consulting startup business plan

BUSINESS STRATEGIES

How to create a consultant business plan

• Nirit Braun
• Oct 30, 2023
• 12 min read

When launching your consulting business, one of the essential first steps is crafting a well-structured and detailed business plan. Your consulting business plan is like a strategic playbook that lays out your goals, tactics and financial projections. It not only steers you toward success but also equips you to adapt and thrive in the dynamic world of consulting.

Keep reading for tips on how to build a strong business plan for your business. Use the template provided at the end to get started on your own plan.

Looking to kick off your consultancy business? Create a business website today with Wix.

Why create a consultant business plan? Top benefits to consider

A business plan forces entrepreneurs to thoroughly evaluate their business idea, target audience and competitive landscape. This process clarifies their vision and mission, ensuring that they have a clear understanding of how their consultancy will provide value to clients. A business plan helps you in the following ways:

Create a business blueprint : With a business plan in place, entrepreneurs looking to start a business can make informed decisions based on a solid foundation of research and analysis. They can choose the most effective strategies for marketing, pricing and service delivery, enhancing their chances of success. Your business plan can also be used to explain what type of business you'll start - whether that's an LLC, Corporation or something else. Learn more about how to start an LLC .

Secure funding : The cost to start a consultancy business can range from around $60 to several thousand dollars . For those seeking external funding, a well-developed business plan demonstrates credibility and professionalism. Investors and lenders are more likely to support a venture with a thought-out plan that showcases its potential for growth and profitability.

Set measurable goals : A business plan sets measurable goals and performance metrics, which is vital with this type of business . This allows entrepreneurs to track their progress, adapt strategies as needed and celebrate milestones along the way.

Want to remind yourself of the basics? Learn more about how to start a service business .

How to create a successful consultant business plan in 6 steps

In this section, we'll break down the key components involved in crafting a successful consultant business plan in six steps.

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

An executive summary serves as a concise overview of the consultant's business plan, providing a snapshot of the key components and the business' essence. It's usually the first section investors, lenders and stakeholders read, so it must encapsulate the business' value proposition, objectives, strategies and projected growth. To write a clear executive summary for a consultant business make sure to keep it succinct yet informative. Clearly state the purpose of the business, the services offered, the target market and the unique value proposition. Avoid technical jargon that may confuse readers.

Then you can mention the business' strengths, such as the expertise of the consultants, unique methodologies or specialized services. Emphasize factors that set your consultancy apart from competitors.

Briefly discuss the market need for your services and how your consultancy plans to fulfill it. It’s worth noting that strategy and management consulting, as well as technology consulting, financial consulting and HR consulting are in high demand . Highlight any trends or changes in the industry that your business can capitalize on.

Remember to include a snapshot of your financial projections, indicating expected revenue, costs and profitability. This provides a glimpse into the business' potential financial success.

Example of an executive summary for a consultant business

"XYZ Consulting is a boutique consultancy firm specializing in digital transformation for small and medium-sized enterprises (SMEs). With a team of seasoned professionals, we offer tailored solutions to help businesses harness the power of technology for growth. Our unique approach blends strategic consulting with hands-on implementation, ensuring tangible results. In a rapidly evolving tech landscape, XYZ Consulting is poised to be the partner SMEs need to thrive. Our financial projections forecast a steady growth trajectory, with a focus on achieving profitability within the first two years. With a proven track record and a finger on the pulse of industry trends, XYZ Consulting is well-equipped to guide businesses toward digital success."

02. Business and domain names

Knowing how to name a business is crucial for a consultancy venture and a key step before you register your business . It's the foundation of your brand and influences how clients perceive your services. With Wix , you can use a free business name generator or consulting company name generator as helpful tools for brainstorming unique and memorable names. Ensure the name reflects your expertise and the services you offer.

Similarly, the domain name for your business website is vital. It should be easy to remember, relevant to your services and ideally, match your company name. Check the domain's availability using domain registration platforms. Ensure the domain name aligns with your consultancy's focus and services. Generally, this means keeping it short and easy to spell and pronounce.

Learn more: How to make a consulting website

03. Market analysis and research

Incorporating a thorough market analysis within your consultant business plan is essential. Understand the competitive landscape, target audience and market trends. Research your competitors' strengths and weaknesses, pricing strategies and client base. This information will shape your business strategies and help you identify gaps in the market that your consultancy can fill.

04. Operations plan

The operations plan outlines the logistical aspects of your consultancy. It covers location, premises, equipment and staffing requirements. Determine whether your consultancy will be home-based, have a physical office or operate virtually. Define the equipment and software needed to deliver services effectively. Outline your staffing needs, including the roles and expertise required.

05. Marketing and advertising plan

Your marketing and advertising plan outlines how you will promote your consultant business. Identify the most effective strategies to reach your target audience. Consider content marketing, social media campaigns, networking events and speaking engagements to showcase your expertise. Emphasize how your marketing efforts will build brand awareness and attract clients.

You’ll need to develop a suite of brand assets to use in your marketing as well, starting with a company logo. You can use a free logo maker to get a professional logo in minutes.

06. Financial plan

The financial plan is a critical component of any business plan. It outlines how you will raise money for your business initially and provides a timeline for reaching profitability. Detail your startup costs, including equipment, marketing expenses and personnel. Present your revenue projections, taking into account different pricing models and growth scenarios. Highlight your break-even point and the strategies you'll employ to achieve profitability.

By addressing each part of their plan, entrepreneurs can create a robust business plan that guides them toward achieving their business goals and building a reputable consulting brand.

Consultant business plan examples

These templates illustrate two hypothetical consultant business plans, each tailored to a specific niche. These are just templates and should be adapted to your specific business goals and industry dynamics.

Consultant business plan template 1: XYZ Digital Consultants

XYZ Digital Consultants is a pioneering consultancy firm focused on digital transformation for businesses seeking to thrive in the digital age. Our team of experienced professionals offers strategic guidance and hands-on implementation to drive growth through technology adoption. With projected profitability within two years and a commitment to excellence, XYZ Digital Consultants is poised to lead businesses into a successful digital future.

Company and domain name

Company name: XYZ Digital Consultants

Domain name: xyzdigitalconsultants.com

Market opportunity: The rapid shift toward digital operations has created a substantial demand for expert guidance. Our analysis reveals a gap in the market for holistic digital transformation solutions tailored to the needs of SMEs.

Competitor research: We've identified key competitors and their strengths, which informs our strategy to emphasize personalized service and comprehensive implementation.

Location: Primarily virtual, with occasional in-person consultations as needed.

Premises: Home-based setup with access to modern communication tools.

Equipment: High-speed internet, latest software tools and virtual meeting platforms.

Staffing: Founder and lead consultant, supported by contract specialists as projects demand.

Content marketing: Regular blog posts on digital transformation trends, case studies and client success stories.

Social media campaigns: Active presence on LinkedIn and X to engage with potential clients and share valuable insights.

Networking events: Participation in industry webinars, seminars and local business events to showcase expertise.

Speaking engagements: Leveraging speaking opportunities at conferences and workshops to establish authority in the field.

Startup costs (equipment, website development, marketing materials): $15,000

Revenue projections (year one): $150,000

Revenue projections (year two) : $300,000

Break-even point: Achieved by the end of year one

Funding: Initial investment and savings from the founder

Consultant business plan template 2: LeadersEdge Consultants

LeadersEdge Consultants is a dynamic consultancy dedicated to leadership development and organizational excellence. Our experienced team offers customized programs that empower leaders to drive positive change. With a projected growth trajectory and a commitment to fostering impactful leadership, LeadersEdge Consultants is poised to transform organizations and elevate their success.

Company name: LeadersEdge Consultants

Domain name: leadersedgeconsultants.com

Market opportunity: Our analysis reveals a growing need for leadership development programs in diverse industries.

Competitor research: We've identified competitors' offerings and recognized an opportunity to provide a unique blend of coaching, training and strategy implementation.

Location: Virtual consultations, with the option for on-site workshops

Premises: Virtual office setup with video conferencing capabilities

Equipment: High-quality audiovisual tools, assessment software and learning platforms

Staffing : Founder will serve as the lead consultant, supported by certified leadership coaches

Customized workshops: Designing tailored leadership development programs for individual organizations.

Webinars: Hosting webinars on leadership best practices to showcase expertise and engage potential clients.

Thought leadership content: Publishing whitepapers, eBooks and video content on leadership topics.

Collaborations: Partnering with HR and talent development professionals to expand reach.

Startup costs ( making a website , training materials) : $10,000

Revenue projections (year one): $120,000

Revenue projections (year two): $250,000

Break-even point: Achieved within the first six months

Funding: Initial investment from the founder.

How much should you be charging as a consultant?

The amount you charge as a consultant will depend on a number of factors, including:

Your experience and expertise

The type of consulting services you offer

The value you provide to your clients

The market rate for consulting services in your field

In general, consultants charge between $100 and $500 per hour. However, some experienced and highly specialized consultants can charge upwards of $1,000 per hour.

