).
You should also create a simple business plan: You don’t need a 50-page document. Just answer a few key questions:
- Who do you help?
- What problem do you solve?
- How will you deliver your services?
- How much do you need to charge to make a profit?
- What are your goals for the first 6 to 12 months?
3. Build an Online Presence Before You Sell
Clients hire you for your services based on trust. Before pitching your services, create a brand that shows who you are and what you offer.
Start with:
- A simple homepage that clearly explains what you offer
- A LinkedIn profile that shows your background and includes a clear call to action (CTA)
- A starter portfolio with case studies, testimonials, or examples of your work (even if they’re from past jobs or unpaid projects)
Then, add some social proof:
- Share insights on social media (most consultants thrive on LinkedIn or Instagram)
- Post helpful guides or client wins (with permission)
Real-world examples:
- Jody Moore’s coaching site: Simple, focused, and action-driven
- Consulting Success’ landing page: Clear CTA, trust signals, and niche messaging
4. Develop Your First Client Game Plan (Without Cold DM Spam)
Getting your first client doesn’t require cold-pitching strangers. Start with people who already know you, follow your work, or trust your judgment.
Here’s how to approach it:
- Reach out to former coworkers, clients, or contacts and let them know what you’re doing
- Offer a low-risk way to try working with you (like a short audit or paid consultation)
- Ask for referrals or introductions after a successful result
5. Build Offers That Sell and Price Them Right
Charging by the hour limits your income and undervalues your work. Clients care more about fixing a problem than about how long it takes. Focus on offers that solve a clear problem and produce a specific result.
Try the audit → strategy → implementation model:
| Phase | What It Includes |
|---|---|
|
Audit |
A review of a client’s current strategy, system, or operations (like their onboarding flow, org chart, or KPIs). |
|
Strategy |
A personalized plan: what to fix, how to fix it, and why |
|
Implementation |
Helping the client do the work – hands-on support, training, or managing a rollout |
And instead of estimating rates, research your niche:
- Look at competitors’ pricing on LinkedIn, freelancing sites, or Clarity.fm
- Survey potential clients on their budget
- Factor in your time, the value of the result, and industry averages
Pro Tip: Start with smaller offers like audits and strategy sessions. They’re easier to manage and still give clients real value while you figure out what works best. You can always add services later as you grow.
6. Scale Your Consulting Service Into a Business
Once you’ve delivered results and built a few client relationships, you’re ready to grow.
Ways to scale without burning out:
- Offer monthly retainers to existing clients
- Create systems for onboarding and offboarding clients
- Move from 1:1 work to group sessions or packaged services
- Turn your methods into intellectual property (IP), like templates, toolkits, or online courses
Don’t rush to scale. Nail your offer and delivery first. A repeatable system beats rapid growth every time.
Protect Your Business Before You Land Your First Client
Clients trust professionals who carry insurance, and many require it before signing a contract. Consultant insurance gives you a safety net to take on work confidently, knowing you’re protected if something goes wrong.
Insurance Canopy helps you check that box fast. Coverage starts at $21 a month and includes what most consultants need, like professional liability and a Certificate of Insurance (COI) you can use immediately.
FAQs About Starting A Consulting Business
Do I need a license or certification to start consulting?
No, you don’t need a formal license to become a consultant unless you’re working in a regulated industry like finance, legal, or healthcare.
Can I start while working a full-time job?
Yes, you can start while working a full-time job. Many consultants start as side hustles.
Review your current employment contract to avoid any conflicts. Some companies have non-compete or moonlighting clauses.
How much should I charge as a beginner?
Most beginners charge around $85 per hour on average, with rates ranging from $45 to $150 per hour, but pricing by the hour can limit your income.
A better approach is to offer fixed-price packages based on the result you’re delivering.
What's the difference between a consulting service and a consulting firm?
A consulting service is typically a solo setup, with you offering your knowledge and skills directly.
A consulting firm usually means a larger or multi-person business with a brand, a team, or subcontractors.
What tools do I need to get started?
To get started, you only need a few basics:
- A simple website
- A LinkedIn profile
- Social media profiles
- A calendar tool to book calls
- An invoicing tool to get paid
- A business email
