For those who are now consultants and for those who are hoping to create their own consulting practice, there are several steps that are critical.
First, understand what expertise, knowledge, or industry experience differentiates your offerings from other consultants. If an individual retires from the energy industry and has experience in fracking, there is a good chance that a fracking consulting practice would have some demand.
Second, a potential consultant will have to work hard to build networks and relationships. Joining appropriate industry, civic and professional organizations is a good place to start. Building relationships with individuals based on trust, respect, and real friendship is likely to have a positive impact on the consultant’s reputation and, as a result, consideration for consulting projects.
Third, understanding the challenges facing a potential client is critical to developing a proposal that addresses a real need. Developing an understanding of challenges may take numerous interactions and conversations with a potential client before a solid proposal can be crafted.
Fourth, before entering into a consulting arrangement with a potential client, create a detailed letter of engagement that clearly defines the scope of the project, the work to be done, the specific deliverables to the client, the consultant’s fees, and the method of payment. Specificity in the LOE will minimize the chances for misunderstandings after a project is initiated and improve the chances that the consulting project will result in a satisfied client. Satisfied clients are critical to building a consultant’s reputation and are ideal repeat customers.
Finally, understand that building a successful consulting practice requires a well thought out approach to organizational design that is built around long-term organizational goals.