Are you thinking about starting your own business of consulting? Your timing couldn’t be better. The world of work is changing rapidly. Gone are the days of lifetime employment with traditional, stable organizations. In its place is the gig economy. You have most likely heard predictions that more than 50 percent of the U.S. workforce will not have traditional jobs in this decade. Whether you’ve heard these new roles called freelancers, crowd workers, contractors, solopreneurs, free agents, agile employees, on-demand labor, giggers, side hustlers, portfolio careers, or some other endearing name, consulting fits the definition.
The term gig originally comes from the jazz players of the 1930s, who called each separate performance a gig. Today, all types of freelancers and consultants use it to describe work that they’ve been hired to do that has either a time or scope parameter.
Consulting is a profitable $250 billion industry and growing. Millions have taken the initiative to create their own livelihood and do what they want. As the gig economy infographic designed by Robert McGuire of Nation1099 (Exhibit I.1, at www.wiley.com/go/newconsultingbiech) displays, 86 percent of professional freelancers choose freelancing. That means that they are not in traditional jobs by choice; they didn’t lose their jobs involuntarily.
Consulting is more respected now than ever. Freelance consulting is viewed as a win for companies and consultants alike. Companies can hire expertise for the time or project duration that is needed. Consultants can provide the expertise on demand and can be reimbursed for the amount of effort they contribute. Several changes have influenced how business is conducted. This has led to the increased approval rating of those in a 1099 tax arrangement.
Is the timing right for you, too? The dream of being self-employed, being your own boss, and striking out on your own is not new. For many employees, an entrepreneurial spirit strikes no matter the societal or economic trends. Unfulfilling work, temperamental bosses, and unhealthy organizational cultures have spurred entrepreneurial dreamers to quit their jobs to pursue their passion, to do the work they love. Your reasons for becoming a consultant might include some of these.
Or perhaps you are like me and you just want to prove that you can be successful on your own. Of course, there are drawbacks and we will point them out throughout the book. But the bottom line is that consulting in the gig economy is healthy and growing. It is a satisfying arrangement for both consultants and the clients who need them. This book will help you prepare for your half of the equation.
The chapters are presented in the same order that you will likely require the information as you move into a consulting role. Each chapter begins with a short story. Whether you are a millennial who is looking for purpose and meaning in the work you do or a baby boomer on the verge of retirement, you will relate to these stories. Don’t think that they are just made-up fiction. Every story happened in real life to me or my consulting colleagues.
Tips are sprinkled throughout the chapters to give you ideas that meet your specific needs or resources where you can search for the ideas you still need.
Each chapter ends with a section I’ve called “For the Consummate Consultant.” It presents three actions you can take that go beyond the content in the chapter—beyond the basics. Think of these ideas like “extra credit” that you may have had in school: optional additional activities that will boost your rate of success.
We are all consultants—all experts in something. Oh, I am not trying to come up with an impressive ad campaign or a slogan to sell this book. I mean it. But being an expert at what you do isn’t enough. You need to be an entrepreneur to stay in business. I grew up on a Wisconsin dairy farm and believe that farmers may be some of the original entrepreneurs. Farmers need to be good at animal husbandry and raising crops, but if they do not focus on their businesses with wise capital investments and maintain healthy cash flow, they will not be farming for long.
You are no doubt a very fine consultant, but like farmers, being good at consulting is not enough to keep you profitable. You also must manage your business. This book focuses on the business side of consulting: how to develop a business plan, how to market your business, how to charge for your services, how to build a client relationship, how to grow the business, how to ensure your continued professional growth, and, of course, how to make money in the profession.
The New Business of Consulting is written in the first person—singular and plural. Although I’ve authored the book, the employees of ebb associates and all my colleagues have played a big part in shaping the content, so I’ll use “we” on occasion.
My goal in writing this book is to provide as many practical tools and sound ideas as possible. Most were learned through trial and error, and I hope this book will prevent you from making some of the same mistakes.
This book delivers everything you need to manage a successful consulting business. However, just reading it will not make you a successful consultant. Three things are required for your success.
In some cases I present suggestions. In other situations I offer pros and cons of each decision. And at times you will need to do your own self-discovery to determine what’s best for you. You’ll need an entrepreneurial approach to take risks, focus on your client, and make a profit to be most successful. The book is your guide to do what’s needed.
The book is not about the content of your consulting. That is entirely up to you. Whether your expertise is in accounting or zoology, you will still need to run your consulting efforts as a business, using entrepreneurial skills. The business philosophy I present is one of a relationship consulting business—not of a grab-the- money-and-run relationship! So you do not need to be concerned that your reputation and expertise will be tarnished by the business processes I suggest.
It begins with your mindset. I am a huge believer in positive thinking. To paraphrase Henry Ford, “Whether you believe you’ll be a successful consultant or not—you’ll be right!” Combine your consulting expertise with the business tools in this book and believe that you will be a smashing success.