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What Is A Contract Job? Things To Consider Before Accepting An Offer

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Nowadays, chances are, if you ask someone what they do for a living, they might answer that they’re a freelancer or a contractor. But what does that even mean? What is a contract job? How do you get a contract job, and what is the difference between working as an independent contractor and working for an agency? Once you do figure out what a contract job is, you then have to decide if a contract job is right for you and in what format. Below we’ve provided information to those questions and hope you find it useful as you decide if a contract job is for you. 

What Is A Contract Job?

A contract job is a job you work for a specified length of time. This differs from being directly hired by an employer. When you’re hired directly by the employer, your pay comes from the employer, and you’re considered a permanent hire. You would get benefits and all the perks that go with being a regular employee. When you work a contract job, your pay comes from an agency, or directly to you if you’re an independent contractor. That means you would have to pay your own taxes and medical insurance.

You can also think about what is a contract job by thinking of a contract job where the job, most likely, is not permanent. Sometimes companies will hire employees from a contracting, or temporary, agency for several reasons. A spot might need to be filled while someone is out for a medical issue or on maternity leave. Retailers might hire many contractors during busy times like during the holidays. When the contractor is a freelancer, someone might hire them to complete a specific job.

Types Of Contract Jobs

Now that you have examples of what is a contract job, we want to give you some realistic types of contract jobs. Movies often portray contractors as people who work in construction in some fashion. Today, a contract job can be almost anything and for any service. Some popular contract jobs include:

  • Clerical Work
  • Warehouse Worker
  • Assembly Worker
  • Adjunct Professors
  • Nursing Pools
  • Content Writers
  • Virtual Assistant

If you have the skills, you can find contract work if you know where to look, what to look for in an agency, or how to find contract jobs for independent contractors. There are several ways to go about getting a contract job, but you also have to decide if you want to be an independent contractor or go through a contract agency.

How To Get A Contract Job

The most common way to get a contract job is to sign up with a job agency. There are different contract job agencies depending on what type of work you’re looking for. There are agencies that only have contract jobs for skilled and manual labor. Some contract agencies work with job seekers who do office work or have administrative skills. To get a contract job with a contract job agency, you usually have to submit a resume, go in for an interview, and sometimes do some type of skills test.

The skills test are specific to the industry you are looking to get a contract in. For example, if you’re looking for clerical work, you might have to take a typing test, a computer aptitude test, and a math test. If you’re looking for work in a manufacturing or warehouse position, an agency might require you to prove you have forklift certification or experience using software such as SAP. Just as with a regular hire type of job, there could be a background check and a drug test.

When you’re an independent job contractor, you usually have a portfolio, that is specific to your industry. Artists include examples of their work, and content writers do the same. Architects might have pictures of buildings they’ve worked on. Independent contractors can go through a contract job agency, or they can make a direct bid or application to the hiring company.

Independent Versus Agency

So, there’s the basic information you need to know what is a contract job. But how about the differences between getting the contract job through an agency versus being an independent contractor? Take a look below to help you decide which type of contract option will work best for you.

Independent

  • You’re only contracted for one specific job
  • You decide the rate of pay
  • The contract is between you and the employer

Contract Job Agency

  • There’s a contract between the company and the agency and between the agency and you
  • The agency decides the rate of pay
  • This could be a temp to hire position where you would have the same duties as a regular employee
  • You might have to get agency approval for overtime, and it might be the agency that decides if you work holidays

Understanding the differences in the types of contract jobs can help you look at the pro and cons of a contract job. Whether you become an independent contractor or to use a contract job agency, there are pros and cons to both.

Pros And Cons Of A Contract Job

Every job has pros and cons, and contract jobs are no different. What is different is what is considered a pro and what is considered a con. When you search for a job, there are things you are looking for besides the rate of pay. You might want to work in a certain location based on where you live or where you want to live. You might value the amount of vacation time more how good the medical coverage is.

