1) You can start up a consultancy business without capital.
This is possible to do, but having some capital, even a tiny amount, can be of great gain. Add an element of clout and credibility by having some capital available to you.
2) No selling involved.
Consultancy is a service that one SELLS to other people, firms or companies. If you have the rapport, empathy, personable skills and like-ability factor, then you will more than likely make the sale then those that do not have the skills. However, not having those skills mentioned previously, is not the end of the world, as they are skills that can be learned. As small business coach Ron Holland says, ” good salesmen are much much better consultants than people who can’t sell the job”.
3) Consultancy can’t be sold over the telephone.
This is possible and happens all the time. Many big consultancy firms who have call centres with phone operators do so to make that first point of contact, and having the articulation, the firm grasp of your niche and a good sales pitch ability, means that the sale can be completed over the telephone.
4) Become a consultant and the big money will come flooding in.
There are many consultants who do a fantastic job but do not earn fees which are reflective of all that hard work. Simply becoming a consultant does not entitle one to the big bucks. Finding that niche that you can add value to, brings joy and is profitable is the secret.
5) The market is saturated.
With the consultancy business worth 12 billion a year, and growing here in the UK, there is plenty of room for existing and new consultants. Another secret , however, is to find your own particular, specific niche.
6) No travel involved.
If you are not willing to travel to clients who have been qualified, then remember that there will be other consultants who would be willing to. However, the prospect of travelling the world as part of your consultancy can be quite exciting, meeting new people, cultures and places, although this may not always be the case.
7) Anybody can do it.
This is both true and false. You may be wondering , after having set up your consultancy business, why big money, even smaller, is not coming in. It may be because of your “tool kit”. This would be things like your mindset or your presentation skills. These would need to be developed and up-to scratch, If they are not so already, allowing your consultancy to be more marketable. Anybody can do consultancy, but a plan and focused thought is required .
8) You can only earn big fat fees if you work for one of the big top 6 consultancy firms.
This is untrue as it is very possible to make the money you want in niche market consultancy. There are people who have made millions in such consultancy.
9) You need back up staff, support and back office people. This is something that is not true as it is more than possible to do many things on your own. Obviously, having this can lead to improved business growth, but definitely do consider whether having this support structure in place is increasing/draining your overheads. Perhaps a high overhead cost could be a result of something like back room support, and a exercise in cost cutting my be needed.
10) Accountants make good consultants.
This is not necessarily true for all accountants, but the ones that do well are those that having honed their accountancy skills, have also hone other relevant skills. This therefore makes them ideal consultants.
11) It’s impossible to get into big companies if your a small consultancy practice.
The practice of warm recommendations, due to things such as social media , plays a big part in helping you get connections with those important people, not just the “gatekeepers”, so to say.
12) Sex matters.
It matters not, women, like men, can make for brilliant consultants. The key to remember is to play to your strengths, and look for those opportunities, regardless to who you are.
13) Age matters.
Again this is similar to point 12, the skills, attributes and what the person brings matters the most. Perhaps, one thing to consider, if you are a young person , getting a mentor maybe ideal, to give you that boost not only in business but also in life.