5 pieces of startup advice for new consultants.

A long-time colleague reached out and asked for advice about starting a consulting business. This got me thinking about a few things to offer outside of the results of a youtube or an AI generated article online. 

Five pieces of advice I give somebody when they ask me about starting a consulting business. They are probably applicable for other types of businesses, but people who ask me for advice usually are starting a consulting business. 

The first thing I tell them is that I\’m not an expert. I then tell them that I probably have more mistakes to share rather than success stories about how to build a successful consulting business. Then I tell them I’m still learning. After we get past that, there are a couple of points that I always share.

Number One: Make it legitimate. Get the LLC. Register an EIN. 

The separation between your personal and business activities is the saving grace of the LLC. The LLC shields your personal self and personal space from any liability. Plus, there are huge tax benefits. Lastly, it looks more professional when you provide that W-9 for payment and the client makes out the check to a business, not an individual.

Number Two: Consider your online presence. 

Go online and purchase your domain name (both your new company and your personal name). Sometime in the first 6 months, probably a good idea to set up a very simple web page as well. Understand that the webpage is simply a verification tool that potential clients use in their vetting process for a consultant. When you\’re just starting out, really the only reason someone is going to go to your website is just to verify that you are in fact who you say you are, and that you have a business. Don\’t get too caught up in making something very visually appealing or trying to add five pages of dense content to your site. The webpage shouldn’t be a tool you use to show how smart you are. People go to your page because they know how smart you are, they know and trust you, or because someone they know and trust told them about your services. Granted, make it look professional but it does not have to be over the top. Remember, when you are just starting out, in very limited instances is someone going to land on your website without knowing you or without a direct referral from someone they trust and decide that they should hire you. Thank you @RobertAnderson for this insight in this sphere.

Number Three: Think about what’s behind the curtain. 

Take time to set up a virtual mailbox so you don’t have to provide your home address to clients. It looks more professional and separates your personal mail from any business mail. Just Google ‘virtual mailbox’ and you will find a number of options, all probably within a mile or two of your home, that will allow you to set up a mailbox. You’ll get a distinct mailing address you can provide to clients. The place that manages the mailboxes will receive your mail for you. They will even send you an email with a picture of the envelope when you get mail at their location. You can pick it up yourself, or they can send it directly to your home address. This is just an extra layer of protection for you and an extra layer of separation between your personal assets, i.e. your home and your business. Also there is no running to a PO Box to see if your client sent that check.

Number Four: Set a fair value for your services.

This one is easier said than done, but there is a lot that goes into it. Instead of thinking of an hourly rate for your services, think about the value of a project to a client. Ask yourself questions such as: Is this something they can already do internally? If they had to hire a staff person to do this job, what skill sets and level of expertise would they have to find, i.e., Executive level, C-Suite level, etc??? The ‘higher level’ the work, the higher the cost. Also, remember that any time you commit to one client is time away from another. This is your opportunity cost. Make sure that your time is valued correctly.

Number Five: Limit the noise.

You probably have a ton of people rooting for you and who want you to be successful, that’s a great thing! But when you’re trying to get things moving, there can be a lot of noise. You’ll need valuable advice specific to your unique circumstance. Seek out two or three trusted individuals who are already successful business owners. Ask for 30 minutes of their time to ask a few questions. Ask if you can reach out again. The advice will be invaluable. Now, the noise may not only be external but can be internally generated as well. For me personally, I generated my own form of noise called imposter syndrome. Maybe for you it’s something different. Getting through the noise and understanding your value, developing an ability to translate your distinct value to others, and focusing on delivering, can help immensely.