How to Start a Consulting Business and Find Your First Clients

Consulting can be an attractive business model for professionals who want to turn their expertise into a business. Whatever your speciality, consulting gives you the opportunity to work directly with clients, solve complex problems and build a business around your skills.

However, knowing your industry inside out doesn’t automatically mean you know how to run a successful consulting business.

What is a consulting business?

A consulting business provides expert advice, guidance or specialist services to help organisations solve problems, improve performance or achieve specific goals. Consultants typically work independently and are engaged by clients for their knowledge, skills and experience in a particular field.

Consultants can work with businesses of all sizes, government organisations, not-for-profits and individuals. Depending on their area of expertise, they may help clients improve operations, implement technology, develop marketing strategies, manage projects, strengthen financial performance or address human resource challenges.

What are the different consulting specialities?

Here are just some of the various, highly-specialised roles consultants can focus on:

• Management consulting: Management consultants help organisations improve business performance, streamline operations and solve strategic or organisational challenges.
• IT consulting: IT consultants advise businesses on technology systems, software implementation, cybersecurity, cloud computing and digital transformation projects.
• Marketing consulting: Marketing consultants help businesses attract and retain customers through branding, advertising, digital marketing, content creation and customer engagement strategies.
• Human resources consulting: HR consultants provide advice on recruitment, workplace policies, employee performance, organisational development and workforce planning.
• Financial consulting: Financial consultants assist businesses with budgeting, forecasting, financial planning, risk management and improving financial performance.
• Public relations consulting: Public relations consultants help organisations manage their reputation, media relationships, communications strategies and stakeholder engagement.
• Strategy consulting: Strategy consultants work with businesses to identify growth opportunities, improve competitiveness and develop long-term business plans.

How to start a consulting business in Australia

Here are nine steps you can follow to help kickstart your consulting business.

Step 1: Enhance your credibility with certifications

Some industries in Australia are regulated and will require specific licences, registrations or professional qualifications before you can legally provide certain services.

That said, even when certifications are not required, they can help strengthen your credibility and make your services more attractive to potential clients.

The most relevant certifications will depend on your area of expertise. For example:

• IT consultants may benefit from certifications offered by AWS, Microsoft, Google, Cisco or Oracle.
• Project management consultants may pursue credentials such as PRINCE2 or PMP.
• Human resources consultants may hold qualifications from recognised HR industry bodies.
• Marketing consultants may complete specialist certifications in areas such as digital marketing, analytics or advertising platforms.

Step 2: Research your target market

Before launching, look for evidence that businesses are already seeking help in your chosen niche. Industry forums, LinkedIn discussions, job boards and competitor activity can help indicate whether there is demand for your services.

Now, you can identify your ideal client. Think about the type of business, industry, size and location you want to work with, as well as the problems they are most likely to face.

Next, look at your competitors. Find out what other consultants are offering, how they position themselves, what they charge and what kinds of clients they attract. This will help you spot gaps in the market and understand where your expertise can stand out.

Finally, pay attention to customer pain points. Your target market is not buying “consulting”. They are buying a faster, simpler or more profitable way to fix a problem they do not want to deal with themselves.

Step 3: Set your fees

Setting your fees is one of the most important decisions you’ll make as a consultant. Rates between consultants can vary significantly depending on your experience, industry, reputation and the complexity of the work involved. The key is finding a pricing structure that reflects the value of your expertise and the outcomes you deliver:

• Hourly rate: This approach is simple and works well for short-term projects or advisory work where the scope may change over time.
• Daily rate: Daily rates are commonly used for workshops, training sessions and larger consulting engagements.
• Project fee: Instead of charging for time, you charge a fixed fee to deliver a specific outcome. This can provide more certainty for both you and your client, particularly when the scope of work is clearly defined.
• On retainer: For ongoing support, some consultants use retainer arrangements. Under this model, a client pays a regular monthly fee in exchange for access to consulting services, strategic advice or ongoing project support.

Step 4: Create a business plan

A business plan should clearly outline how your consulting business will operate, attract clients and generate revenue.

Start by defining the services you plan to offer. Be specific about the problems you solve, the industries you work with and the type of clients you want to serve.

Next, establish realistic revenue goals. Consider how many clients you expect to work with, what you plan to charge and how much income you’ll need to cover your business expenses.

Then, document how your business will operate day to day. This includes your service delivery process, software and tools, administration, invoicing, record-keeping and client communication.

Step 5: Choose your business structure and register your business

Before launching your consulting business, you’ll need to choose a suitable business structure:

• Sole trader: The simplest and most common structure for independent consultants. You operate the business under your own name and are personally responsible for its obligations.
• Partnership: Suitable when two or more people operate a business together and share responsibilities, profits and losses.
• Company: A separate legal entity that can offer additional legal and tax considerations but generally involves greater administrative responsibilities.
• Trust: A more complex structure that may be used in certain circumstances. Professional advice should be considered before establishing a trust structure.