Other things that job seekers look at are job longevity and what the office or corporate culture is like. These things take on a different meaning when you have a contract job and whether that contract job is with an agency or as an independent contractor. When you have a contract job, some of these things may not matter. You might already have insurance through a spouse and are just looking to make extra money for a specific purpose.

You need to be careful when you take a contracted job. Make sure you are clear on who you report to, when you get paid, and whether this is a temp-to-hire job or just a job for a short period. A temp-to-hire job is one where your employer is the agency, and the company is trying you before they decide on whether to hire you on as a regular employee or not.

When you work for an agency, often regular employees know that and might be slow to incorporate you into their group or the company culture. They might see you as temporary. That can also be the same when you’re an independent contractor. You are only there for the duration of the project. Having vacation time or medical benefits might not be that important to you.

Pros

  • You can find out if a particular industry, or employer, is right for you
  • Most contracting agencies pay every week
  • You get experience to add to your resume
  • If you are recently unemployed, most agencies can find you something rather quickly

Cons

  • There is no guarantee of how long the job will last
  • If you refuse a job, the agency finds for you, they may not want to work with you
  • As an independent contractor, you are responsible for paying your own state and federal taxes
  • You might not be as included in office functions as a regular employee would be

Having a contracted job is not for everyone. Some people need a steady job, with regular pay; others enjoy moving from job to job and constantly learning new skills. What matters is figuring out if a contracted job is right for you.

Conclusion

There is a lot of misinformation about contract jobs. Some think people who work contract jobs are too lazy to find a real job or are afraid of the commitment that a real job requires. A contract job is definitely a real job. Whether you find the work through an agency or as an independent contractor, there is a job that needs to be done. The only difference between a direct hire and a contract job is who the contract is with.

There are several reasons people take contract jobs. Some people time their yearly work to match their children’s school schedule to avoid having the cost of daycare after school and in the summer. Other people don’t need benefits but need extra income. There are also those who turn to contracted jobs when they are in between jobs to have an income.

Remember, use caution when entering into a contract job. Make sure you understand the terms and length of the contract. If you are going the independent contract job route, do not forget to set aside some of each paycheck for taxes. Keep in mind your financial needs and if you are trying to find a career or you’re just looking for job experience. In both instances, a contract job might get you where you want to be.

Tap Into Your Purpose and Earning Potential By Starting a Consulting Business Today

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The gig economy is gaining momentum as more and more Americans figure out that they don’t have to spend their lives working 9 to 5 for someone else.

In fact, some people estimate that by 2020, 43 percent of people will work as a freelancer. And that includes those who start a consulting business.

But before you take the leap, you need to learn about the basics of starting a consulting business.

In other words:

To have the best chance of success, you need to do some research, plan for your business, and start out the right way.

Let’s get started, shall we?

What Is a Consulting Business?

A consulting business is a place people go to get answers to their problems. That’s why many people call consultants problem solvers.

Here’s an example:

A large corporation wants to expand overseas, but its current staff doesn’t have the knowledge to suggest a plan. So the corporation hires a consultant with expertise in overseas expansion.

But don’t worry if you don’t have that kind of experience.

Consultants consult on a wide variety of topics and in a lot of industries.

Here’s another example:

A person wants to lose weight, but can’t figure out the best diet plan for them. So they hire a diet consultant to create a customized plan for them and help them lose weight.

In other words, a consultant is a problem solver in a specific area.

Why start a consulting business?

If you want to start a business, a consulting business is one of the easiest to start because you don’t need a lot of money or equipment to get started.

Here are some of the key reasons why starting a consulting business might be a great move for you.

It’s not complicated

When you start a product-based business, you have to create a prototype of it, find suppliers, or sign up with a drop shipper.

And you may have to create a corporate business structure which can take weeks to finalize.

On the other hand:

When you open a consulting business, you are the product.

