Starting a business is challenging and there are many unforeseen factors that many people are not aware about. As such, the work of a business consultant is to advise people who want to start businesses. To start a business consultancy firm, you need to have experience, understand the business well, know the risks, opportunities and the process of starting a business.
This is a guide on how to start consultancy business in Kenya.
Identify your Specialty
To start a consulting business, you need to identify what you want to specialize in. It is important that you evaluate your experience, strengths and skills. For instance, if you have experience in the finance filed, you can help people manage their finances.
To start a unique consulting business, then you need to be better than others in the field. Ask yourself these questions:
- What are my strengths?
- How valuable is my experiment to clients?
- What problems can I solve?
- What are the market needs?
This way, you can create a brand that is distinct from the rest in the market.
Read also: How to start a law firm in Kenya.
Identify the Market Needs
It is also important to see if your experience and strengths align with the market needs. If there is a need in the market and you have the experience and strengths to fill in the gap, it is an opportunity that you need to grab.
For instance, if you identify that people are starting businesses and they close down after a few months, you can seek to find out what the causes are and how the issue can be addressed.
Get Business Consulting Training
While you may be an expert in the field you wish to offer consultancy services, you may need additional skills. For instance, you need excellent communication skills and research skills. You also need to be a problem solver and a critical thinker.
If you are an expert in management, you may need additional skills outside of your scope like accounting skills, communication skills, sales and marketing skills. As such, you may need some training to acquire these skills. You may be called to train people or to speak publicly.
Write a Consulting Business Plan
The success of any business is determined by how well it is planned. Some of the important factors that you need to capture in your consulting business plan include:
- Area of specialty
- Startup capital
- Sources of startup capital
- Sales and marketing
- Financial projections
- Pricing for your services
Read more: How to write a business plan.
Business Registration and Business Licenses
You need to register your consultancy firm before you can commence operations. First, you need to register your business. You can register it as a sole proprietorship, partnership or a limited company.
Once you have registered a business name, go ahead and get business licenses. First, you will need a single business permit whose price differs from one county to the other.
Come Up With a Pricing Structure
You need to come with different prices for various services for your consultancy firm. First you need to decide on the pricing rate. You can charge your clients using an hourly rate or project rate. Do not to undercharge or overcharge for the services you are offering. The pricing should be fair and should provide value to clients.
If you are just starting, you can research how much your competitors are charging and then factor in your expenses to come up with a pricing plan.
Write Business Consulting Client Proposals
To attract customers to your consultancy business, you need to write client proposals. A proposal is a brief description of the services you offer. In the proposal, tell the clients how you will serve them, how you can address their problems and when you can complete the project.
Its purpose is to sell your business to clients. A client’s proposal should be honest and not exaggerated. Do not promise something that you cannot offer.
Read more: How to start an event planning business.
Launch and Market Your Consultancy Firm
Once you have set up everything, it is time to launch your consultancy business. At first, you are likely to get few clients since clients don’t know about the existence if your business. As such, you need to attract customers.
To do so, you can start by charging fairly low prices to attract customers and issuing extra services. However, do not compromise on the quality of the services you will be offering. Offering quality services will help you retain customers and get new customer referrals. The ultimate goal is to provide solutions to clients’ problems.
Cost of Starting a Consultancy Business in Kenya
The cost of starting a consulting business depends on the size of your business, required skills and consulting services and business location.
Services to Offer in a Consultancy Business
The following are the most common business consulting services in Kenya.
- Strategy consulting
- Career counseling
- Business plan writing
- Human resource consultancy
- Marketing consulting
- Financial consulting
- Compliance consulting
- Legal consulting
- Compliance consulting
Is Consultancy Business Profitable in Kenya?
With a good business location and marketing, the consultancy business is a profitable venture in Kenya. Most clients are always willing to pay any price if they are sure to get solutions to their problems. Therefore, if you can provide solutions to clients needs, you will never lack clients for your consultancy firm.