Now, you can register your business and get an Australian Business Number (ABN).

If you plan to trade under a name other than your own, you’ll generally need to register a business name through ASIC. If you establish a company, you’ll also receive an Australian Company Number (ACN).

You may also need to register for Goods and Services Tax (GST) if your annual turnover reaches or is expected to exceed $75,000.

Step 6: Create a budget

While consulting businesses can often be started with relatively low overheads, there are still costs that need to be planned for. Creating a budget can help.

Start by identifying your expected startup expenses. These may include business registration fees, software subscriptions, website development, branding, professional memberships and office equipment.

Ongoing operating costs should also be factored into your budget. Common expenses include website hosting, customer relationship management (CRM) software, accounting services, marketing activities, professional advice and insurance.

It is equally important to forecast your cash flow and build in a financial buffer. Consulting income can fluctuate, particularly during the early stages of a business.

Step 6: Put contracts and legal requirements in place

One of the most important documents for consultants is a client agreement or consulting contract. A written agreement can help clarify the scope of work, project deliverables, fees, payment terms and responsibilities of each party. Having clear expectations from the outset can reduce the risk of misunderstandings and disputes later on.

Depending on your consulting niche, you may also need to comply with industry-specific regulations, professional standards or licensing requirements. For example, consultants working in sectors such as financial services, real estate, healthcare or education may be subject to additional compliance obligations and minimum insurance cover levels.

A few other legal considerations may also apply, including privacy obligations if you collect client or employee information, consumer law obligations when you advertise or deliver your services, and employment contracts if you decide to hire staff. These requirements can vary depending on your industry and how your business operates.

If you’re unsure about your obligations then seek professional legal advice.

Step 7: Understand insurance requirements

Running a consulting business comes with professional and operational risks. While the insurance needs of every consulting business will differ, understanding the types of cover available can help you make informed decisions as your business grows. These are just some of the various types of cover common considered by consultants in various industries:

• Professional Indemnity insurance: If you provide clients with professional advice or services, Professional Indemnity insurance can cover legal fees and losses caused by errors or omissions in your work, real or alleged negligence, breaches of contract, and more. This is one option commonly considered by consultants, as providing professional advice and services is often the main function of the role.
• Public Liability insurance: Public Liability insurance provides protection for you and your business in the event a customer, supplier or a member of the public brings a claim against you due to their being injured or sustaining property damage as a result of your negligent business activities. While many consultants work remotely or from home offices, others regularly meet clients, attend events or work at client premises where these risks may arise.
• Cyber Liability insurance: As consulting businesses become increasingly reliant on technology, this can leave businesses vulnerable to cyberattacks and data breaches. Cyber Liability insurance can help you manage many types of cybercrime (like cyberattacks, ransomware, and data breaches) by covering legal costs, data recovery, fines and penalties, and other expenses related to the cyber event.
• Business Insurance Pack: This is a customisable insurance package that can cover your business contents, tools, equipment and glass. You can also choose cover for business interruptions, public liability claims, tax audits, employment practices and statutory liability risks.

Step 8: Build your online presence

A strong online presence helps potential clients find your business, understand your expertise and decide whether they want to work with you. For many consultants, your digital presence is often the first impression a prospective client will have of your business.

Start with a professional website that clearly explains who you are, what services you offer and who you help. Dedicated service pages can help explain your consulting specialisations in more detail and improve your visibility in search engines.

A professional LinkedIn page is also important to have, as LinkedIn doubles as both a networking and lead generation tool.

If you work with local businesses, a Google Business Profile may also improve your visibility in local search results.

And don’t forget the importance of testimonials and case studies. Even if you are just starting out, examples from previous employment or consulting projects may help showcase your capabilities where appropriate.

Step 9: Create a marketing strategy

A marketing strategy helps you consistently attract potential clients and build awareness of your consulting business.

LinkedIn is a valuable marketing channel for many consultants. Regularly sharing insights, commenting on industry discussions and connecting with potential clients can help establish your credibility and keep your business visible.

Referrals, networking and strategic partnerships can also help generate consulting opportunities. Building strong relationships with clients, industry peers and complementary service providers may lead to referrals and introductions to potential clients. Attending industry events and participating in professional associations can also help expand your network and raise awareness of your services.

Then there is content marketing, which allows you to demonstrate your expertise before a client ever contacts you. Articles, guides, videos, webinars and industry commentary can help answer common questions and build trust with potential clients.

Email marketing can help you stay connected with existing clients, prospects and professional contacts. Sharing insights, updates and relevant industry information can help keep your business top of mind when a consulting need arises.

Ready to start your consulting business?

Starting a consulting business involves more than simply offering your expertise. Taking the time to define your niche, understand your target market, set appropriate fees, establish the right business structure and build a marketing strategy can help create a stronger foundation for long-term success.

As your business grows, it’s also worth considering the risks associated with the services you provide and how your business operates. Different consulting businesses face different exposures, which is why it’s important to understand the insurance options available and how they may apply to your circumstances.