And if you want to operate as a sole proprietor, you won’t have to complete any paperwork (or pay any fees!) to get your business off the ground.

In other words, you already have the basics of what you need to start: you.

Did You Know?

The worldwide consultant business is a $133 billion industry. Will you claim your piece of the pie?

A consulting business is a lean startup

You won’t have to spend a lot of money to start your consulting business.

Aside from your number one asset — you â€” all you need is a computer, a phone, and perhaps some accounting or project management software.

And in the initial stages, you can use freeware to keep your costs to zero.

You can build connections

As a consultant, you will talk to many people in your industry. And as you build relationships with them, you will make connections in the industry.

And who knows?

Maybe one of those connections will turn out to boost your consulting career or launch you on a new path you never imagined.

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What Does a Consultant Do?

We’ve talked about the overall job of a consultant: to solve problems for their customers.

But there’s a little more to the role.

Here are some of the tasks you will do when running a consulting business.

Roles of a Consulting Business Owner infographic

Icons from Flaticon

Types of consulting businesses

At this point, your head may be full of ideas about what type of consulting business you can start.

Don’t tax your brain!

Instead, read about these common types of consulting businesses you can start.

HR consultants

Human resources consultants work with companies to provide support for the hiring, training, managing, and firing of employees.

HR consultants also ensure that the companies they work for stay in compliance with all employment and labor laws.

You can work for a large corporation in this role or for the local mom and pop who need someone to help them manage their employment duties.

Strategy consultant

As a strategy consultant, you work closely with an organization to find a solution to a problem or goal.

For instance, if a company wants to reorganize a department, you would analyze the existing departmental structure and suggest ways to improve or streamline it.

Technology consultant

When a company wants to install a new software program or scale their existing platform, a technology consultant works with them to help implement it.

For instance, a company may decide to revamp their current paper trail and use technology to update it.

It would be your job to analyze their current practices and move them to the proper technological solution.

Did You Know?

Half of all freelancers, and that includes independent consultants, say that no amount of money would ever convince them to go back to a 9 to 5 job.

Public relations consultant

A PR consultant creates and then implements the public relations face of a company.

Working in this role, you would interact with the public, partners, investors, and employees to build the brand and shape how people think about the company.

Legal consultant

In this type of consulting business, you would act as a legal consultant for an organization or person.

Depending on your specialty, you may advise them about the legalities of employment, banking, finance, corporate, tax, real estate, intellectual property, information technology, or trust.

You need a law degree to operate as a legal consultant.

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IT consultant

This role is different than a technology consultant because instead of helping a client implement a program, the IT consultant recommends which program to purchase.

For example, if your client wanted to move a large website to a new server, you would recommend the tools and procedures to best enable them to do it.

Social media consultant

In this role, you will help build the company’s brand with their social media platforms.

You will be responsible for increasing traffic to their website and followers to their social media platforms.

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Financial consultants

You will need a license to open this type of consulting business.

Financial consultants advise their clients about investments, market trends, taxes, and other economic considerations.

Personal consultant

The consultant types we listed above are the most common when it comes to selling consulting services to a business.

But personal consulting is another huge industry with ordinary people paying others to teach them how to do all sorts of things.

For instance, you could offer consulting services for nutrition, pets, small business startups, publishing, and just about anything else you can think of.

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The Numbers Game

Even though the consulting business is booming, you still need to know what kind of growth and earning potential you can expect.

Here are some facts:

Consulting Business Facts and Figures

  • US-based consultants make about $75,000 a year
  • Management consulting is a $250 billion a year industry.
  • There are 600,000 management consultants in the US

What do you need to start a consulting business?

For instance:

To open a consulting business that specializes in accounting or financial matters, you need a certification or license.

And other forms of consulting may not require certification, but your clients may expect it.

For example, you can open a nutritional consulting business without a degree or certification, but if you have a degree in nutrition, you will have more credibility with future customers.