To determine your consulting rate, you can use the following formula:

Consulting rate = Hourly rate * Value multiplier

Your hourly rate should reflect your experience and expertise, as well as the type of consulting services you offer. For example, if you have 10 years of experience and you offer specialized consulting services, you can charge a higher hourly rate than a consultant with less experience and who offers more general consulting services.

Your value multiplier should reflect the value you provide to your clients. For example, if you can help your clients to achieve significant results, you can charge a higher value multiplier.

Here is an example of how to use the formula:

Consultant: Experienced consultant with 10 years of experience offering specialized consulting services

Hourly rate: $200 per hour

Value multiplier: 2

Consulting rate: $200 per hour * 2 = $400 per hour

Can a consulting business be profitable?

Yes, a consulting business can be profitable. In fact, consulting is one of the most profitable industries in the world. According to a report by IBISWorld, the average profit margin for consulting businesses is 20%. This means that for every $100 in revenue, consulting businesses generate $20 in profit.

There are a number of factors that contribute to the profitability of consulting businesses. First, consultants are able to charge high fees for their services. Second, consulting businesses have relatively low overhead costs. Third, the demand for consulting services is high, and it's only expected to grow in the coming years.

Of course, not all consulting businesses are successful. Some consultants struggle to find clients or to charge high enough fees. Others may not be able to deliver the results that their clients expect. However, for consultants who are able to overcome these challenges, the potential rewards are great.

Here are some tips for increasing your chances of success as a consultant:

Specialize in a high-demand area of consulting. This will allow you to charge higher fees and attract more clients.

Build a strong reputation and network of clients. This will help you to generate word-of-mouth referrals and land new clients.

Market your services effectively. Make sure that potential clients know about your services and how you can help them.

Deliver high-quality results. This is the most important thing you can do to ensure that your clients are satisfied and that they continue to use your services in the future.

How much does it cost to start a consulting business?

The cost to start a consulting business can vary depending on a number of factors, such as the type of consulting services you offer, the size of your business and your location. However, in general, you can expect to spend between $10,000 and $50,000 to start a consulting business.

Here is a breakdown of some of the typical start-up costs for a consulting business:

Business formation: $100 to $1,000

Website and domain name: $100 to $2,500

Marketing and advertising: $500 to $5,000

Office equipment and supplies: $500 to $5,000

Professional liability insurance: $500 to $1,000

Other miscellaneous expenses: $500 to $5,000

Total start-up costs: $10,000 to $50,000

You can reduce your start-up costs by working from home, using free or low-cost marketing tools and purchasing used equipment. You can also start your consulting business part-time while you continue to work your full-time job. This will give you a chance to generate revenue and build a client base before you leave your full-time job.

If you need financial assistance to start your consulting business, you may be able to qualify for a loan from a bank or credit union. You may also be able to find investors who are willing to invest in your business.

Which clients to avoid and which to take on?

Here are some tips on which clients to avoid and which to take on in a consulting business:

Clients to avoid

Clients who aren't willing to pay your rates. If a client isn't willing to pay your rates, it's a sign that they don't value your services.

Clients who are unrealistic about their expectations. If a client has unrealistic expectations about what you can achieve, you're likely to set yourself up for failure.

Clients who are difficult to work with. If a client is demanding, rude or disrespectful, it's best to avoid them.

Clients who aren't a good fit for your business. If a client isn't in your target market or if their business isn't aligned with your values, it's best to decline working with them.

Clients to take on

Clients who are willing to pay your rates. This shows that they value your services and are committed to working with you.

Clients who have realistic expectations. This makes it more likely that you will be able to meet their needs and exceed their expectations.

Clients who are easy to work with. This will make the consulting process more enjoyable and productive for both of you.

Clients who are a good fit for your business. This means that they're in your target market and that their business is aligned with your values.

In addition to the above, here are some other factors to consider when deciding which clients to take on:

Your own skills and experience. Make sure that you have the skills and experience to help the client achieve their goals.

The client's budget. Make sure that the client has a budget that's sufficient to cover your fees.

The client's timeline. Make sure that you have the time and resources to meet the client's timeline.

Your gut feeling. If you have a bad feeling about a client, it's best to trust your gut and decline working with them.

It's important to be selective about the clients you take on. By avoiding difficult clients and focusing on good-fit clients, you can set yourself up for success in your consulting business.

Consultant business plan FAQ

What qualifies you as a consultant.

To qualify as a consultant, you need to have the expertise and experience in the area that you're consulting in. You also need to be able to communicate your ideas effectively and build relationships with clients.

How do you start off as a consultant?

How to make 6 figures as a consultant, how do you pay yourself as a consultant, do consultants pay their own taxes, want to create another business plan.

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How to Write a Consulting Business Plan + Free Template

Are you someone people usually come to to get valuable business advice? Or do you really like sharing valuable business insights to help businesses grow? Well, starting a consultancy business can be one efficient move to monetize your expert skills.

Now, you wouldn’t start a business without solid planning, would you? Well, how about you take the first step and write an actionable management consulting business plan for your business idea?

Writing a business plan can be tough. But we are here to make it easier for you.

This step-by-step guide is here to help you write a forward-thinking, realistic plan in easy actionable ways and offers a free management consulting business plan template to kickstart your writing process. .

So let’s get started.

Key Takeaways

• Craft a remarkable executive summary summarizing the concept, strategies, objectives, financial projections, and mission values of your consulting business plan.
• Conduct in-depth industry analysis and market research identifying emerging trends and shifts that are likely to influence your consultancy business.
• Introduce the services of your consultancy firm along with its pricing plan to give readers a thorough idea of your service offerings.
• Conduct a SWOT analysis of your key competitors and determine your competitive edge over them to strengthen your competitive analysis.
• Lay down a clear organizational chart highlighting the key skills, salaries, and experience of people working in your consulting firm. .
• Create realistic financial projections for sales, revenue, costs, expenses, and cash flow for your consultancy after making room for contingencies and emergencies.
• Draft a detailed operations plan highlighting the processes and procedures for everyday activities at your consultancy.
• Devise a diversified marketing and sales plan to promote your business effectively to your target audience.

Key Elements of a Management Consulting Business Plan

• Executive Summary
• Company Overview
• Competitor and Market Analysis
• Service Offerings
• Marketing Plan
• Management Consulting Team
• Operational Plan
• Financial Outlook

Since we are talking about a consulting business plan, let us walk you through this step-by-step outline to help you write a stellar plan covering all the essential facets.

1. Executive Summary

The executive summary is the first and foremost section of your consulting business plan that will engage your readers and persuade them to dive further into details.

Begin by offering a brief overview of your business idea highlighting what it does. Take reference from the below example written using Upmetrics AI assistant .

Further, paint a picture, briefly highlighting your consulting services, market scenario, competition, USP, marketing and sales strategies, and financial objectives.

Ensure that you adopt a storytelling approach while crafting your executive summary. Ideally, this section of your business plan should concisely summarize your entire business plan in a page or two.

So ensure that you strategically place the information within this section to keep the readers hooked.

Now be smart and revisit this section after you are done writing for every other section of your plan. A thorough understanding of your business plan at that time will enable you to craft a compelling summary easily.

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2. Company Overview

This section of a business plan helps the reader get a thorough understanding of your consulting firm.

The company overview offers a detailed description highlighting what type of consultancy you would run, its physical location, legal structure, mission objectives, history, and all such related information.

Begin by clearly stating the concept and niche of your consulting firm. Further, highlight whether you would be running a sole proprietorship or partnership, and if it’s the latter discuss the profit-sharing ratio.

Don’t forget to mention your business structure and whether or not will you run a Limited Liability Company (LLC).

This section is your chance to introduce your business objectives, core value proposition, and mission objectives. Highlight any milestones you plan to achieve or have already achieved and make this section insightful.

Refer to this example describing the short-term objectives of a consulting firm from an Upmetrics plan.

3. Competitor and Market Analysis

An in-depth analysis of the consulting industry, market, and competitors is essential to build a successful consulting business. This is the most crucial part of your consultancy business plan helping you identify your target market, emerging trends, competitors, and your advantage over them.

Market analysis

The market analysis section of your consultant business plan will help you evaluate the market condition, target market, and business growth opportunities for your consultancy business.

Begin by researching and analyzing the consultancy market size and the serviceable obtainable market of your specific consultancy.

Further, determine your target audience by creating a buyer’s persona of your ideal customer. In this customer analysis section, determine their demographic and psychographic details to get a clear understanding of who your customer would be.

Refer to this buyer’s persona written using Upmetrics AI assistant:

Lastly, identify the emerging market trends within your industry, potential risks, and the shifts in consumer behavior likely to influence your business.

Competitors analysis

In the competitive analysis section of your plan, identify the consulting firms and other businesses that offer direct or indirect competition to your business.

Your direct competitors are other consultants in your local market, while your indirect competitors are in-house experts, software solutions, and an industry-specific business community extending resourceful help.

