Are you starting a consulting business in 2025? What you need to know.
Starting a Consulting Company in 2025: What You Need to Know
As more professionals leave the security of full-time employment to pursue consulting, the idea of starting your own business becomes both inspiring and daunting. While the freedom to shape your career and work on your own terms is alluring, it’s critical to understand that building a successful consulting business involves significant planning, preparation, and risk.
This blog post explores the realities of starting a consulting company in 2025, offering practical advice and insights into the careful groundwork required to succeed. Whether you’re considering this leap yourself or are curious about the experiences of those around you, let’s break down what it truly takes to start your consulting journey.
The Myth of the “Overnight Leap”
One common misconception is that people start consulting businesses on a whim, driven by frustration with their current job or a burst of entrepreneurial spirit. The truth is, for most successful consultants, this decision is rarely impulsive. Years of thought, planning, and preparation often precede the leap.
Bradley Jacobs, Founder of Mylance
Bradley Jacobs left a lucrative position at Uber to start Mylance, a consulting business aimed at empowering freelancers. Before making the leap, Jacobs meticulously planned his transition. He tested his ideas part-time, built a robust network, and designed Mylance to address specific pain points for freelancers, such as lead generation and community support. Today, Mylance generates $40K/month, and Jacobs credits his success to careful preparation and focus on solving real-world problems.
Lessons Learned
Bradley’s story underscores the importance of validating your business idea before committing fully. Testing the waters and building a support system can make the transition smoother and reduce financial risks.
Financial Cushion: Why It Matters
Experts often recommend having at least a year’s worth of savings before starting your business. This advice is rooted in both financial and psychological reasoning. According to the Bureau of Labor Statistics, about 20% of small businesses fail within their first year. Turning a profit in year one is uncommon, and financial stress can cloud your decision-making.
The Psychology of Security
Knowing you have a financial cushion reduces anxiety and allows you to focus on growing your business rather than scrambling to meet personal expenses. This emotional stability is crucial for making sound, long-term decisions.
Stephen Steers, Sales Consultant
Stephen Steers transitioned from a corporate sales role to a part-time consulting business. He developed “Context Selling,” a storytelling-focused sales method, which quickly gained traction. Starting with $9K/month in part-time revenue, he eventually scaled his business to full-time, but only after saving enough to manage his living expenses comfortably for a year. Steers’ financial preparation gave him the freedom to focus on his clients and develop his unique selling approach.
Risks and Realities
Starting a business means embracing uncertainty. Risks are unavoidable, but understanding them can help you navigate challenges more effectively. Every successful consulting venture involves managing these uncertainties wisely, and lessons can be drawn from both triumphs and setbacks.
Navigating Failure
Its important to know how to pivot in the face of adversity. In the early days of my MSP consulting company Grove Technologies, we tried to be all things to all people. We offered helpdesk, networking, and all manner of IT support services. We essentially overextended and overpromised with our clients which led to temporary reputation damage because we were not living up to the promise of the brand and our core values. Luckily we were able to pivot, regain the trust of our clients and revamp our service offerings which was a huge lesson learned.
The Importance of Marketing
Another common pitfall is neglecting marketing. If I had one piece of advice to give to a new business owner its get good at SEO. Understanding search engine optimization and how it relates to the content you are producing will help you work with the algorithms that are out there and not against them. If you cant be found you cant be well known, so SEO is key. Social media is right there and next in line but social media is the first introduction. The site and the content you provide is what keeps your users hooked. Remember your customers are silently stalking you and checked you out before ever reaching out to you. Thats the goal. How do you create interest, keep it and hook them.
Danny DelVecchio, Videos on Easy Mode
Coach Danny D, as he likes to be known knew he had something special with his video creation service offering. As a talented video producer he knew he needed to get the word out. Knowing his target market was businesses LinkedIn was the ideal platform to start that first level introduction with companies who needed help with video production. That led to him starting a business and growing it to over 1 Million in annual sales. Danny saw a shift in the market in technology and applied his marketing acumen to a new platform that was just starting to invest in video technology and leveraged that to find more ideal customers.
Strategies for Success
Building a successful consulting business requires more than technical expertise. It demands a combination of strategic planning, adaptability, and relentless effort. Below are key strategies that can make a difference and examples of consultants who have implemented them effectively.
Build a Strong Brand
Your reputation is your greatest asset in consulting. A well-defined personal brand conveys credibility, expertise, and professionalism. This involves creating a polished website, maintaining an active LinkedIn presence, and showcasing client testimonials.
Alan Weiss, a renowned consultant and author of “Million Dollar Consulting,” emphasizes the value of thought leadership in establishing a strong brand. Weiss regularly publishes books, blogs, and videos that reinforce his authority in the consulting field. His work demonstrates how consistent branding can attract high-paying clients over time.
Diversify Your Income Streams
Relying on a single revenue stream can be risky. Diversification not only ensures financial stability but also allows you to reach a broader audience. Consider offering workshops, online courses, or retainer-based consulting services.
Jenny Blake, author of “Pivot” and a career coach, diversified her income by offering a mix of individual coaching, group workshops, and a podcast. This approach enabled her to scale her business while maintaining steady revenue.
Network Relentlessly
In consulting, relationships are everything. Networking opens doors to new opportunities, partnerships, and clients. Join industry groups, attend conferences, and nurture your existing connections.
Dorie Clark, a consultant and author of “The Long Game,” built her network by consistently reaching out to industry leaders and offering value in her interactions. By prioritizing meaningful connections, she established herself as a trusted expert in her field.
Final Thoughts
Starting a consulting company in 2025 can be a fulfilling and transformative experience, but it’s not without its challenges. Success requires a blend of careful planning, adaptability, and resilience. By preparing financially, understanding the risks, and implementing strategic practices, you can increase your chances of building a thriving consulting business.
If you’re considering this leap, take the time to map out your journey. And remember: behind every inspiring consulting story is a foundation of hard work, foresight, and perseverance.