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Pros and Cons of Starting a Consulting Business

As with any type of business venture, a consulting business has its pros and cons.

Here’s what you should know before you hang your proverbial shingle.

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Pros

Let's start with the positives of starting a consulting business:

You'll have an unlimited client base

As a consultant, you are only limited by how many clients you can reach.

Think about it:

If you’re opening a consulting business for dieters, how many dieters are potential customers?

Lots.

And that’s true for whatever niche you decide to pursue.

You can work from home

When running a consulting business, you get to decide where you will work from.

Sure, you can rent a fancy downtown office and spend a lot of money, or you can work from home and not only save money but have the luxury of staying close to family.

And just think of the commute.

Did You Know?

When you work from an office in your home, your commute consists of walking down the hallway into your office. Not bad, huh?

You'll have minimal startup costs

Because you don’t need a lot of fancy equipment, you can start a consulting business on a shoestring.

You won't have to deal with office politics

You know all those petty office politics you’re so sick of?

When you work for yourself, all of that magically disappears.

it's magical snippet

Photo from Giphy

You get to help people

Imagine having a job where you get to help people achieve their goals all day.

That’s the life of a consultant!

Cons

Opening a consulting business also comes with a few cons.

Here are a few to consider:

It takes a lot to get off the ground

You will have to market your business and work hard to get every client, especially in the beginning.

Eventually, word of mouth will drive business, but in the beginning, it’s all up to you to sell yourself.

Your clients will expect a lot

When starting a consulting business, be honest about your skills and knowledge because the people who hire you will expect a lot.

Bottom line:

If you can’t help them or give them bad advice, it could hurt your reputation.

That means you will have to stay on top of your game by keeping up with advancements and developments in your niche.

Your personal life might suffer

When working as a consultant, clients will demand a lot of you.

They may want to schedule conference calls during your family’s dinner or on the weekend. That can result in strained family relationships and a lack of time to do the things you really want to.

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Photo from Giphy

Consulting Business Pros and Cons

PROS

  • You get to do good in the world
  • You can work from where you want to
  • You’ll have an unlimited client base
  • Low startup costs
  • Can open corporate opportunities
  • No office politics

CONS

  • Building your client base might be a struggle in the beginning
  • You must live up to your client’s expectations
  • Very competitive
  • Need to stay on top of your game
  • Difficult to achieve a work-life balance

A Step-by-Step Guide to Starting a Consulting Business

Are you convinced that starting a consulting business is right for you?

If so, you need a plan.

Follow along and learn about the specific steps you need to take to open a consulting business.

Assess your strengths

Remember in the section above how we told you that your clients will expect a lot from you?

It’s true.

And that’s why it’s essential that you do an in-depth assessment of your skills and knowledge before taking the first step.

You will hire yourself out as an expert — and you should have the skills and knowledge to back that up.

For example, if you work in the financial industry during the day as an investment adviser and want to moonlight as an investment consultant, that gives you credibility.

But if you work at an investment firm as the social media manager?

Not so much.

Make sure you have what it takes to back up your claims, or you could have some pretty unhappy clients on your hands.

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Ensure your certifications and licenses are in order

If you need a license or certificate to operate your business, now is the time to get it.

And even if you aren’t required to have them, taking some certification classes or getting licensed in the industry you plan to operate in won’t hurt.

But that's not all:

You should also register your business name with the county you live in, and apply for a tax ID number so you can charge and remit taxes to your local authorities.

Create your short-term and long-term goals

Knowing your goals in advance will go a long way in your success as a business or personal consultant.

For example, will you work from home for your entire career, or do you plan to have an office one day?

Once you know your goals, it’s time to write a business plan.

Did You Know?

You can create a one-page business plan, a lean business plan, or go all out and make projections for the next five years. But having a plan is key, so don’t skip this step.

Determine what the market needs

You need to put some deep thought and research into this area because it may make the difference between success and failure.

