It could be argued that anyone can become a consultant (management analyst). As long as someone has knowledge, there may be someone willing to hire them as a freelancer or contractor. But what does it take to set up a thriving consulting business in today's economic environment?
In this article, we're going to talk about the challenges of starting a consulting business. As part of that discussion, we'll talk about the size of this industry, future trends, and working conditions. We'll also talk about the economic environment that allows this industry to thrive. Finally, we'll discuss what it takes to be successful.
According to the Bureau of Labor Statistics, the consulting industry is expected to grow 14 percent over the decade from 2018 through 2028. Salaries are a function of experience as well as education. The most common services are in the business, managerial, financial, and "professional" areas.
Generally, consulting practices are divided into two broad categories:
Research conducted in 2018 indicates that non-supervisory consultants worked an average of 40+ hours each week. This is slightly higher than the national average of 34.5 hours. Consultants are frequently expected to meet tight deadlines, so the job often involves working under stressful conditions. In addition, being asked to work over a weekend is something that happens often.
Travel can be extensive, with many consultants spending time away from home four days each week (Monday through Thursday). Working from home on a Friday or over the weekend allows these professionals to balance work with their family lives. Technology such as laptops and smart phones keep them connected to their clients when not on the job site.
Consultants are also expected to remain current with industry trends. Continuing education and / or post secondary education learning activities not only maintain professional certifications, but also add to someone's value.
The rapid growth in the consulting industry is a direct result of economic conditions in the United States. Pressure on corporations to meet or exceed earnings expectations has companies looking for innovative ways to lower costs. Workload for some staff positions may have distinct peaks and valleys.
Companies can lower cost by hiring consultants to provide services during those peaks. Existing staff can be augmented with experienced professionals, rather than staffing for the peak workload, and underutilizing employees when workload decreases. This provides companies with a just-in-time approach to staffing certain positions in their organizations.
So what exactly does it take to build and maintain a successful practice? First, it takes a good understanding of the demands of the position. As pointed out earlier, working as a consultant can be stressful, and clients are often insensitive to the fact they have a "life after work." These positions often command premium salaries, and clients will demand premium service; not everyone is up for that challenge.
Ultimately, success will be a function of the marketplace's demand for the skills possessed as well as the business practices employed. Listed below are some important points to remember when starting or maintaining a consulting practice.
About the Author - Becoming a Consultant