Author: Amira Kohler, independent HR consultant and associate, plusHR Consulting.

Topic: Consultancy

WHEN TO USE THIS GUIDE

• If you are considering making the move from in-house employment to becoming an independent consultant

10-STEPS ACTION PLAN 

1.  Think through your motivations

• Before getting into the finer detail, consider why you want to move from employment status to independent working. Without doubt, establishing your own consultancy is risky and you should not underestimate the pressures associated with setting up your own business. On the other hand, there are huge upsides at stake such as a sense of job satisfaction, independence, flexibility, status, achievement and financial gain.

• Take some time to analyse why you really want to do this – is it push (a desire to get away from a current employer), pull (a genuine desire to ‘go it alone’), or a combination of the two? Success is more likely to stem from a strong pull than pure push.

2. Analyse the financial implications

important factors to take into account early on in the decision-making process:

• Are you financially secure enough, and psychologically prepared, to go from a secure and predictable salary to the ebbs and flows of independent consulting?
• Does your lifestyle allow for this?
• Is your family behind you?
• Do you have a financial cushion that you can rely on during those first few start up months, and/or those periods when work will be scarce and money tight?

3. Think about exactly what you can offer

As a consultant you will need an area of expertise – something that will be beneficial to a client that is not available to them otherwise.

In Jim Collins’ book ‘Good to Great’ he suggests this offering needs to fulfil 3 tests:

•  Something that you deeply passionate about
•  Something you are genetically encoded for – that you feel you were 'made
   to do'
•  Something that makes economic sense – that you can make a living from.

If you can create a consultancy offering that fulfils all three criteria, you’re probably on to a winner.

4. Think about your target audience

Almost as important as knowing what you plan to offer, is knowing who you will offer it to. Is your expertise of value to a range of sectors, or do you want to concentrate on a specific sector? Bear in mind how an industry downturn could affect your business if you limit yourself to one sector.
 
5. Network, network, network

Consultants need to be able to promote and market themselves. They also need to establish a strong professional network that they will promote themselves to. This network is likely to be built from a combination of current and previous colleagues, contacts made from conferences, courses, and professional associations as well as from friends, family, and acquaintances. Make a list of everyone you know and start cultivating your network in advance of setting up your own consultancy.

6. Consider all options of how to gain work

There are many different routes via which to find work as an independent consultant. Clearly there is the pure option of being a sole trader. Or you may consider becoming an associate of one or more established consultancies who hire in consultants on a daily basis or on a project-by-project basis. Another option is to take on interim assignments, which tend to be full time for a set period of time. It may be possible to blend these options, but not necessarily at the same time.

7. Buy yourself preparation time

Setting up your business will take time, energy and patience. It's helpful to have as much time as possible to devote to this effort – preferably in a period when you have factored in non-earning time.

8. Sort out some of the logistical arrangements

There’s a lot to think about when you move to self-employment status. Spend some of your preparation time getting ahead with the logistics:

• deciding whether to become a self-employed sole trader or limited company
• registering for VAT (if applicable), sorting out insurance etc.
• considering whether you will do your own accounting or whether you’ll hire an accountant
• deciding on a company name, building a company website, ordering business cards and other marketing material etc.

9. Smarten up your image

Remember that people will no longer be buying your company name, they’ll be buying you. People are more likely to be convinced if you look (and sound) the part. Investment in your image and early marketing material may seem like an expensive outlay, but could prove invaluable.

10. And finally…..cultivate the skin of a rhino and the stubbornness of a mule

Independent consulting can be a great life. But without a doubt it brings difficult moments when one’s self-esteem is dented and perseverance is tested. There may be an untapped market for pro-aging skin cream products (to thicken it up a bit for inevitable knock backs) and stubbornness-accelerating hormone treatments (for those moments when you need to keep going despite set backs). So is it all worth it? Only you can decide, but for me it certainly is.

Disclaimer:
This guide is provided for guidance only. The provided information, whether ‘How to guides’, policies, procedures, samples, examples, or guidelines, while authoritative, is not guaranteed for accuracy and legality. While we make every effort to provide and link to accurate, legal, and complete information, we cannot guarantee it is correct for a worldwide audience. Please seek legal assistance, or assistance from your local or international governmental resources, to make certain that your legal interpretation and decisions are correct.