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Starting A Consultancy Business

Posted by admin on October 15, 2011 in Start A Business |

By T. Ciarfalio

Entreprenuer.com has published their top three strategies for starting a consulting business in their online posting dated September 2, 2011.

It’s a lucrative proposition. According to a 2007 Harvard Business school analysis, the U.S. consulting industry generates nearly $100 billion dollars in revenues each year. Depending on your industry and location, you can earn as much as $400 per hour.

Your earnings will come as a direct result of your mastery of two of the most fundamental values in business: your reputation and relationships. Not surprisingly, these characteristics are at the heart of the following business building strategies.

1. Establish your reputation before establishing your business.

Whether you’re planning a consulting start-up in your current industry or a new one, it’s critical to make yourself known as an expert. If you’ll be staying in the same field, plan how to turn contacts into customers by delivering value-added service in every transaction. If you’ll be changing fields, consider volunteering your time in a non-profit or as a teacher or seminar leader to establish credibility. In addition, use the Internet to publish a blog and engage in social media on your topic. Give and give generously of your knowledge. It will repay you a thousand times over.

2. Build your business through partnerships

Be aware that name recognition can be even more important than expertise depending on your field. Is that’s the case for you, consider building your business through a strategic partnership with a firm that does similar but non-competing work. This kind of approach will connect you with clients you might not have had access to on your own. In addition, you’ll be able too refine your services with the benefit of collaboration.

3. Differentiate your services

Your unique personality – your energy, enthusiasm, and expertise – will get you 50% of the way toward differentiation. The other 50% has to come from a commitment to providing something unique. It may be the niche you occupy, a unique method of communication, your own training methodology, or a combination of all three. What’s important, is to avoid the “me too” approach to consulting.

A final world of advice: Start calling yourself a consultant now. Not a contractor, not a free-lancer – not if you want to establish a successful business. You’re a consultant with a unique value-added proposition, an excellent network of relationships, and a superior reputation. Think it, and it will become so.

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