Conduct a SWOT analysis of your key competitors and analyze them based on their service offerings, target demographics, pricing, and other relevant factors.

Highlight your competitive advantage over these firms, suggesting that there are ample opportunities for you to succeed despite the competition.

Here’s an example of a competitive advantage for a consultancy business using Upmetrics.

4. Service Offerings

Consulting businesses offer a variety of consulting services. In this section of your consulting business plan, you will create a clear list of all the services you will be offering.

The list can include various business consulting services such as:

• Strategy consulting
• Operation consulting
• Human resources consulting
• IT Consulting
• Risk and compliance consulting

Now, elaborate on these services to help your readers understand what it truly entails. Refer to this example of legal and compliance services brief description:

As part of our risk and compliance service, the company will offer:

• Draft, negotiate, and conclude ‘Joint Venture Agreements’, and ‘Memoranda of cases for one of our key clients. 
• Legal Advice & Consultation
• Case Litigation & Pleading
• Legal Translation
• Business Start-up Advice
• Management Consultancy
• Representation and Attorney Services
• Legal Compliance

Determine the pricing of these services and place it alongside your service list. Ideally, you should create differential and tiered pricing plans for your services to cater to different target audiences.

All in all, make this section an informative read for your readers helping them understand your unique business offerings.

5. Marketing Plan

A well-defined marketing plan is among the most important components of your consulting firm’s business plan. Well, It’s time to design your marketing strategies using your market research about the target customers and the potential clients.

Multifarious marketing efforts are essential to make your new business visibly famous in the market. Well, here are a few strategies that a successful consultant follows religiously:

Social media marketing

Choose different social media platforms to build your consultancy brand online. LinkedIn can be a good choice for a consultancy business followed by FaceBook and Instagram. Create your marketing plans for different platforms and be consistent with your posting there.

Informative website

Build an informative website for your consulting business and enhance its ranking on search engines by creating a dedicated content marketing program.

Email marketing

A well-defined email marketing program to attract new clients, newsletters for subscribed customers, and promotional services offer to convert a potential customer base.

Targeted advertising

Running a paid ads program to reach targeted small businesses and potential clients.

Refer to this example of marketing and promotion programs for your consultancy from Upmetrics.

In this section of your consulting business plan, also highlight your marketing budget and its allocation to different marketing activities.

6. Management Consulting Team

Introduce your managerial team in this section of your consultant business plan by showing how you have the right people to run a successful consultancy.

Begin by introducing the people at top managerial positions and offer a brief description depicting their skills, expertise, and experience in offering specific consulting services.

Refer to this example introducing the managing director of a consulting agency.

Mr. Ashton will serve as the Managing Director of CCI. A highly motivated and dynamic individual, Thomas boasts vast experience in the field of aesthetics having spent a career spanning 14 years essaying various white-collar roles for aesthetic companies across America. His ability to multi-task and expertly weave through operational pitfalls equips him with exceptional management and administrative skills. The US operations include sourcing, interacting, and building client relations across the industry value chain involving professional salons and end-user clientele. Mr. Ashton’s expert management and industry-specific skills will play an instrumental role in achieving the parent company’s goal of establishing a sustainable and reliable aesthetic brand in the US.

Don’t limit this section to the introduction of owners and managers. Instead, introduce every person who’s an asset to your business and can contribute significantly to your business goals.

In this section, you will also highlight the organizational design to offer a clear understanding of the hierarchy in your consulting firm. And lastly, don’t forget to add the salaries and wages of these people alongside their roles while creating your management plan.

7. Operational Plan

The operations plan shows that you don’t only have the means but also the knack to operate the consulting business efficiently.

This section of your business plan highlights the processes and procedures essential to run the everyday operations of your consulting business and the milestones you wish to achieve.

Confused what should you include in your operations plan? Let’s check this out:

Hiring plan

Mention the number of project managers, analysts, BD, administrative, and support workers needed for your business. Briefly describe the qualifications, skill sets, and experience for these roles and lay your hiring plan to hire employees.

Refer to this example of a hiring plan for a consultancy by Upmetrics.

Operational processes

Briefly explain the different processes and procedures of your business in the consulting industry. This includes processes for client acquisition, service delivery, project management process, quality assessment, and client retention.

Tools and equipment

Mention all the equipment you will require to deliver quality consulting services to the clients. Also, include the pricing of these equipment and how you plan to source them from the market.

Overall, think of smaller nuances and make this section as brief and detailed as possible. Consider it as a guidebook that will answer all the operational queries that arise while running the business.

8. Financial Outlook

A comprehensive financial plan is the most crucial component of your business plan and sometimes it is the only section investors or readers might be interested in.

So work on putting together a well-detailed financial plan with realistic financial forecasts to increase the weight of your consulting plan.

The projections in a financial plan are important because they help the readers gauge the financial viability of your business idea. They offer a clear picture of the profitability, growth potential, and cash-generating capacity of your consulting business.

To create a befitting plan, begin by offering a detailed insight into your startup costs, revenue streams, profit margins, operational costs, and cash flow projections. Gather these projections to work on your key reports.

Refer to different business plans to see what more could you add to your financial section apart from these key essentials:

• Balance sheet
• Profit and loss statement/ Income statement
• Cash flow statement
• Break-even analysis
• Investment plan

While making a financial plan, ensure that you figure out the calculations for the next 3-5 years. And yes, we agree that calculating all these financial projections from scratch can get overwhelming. However, with this financial forecasting tool from Upmetrics , the entire task of creating a detailed plan will get much easier and more effective.

Simply enter the details in the tab and let the tool undertake all the manual calculations and create engaging visual reports to add to your plan.

Get Your Free Management Consulting Business Plan

Need help writing the contents of your management consulting business plan? Well, here you go. Download our management consulting business plan pdf and start writing.

Our intuitive and modern consulting business plan template offers a step-by-step guide with relevant examples to speed up your process of writing an effective business plan. It will get your actionable plan ready while ensuring that you add all the crucial details to it.

The Quickest Way to turn a Business Idea into a Business Plan

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Start preparing your business plan with Upmetrics AI

And here we are. Now that you are aware of how to write an effective business plan using our consulting business plan template, you are one step closer to starting your business with a bang.

But that’s not it. What if we tell you that your business planning process can be made easier and more efficient with a few cutting-edge tools? Well, the Upmetrics business planning app is here at your service.

With an AI assistant to speed up your writing process, financial forecasting tools to help you with projections, and thousands of free educational guides to help you set up the business- we think you get it all with Upmetrics.

Get started now.

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Frequently asked questions, what are the key components of a management consulting business plan.

While there are no fixed rules regarding what to include in your consulting business plan, you can ensure that you don’t miss adding these key components to your plan:

• Executive summary
• Company overview
• Market and competitor analysis
• Service offerings
• Management team
• Operations plan
• Financial plan

What financial projections should be included in the business plan?

While making your consulting business plan, ensure that you add the financial forecasts for startup costs, expenses, revenue, cash flow, sales, and expected profitability to your plan.

How often should I update my Management Consulting Business Plan?

Ideally, you should update your business plan at least once a year since you operate in a highly dynamic industry. However, if you feel that the yearly updates are insufficient, you can also review and update your plan every quarter.

How should I approach the funding section of my business plan?

Begin by calculating your startup costs and the actual monetary situation to evaluate the funding needs for your business. Thereafter check the potential funding sources and their application procedure to avail required funding.

As a consulting business, you can choose one of these funding sources:

• Private loan
• SBA approved loans
• Angel Investors
• Venture Capitalist firms
• Crowdfunding

Can the business plan help in securing funding or investments?

Absolutely it does. Investors, credit lenders, and banks will look after your business plan before accepting the funding request for your business. This is because a business plan offers a clear understanding of your business idea while simultaneously vouching for the financial feasibility of your plan.

What legal considerations should I include in my business plan?

Here are a few of the legal considerations you should make while writing your business plan:

• Business licenses and permits
• Health safety compliance
• Insurance coverage
• Legal business structure
• Employment laws

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Consulting Firm Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Consulting Firm Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Consulting Firm Plan Here

Consulting Business Plan

If you need a business plan for your consulting business, you’ve come to the right place. Our consulting business plan template below has been used by countless entrepreneurs and business owners to create business plans to start or grow their consulting businesses.

Important note: If you are looking for a business plan consultant , specifically, a consultant to help you write your business plan, we recommend Growthink who offers a business plan consultation service here.

Sample Consultant Business Plan & Template

Below are links to each section of your consulting business plan template:

• Executive Summary
• Company Overview
• Industry Analysis
• Customer Analysis
• Competitive Analysis
• Marketing Plan
• Operations Plan
• Management Team
• Financial Plan

Next Section: Executive Summary >

Consulting Business Plan FAQs

What is a consulting business plan.

A consulting business plan is a plan to start and/or grow your consulting firm. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan, and details your financial projections.

You can  easily complete your consulting firm business plan using our Consulting Firm Business Plan Template here .

