So a buddy of mine that I played sports with in undergrad recently decided to start his own consulting firm. He has legitimately no professional work experience but has some wealthy parents who may be fairly well connected. I have no idea how he's doing because he's the type of guy who would just tell me all was great even if it wasn't. But my question is this, I really doubt this guy will still be trying to run this place within the next year, but is starting your own firm a viable option later down the line? Has anyone done it and been successful?
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thousands of people run personal consulting shops on the side to make some extra money... one of the guys i know just teamed up with 3 other full time MBAs and are pitching thier services to businesses out in Nova Scotia...
you're buddy may have connections and sometimes that is all you really need in this world... think Roger Sterling on Mad Men... not the smartest advertising mind... but thanks to the gift of gab, his daddy's money, and hiring the right people his company is flying high
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but does he have skills that are in high demand but conducive to short-term work agreements? I'm guessing as a BA/BS graduate with no significant life experience- that he does not (unless he's a computing/hacking genius).
Starting own consulting company? (Originally Posted: 07/28/2008)
What base people would you need to hire? What clients would you need? and how does a consulting company charge for there services?
If you don't provide more information on your plans (your specialty, who you have with you, etc...) I don't think anyone can help you too much. Honestly, you come off as clueless and helpless in this post. That may not be the case, but it is the perception without more information.
If you do pursue your own place, good luck and I wish you the best.
A couple things that stand out to me are:
Does he have anyone to show him the ropes? A good system for developing proposals, scoping your work, and managing your billable hours (and selecting the right rate) are key.
Is he really "consulting" to senior exec's, or is he more of a contract worker / build a report or project. Or worse, technically an employee. In Canada independent contractors aren't supposed to bill more than 80% of their time to a single client.
Was it a degree with some directly applicable skills? Major in Comp. Sci, Comp. Eng. or B.Comm (particularly in MIS) might be easier to get work with.
My experience has knocked some sense into me. I first thought I could be a consultant (even when I was in industry), but as it turned out I really was thinking more along the lines of a contract worker, and the reality is that while I had pretty much the problem solving skills when I graduated but I lacked a good approach or an understanding of what goes on behind the actual consulting (billables, scoping, proposals, even tracking time to projects, and a good methodology for risk management).
That being said, while none right out of undergrad I know a tonne of brilliant independent consultants. Former Big 4 partner's/directors, people with a mix of consulting/industry, and professors who all do quite well. I know one professor who managed to get $5,000/day from a client because he thought that was a high enough rate to disuade them from him as he didn't really want the project. 25 days later...he;s got a good story (and the client loved the work /shrug).
Begining my own Consulting Business (Originally Posted: 09/23/2013)
I have been working with a well established business consultant KPMG for the past ten years. Now I am planning to work by myself. I am very nervous although excited with the prospects of getting my own freedom/boss and being challenged and functioning towards becoming financially risk-free. If you were in my shoes what will you advice me?
Spell check ;)
Advice from my friends who are independents: - Be aware of tax structures in how you run your business and pay yourself (and what you can write-off) - Have enough time set aside to develop new business while you're working on current clients (20% of time per week) - When planning costs remember how long your administrative time will take (invoicing, networking, files etc.)
I really have nothing to add myself, as I'm not an independent and not certain it is really even the path for me.
Good luck and let everyone know how it goes.
TT
I have worked with independent contractors/consultants before. Their biggest gripe: you are ALWAYS selling. So do that.
$5000 a day? Geeeze i cant wait to rake that kind of money in lol
Starting your own consulting firm (Originally Posted: 04/22/2011)
there's the hallowed M/B/B followed by the M/B (monitor and booz) and then the historicity of A/A (ADL and ATK)
is LEK and Parthenon destined to be minor league?
QVC is a big name in retail consulting...
The subject line has nothing to do with the content of your post... and your questions signals a general lack of intelligence...
LEK and Parthenon seem to be doing just fine for themselves...
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How does this in any way have anything to do with starting your own consulting firm? I have my own consulting firm, but I dont have any clients. If my "Im a baller banker" line doesnt work on the ladies I drop my consulting firm business card.
OP, your an idiot. Please learn how to make coherent post.
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former executives, government officials and other people with tons of expertise and connections do this kind of thing... sometimes they can bring in very nice fees too
Considering starting a consulting company with ex-analysts in SF (Originally Posted: 05/08/2008)
So I did the IB thing for the past year, and decided it wasn't for me. Despite what all the college kids will tell you on this board, its not all it is cracked up to be. I happen to enjoy beer, life, girls, and downtime, none of which are compatible with IB. Current analysts or other ex-analysts will appreciate this.
So since I left in early March, I have been testing the Bay Area job market. I dont really want to do traditional corporate finance, and I am not crazy about going back into IB. I have picked up a few part-time gigs (both FP&A and M&A/Investment related) to pay the bills, and have really enjoyed it. I am able to essentially set my own hours, only take projects that I like, and it pays quite well hourly. So essentially I am thinking of making a go at starting a mini-business with ex-analysts for hire.
