People who want a successful consulting company need a consulting business plan. It serves as a guide on how to start and steer a consulting business towards success. A business plan for a consulting company is also perfect for laying out the possible risks and rewards so that you can see them clearly and evaluate them.
Let’s further discuss why they’re beneficial to your success as an independent consultant.
Reason #1 – Getting Capital or Financing From Banks & Investors Will Be Easier
Creating a plan for your consulting business makes it easier to get that extra capital from banks and investors. While some consultants may not need funding for office space and equipment, they might need a loan to cover their expenses for the first few months. Your business is brand new so you may not have regular cash flow yet.
You might also decide later on that you do want that office space to make a strong impression. Or you need more capital to spend on marketing, which is the lifeblood of every business, especially if you’re providing your services in a highly competitive market.
So, if you need extra capital, you will need a consulting business plan so that the banks and investors can see your numbers and give you that loan.
Reason #2 – It Helps You To Plan Your Business Goals
Having a business plan will allow you to think about what it is that you would like to achieve for your consulting business so that you can keep them in mind when making important decisions.
For example, do you intend to be an independent consultant for the rest of your working life? Or are you planning to move back to the corporate world after some time?
Maybe you would like to start hiring other consultants and build an agency, then maybe sell it? With a consulting business plan, you’d be able to plan your business goals and see the bigger picture.
Reason #3 – It Gets You Focused On Your Personal Goals
For instance, it will help you to think of the impact that your consulting business will have on your friends and family. Most consultants work random hours. Some will be able to work from home and others will be in the office during weekends. So, it can have a big impact on relationships. Therefore, be rational about this and set your limits as to when and where you’re going to work.
Creating a business plan will also help you to find out your ‘why’ as in why are you doing this? Why do you want to start your own consulting business? To have more time with family? To become a successful business owner? To be your own boss? To travel more?
Knowing your true motivation will help you to focus when things get rough. List all the reasons that you can think of then read them back. If they’re honest and they sound convincing to you then you’re on the right track towards achieving your goals.
Reason #4 – You Have The Ability To Choose Your Ideal Clients
With a consulting business plan, you’ll be able to choose which clients you want to manage and which to avoid. You probably already have an idea of the kinds of clients that you don’t want to manage since you know the market you specialise in.
Like people that you personally know who don’t pay on time. They’ll have a negative effect on your cash flow so it’s a good idea to avoid them. Instead, you should focus on clients who are reliable because they are the ones who will help make your consulting business a success.
Reason #5 – It Allows You To Invest In Yourself
To do the best work for your clients, you have to invest in yourself and keep your skills up to date. Doing so can lead to more raving fans for your business, which will mean an increase in referrals and a thriving consulting business.
With a consulting business plan, you would be able to come up with ways on how to stay up to date in your industry. You start to brainstorm about industry magazines, forums, networking events, self-teaching strategies, additional training and certification, etc.
The best investment you will ever make is in yourself. – Warren Buffett
Reason #6 – It Helps You To Manage Your Profits
Writing a consulting business plan will help you to determine how much you want to make for your consulting services. You’d be able to determine your consulting rates and what to do with the profits.
For instance, you may want to apply the rule of thirds where one-third of your hourly rate goes to your salary, one-third goes to expenditures, and the other goes to debt and administration.
It will also help you to think about saving money. Starting a consulting business could mean an irregular income. You may be busy sometimes, and in other times not so much. Therefore, having a consulting business plan will help you to plan ahead to make sure that you have money in your savings account, especially come tax time.
We hope you found this post useful. If you’d like more tips on how to start a successful consulting business, register for our FREE webinar, “5 Steps To Starting A Consulting Business Or Coaching Business”, here.
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