Traps to Avoid when Forming a Consultancy

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Do you have a unique skill based on years of experience in a certain field? If you do, you may be considering a move from working for somebody to owning your own consultancy business. Your experience may be invaluable to others and you believe that they will pay for that experience.

If you want to form a consultancy business, don’t follow the same plan as many before you. In the past, consultants have boarded a plane,  went to a site wearing their best suit, handed out a few business cards, handed out some advice based on a small to medium degree of understanding of the situation, jumped back on the plane and went to the next site. During their travel time, they worked tirelessly finding their next short term client. There’s a better way.

In a world of Twitter, Facebook, and hundreds of millions of internet articles just like this one, expert advice is free and easy to find. The reason that experts haven’t gone extinct is because knowledge is only half of the answer. One could read a great number of books about how to build a house but few could take that information and put it in to action.

That’s the secret of being a great consultant. Don’t offer the information. Instead, do the work. Advertise as a specialist who will become part of the company. If team building and motivation is your area of expertise, go to the site and stay for a month and actually build the team. If you’re an expert in streamlining a manufacturing process, go in and streamline it.

Tell people how to do something is no longer a commodity.

You have to do the work. You have to get your hands dirty and show your clients that you not only know what you’re talking about but you also know how to put it in to action.

The bottom line? Don’t be an outsider who paints a picture of somebody who will not be a part of the company. Your business startup will take a while to grow in to a prospering enterprise so starting off with a modern idea of what a consultant does is key to your success.

Finally, if you’re planning to be a consultant, make sure you form an LLC. Consultants often advise clients on higher level decision making actions and because of that, the risk of litigation is higher. An LLC will protect your assets in the event of successful litigation. It is inexpensive and easy to set up if you use an online business registration service.