Statista reports that the US consulting market value reached $64.4 billion by 2020. This figure is not only for large corporations but also includes smaller firms. The market for small business consulting can be extremely lucrative. It can also involve rewarding and engaging work.
Expertise in your field is a must, regardless of whether you are in sales, marketing, IT, or finance. As a small business consultant, you can make a lot of money. We’ll be discussing what small business consulting is and what services are available. How to start a small consulting business? How to become an independent consultant for small businesses. Also, how to determine the pricing and compensation.
What is a small business consulting?
Small business consultants Provide advice to business owners on strategy, problem-solving, and how to develop skills. They can also help to identify resources and create a plan for improving an organization’s performance. Small business consultants have contracted workers who can spot problems and implement solutions to achieve their goals.
Small businesses that can’t afford full-time employees all year can use consultants as a valuable tool. Need a third party to resolve a company problem or to offer advice and strategy?
What does a small business consultant do?
A variety of tasks can be performed by small business consultants. A business plan, sales strategy, or public relations campaign might be one of the many responsibilities that they may undertake.
You can choose to specialize in one of the following areas: accounting, operations management, human resources management, marketing, or public relations. It would be difficult for me to list every type of small business consultant in one article. They can cover almost every aspect of a small business’s needs.
In the end, every small-business consultant is basically similar. They are independent entities that small businesses contract for their expertise and assistance with specific activities. These companies aren’t able to manage themselves.
Let’s take a look at some of the services that a small-business consultant might offer.
Also read: Top 60 Consulting Business Ideas
Small business consulting services
1. Sales and marketing consulting.
If you are an expert in sales or marketing, You can easily transfer this knowledge to small-business consultants.
A small business consultant can help with marketing and sales teams in many ways. They can, for example, create a digital strategy or a marketing campaign. You can also work in the training or web development side of things.
Let’s take, for example, a company that is unhappy with the performance of its sales team and contacts a consultant. A small business consultant will come in, assess the situation, determine the root causes, work with you to develop a plan, and then put it into practice. A consultant might suggest using the HubSpot sales Hub or Active Campaign.
2. Project management consulting.
Project management is one of the reasons small businesses hire consultants.
Let’s suppose a company is planning a launch a new product. However, they don’t know how to strategize because only five of their employees are project managers.
This is when consultants could help you train your staff on the best way to manage the project or work as a contract manager.
If a company is experiencing long-term operational inefficiencies, They might think about hiring a consultant to help spot inefficiencies and develop a plan for improving the organization’s project management.
A consultant can help a company report in two ways. They can collect analytics and reports, and they can also analyze the reports.
A company may want to retain a consultant for this service on a long-term basis. A small business consultant can help companies understand and collect data to make informed business decisions.
A company owner or manager who attempts to do this alone could make mistakes or not understand the context of the numbers.
When is A small business just starting out? It needs projections and forecasts of how things will turn out in the near and far future.
Forecasting can be difficult if you don’t have the resources, time, or personnel to collect and analyze the data. A small business consultant is a great option. They will work closely with the company to develop and implement proper projections.
5. IT consulting.
It can be difficult to choose IT consulting for small business for your small business and get the system up and running quickly.
Companies hire IT consultants, to help them. Consultants can help you choose the right technology and make sure that your technological systems work efficiently and correctly.
If a company has been up and running for some time, A small business consultant can help you identify technological inefficiencies. will then find a solution for improving a company’s systems and processes.
6. Accounting consulting.
A small business may also consider accounting as a service they might need over the long term. An accounting department may not be worth the cost if you have a small team. Every company requires an accountant to manage and look at its finances.
A small business consultant who is skilled in financial management can help you set up payroll, adjust budgets and handle taxes. Accounting and finances are the most difficult areas for small businesses to manage, but they’re also the most important.
7. Strategic planning.
Small business consulting is fundamentally about strategic planning. A small business marketing consultant may help with strategic messaging and launches.
A small business consultant’s role is to help you identify problems and plan strategic solutions. They are problem solvers who can help small businesses succeed in every area of their business.
How to become a small business consultant
Let’s suppose you are interested in small business consulting but don’t have the resources or time to start a firm. You might consider becoming an independent small-business consultant. Let’s take a look at the steps involved in making that happen.
1. Choose a specialization.
Find out what area of expertise you are in. Expertise in a particular subject requires five years of experience.
2. Research certifications.
There are laws in some states that govern consulting, particularly for fundraising. Before you start, make sure you check if you require a certification in order to be a consultant in the industry you work in.
3. Take courses.
It is important to be active and learn in your chosen industry. If you are a marketing consultant, you should make sure that you are an expert in your field by attending courses and keeping up to date on the latest trends. You should make it a priority to continue your education.
4. Start networking.
You must build a network of contacts to become a consultant. Start by attending small business conferences and local events.
5. Choose a pricing structure.
When you start to get interested in your company you should consider what you will charge. Look up your competition to see their rates. Are they charging per project, hourly, or as a retainer?
6. Make a marketing plan.
Consider how you will promote your services. Plus, consider your budget. What amount do you plan to spend on the internet or traditional marketing?
Average small business consulting fee
It can be difficult to find an average fee for small business consulting due to the wide variety of small business consultants. These rates can also vary depending on where you are located, the pricing structure, and whether or not you plan to keep clients in touch.
When deciding how much to charge for small business consulting services, it’s a good idea to look at the prices of your direct competitors. You’ll want to charge the same fees if you offer comparable services.
However, it is important to ensure that your going rate is worthwhile. You can find the average salary for a job that requires your expertise. Think of it as an opportunity cost.
You can then use that figure to determine how much you could make on a daily, weekly, or hourly basis. With this information, you can set a rate that is comparable to what you would make if you were not a consultant.
This logic is applicable to almost all types of small business consulting pricing models, including monthly fees, retainers, hourly rates, project-based charges, and charging per month. You can increase your prices as you work on more projects and establish a good reputation.
Small business consultant salary
According to ZipRecruiter, the national average salary for self-described small business consultants is $63,750. The 25th and 75th percentiles are $51,500 and $74,500 respectively. These figures can vary depending on the specialty or location.
Small business consulting can be a fulfilling career. Every day is different and offers interesting challenges because of creative problem-solving.