1. The expert who doesn’t know how to run a business
A lot of experts start a business and fail for example a hair dresser who’s a fair hair dresser who opens a hair salon and really doesn’t know how to run a business properly and it fails, you might be an expert in your niche you have great experience and all the rest of it but that’s not enough if you’re going to run a startup consulting company you need broader business skills as well you’ve got to run the business you’ve got to understand the sales and the marketing and all the rest of it so that is really important don’t just think you can be a consultant because you’re expert in something you actually need broader business skills as well.
2. Under Sales and Marketing
The number two is actually understanding particularly sales and marketing, so of course you’ve got to understand finance and I.T and all the elements of your new business or the startup consulting you’re about to start but probably the most important things you’ve got to get your head around sales and marketing so again it’s no good being the expert if you don’t know how to promote what you’re doing with your marketing and drive sales leads and how to have that sales interaction and close sales leads. So getting into it without really understanding the broader skill that’s required it’s probably one of the most common failings that I see lots of people do.
3. Plan for growth
So what most people I’m not sure what the statistics are but I think it’s about 90% of people who start a small business fail within five years and it’s probably a lot higher for consulting companies so most people don’t make it, if you started a startup consulting business and you’ve got beyond year one well done, if you’re thinking of starting a startup consulting business then “plan plan plan” make sure you’re not one of those statistics it can be done but I would say plan for growth, when I started my first consulting business I actually did a full business plan, I did a full off charts of the business as it was going to be in five year time you know with those revenues in five year time and the structure and all these different people I plan for the growth. So when you’re starting your business then make sure you plan for growth don’t plan to fail.
4. Don’t take on any business that comes on your way
This is probably the biggest mistake that people make, they will take on any business that comes their way so they’ve opened their startup consulting firm they’ve put the sign above the door metaphorically and they’re desperate for a client and the first client who walks in the door, they bounce on them and they want to service that client, please if you’re starting startup consulting or just getting into it do not be desperate about clients so what that means is plan that you don’t need to take every client knocks on your door don’t take the bad ones they will grind you into the ground stress you out they are not worth it have a very clear idea in your mind the sort of companies the sort of people that you want to work with and pick them pick your clients carefully.