You already know that a consulting business helps people solve problems, but it’s how you look at it that can make you a success.

Here’s what I mean:

Your clients will be people who either desire something they can’t figure out how to get or don’t want to figure out how to get it.

And that’s where you come in.

As a consultant, it’s your job to get them from their present state to the state they want to be in. That state could look like any of these:

  • A novice gardener who wants advice on how to build a kitchen garden
  • An entrepreneur who is about to launch their first business and wants a consultant’s advice along the way
  • A growing firm who wants a consultant to help them hire their first manager
  • A mom who wants a consultant to guide them in homeschooling

The common theme in all of these examples is that they are at point A and want to get to point B. And it’s your job to convince them that you’re the right person to get them there.

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Identify your target audience

Will you work with mainly corporate clients, or will you reach out to consumers and build your business that way?

You need to determine your niche, and then decide how you will approach them.

For instance, if HR consulting is your niche, you can either work with individuals to help them find the right career, or you can work with corporations to help them staff and manage their employees.

Write an elevator pitch

When people ask you what you do, you should be able to explain it to them succinctly and clearly.

It’s called an elevator pitch, and when starting a consulting business, it’s necessary to have one.

Imagine that you meet someone and when talking to them they tell you about a problem they’re having. Turns out, that’s exactly the type of problem you solve in your business.

How will you get that across to them?

You should be able to tell someone exactly what you do in under 30 seconds.

woman-hand-desk-office

Photo from Giphy

Set up client communication and recruitment tools

When you operate as a consultant, you need to have some tools that will allow you to communicate with your clients.

For instance, you will need a video conferencing platform to conduct those calls on. You can use a free version, or if you feel the need, you can invest in one.

You will also need a way to get the word out about your business.

And aside from the marketing techniques we’ll talk about in a minute, you should take some time to set up your resume and qualifications on sites like Zip Recruiter, UpWork, and LinkedIn, Indeed, and Monster.

Staff up or outsource

You may not need to hire an employee if you plan to work from a home office, but a virtual assistant can save the day.

For example:

If you specialize in HR consulting for individuals, you can assign the tedious tasks that take a long time to the assistant and then deal with the client yourself.

Did You Know?

Virtual assistants can perform just about any task and will free up some time for you so you can put your energy into searching for new business and client interactions.

Market your business

In order to build a successful consulting business, you need to sell your services to as many people as you can.

And that means you need to get inventive with how you get new business.

Here are five ways to let people know about your services:

Create a brochure

Sometimes people won’t know that they need your services until you tell them what you do.

And one of the best ways to do that is to create a brochure that highlights all of the important aspects of your consulting business.

Here are some key points to include on your brochures:

  • List a few reasons why they should hire you
  • Explain to people why you are the best choice
  • A growing firm who wants a consultant to help them hire their first manager
  • Let customers know what you do in simple, easy-to-understand terms
  • Include some biographical information about yourself to lend credibility to your business
  • Talk about the clients you have worked for, and how you helped them achieve their goals

Do some cold calling

You want to skip this section, don’t you? Be honest.

woman-hand-desk-office

Photo from Giphy

But the truth is that is you’re going to become a successful consultant, you will need to make some cold calls until you get your business off the ground.

But it doesn’t have to be that hard.

Here are some tips to make the process easier:

Your first step is to write out a script, and use it until you get comfortable with the process.

Over time, you will become more comfortable telling people about your consulting business and why they should hire you, but in the beginning, it can be a little intimidating.

A written script will help ease your nerves.

Next, you should limit the number of days you do cold calls, so you don’t become overwhelmed with it.

You will face rejection — that’s just a fact. But you will also have some successes.

Concentrate on the successes and consider cold calling days a reward for all the hard work you’ve done all week.

Or you could just do this:

Advertise your business

In order to attract new business, you should plan to run some advertising. How much you run will depend on your budget, so you will have to plan for it carefully.