The reason for my post is two-fold. First, I am looking for advice. Has anyone tried to do this? There have to be some other people who were either burnt out or laid off who picked up some part time gigs to pay the bills. Did you consider making it more permanent? Where do you see my biggest problems arising?
Second, I am shamelessly looking to network with ex-analysts in the bay area. If you did IB or were a financial analyst at a large company and something like this is interesting to you, send me a PM and lets talk about it. I think there is enough turmoil in the market to make this a real business and find some real work.
Advice?
This is very interesting! Good luck with it! Would join you but unfortunatelly I'm not in the USA and not an ex-analyst...all other criteria match :-)
Good luck!
i like this idea. what kind of business are you thinkingof starting? you could probably do some kind of little business that only does fairness opinions for small companies and transactions. truly independent
A friend who started a consulting business for people looking to get into banking and has done very well. I'm currently doing something similar in consulting.
Keep us posted. I know I'm replying late but always interested in others' entrepreneurial pursuits.
Starting a Consulting Firm - Bad Idea? (Originally Posted: 09/03/2013)
So, I'll be SHORT about this and just give you guys the gist, then you can make fun of me and tell me why it's dumb or what you think is cool - or who you know who's doing something similar - or just comment for fun :)
Here goes:
I'm aiming to consult with Tech Startups... initially in the Boston area, and PARTICULARLY in Emerging Technologies
I'm aiming to build up two sites order to get my demographic on their (entrepreneurs in emerging technology), and I plan to write and have writers on MANY other MAJOR tech blogs / publications
I plan to be a go-to source for emerging tech startup news... and a go-to NEWS hub for startups who want to get their names out there
I plan to build a list of subscribers, parse them out (Fanboys, Entrepreneurs, etc...)
I plan to sell a monthly membership to a forum (Novel, right?) and access to a great community and other resources
Parse out startup owners and give them essential startup materials about marketing automation / legal / whatever else... all of which come with a Survey and a strategy call. Call these guys and sell consulting
^ I'm doing this right now and selling $500.00 Skill Development consulting to martial artists / martial arts teachers. And 847/month internet marketing consulting / coaching... all off of lower end courses with free strategy calls. Of course that's NOT what I'd be doing here exactly... but maybe there'd be some cross-over.
^ In order to build a consulting FIRM... what would I need to do to really get this model going? What other elements should I think about to get leadflow and initial sales / testimonials?
Thanks so much! If you know someone high up in consulting, let me know I'd love to learn a lot!
Best,
-Daniel
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If you plan to write, learn the difference between their, they're, and there. Also, what qualifications do you have? And why would a start-up hire a consultant?
I will add this: I tend to stick to established business models or new businesses that are immediately and obviously profitable. From my perspective, you're IN BUSINESS and you do something that gets you paid. You do it again and again until you can ramp up the size and/or sophistication of your product.
In your case, it seems your experience is in marketing.
There might be substantial carryover of skills from what you do, then word will spread. As far as how to build a company.....perhaps hire a consultant LOL. Just kidding. Take people on as you need them, and "think globally (long term big picture) while acting locally (short term profitability etc)".
It sounds like you're an idea person with limited experience. This can be a good thing, just get up to speed on what's going on and what's relevant. Start talking to lots of startups to see what they're doing and then position yourself as an information broker, the way that research analysts often get to know a sector better than the businesses involved. Set yourself apart from every hack on LinkedIn trying to sell me a "management workshop" or "dynamic professiona solutions advisory service blah blah jargon jargon". Instead, you have to clearly define exaclty WHAT your contribution will be in order to convince them pay you money, and then you need to DO it.
If/when you get to the point where you want to take on people to help with ad hoc tasks, let me know, I'm always interested in seeing the genesis of a new idea to reality.
Simple version: talk to people, find an actual contribution to make, and then tailor it to your customers. And KISS. Keep It Simple, Stupid! Most tech startups are lean and if you can make a simple but clearly defined contribution it will count for more....if you can't cash in on an idea then take a genuine interest in helping the companies grow, and as you upgrade your skills and the companies grow you will be worth more money. Beyond this very abstract set of ideas, there's not much more I can currently say. I'm already out of my area of expertise. I know people that have become very wealthy by inventing a career out of thin air, but they worked very hard and intelligently.
If this doesn't pay you a lot right away, keep a day job or some other source of income. It's one thing to get fat and lazy, it's another to simply be so stressed out over money that you're not thinking straight. A lot of startup folks have part time jobs or even full time jobs to sustain them until their idea grows to the point of paying dividends.....no one cares about the equivalent of the starving artist in the business world. This would seem common sense, but I'll state the obvious just in case.