What Are the Main Types of Consulting Firms?

There are many types of consulting firms. Most consultant companies are in business concentrations such as Management, Strategy, Operations, IT, Human Resources, Financial Advisory, and Marketing/Sales. There are also firms that are singularly focused such as those that offer business plan consulting.

What Are the Main Sources of Revenue and Expenses for a Consulting Business?

The primary source of revenue for consulting firms are fees paid by the client. The client will either sign a contract or agreement of the services it will choose and the pricing for those services beforehand.

The key expenses for a consulting business are the cost of leasing the office, employee cost, marketing/advertising costs, and any office technology or software.

How Do You Get Funding for Your Consulting Business?

Consulting businesses are most likely to receive funding from banks. Typically you will find a local bank and present your consulting business plan to them. Angel investors and other types of capital-raising such as crowdfunding are other common funding sources.

What are the Steps To Start a Consulting Business?

Starting a consulting business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Consulting Business Plan - The first step in starting a business is to create a detailed consulting business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your consulting business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your consulting business is in compliance with local laws.

3. Register Your Consulting Business - Once you have chosen a legal structure, the next step is to register your consulting business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your consulting business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Consulting Equipment & Supplies - In order to start your consulting business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your consulting business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful consulting business:

• How to Start a Consulting Business

Where Can I Get a Consulting Business Plan PDF?

You can download our free consulting business plan template PDF here . This is a sample consulting business plan template you can use in PDF format.

How To Write A Consulting Business Plan

Creating a business plan is essential for any business, but it can be especially helpful for consultants who want to establish their credibility and get ahead in the industry.

A well-crafted business plan not only outlines your vision for the company but also provides a step-by-step process of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article will provide an overview of the key elements that every consultant should include in their business plan.

Download the Ultimate Consulting Business Plan Template

What is a Consulting Business Plan?

A consulting business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons why you will be profitable, how you can succeed in your market, what will set your product or service apart from others, and includes information about your team members, if applicable, to convince investors and lenders (if needed) that you have what it takes to make your venture successful.

Why Write a Consulting Business Plan?

A consulting business plan is required for banks and loan companies, and it is often requested by investors. This document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Consulting Business Plan

The following are the key components of a successful consulting business plan:

Executive Summary

The executive summary of a consulting business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your consulting firm
• Provide a short summary of the key points of each section of your business plan.
• Organize your thoughts in a logical sequence that is easy for the reader to follow.
• Include information about your company’s management team, industry analysis, competitive analysis, and financial forecast.

Company Description

This section should include a brief history of your company. Include a short description of how it all started, and provide a timeline of milestones the company has achieved.

If you are just starting your consulting business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your consulting firm, mention this.

Industry Analysis

The industry or market analysis is an important component of a consulting business plan. Conduct thorough market research to determine industry trends, identify your potential customers, and the potential size of this market. 

Questions to answer include:

• What part of the consulting industry are you targeting?
• Who are your competitors?
• How big is the market?
• What trends are happening in the industry right now?

You should also include information about your research methodology and sources of information, including company reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or consulting services with the right marketing.

Competitive Analysis

The competitive analysis helps you  determine how your product or service will be different from competitors, and what you are using as your unique selling proposition (USP) that will set you apart in this industry.

Complete a SWOT Analysis. Your SWOT analysis should include:

• Strengths : what are your strengths?
• Weaknesses : what are your weaknesses?
• Opportunities : how can you take advantage of competitive weaknesses and strike back at them with your strengths and possible new product or service offerings?
• Threats : what are the potential threats to your company? How can you prepare for them? What can you do to mitigate potential risks?

You will then use this information to develop your own competitive strategy. Determine your competitive advantage and how you will differentiate your business from these competitors.

Marketing Plan

Your consulting marketing plan is where you determine how you are going to reach your target customer(s). Your marketing strategy should be clearly laid out, including the following 4 Ps.

• Product/Service : Make sure your service offering is clearly defined and differentiated from your competitors, including the benefits of using your service.
• Price : How do you determine the price for your service? You should also include a price strategy that takes into account what customers will be willing to pay and how much the competition within your market charges.
• Place : Where will your customers find you? What channels of distribution will you use to reach them?
• Promotion : How will you reach your target market? You can use social media or write a blog, create an email marketing campaign, post flyers, pay for advertising, launch a direct mail campaign, etc.

You should also include information about your paid advertising budget, including an estimate of expenses and sales projections.

Operations Plan

The operations plan should include the following information:

• How will you deliver your service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Management Team

Include a list of team members including names and titles, as well as their expertise and experience relevant to your specific consulting industry. Include brief biography sketches for each team member.

Financial Plan

Now include a complete and detailed financial plan. This is where you will need to break down your expenses and revenue projections for the first 5 years of operation. This includes the following financial statements:

Income Statement

Your income statement should include:

• Revenue : how will you generate revenue?
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the service offering.
• Net Income (or loss) : once expenses and revenue are totaled and deducted from each other, what is the net income or loss? 

Sample Income Statement for a Startup Consulting Firm

Balance sheet.

Include a balance sheet that shows what you have in terms of assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Consulting Firm

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Income : all of the revenue coming in from clients.
• Expenses : all of your monthly bills and expenses. Include operating, marketing and capital expenditures.
• Net Cash Flow : the difference between income and expenses for each month after they are totaled and deducted from each other. This number is the net cash flow for each month.

Using your total income and expenses, you can project an annual cash flow statement. Below is a sample of a projected cash flow statement for a startup consulting business.

Sample Cash Flow Statement for a Startup Consulting Firm

You will also want to include an appendix section which may include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• A list of your hard assets and equipment with purchase dates, prices paid and any other relevant information
• A list of your soft assets with purchase dates, prices paid and any other relevant information
• Biographies of the key employees listed in the executive summary section above.
• References to people you have done business with who are willing to confirm their positive business holdings with your company.

Writing a good business plan gives you the advantage of being fully prepared to launch and grow your consulting company. It not only outlines your business vision but also provides a step by step process of how you are going to accomplish it. Sometimes it may be difficult to get started, but once you get the hang of it, writing a business plan becomes easier and will give you a sense of direction and clarity about your consulting company.  

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Updated: 02/08/24

Published: 02/08/24

Did you know the strategy consulting market is expected to grow by $70.08 billion between 2022 and 2027? This is great news for those wanting to start their own consulting business this year.

A career in consulting may be a good fit for you if you’re passionate about helping others in your industry succeed and you are considered an expert in your career field. In fact, consultant jobs are predicted to increase by 11% from 2021 to 2031, making consultants more in demand than ever.

We’ve compiled this guide to dig deeper into the world of consulting and how to start marketing your own consulting business. Learn about the types of consulting and how to start a lucrative, successful consulting business.

Table of Contents

What is consulting?

How to start a consulting business in six steps, the 16 different types of consulting, how to grow your consulting business.

Consultants are experts in their field. They possess knowledge so valuable that someone else — an individual, department, or entire organization — is willing to pay for it. Consulting can include many activities beyond simply giving advice , including problem diagnosis, data collection, feedback, strategy-building, and implementation.

“The defining characteristic of a consultant is their talent. It’s an intrinsic capacity to look beyond the apparent, make connections that others might miss, and motivate people to take initiative and be confident,” says Hrair Tcholakian , founder of eksperts.net.

Sometimes, business leaders need a new set of eyes when approaching an issue. As a consultant, you can provide that unbiased perspective. Consultants and consulting firms are highly sought after for their fresh perspectives on a pressing business problem or challenge. Simply put, consultants work to make their clients more successful.

Consultant vs. Contractor

You may have heard the words consultant, contractor, and even freelancer used interchangeably. While all of these parties work with businesses and aren’t full-time employees, that’s where their similarities end.

• Contractors (including freelancers ) are self-employed workers that companies contract to provide services.
• Consultants, however, primarily offer assessments and their expert advice. They can be self-employed or employed by an outside consulting firm.

However, if, as a consultant, you were asked to provide a service or deliverable, you could be hired into a contractor-type role.

Now, let’s explore how to begin your own consulting business.

• Assess your skills and strengths to choose your niche.
• Analyze your market needs and pain points.
• Develop your brand, website, and service offerings.
• Open your business.
• Market your business to attract new clients.
• Stay organized and scale.

Are you specialized in a certain field or niche industry and believe you could offer quality advice to others? You may consider opening your own consulting business. Here are six steps to follow to start a consulting business that helps both you and your clients succeed.

1. Assess your skills and strengths to choose your niche.

A good first step to starting your consulting business is to brainstorm and define which valuable skills and strengths you have that make you a great consultant. Ask yourself these questions:

• What makes you an expert?
• What do you love to do and talk about?
• If you had to stand in front of a classroom and teach any subject, what would that be?
• What do your friends, family, and coworkers ask for your advice on?

I consider myself to be an expert in content marketing, so during this step, I would explore which skills I’m often asked about, such as SEO, website and user optimization, and more. Consider what skills were key in getting you hired in the past, as these could be your most lucrative offerings.