You can run ads in trade magazines associated with your business, or if you plan to open a personal consulting business, in the local newspaper or on Facebook groups.

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Create email lists and newsletters

As a business owner, you should collect email address and use them to communicate with potential clients via a newsletter.

You will have to offer potential subscribers something in exchange for their email address — like a free report or analysis of some kind.

But the key is to build a large email list of people who might be interested in your consulting services and then stay in contact with them.

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Engage in public speaking or free classes

Another great way to bring in new clients is to act as the featured speaker at an event that ties into your industry.

For example:

Our gardening consultant could give a lecture to beginner gardeners about the importance of planning a garden before planting.

Or the HR consultant could give a speech about how to make the best use of LinkedIn for an audience of small business owners.

Check with your local chamber of commerce or look online for events and then call and ask about speaking.

Another way you can attract this type of customer is to offer free classes about your topic. You can do this in person if you want to attract local clients, or online if your audience is larger.

Ask for referrals

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Referral business is the best kind because the customer already trusts you. Chances are that if you get a new client that was referred by another one, it’s because they were so happy with your service that they had to tell someone.

But they don’t always remember to pass along your name.

That’s why you should remind them.

Every time you complete a contract with a client, send them an email asking them to pass along your name. And some consultants even offer to pay a referral fee for new business to encourage the behavior.

Learn to write client proposals

Once you’ve had a conversation with a potential client, and they’ve told you they want to pursue a consulting relationship with you, you need to prepare a client proposal.

Did You Know?

A lot of consultants send a potential client a proposal before they’ve made the sale, and that results in a waste of time for everyone. You should only submit a client proposal once they’ve agreed to work with you.”

Here are some tips to ensure your client proposal is as good as it can be.

Focus on the buyer

You should have already sold the client on your consulting business, so there is no need to rehash all of your accolades.

Instead, the proposal should focus on the client.

Reiterate that you understand the problem, and assure them that you have the skills and knowledge to overcome it.

A good client proposal doesn’t need to be long, but rather a succinct reiteration of their problem and your solution.

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Don’t add new information

If you do, and it confuses the buyer, they may not sign it. They may put it aside to get clarification and then get caught up in life.

Just stick to the facts that you discussed when you told them about your business and what you could do for them.

Structure it right

Your client proposal should follow a logical format that is easy to read.

Here is an example outline of a client proposal.

Example Format for a Client Proposal:

  • Summary: summarize the client’s problem and recap what you spoke about
  • Goals: list the benefits they will receive by working with you and highlight the impact those benefits will have on them
  • Project details: outline the project duration
  • Responsibilities: list what you will provide as well as any expectations of what the buyer will provide
  • Investment: include your price and any offers to the buyer here
  • Terms: this section outlines how the buyer will pay, including details about invoicing, expenses, and travel

Set your pricing

Setting the right price is essential to a consulting business that grows.

If you price your services too low, no one will take you seriously. And if you set them too high, many people will refuse to hire you.

So how do you set your fees to successfully grow your consulting business?

Start by looking at the averages earned by people already in the business. Consulting Success reached out to 25,000 consultants in an effort to understand their pricing structures.

They determined that most consultants billed in one of these five ways:

  • Hourly (27.3 percent)
  • Per-project (34.2 percent)
  • Monthly retainer (15.1 percent)
  • Daily rate (14.1 percent)
  • Other (9.3 percent)

Did You Know?

In the Consulting Success study, 25.5 percent of consultants say they earn an 80 percent or better profit margin.  Can you imagine any other business with that high of a margin?

How do you know which method to use — and how much to ask for?

By following these tips:

1. Check out your competition

Chances are, your competition is already established and has figured out how much the market will bear. It’s a good idea to shop around with your competitors before setting your rates.

Start by visiting their websites and looking for pricing. If they don’t publicize it, you will have to mystery shop to get the rates.

