Consulting: A Lucrative Side Market

In this economy, many small businesses are looking for ways to improve their bottom line by offering new products and services. Consulting is one side business that can be very lucrative—if your business is presented in the best possible light. In order to get work in this competitive area, you must portray yourself as an industry leader with insider knowledge of your field. If you think you have what it takes, here are a few tips for getting started.

• Choose the right industry. In order to be hired as a consultant, you need to convince potential customers that you are an industry expert. It is very much to your advantage if you choose a field in which you have education or verifiable business experience. Remember that your customers are looking for someone with an unusual amount of wisdom and expertise—more than they can get from the wealth of books and internet sites available.
• Focus on branding. This doesn’t just include branding your small business—although this remains as important as ever. In order to gain work as a consultant, you must sell yourself. Personal branding is an important part of the process. Don’t be afraid to call in a branding consultant to get your started with the right image for success.
• Get social. Social networking is one of the best ways to market yourself as a consultant. You can build a reputation with very little investment, especially if you begin to offer tips and articles related to your industry. Make sure that your consulting profile is separate from both your mall business and personal profiles so you can use this tool to its maximum advantage.
• Investigate pricing. You probably aren’t very sure what a consultant in your industry charges. It’s important that you have the right pricing structure. If you are too expensive, clients won’t be able to afford you. But if you are too inexpensive, they may assume that you offer lower quality than your competition. Check around to see what others in your field charge for similar services, and be open to negotiating with clients who cannot afford your full fees.
• Get it in writing. Once you are on the verge of scoring a consulting job, make sure the legalities are in order. Create a consulting contract (samples and templates can be found on the internet if you need guidance). Be sure your contract includes the amount and type of work, the time frame for completion, and the amount and timing of payments. Getting these details in writing will not only protect you legally, it will ensure that all parties involved have clear expectations.
• Allow cancellation. There should be a clause in your contracts that either party is allowed to walk away from the job with minimal financial difficulty. Forcing someone to use you when you simply aren’t a good fit for the job will lead to a lot of unhappy clients and ultimately destroy your reputation. Similarly, you should be able to quit a job that is out of your comfort zone for any reason.