2. Analyze your market needs and pain points.

Once you establish your consulting niche, you should better understand what industry and market you’ll be targeting.

Narrowing your market as a consultant allows you to understand your potential clients’ needs, challenges, and pain points. This can help clarify how you can use your skills to provide solutions.

For example, content marketing is a wide field, but my niche experience is in tech content marketing, like SaaS companies and cybersecurity firms. I can position myself in a niche industry because this is where I will do the most good.

Just as you specialize in a certain skill set as a consultant, you should also specify what services you provide for your clients. This information can also help you better market to clients, which we’ll talk about below.

3. Develop your brand, website, and service offerings.

Next, create the external-facing components of your business, including your website, branding , and services. These resources can help clients distinguish you from competitors.

Whether you identify your business with your name or with another name, you should give it an official name and website to boot. Ask yourself what you bring to the table that makes you so valuable, and highlight this offering.

Another important part of this step is outlining how much your consulting costs. Be clear about what services are included in your price.

4. Open your business.

This step is more complicated than flipping a proverbial sign from Closed to Open.

First, consider the legal structure of your business. Legitimizing your business gives you credibility and direction when it comes to taxes, staffing, and other legal details.

Next, consider what tools you need to conduct business and connect with clients. These might include tools to help find new clients and jobs — like a LinkedIn membership — and video conferencing software like Zoom or Skype.

In my experience, the more hype you can generate around your new business, the better. Ask your friends, LinkedIn contacts, previous clients, and others to share your new business. Consider offering a discount on future services if they do.

At this stage, you should also open a business bank account, invest in an accountant (and eventually an assistant), and order business cards with your branding and information.

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5. Market your business to attract new clients.

Now that you’ve opened your business, it’s time to grow . Marketing yourself correctly is key to reaching new clients.

Consulting marketing can adopt a variety of marketing methods:

• Podcasting .
• Speaking and teaching.
• Social media marketing.
• Print or digital advertising.
• Cold calling and emailing.

Regardless of how you promote your consulting business, invest in consulting marketing methods that will get you in direct contact with your potential clients.

Methods like blogging, podcasting, and social media marketing don’t necessarily draw a direct line to new revenue, but they are powerful for growing awareness and establishing expertise. Content marketing is often a marathon, not a sprint, so be sure to create a consistent publishing schedule.

Once you get in front of potential clients, have an established elevator pitch and client proposal template ready to go. Half the consulting “battle” is providing advice. The other half is selling your advice in the first place.

As you grow your client base, use a CRM like HubSpot’s all-in-one CRM platform (which comes in a free version for small-to-medium businesses or a paid version for enterprises). It can help you keep track of client information as well as the context of your relationship with each client.

6. Stay organized and scale.

As you grow and master your consulting business, stay organized and consistent. High-quality results are the best way to incite referrals from previous clients — and referrals can be your best source of new sales .

In fact, as you build successful relationships with clients, don’t be afraid to ask for referrals for new leads.

Once a month or so, sit down and analyze your consulting business. Look at your client list, software tools, and other business practices. Analyze what’s working and what’s not.

Understand where you can cut extra effort and resources to ultimately save money. Lastly, subscribe to industry trends to keep your business relevant to the challenges and trends your clients face.

7. Business Consulting

Business consulting is a broad term for specialists who work with businesses on anything from financial advising to training to layoffs. (You’ll see that this category overlaps with others in this list.)

As a business consultant , you will likely work with small to midsize businesses (SMBs).

8. Sales Consulting

Sales consultants work to improve sales teams’ performance, regardless of size or industry.

As a sales consultant, you will typically work in sales training and development. You could also be brought on for other purposes, such as choosing a CRM , improving the sales process, or boosting team morale.

With sales being considered one of the most important parts of a business, financially speaking, quality sales consultants are highly valued and sought-after.

9. Marketing Consulting

Marketing consultants evaluate a business’s marketing efforts and provide guidance on improving strategies to meet goals and bring in revenue.

As a marketing consultant, you might specialize in a certain field of marketing, such as content marketing, PR, or social media marketing. Or, you might focus on a niche marketing process, such as defining target audiences , customer acquisition , or brand awareness .

10. Environmental Consulting

Environmental consulting is particularly important as companies work to reduce their permanent impact on the environment.

As an environmental consultant, you may advise businesses on how their practices affect the environment around them and often work with industries like construction, waste management, real estate, and energy (but can be hired by any type of company).

11. Financial Consulting

Financial consulting overlaps somewhat with the financial strategy consulting we discussed above. The main difference, however, is that this category also includes independent financial consultants who work with individuals, families, and entrepreneurs.

As a financial consultant, you may help with everything from day-to-day expenses, investments in precious metals , and taxes to cash-flow issues, insurance, and financial legalities.

12. Career Consulting

As a career consultant, you may help clients with skill development, resume building, job applications, interviews, and understanding the job market as a whole.

Individuals and businesses use career consulting to equip themselves or their employees to grow in their jobs. Career consulting may be for you if you have a background in HR or recruiting.

13. Healthcare Consulting

The purpose of healthcare consulting is to maximize the impact and output of healthcare organizations.

Healthcare consultants are management consultants who work in the healthcare industry. They analyze an organization’s personnel, profits, and processes to advise on improving and solving pressing challenges.

14. Diversity, Equity, and Inclusion Consulting (DEI)

It’s not uncommon for companies to find themselves lacking the specific skill set that diversity and inclusion consultants bring. Hiring an HR consultant is simply not enough to overcome bias in an organization. That’s what makes DEI consultants some of the most sought-after professionals.

As a DEI consultant, you’ll bring an objective point of view to businesses’ equity problems — especially those that involve personnel and culture. If you have a background in HR, psychology, or nonprofit management, you may find that DEI consulting could be your next career move.

15. Public Relations Consulting

While public relations might be a staple in enterprises, the function is often coupled with marketing and communications in smaller companies. But public relations is a discipline all its own, and unfortunately, that fact is usually realized in the middle of a crisis.

As a PR consultant, you might work on a retainer to help plan for crises before one occurs, or you may be brought in during the middle of one to determine a company’s best course of action to work with the public and media.

16. Brand Consulting

Brand consultants may work closely with marketing and sales consultants to bring products to market and adjust prices. These professionals offer creative expertise to position a company in a certain way in the minds of consumers.

As a brand consultant, you’ll assess where a brand currently stands. Competitor analysis, research, and design may fall under the scope of work, but if you prefer to specialize in one area, that’s an option.

Starting a consulting business is a remarkable feat, but that’s not where the work stops. These five activities will help you grow your consulting business, too.

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Another source of great blog content is your client base. Pay attention to what issues or questions your clients face and gather feedback about what information would be helpful to write and share.

In the same vein, blog content can also serve as sales enablement content — sharing a popular blog post or two with potential clients can help them understand why they should hire you.

4. Share thought leadership content.

Like starting a blog, publishing thought leadership content can help you establish your authority. Consider platforms like Medium that already have an audience. Publish your most authoritative, data-driven content on there to boost your brand awareness.

You can also use tools like HARO to connect with journalists and bloggers looking for expert quotes, anecdotes, and stories for their content. Respond to queries to get your voice featured as a thought leader in your consulting niche.

5. Network and make new connections.

Between social media, dedicated Slack channels, and online masterminds, you are the only thing standing in your way of making new connections and friends online.

Networking in person is pretty straightforward. But networking online can be tricky. Thankfully, with today’s technology, there are countless ways to network and make new connections.

One of my favorite spots to network is on Twitter. It’s the easiest platform to engage with folks and start interesting conversations. I’m also reminded of old connections that I can revive with a short Tweet or email.

Angelique Rewers , founder of Premier Global Community, argues that clients need a compelling ROI story.

“Employee experience is reportedly on the budget chopping block this year, as are a lot of other things. That means every dollar companies invest needs to go a long way. Decision makers need and want to see big, visible dents being put in their problems quickly, and they want to see those results last for longer than sizzle on a steak,” Rewers says.

When you network, you need to share what exactly organizations will get from their investment in you.

Test a few platforms and programs and see which one helps you get connected, attract clients, and build a community.

Start Consulting Today

Consulting may be a fascinating, lucrative career, but it’s also a mindset. Successful consulting businesses begin with an individual or team of experts passionate about helping others.

Regardless of your firm’s size, keep your passion and expertise centered, and you’ll always find success. Top consultants are great at planning, presenting, and marketing their services. Start your consulting business plan by downloading our free consulting templates below.

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Business Consulting Business Plan

Start your own business consulting business plan

Growth Management and Strategies

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Growth Management and Strategies (GMS) is an ambitious innovative new company that is attempting to turn the small business consulting business on its head. With an experienced consultant at the helm as President, GMS intends to grow at more than 50% per year through solid customer service, a great sales plan, proven competitive strategies, and a group of people that bring dynamic energy to the company and the sales process.