Then compare apples to apples:

Can you offer the same services to clients that they do? Do you offer anything that would increase the value?

Once you know what your competition is charging, you need to set your rate. You can do this on a per-project basis or an hourly one.

Here’s how to figure each one.

Set an hourly rate

To set an hourly rate, you first need to decide what yearly salary you want to earn. For this example, we’ll use an annual salary of $100,000.

Next, divide your desired salary by 52, which is the number of weeks in a year. For our example, that would be $100,000 / 52 = $1,923.08. That’s how much you need to earn a week.

Now divide that by 40 (hours in a work week) $1,923.08 / 40 = $96.15. That’s how much you need to bill per hour in order to meet your goal.

But wait, you’re not done!

You also have expenses and cost of business to include in your calculations.

To do that, you should add 25 to 40 percent to the rate. That means you should charge $134.62 per hour to meet your goal. (96.15 + 40% = $134.62)

To set a per-project rate

If you don’t want to have to track your time, you can charge by the project, but you should be careful when quoting the price.

That’s because project creep can come in and quickly wipe away all of your projects.

For example:

If a client hired you to create a healthy eating plan for them, you may have estimated 10 hours, but then they asked you to include a workout plan which added another 5 hours to the project.

Unless you specify in your proposal that you would bill them for additions to the project scope, you would be out some money.

To bill by the project, you need to calculate how many hours you believe it would take to complete the project, and then multiply that times your hourly rate.

Be sure to add 10 to 15 percent on top of that to account for any contingencies you didn’t expect.

To set a retainer rate

You should set your retainer rate the same way you do your per-project fee, but some consultants give clients a discount when they pay a monthly retainer fee.

You should determine whether you want to extend a discount based on your interactions with the client.

Build a reputation and deliver results

Now all that’s left to do is to build your consulting business brand and earn a reputation for always delivering what you promise.

Before long, you won’t have to ask for referral business because your happy clients will tell everyone about the wonderful experience they had working with you.

Tips and Tricks of Successful Consultants

Finally, we want to leave you with a few tips and tricks that you help make your consulting business a success.

What do you need to start a consulting business?

Don’t just play at consulting.

Instead, create a website, make business cards and take it seriously.

It’s possible to build a great income by starting a consulting business, but only if you treat it like the serious endeavor it is.

Embrace your home office

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In the past, people tried to hide the fact that they worked from a home office, but times have changed.

Now you can tout the fact that you don’t have overhead costs to pass on to the client, and because your office is located at home, it means you’re available when they need you.

Did You Know?

You can land your first client before leaving your current job. If you’re a valued member of your organization, offer your consulting services to your boss. It would be a great way for them to fill the gap you’ll leave behind and give you your first client. 

Understand the payment cycle

dollar bill beside a notebook

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If you’re working for large corporations, don’t expect to get paid promptly.

Many corporations pay 30 days or more after they receive an invoice, so you will need to plan on waiting to get paid.

Make sure your reserves can cover the wait.

Never over promise

Any time you make a promise to a client, be sure that you over deliver.

There’s nothing worse than missed deadlines, sloppy work, or underperforming on a contract.

That’s the fastest way to get bad reviews and lose your business.

Know when it’s time to call it quits

You will have some clients that are not worth the hassle.

Clients who love to complain for no reason, who likes to call you at 10 pm, or who make unreasonable demands won’t grow your business.

If you find yourself in a situation where the client causes constant problems, think about politely ending your contract with them.

Are You Ready to Start a Consulting Business?

two woman shaking hands

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A consulting business is one of the easiest and most profitable businesses you can start, but you will have to work to create a business that brings the kind of income you want.

Use our step-by-step guide to think about your new business, and then take the steps needed to make it a reality.

Have you already started a consulting business? If so, we would love to hear your advice about how others can get in the game in the right way. Please spread your wisdom in the comments below!

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