When is the right time to launch a consulting business?

You're already the go-to in your area of expertise, and you have a vision that extends beyond the scope of your current firm. But how do you know if you're ready to shift into consulting?

Short answer - it depends. (*eye roll* - I know, I know... stay with me).

There are a few different schools of thought here. Most differ in terms of risk aversion and experience relative to a particular skill set. Your answer depends on what you do and how you plan to execute.

Risk aversion is fairly self explanatory. Some are willing to jump from a cushy corporate salary to nothing but a vague entrepreneurial vision and a contingency plan that involves living in their parents' basement. Others prefer a 10 year emergency fund, a full client roster, and a detailed business plan laid out by the ghost of Steve Jobs.

You probably fall somewhere in the middle. There is no magic formula for how much you need to have saved, or how detailed your plan needs to be before you take the leap. There is no plan or dollar amount that will guarantee success. Your best bet is to simply start, and take committed, focused action. Actualize results first, and your vision for success will have a foundation in reality. You still have to determine your own risk comfort level. No one can tell you when YOU are ready to go public or leave your firm.

I left my corporate desk in my early 20's with $13,000 saved, a full time remote consulting contract, and a strong support network. I failed within a year. On my second attempt, I quit with less than $500, a newborn in tow, and virtually zero support. I killed it, and I'm still running that business today. The numbers don't carry as much weight as we'd like to believe - your level of focus and commitment will determine your level of success.

Experience is often conflated with age. While some skill sets are developed and refined over long periods of time, most areas of consulting do not require 25 years of corporate experience. It is not uncommon to find successful, highly recommended entrepreneurs in their 20's offering specialized skill sets - graphic design, digital marketing, various areas of IT, etc.

However, a consultant becomes much more valuable as they develop a broader perspective on how and why businesses become successful. This is where we start to see the shift from freelance contractor to business consultant. When you can apply your particular skill set to a more comprehensive view of the client's overall vision and the success of their business, the value of your services extends far beyond the market price of the particular product you're providing.

Does this mean that the skilled mid-20's professional should stick with their corporate job for another decade? Absolutely not. An understanding of success in business is not granted via internal experience with one already-well-established firm. Consultants are able to accelerate growth in this area by working diligently with multiple firms in shorter time frames. However, market research is available to anyone who seeks it. Take a few weeks to interview 25 successful business leaders, and you can probably go head-to-head with the HR director who's currently celebrating their 38th year with your firm.

So what do you do, and how do you plan to execute?

Do you genuinely need more employment experience, education, or training to offer your services to clients, rather than employers? Or do you feel that you are a change agent, ready for challenge and seeking opportunity?

Only you will know when you're ready. When the time comes, reach out and we'll get you started faster than you could have dreamed possible.