The goal for this plan is financial: GMS needs a Small Business Adminstration (SBA) loan, and this document is one step in the process. It is also a road map for the company. The document gives all present and future employees, as well as the owner a sense of purpose that may exist without the business plan, but becomes more relevant after the business plan is written, reviewed, shared, and edited by all. It is a living document that will last far beyond the SBA loan purpose, or if that doesn’t occur, to bring an investor on board.

GMS’s financials are realistic, and based on very conservative sales figures relative to the industry as a whole. That is because one of the goals of GMS is to build the business one client at a time, and to serve each client as if it were the last. This is how loyalty is generated, and cultivated. Customer service is what GMS will do best, and is a large part of the company’s overall mission.

1.1 Objectives

The objectives for Growth Management and Strategies are:

• Gain access to an SBA loan upon start up.
• Grow the company from 2 employees in Year 1, to over 10 by Year 5.
• Increase revenue to over $3 million by Year 3.
• Increase client base by 450% in three years.
• Maintain job costing that keeps margins above 70%.

1.2 Mission

The company mission is to serve small business clients that are in need of logistical, technical, and business strategy services. All projects will be chosen based on the availability of human resources, and each individual employee will be given the respect of a contract worker, and will share in profits for each job. Politics have no place at Growth Management and Strategies, and to limit the affects of favoritism, the company will implement and clearly communicate a performance review policy that applies to those at the bottom as well as the top of the leadership ladder. Credit will be given to the person who performed and/or innovatively modified a project, and compensation will be both financial and in the form of commendation.

Growth Management and Strategies is a company that respects the needs and expectations of its employees and clients. If either is compromised, adjustments will be made so that the company culture may remain intact.

1.3 Keys to Success

Our keys to success are:

• To maintain client satisfaction of at least 90%.
• To keep overhead low.
• To ensure professional marketing and presentation of services.
• To provide an active and functional website.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Growth Management and Strategies was established as a C corporation. The company’s headquarters are located in Boston, MA, near Copely Place. The company was established as a result of the efforts of its owner, Bill Dawson, and his experience in leading small businesses into prolonged periods of growth and innovation. Dawson worked for McKinsey before being hired away to Bain and Company. A Harvard graduate, Dawson spent hundreds of hours each week for nearly a year, slowly building the company to where it is now.

The company has had numerous successes this year, including one client that was purchased by a major multinational conglomerate, and another that experienced product sales growth of over 700% the first year.

2.1 Start-up Summary

This start-up summary table lists all the costs associated with establishing a lease, purchasing office equipment, and pulling together the other resources necessary to get the business off the ground. Furniture, LAN lines, and additional technology purchases are a must in order to properly communicate with clients, and to establish a website.

Other services included in the start-up summary are legal consulting fees, kept to a minimum thanks to resources provided by Nolo. Incorporation fees are included in the legal fees line item.

The free cash flow (cash balance) appearing in this start-up table is high relative to other small consulting businesses of its size. The owner is preoccupied with maintaining positive cash flow, and is risk averse enough to understand that during months in which contracts are not available, the corporation must sustain itself.  With this said, planned debt leverage is low, therefore risk to the lender is relatively low as well.

2.2 Company Ownership

Growth Management and Strategies is wholly owned by Bill Dawson, and is classified as an LLC.

Growth Management and Strategies offers a variety of services to the small business client. Many of the services are customized for each client, and a bidding process is observed. The company also offers a traditional fixed rate sheet for its services.

Market Analysis Summary how to do a market analysis for your business plan.">

The target customer owns a small business, and is generally dissatisfied with the revenue that the business is generating, or is dissatisfied with the daily management of their business. The customer is likely to operate a business worth between $200K and $10 million, with growth rates of between 1-10%, or even a negative growth rate.

Market growth, that is, the predicted growth in the small business sector within the Boston/Cambridge Metro area is expected to be around 3% per year. This may increase due to additional SBA lending programs designed to match the strengths of research and faculty grant work with the needs of the market and small businesses willing to take new products to market. Regardless of the market growth, the company’s customer base is far more dependant upon service needs, and a solid reputation. Mr. Dawson is well respected within the community, and has built a number of relationships with high profile individuals, and is a frequent contributor to the business section of the Boston Herald.

The corresponding market analysis table below breaks the potential market down into tactical sub-markets.

4.1 Market Segmentation

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• Debt of more than 30% yearly revenue.
• Free cash flow frequently in the negative, requiring deep pocket borrowing or investment.
• Long-term growth underperforming relative to competitors.
• Management discord and performance issues.

These are not the only differentiators used to determine the market potential for a client, they are simply a starting point for the sales team as they reach out to this group of small businesses, owners and investors.

4.2 Target Market Segment Strategy

The target market strategy involves isolating potential customers by revenue, then drilling down to very specific needs via the sales team’s needs analysis methodology.

The first tier customers, businesses with over $3 million in revenue, is more experienced in outsourcing and may find themselves more comfortable hiring Growth Management and Strategies on retainer. Strategically, a retainer helps maintain consistent cash flow, even if during some months these customers will require more services than what they have paid for that month. This issue will be addressed in the Personnel topic.

The second tier customers, those businesses operating at revenue levels of $501K – $3 million, typically are very excited to have moved out of the home office stage, and into a new level of stability. If they are self-funded, these businesses can be the most challenging to work with because they are often not willing to part with company shares, and don’t yet have a sense of what kind of marketing investment is necessary to grow a business at this stage. The company will serve these small businesses based on a bid cycle, and needs analysis.

The third tier customers are easier to identify, and more ubiquitous than the rest. These small businesses are operating on $200K – $500K in revenue, often are operating out of a home, and have a firm sense of their market and potential, yet have trouble executing their plans effectively, or following through on growth strategies that generate wealth. Again, the strategy is to provide these businesses with a short needs analysis, and focus on the quantity of such customers to maintain a solid revenue stream.

4.3 Service Business Analysis

This industry is split up between a variety of players, including small businesses advising small businesses, such as the case with Growth Management and Strategies, to large conglomerate multinational consulting firms that send in newbie MBAs and use their name recognition to convince their clients that every one of these MBAs will generate over $300K a year in value. Sometimes they do, but when they don’t, GMS plans to be there.  

At the other end of the spectrum, there are a wide variety of mom and pop consulting firms owned by very talented people who simply don’t have the marketing resources or expertise to reach a broader spectrum of customer.

GMS is somewhere in between. With years of guerrilla marketing experience, and a long-term plan for success, Mr. Dawson is determined to build the company each client at a time, and to focus on a sales team that outperforms all the competitors.

GMS is planning to grow exponentially within the first two years, to over $2 million in consulting revenue. At this point the service business analysis will be re-evaluated from the outside in.

4.3.1 Competition and Buying Patterns

Typically small business clients will learn about the consulting services market through word-of-mouth experience passed on through a friend or contemporary. Still, outbound sales teams dominate this category, and the stronger your sales team and name recognition, the greater your odds of finding clients willing to place your company on retainer or accept your company’s bid. The most competitive players in this market tend to have some of the best sales teams in the industry, that is, people who know not only how to communicate the technical needs analysis in a non-technical way, but in addition, are able to follow through and execute on promises and provide accurate, industry specific information that is useful to the client even before the deal is made.

Price is also important, and operates on a complex tiered system that is dependant upon the effectiveness of a particular salesperson, the word-of-mouth (WOM) advertising already in the mind of the potential client, and the ability of the client to reform the way they think about their own business. The demands of turning a business around, or pushing it to the limits of its potential are in direct proportion to the price of each bid. GMS must be careful not to be lured into out bidding a competitor, only to find that the customer has no plans to modify their business plan, and are seeking a “magic bullet” that may or may not exist. Competition in this industry leads to frustration and burnout for many people, and it takes a strong sense of purpose to push the business beyond the realm of the high-intensity, low-return client.

Strategy and Implementation Summary

GMS will pursue a strategy in line with the experience of the owner, and implementation will be performance based and follow a clear path. Milestones are important to the implementation of this plan, and so is the vision and the will of the company’s owner, Mr. Dawson. The overall company strategy is tied very closely with the sales strategy, that is, with the front lines of the business. One of the biggest threats to any strategy is that they can become too high-minded, and not literal enough to translate into action. This will not be the case with GMS, a solid company that hires top talent and achieves it’s goals on time and on budget.

5.1 Competitive Edge

GMS has a significant competitive edge in the following areas:

• Customer service mobility – As a customer-centric firm, GMS offers no hold phone lines, same day email responses, and callbacks within one hour. In addition, the phone technology is set up in such a way as to provide salespeople with all databased information about the customer before they say “hello”. 
• “Needs Analysis” service – Possibly the best competitive edge in an industry fraught with agressive outbound sales teams and your run of the mill ego-centric, customer alienating, consultants.
• A considerable network of contacts – Mr. Dawson is well connected in the area of general consulting, and his Harvard degree opens doors via simple bragging rights, and an extensive alumni network.

