The word “entrepreneur” has become somewhat of a blanket term for anyone that makes an independent foray into the business world. From people who start multi-million dollar companies to people selling products on Etsy to make a few extra bucks every month, if you make money for yourself, you’re considered an entrepreneur.
But if you want to be a serious entrepreneur—aka, one who makes a living out of your entrepreneurial endeavors—then before you begin that business you’ve been dreaming of, consider starting out as a consultant. Why? Here are just a few reasons, from one of the most successful consultants in the business today, Sam Ovens.
It’s Cheap and Easy to Begin
The limiting factor in starting a lot of new businesses is the start-up cost. Getting a loan for a new business is nigh impossible, and most people don’t have the finances to self-fund a new business. But starting a consulting firm is quick and inexpensive. Finding your first client and providing them with the services they need costs you next to nothing. With just a computer and a phone, you can be in business. And because the overhead is virtually nonexistent, you can use the funds from your growing consulting business to begin other entrepreneurial endeavors.
You Learn about Cash Flow
Consulting gives you an opportunity to learn about business cash flow with very minimal risk. Due to those low costs already mentioned, your odds of bankruptcy or serious financial problems in your business are at a minimum. You can learn about managing invoices, setting up payment plans, and monitoring your business’s expenses in a more controlled environment than what other business types provide. Of course, there’s always the potential that your inexperience could cause some serious problems, but that risk is much lower for a small, low-overhead consulting firm.
You Can Master Marketing
In a consulting firm, the product that you’re selling is one you’re very familiar with—you. So you can work on mastering sales and marketing techniques by learning to promote yourself and your skillset. Marketing a consulting firm uses very straightforward and old-fashioned selling techniques, which lets you build on your marketing skills from the ground up. This is invaluable knowledge later on, when you build a more complex marketing team for another business endeavor.
You’ll Learn to Scale Anything
Consulting is a labor-intensive industry, which means that every new client you land is going to require you to put in more time and more work. You can’t mass-produce consulting services on an assembly line, so scaling a consulting firm can be difficult. It will require you to build an extremely organized team with effective leaders, and a strong business model to make it work. But, if you can learn to scale a business like this, then you’ll have no trouble scaling your business endeavors in the future.
It Requires Excellent People Skills
It’s almost impossible to be a successful entrepreneur without good people skills. No matter how fantastic your idea is, if you can’t talk to potential clients or pitch your idea to investors, your business won’t get off the ground. For those that need a little practice with people skills, consulting is a great way to start. You have to work one-on-one with your clients and convince them of your expertise, not to mention the facetime that is required to land a client in the first place. Some people may find it daunting at first, but prolonged exposure as a consultant will make it second nature for you, and your newfound people skills will be a valuable asset in establishing your next business.
Entrepreneurship is not for everyone. But if you’re ready to make your first foray into the business world, consider the advice of Sam Ovens—a multi-millionaire and entrepreneur himself—and start out as a business consultant. It might just be the springboard you need to launch yourself into a remarkably successful career.