Management Consultant

The Institute of Management Consulting has members handling more than 250 specialties. Professional consulting is a fast-growing field that is only going to increase in size, and management consulting is the biggest segment of that field.


U.S. companies rely heavily on management consultants, especially in the areas of compliance (with many government agencies), the introduction of new technologies, and to take the place of permanent staff as companies become leaner. Consultants provide many services, from strategy-planning and implementation to analysis and problem-solving. Many who choose to become consultants are those with top-level skills and experience. They want the freedom and greater variety of working for themselves and recognize the world of opportunity that exists in assisting small, entrepreneurial companies get their businesses off the ground—not to mention the opportunity to work as a consultant for much larger companies.


Start-up costs will vary according to the requirements of the specialty you choose. No matter what you decide, however, you will require the basic office and computer equipment, which could cost as little as $2,500 or as much as $12,000, depending on the quality and extent of computer equipment needed. You will also need to budget between $800 and $1,800 for continuing education, association dues, and reference books.


To succeed in this business, you must first analyze yourself; decide what sorts of problems you can solve for a client based on your experience and expertise. Research the companies or types of companies to which you want to off er your services to help you discover needs you can fi ll. Network with every contact you have in your target areas. Remember, though, that not everyone with good technical skills can be a successful consultant. You need excellent listening and counseling abilities as well as patience. Not only does it take time to grow your business, but often it takes considerable time to determine if your efforts have paid off for the client. Meeting the challenges of working as a consultant can be financially rewarding. You will have the opportunity to work on a wide variety of projects and enjoy helping clients find creative, successful solutions to their problems.


Norma J. Rist, owner of The Boardroom Group based in Akron, Ohio, says her business assists women business owners to become clear about their goals and to achieve them in a shorter period of time and in an easier way than they otherwise could have by providing resources and business information in a group setting.


“A business phone line, fax, copier, and personal computer. Also, a meeting/ conference room is useful for generating group discussion and participation.”


“Segment your niche . . . I started ‘Spirit Groups’ for home-based business owners at the same time so that I could serve a broader population of women owners and generate more income potential simultaneously.”


“I would have segmented much earlier.”

Approx. cost of start-up:$5,000 to $15,000


Approx. potential earnings: $30,000 to $60,000 (average); some make as much as $300,000


Typical fees: Varies by market and client needs; average of $500 to $1,500 per day (can also charge by hour or job)


Where to promote: Networking, referrals, creating audio- or videotapes and CD-ROMs showing your skills, ads in professional organizations’ magazines and newsletters, brochures, direct mail, Web site with forecast of future business trends or free management tips


Qualifications: Technical knowledge, expertise, and experience in business management and operations, good problem-solving skills, good people skills, excellent communication skills (written and oral)


Things needed: Computer with Internet access, printer, appropriate software, fax, phone, office furniture, reference books


Required staff: No


Hidden costs: Possibly special insurance, such as errors and omissions coverage; continuing education