5.2 Marketing Strategy

GMS’s marketing strategy revolves around a three-tiered focus. At the top of pyramid one, imagine a customer service ideal. This ideal is also included in the competitive comparison.

Pyramid three has at the top a team-centric company culture. Tactics revolve around building this culture from the ground up so that it rewards innovation and determination, and management shows no personal bias or favoritism except when a salesperson or consultant is outperforming the mean. Although this strategy appears to be an internal management goal or company summary object, it is highly relevant to marketing’s performance because without integrity standards and a consistent company culture, GMS’s marketing will feel disconnected and unsupported, and will suffer as a result. A more detailed breakdown of tactics and programs related to this strategy is available in the full marketing plan. 

5.3 Sales Strategy

GMS plans to develop and train 5-6 new salespeople by year two. Upon start up, the primary sales contact will be Mr. Dawson, but this will change as the revenues increase, and the company is able to invest in human capital.

GMS has a sales strategy that focuses on an initial needs analysis. Once the results of the needs analysis has been forwarded or described over the phone to a potential client, the salesperson will ask for a personal interview, a chance to sit down and discuss specifics. At no time should this be perceived by the potential client as “pushy” or “agressive.” 

The goal of this sales process is to get behind the numbers, and the business successes, to identify where the client’s needs lie. Once this is mapped out, GMS will decide how these problems can be best addressed, and will offer both a bid and some action points. If the client wants to use the action points to move forward on their own, this is very acceptable. GMS’s research has in fact shown that the clients that choose this path, often come back to seek additional information, and more often than not, accept the bid.

This strategy differs from the course often taken by large consulting firms in that the customer is not condescended to, or treated as if the knowledge isn’t right there in their own heads. Often, consulting companies will send a large ego to clean up a client’s mess, and find that the strategy backfires when the client only chooses to give the consultant the chance to bid. GMS’s sales strategy revolves around customer service and empowerment, not condescension and sales “closers.”

5.3.1 Sales Forecast

Sales forecast is based on the assumption that most of the revenue will be the result of consulting bids. The growth in retainer revenue is about 30% lower than the expected yearly growth in consulting bids of 80%/year. This may seem like an agressive number at first glance, but this is not a large company being discussed in this business plan. The smaller the company, often the larger the opportunity for exponential sales growth, and especially if the firm uses sound sales and marketing strategies to take share from the larger, less nimble consultancies.

The Needs Analysis service is listed only to highlight the fact that some outside information gathering firms/consultants will be used to compile the necessary information. This poses some risk because there are no costs associated with the Needs Analysis efforts. Nevertheless, GMS is confident that this product will set the company apart from the competition, and generate sales far in excess of the costs incurred.

5.4 Milestones

The milestones table includes one listing each for the business plan and the marketing plan. Each of these are crucial to the long-term and short-term success of GMS. The other milestones are also important, but most are simply tasks necessary in starting up almost any business. Nevertheless, the most important milestone in this table is financial. The SBA loan will determine whether this company will have the working capital to operate for 5-12 months with little or no immediate revenue. If GMS cannot find the working capital to meet the minimum cash flow expectations set forth in this document, the company will dissolve and the owner will turn his talents elsewhere. Therefore, it is possible that the line item for “SBA Loan” may be changed to acquire family or friends as investors. Ideally it will not come to that and Mr. Dawson will be able to retain full control of the company, and direct it entirely based on his vision.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The management team will initially consist of Bill Dawson. A Harvard MBA, and world-renowned consultant for major Fortune 500 companies, Mr. Dawson has built a reputation based his customer-centric approach to consulting, a relative anomaly in the world of high profile consulting. Many consultants are trained to believe they are right and the client was put on this earth to learn from the consultant. That is not the case for GMS, as the management team (Dawson) takes a different tact. The consultant acts as an interviewer, learning all that is possible to learn about the client in a one or two week period. As a management tool, this approach is very effective because it gives the sales team flexibility in dealing with potential customers, and relieves the uncomfortable pressure to close the sale.

Mr. Dawson’s approach to managing customers is also the approach he will take in dealing with his salespeople. GMS doesn’t need a hefty management structure, or administrative overhead. Many of those processes may be handled through outsourcing and Internet technology. On the contrary, the management structure at GMS is designed to reward the performer and educate the underperformer. Each salesperson is given a battery of psychological and rational tests, and most importantly, are screened based on how well they will fit into the Dawson management style. This leaves little to chance, and encourages a team atmosphere that remains light-hearted and fun.

6.1 Personnel Plan

This table demonstrates how GMS plans to start acquiring clients. One salesperson will be trained initially, and that person will later head a team of salespeople as the company expands. The promise of growth, and chance to work for a strategically positioned consulting business is enough to have three major players bidding for the job. Although each will see a major cut in salary from their current position, the chance to share in company profits (10%) and growth is enough to draw them to a low base, high commission position that offers no guarantees.

Financial Plan investor-ready personnel plan .">

The Financial Plan is based on a pending SBA loan, and a corresponding cash flow amount held in a highly liquid account.

7.1 Important Assumptions

7.2 break-even analysis.

The Break-even Analysis table is based on the assumption that each hour worked can be billed at approximately $70 per unit, and the employees will start at approximately $25/hour. This doesn’t include the cost of the payroll burden, however the assumptions are fairly accurate. Fixed costs are related to the lease and other monthly costs.

7.3 Projected Cash Flow

The following table and chart show the Projected Cash Flow figures for Growth Management and Strategies.

7.4 Projected Profit and Loss

The following table and charts are the Projected Profit and Loss and Gross Margin figures for Growth Management and Strategies.

7.5 Projected Balance Sheet

The following table is the Projected Balance Sheet for Growth Management and Strategies.

7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 8742, Business Management Consultants, are shown for comparison.

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How to Start a Consulting Business: A Step-by-Step Guide

• The Speaker Lab
• April 3, 2024

Table of Contents

Launching a consulting business can feel like navigating uncharted waters, but it doesn’t have to be overwhelming. If you’re wondering how to start a consulting business , this guide will give you the scoop on understanding the industry landscape and pinpointing where your expertise fits best. We’ll also touch on business plans and legal steps for setting up shop, as well as innovative marketing strategies to attract clients. So, if you’re to roll up your sleeves and get to work, we have practical guidance at your disposal. Let’s start transforming those dreams into a thriving consulting business.

Identifying Your Niche in Consulting

Before you can start a consulting business, you first have to find your sweet spot in the consulting world. Navigating the consulting landscape involves matching your fervor with the demands of the market. With industries ranging from management consulting to IT, healthcare, and even DEI and financial consulting, the options are vast. Finding where you shine brightest is key. Let’s look at a couple of these sectors together.

Management Consulting Market Size

The management consulting industry isn’t just big; it’s colossal. As a billion-dollar industry, its breadth encompasses everything from strategic planning to improving organizational efficiency. Like any consulting sector, its size indicates that carving out a niche here requires not just expertise but an understanding of emerging trends and sectors within the market itself. For those with a knack for solving complex business problems or guiding companies through significant changes, this could be your arena.

Growth in IT Consulting

Currently projected to reach over $72 billion in 2024 , revenue in the IT Consulting & Implementation market continues to grow. This number truly shows the critical role technology plays in every aspect of how businesses run today.

This sector thrives on technological advancements and businesses’ ever-growing need to stay ahead digitally. Companies continue seeking expertise outside their core teams for everything from cybersecurity strategies to cloud migrations. So if tech is your turf—whether it’s cybersecurity measures or software development strategies—the growth trajectory of this sector suggests ample opportunities for specialists ready to tackle today’s digital challenges.

Navigating Niche Industries

Picking a niche goes beyond identifying what areas are hot right now. It involves deep dives into industry trends while matching them against your skills set and passion. Looking into niche industries allows for specialized focus which can significantly benefit client outcomes. After all, tailored advice often translates into actionable insights they couldn’t find elsewhere.

To stand out amidst the sea of consultancy services vying for attention means becoming synonymous with excellence within your chosen field. This could include something like optimizing hospital operations as part of healthcare consulting or navigating companies towards more inclusive practices under DEI initiatives.

So, if you’re eyeing the consulting world and searching for your niche, go ahead and get researching. In addition, it’s wise to reach out and network with industry experts. Their insights can help guide you towards areas ripe for innovation and growth, ensuring your consulting journey starts on solid ground.

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Crafting Your Business Plan and Strategy

In the business world, it’s common to hear words like “business plan” or “five year plan” thrown around casually. But how important is it really to create something like a business plan? And how do you even start to create one for your consulting business? If these are the questions you’re asking yourself, stay tuned—we have answers for you.

Importance of a Strong Business Plan

Think of your business plan as the GPS for your consulting journey. Crafting a business plan goes beyond merely listing ideas. It involves creating a blueprint that details how you plan to grow your consulting enterprise. Crafting this robust business blueprint not only meshes with your proficiency and the demands of the marketplace but also serves as a lighthouse during moments of doubt.

