8 things you need to do in the first 90 days of launching your consulting business
Your first 90 days on a job are often the most important. That’s where you lay the foundation for the years to come and learn more about how your skills best fit into the organization. That’s just as true when you’re launching a startup.
The early days of an entrepreneurial endeavor, especially in the fast-growing consulting space, not only help to define how the business is received, but also its trajectory. As the mad dash begins for clients, there are fundamentals that you’ll need to pay attention to and long-term planning you’ll need to focus on at the same time.
Get these steps right and you can lay a foundation for future growth. Ignore them, and you could be setting yourself up for headaches down the road. Here are some of the areas that will demand your attention.
Define your niche
Increasingly, the most successful consulting companies are the ones that are specific about who they serve and which problems they solve. “Clients prefer boutique firms offering regulatory expertise, sector specialization, and competitive pricing, driving growth in niche consulting segments,” says research firm StartUs Insights. Tighten your focus instead of trying to be all things to all clients.
Make sure your company name isn’t already spoken for
It seems a basic step, but as you choose a name for your business, check to ensure that it’s not already being used on the web and on social media. You’ll want a URL that matches the company name, and you should secure social-media accounts on as many platforms as possible, even if you don’t plan to use them immediately, to protect your name.
Start networking
As you launch your own consulting business and begin the search for clients, it’s people you know and people they know who are most likely to be of assistance. “Sixty percent of consultants get their first client through referrals from their network,” writes coaching and training platform Consulting Success. “This isn’t luck—it’s about strategically positioning yourself within your existing professional relationships.”
Determine your billing model
Some consulting firm founders prefer billing by the hour. Others prefer to charge a lump sum for a project. And some focus on intangibles, factors that make a client’s life easier. Hourly billing is easy and a favorite of people just getting started. Fixed sum billing for projects is preferred by about one-third of consulting firms. And value-based pricing has the largest revenue potential but is the most challenging. Just remember that you can switch models down the road. Here are some helpful formulas to consult when trying to determine what to charge.
Create a potential client list—then filter it
It’s not just enough to build a list of companies you think would benefit from your expertise. You’ll also need to determine which of those are worth your time, writes Roland Eva, a U.K.-based business growth consultant. After you’ve assembled a list of the types of clients you want to work with, determine which will not balk when they hear your fee. If they’re publicly held, a look at their SEC filings will give you good intel on the state of the company. If they’re private, do some research on Lexis or even with the Better Business Bureau. The idea is to avoid wasting your time with companies that are unlikely to be able to afford your services.
Fine-tune your tech skills
As you run down the list of things to consider when starting a consulting firm, mastering Excel and PowerPoint might not be something you think about. It should be, says Namaan Mian, COO at Management Consulted, which helps people break into the consulting field. “At most consulting firms, you’ll spend 80 percent of your day in Excel and PowerPoint,” he said in a recent video.
Find an accountant and a lawyer
Hiring experts to handle your startup’s finances and legal issues can remove a lot of stress from your shoulders, letting you focus on core business aspects. These don’t need to be full-time employees. Services like LegalZoom can let you access legal assistance where you pay for an hour or two when needed. Consider a small local accounting office for an affordable way to get your taxes done professionally.
Consider an accountability partner
This is something that’s more applicable to solo entrepreneurs. If you aren’t planning to start your consulting firm with a business partner or two, it could be worth your while to find an accountability partner. That’s someone with whom you can set up short, daily (or weekly) calls during the first few months of your business to gain outside insight that helps keep your startup on track. This could be a former colleague or mentor. Or you could find an accountability partner by getting involved with a local trade association, business owner group, or networking group.
—Chris Morris
This article originally appeared on Fast Company’s sister website, Inc.com.
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