Lastly, ask yourself why you're doing this. Do you see an opportunity in a new sector and now want to rebrand yourself? Do you want to get rich? Do you even care about money? Are you fascinated by tech? Or do you just like startup culture? Be very honest with yourself so you have a clear idea of what you're doing and what your goals are and what you're working towards....and this way you can gauge your success and either double down or cut your losses at any point. You can always change directions, and this way you're starting out with some focus.
Good luck.
D M:
Sleep deprivation is a son-of-a
UFOinsider:
Thanks a ton, sir.
I am 25 and a relative novice to consulting, but run 2 small businesses now (brick-and-mortar, and internet marketing / consulting), as well as speaking engagements for other revenue. Marketing is more my thing. Thank god no day job for me. Ever. This project will be funded by the other projects.
In terms of a strong value proposition, TOTALLY. "Management blah blah" sucks. Marketing automation and/or competitive analysis is where I'm leaning.
The "why" is there, and it's full articulation would require too much enthusiasm to share here without having my sanity questioned.
Sincerely appreciate the perspective, thanks a ton. Anything else to keep in mind in terms of initial steps to building a consultancy?
Thanks! -Daniel
Starting a tech consulting firm is not uncommon nowadays given boom in tech related positions popping up in my city. I would say though the competition that you would have include auditors who have experience in all aspects of a tech firm with qualifications like CPA, CA, and CISA.
These guys add value through their knowledge between the interaction of the client (firm) and the external factors (risk assessments).
As a strategy consultant with a Marketing and Startup background...
...if I was a large company, I wouldn't hire you. Normally people with their own firms were partners in previous well established places.
...if I was at a smaller company, I'd need help actually EXPANDING my product to emerging markets, not just getting advice on how to do that. Unless you have deep knowledge in export / labor / license law across those markets with supplier relations, how would you help there?
List building is hard when your audience are influencers who are in that situation who are looking in that direction for potential help. You're treating a B2B problem like a B2C problem.
Starting a consultancy is never really a stupid idea. The main questions you have to ask yourself though are: What do you have to offer? Who would hire you? If you have a clear idea and maybe even a few good mandates through your network, go for it.
captainP:
I agree that CPA-knowledge is pretty darn valuable when it comes to helping a company from a consulting standpoint. I'm thinking also that if I'm aiming to hone and refine my initial efforts, it might make even more sense to stick with a limited skillset, and the one I think that I and my partner are strongest in are: Marketing Automation and Sales (nose to nose or on the phone).
Xepa:
"You're treating a B2B problem like a B2C problem." ^ This is interesting, and something I've been considering, but maybe not seriously enough. In order to give the best service, we've got understand the marketing concerns of Startup companies and their marketing and sales concerns. If I never worked for a big firm, then maybe this is what I need to do: Get a few first gigs and kill it. Sell the hell out of a product, and/or build the hell out of an effective marketing funnel, and do everything I can to understand how this works in emerging tech / the worlds I'm entering.
Matrick:
Thanks, amigo. What is "mandate" in this context? I think that finding the best connections in this world is going to be something that I'm really working on. Hitting startup events / stuff like that is a prime driver for a lot of my decision-making because I realize I've GOT to get imbedded in this world. Where would you recommend I stay?
Much appreciated, gentlemen.
+1 2x2
2x2, that's probably completely legitmate. Lately, since starting his own firm, his FB status updates seem to be about having tons of "meetings' to go to and test driving brand new luxury cars.
I was more or less just curious about the possibility post-mba as i'm a current senior in undergrad trying to fanangle my way into a firm with a less then stellar gpa and non-typical work experience.
I believe if your friend has someone potential and competitive enough to guide him through his business. No doubt that if he was to gain experience of atleast 5 years by working in a reputed management consultancy would give him some relevant skills and knowledge which he could apply into his own business. The main issue with we fresh graduates who are born and raised by rich parents is that we cannot take the shit that the corporate world has in store for us. I mean why should we ??? We have the money ! We are under no financial pressure whatsoever to support our families. When we enter the market with a sincere attention to learn and understand the workings of the real world. But what do we get in return ??? No one , I mean no one is willing to give even a single chance to these so called fresh graduates who spend thousands of dollars in their education. Even if they do get hired , they are verbally abused during training by their so called arrogant senior exectives. And anyway what great jobs can be given to these fresh graduates?? Low IQ level admin, operational or customer service jobs. So why will a rich fresh graduate undergo all these tortures for years ?? I started a lousy business from which I earn triple of what is what promise in that pathetic job of mine. I intend to gain experience by doing internship in management consultancy firms so that I can prove my worth without the other guy thinking that he did me a freaking favour of hiring me. So all we need is a drive, hardwork and the right direction to be successful in which ever business we choose to set up
It certainly happens when people have substantial levels of expertise in a particular industry.
Definitely not smart for someone with no unique value proposition.
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