A key component to any successful business plan is understanding its structure. A good business plan includes an executive summary, company description, market analysis, organization and management structure, service or product line description, marketing and sales strategies, funding request (if applicable), financial projections, and an appendix. Every section contributes vitally to sketching an all-encompassing portrait for prospective backers or collaborators. For help writing a business plan, check out Forbes’ guide here .

Aligning Your Expertise with Market Needs

To ensure success in the burgeoning field of consulting, identify where your unique skills intersect with client demands. As this article discusses, consulting can extend beyond merely offering recommendations. Instead of waiting for clients to come to you with issues, you can take the initiative by researching specific pain points within target markets first.

Diving deep into industry trends helps uncover niches ripe for innovation or underserved areas requiring expert advice. Such diligence allows aspiring consultants not only to carve out their niche but also strategically position themselves as indispensable assets amidst competitive landscapes.

Setting Up Your Consulting Business Legally

As with any business, it’s important to take the correct legal steps before you can start consulting. Let’s take a look at a couple of these steps together.

Choosing Your Business Structure

The first step to making your consulting business official is deciding on the legal structure. This decision influences not only your tax filing process but also the degree of personal risk you bear and the avenues through which you can secure funding. A popular option for many consultants starting out is operating as a sole proprietor because it’s simple and doesn’t require registering with the state. But simplicity comes at the cost of increased personal risk.

If limiting personal liability sounds appealing, forming an LLC (Limited Liability Company) might be a better fit. It provides more protection against lawsuits and debts related to your business without complicating taxes too much since profits pass through to owners’ tax returns. Then there are S Corporations, which offer similar protections but differ in their tax structures. They’re ideal if you plan on growing quickly or taking on investors.

To help make this decision clearer, weigh pros and cons based on what matters most for your consultancy. For instance, would you prefer ease of setup or potential for growth? As you consider these questions, remember that changing structures down the line, while possible, could get complicated fast.

Opening a Business Bank Account

Once you’ve settled on a legal structure for your consulting firm, opening a business bank account should be next up on your list. Keeping finances separate from personal accounts isn’t just about organization. It’s crucial for protecting yourself legally and financially.

A dedicated bank account makes tracking income easier come tax time or when assessing financial health during quarterly reviews. Ensuring every penny is accounted for becomes all more important in such competitive fields like consulting.

To open one up, gather required documents including EIN (Employer Identification Number), articles of incorporation if applicable, and owner identification. Next, choose between traditional banks or online options based on convenience, needs, and costs involved. Not only does having separate account help manage cash flow efficiently, it also significantly reduces headaches down road should you ever face IRS scrutiny.

Marketing Strategies for Consultants

As a consultant, your expertise can transform businesses. But before you change the world, clients need to find you. If you’re just getting started, we’re here to uncover how to elevate your consulting business’s visibility.

Building an Online Presence

Leveraging digital platforms like social media isn’t just about posting. It’s about brand visibility and engagement. Social media marketing offers a direct line to your target market, letting them see the real value of what you offer. Platforms such as LinkedIn are gold mines for consultants because they allow for networking with other professionals and sharing insightful content directly related to your field.

To start marketing effectively online, consider which platforms host your ideal client base. Are they scrolling through Twitter or engaging in industry-specific groups on Facebook? Identify where they spend their time and craft messages that speak directly to their pain points.

Content Marketing Essentials

Craft content that not only highlights your proficiency but also empathizes profoundly with the obstacles your clientele encounters. This could be through blog posts hosted on sites like Medium, informative videos, or even podcasts discussing hot topics within industries relevant to yours.

Your goal should be establishing yourself as a go-to resource—someone who doesn’t just provide expert advice but also gives practical solutions business owners can implement immediately. Consider leveraging tools like Help A Reporter Out (HARO) to get featured in articles looking for expert opinions in your area of specialization. This is a fantastic way to build credibility quickly.

Leverage Digital Platforms For Brand Visibility

The right social media strategy involves more than consistent posting. It requires interaction with followers, participation in relevant conversations, and sharing thought-provoking content that encourages shares and comments from others within the industry. Your aim should be not just gaining followers but building relationships with future clients by providing snippets of the kind of insight they’d gain from working with you.

Create Valuable Content That Showcases Your Expertise

In addition to social media marketing, consider making guest appearances on established websites or hosting webinars and workshops to showcase your knowledge. This approach allows prospects an inside look at how consultations might proceed while giving them actionable takeaways.

By combining these two strategies, you can not only elevate your profile but also ensure that each step you take is a stride towards building lasting professional relationships and establishing yourself firmly in the industry.

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FAQs on How to Start a Consulting Business

How do i start my own consulting business.

First, pinpoint your expertise. Then craft a detailed business plan. Get the legal stuff sorted and kick off marketing.

How much does it cost to start a consulting business?

Startup costs vary widely but expect initial expenses for legal setup, branding, and tech tools. Often under $5k .

How do I set up myself as a consultant?

Determine your niche and value proposition. Legally establish your business, then build an online presence to attract clients.

Can anybody start a consulting business?

Sure, if you’ve got deep knowledge in a field and can solve specific problems for clients, you’re on track.

Setting out to launch a consulting venture paves the way for an array of possibilities. Having absorbed the essentials, from evaluating the industry terrain to devising your own distinctive approach, you’re well-equipped.

Remember: Identify your niche. This makes you stand out. Craft a solid business plan; it’s your roadmap to success. Legally setting up? It safeguards your dream.

Dive into marketing with gusto. Social media isn’t just for scrolling—it’s where future clients live.

Every step taken is one closer to that consultant title next to your name. Make every move count, listen closely to market needs, and adapt swiftly.

You’re not just starting a business; you’re building an empire—brick by brick, client by client.

• Last Updated: April 4, 2024

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IT Consulting Business Plan Template

Written by Dave Lavinsky

IT Consulting Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their IT consulting firms. 

If you’re unfamiliar with creating an IT consulting business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a IT consulting business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an IT Consulting Business Plan?

A business plan provides a snapshot of your IT consulting business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an IT Consulting Firm

If you’re looking to start an IT consulting business or grow your existing IT consulting company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your IT consulting business to improve your chances of success. Your IT consulting business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for an IT Consulting Businesses

With regards to funding, the main sources of funding for an IT consulting business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for IT consulting companies.

Finish Your Business Plan Today!

How to write a business plan for an it consulting business.

If you want to start an IT consulting business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your IT consulting business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of IT consulting business you are running and the status. For example, are you a startup, do you have an IT consulting business that you would like to grow, or are you operating an established IT consulting business that you would like to sell?

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the IT consulting industry. 
• Discuss the type of IT consulting business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of IT consulting business you are operating.

For example, you might specialize in one of the following types of IT consulting businesses:

• Strategic planning : offers IT consulting services to help clients assess their IT needs and formulate plans for system implementation.
• Architecture planning: offers IT consulting services to create a system and supporting infrastructure.
• Operational assessment: offers IT consulting services to assess the IT operating efficiency. 
• Implementation planning: offers IT consulting services to help clients rollout and test new IT solutions.

In addition to explaining the type of IT consulting business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, the number of consultations with positive outcomes, reaching $X amount of revenue. 
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the IT consulting industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the IT consulting industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your IT consulting business plan:

• How big is the IT consulting industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your IT consulting business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your IT consulting business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of IT consulting business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r IT consulting businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of IT specialists, business consultants, and internal IT staff. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of IT consulting business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for new customers to obtain your services?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a IT consulting business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f IT consulting company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide consulting services for cloud applications, cybersecurity and compliance, IT solutions management, or network operations?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the services you offer and their prices.

Place : Place refers to the site of your IT consulting company. Document where your company is situated and mention how the site will impact your success. For example, is your IT consulting business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your IT consulting marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites 
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your IT consulting business, including answering calls, scheduling meetings with clients, billing and collecting payments, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your IT consulting business to a new city.  

Management Team

To demonstrate your IT consulting business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing IT consulting businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an IT consulting business.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you meet with 5 clients per day, and offer discounts for referrals ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your IT consulting business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a IT consulting business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a diagram of an IT system you’ve implemented. 

Writing a business plan for your IT consulting business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the IT consulting industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful IT consulting business.  

IT Consulting Business Plan Template FAQs

What is the easiest way to complete my it consulting business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your IT consulting business plan.

Where Can I Download an IT Consulting Business Plan PDF?

You can download our IT Consulting business plan PDF here. This is a business plan template you can use in PDF format.

How Do You Start an IT Consulting Business?

Starting an IT consulting business is easy with these 14 steps:

• Choose the Name for Your IT Consulting Business
• Create Your IT Consulting Business Plan
• Choose the Legal Structure for Your IT Consulting Business
• Secure Startup Funding for Your IT Consulting Business (If Needed)
• Secure a Location for Your Business
• Register Your IT Consulting Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your IT Consulting Business
• Buy or Lease the Right IT Consulting Business Equipment
• Develop Your IT Consulting Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your IT Consulting Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your IT Consulting business plan?

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