How to Start a Consulting Business (While You Still Have a Day Job)

Why Starting a Consulting Business Is the Smartest Move for Professionals

Here is something most career advice will never tell you. If you want to know how to start a consulting business, you are already closer than you think. And the best time to do it is while you still have a steady paycheck.

That might sound counterintuitive. But think about it from a hiring manager’s perspective. Two candidates walk into an interview. One has been applying to jobs for four months with nothing to show for it. The other has been consulting independently, solving real problems for paying clients. Who would you rather hire?

Freelance consulting flips the entire job search dynamic. Instead of spending every waking hour refreshing job boards and sending applications into the void, you are building income, gaining fresh experience, and positioning yourself as someone who is already in demand.

The numbers back this up. According to industry research, over 70 million Americans now participate in freelance work, representing roughly 36% of the total workforce. High-skill consultants in areas like marketing, finance, operations, and technology regularly command $75 to $150 per hour or more.

And here is what makes this especially relevant right now. Companies are increasingly turning to independent and fractional consulting instead of hiring full-time employees for specialized work. The demand for project-based expertise is growing across every industry.

By the end of this article, you will know exactly how to start a consulting business from scratch, package your existing skills into a consulting offer, land your first paying client, set up a professional online presence, and price your services with confidence.

Disclosure: This article contains affiliate links. If you purchase through these links, we may earn a commission at no additional cost to you.

How to Become a Consultant (You Already Have the Skills)

The biggest myth about consulting is that you need decades of experience or some kind of formal certification to get started. You do not.

If you have ever solved a problem at work that saved time, money, or headaches, you have consulting skills. That is genuinely all consulting is. Someone has a problem. You have the expertise to fix it. They pay you for the solution.

Here are some examples of how common professional skills translate directly into consulting offers:

• Marketing professionals can offer social media audits, content strategy, email marketing setup, or campaign management for small businesses
• Finance professionals can provide bookkeeping cleanup, financial modeling, budgeting and forecasting, or cash flow analysis
• HR professionals can help startups build hiring processes, write job descriptions, create employee handbooks, or conduct compensation benchmarking
• Operations professionals can streamline workflows, implement project management systems, or optimize supply chain processes
• IT professionals can offer cybersecurity assessments, cloud migration planning, system audits, or tech stack recommendations
• Sales professionals can build sales playbooks, train teams, optimize CRM workflows, or develop outreach strategies

The key insight is this. Companies do not hire consultants for their time. They hire consultants for outcomes. A small business owner does not care that you have 15 years of marketing experience. They care that you can help them get more customers in the next 90 days.

Interview Guys Tip: When you frame your consulting services around specific outcomes rather than vague expertise, you immediately stand out from 90% of freelancers who just list their skills. Instead of “marketing consultant,” try “I help small businesses double their email list in 60 days.” That is what gets people to say yes.

How to Package Your Skills Into a Consulting Offer (The 3-Part Formula)

Launching a consulting business does not require a business plan, a fancy office, or even a single client yet. Whether you want to know how to start a freelance business or just test the waters with a few side projects, the process starts the same way: create a clear, specific offer that makes it obvious why someone should hire you.

Here is a simple three-part formula that works:

Part 1: Pick Your “One Thing”

Do not try to be a generalist. The fastest path to your first client is extreme specificity.

Instead of “business consulting,” narrow it down. Think about what you were known for in your last role. What did colleagues always come to you for? What problems could you solve in your sleep?

Strong consulting niches for job seekers:

• “I help e-commerce brands fix their abandoned cart problem”
• “I help startups build their first project management system”
• “I help restaurants optimize their online ordering and delivery operations”
• “I help B2B companies create LinkedIn content strategies that generate leads”
• “I help small law firms implement case management software”

The more specific your niche, the easier it becomes to find clients, charge premium rates, and deliver standout results.

Part 2: Define Your Signature Service

Create one clear service with a defined scope, timeline, and price. This eliminates the back-and-forth negotiation that kills most consulting deals before they start.

A good signature service looks like this:

• Service: 90-Day Marketing Audit and Growth Plan
• What the client gets: Competitor analysis, channel review, 12-week action plan with priorities, and two strategy calls
• Timeline: 2 weeks for delivery
• Price: $1,500 to $3,000

Starting with a single, well-defined service makes everything simpler. You can always expand later.

Part 3: How to Price Consulting Services

New consultants almost always undercharge. Here is a quick framework to avoid that mistake.

Think about what you earned per hour in your last full-time role. If you made $80,000 per year, that works out to roughly $40 per hour. As a consultant, you should charge at minimum 1.5x to 2x that amount because you are covering your own taxes, benefits, and the overhead of running a business.

For most professionals with 5+ years of experience, a starting consulting rate of $75 to $150 per hour is reasonable. Project-based pricing often works even better because clients focus on the value of the outcome rather than the hours involved.

According to Upwork data, specialized consultants in marketing, finance, and technology regularly command $75 to $200 per hour or more depending on their niche and track record.

Interview Guys Tip: Here is a pricing strategy most new consultants miss. Offer a small “quick win” project at $500 to $1,000 to get your foot in the door. Once you deliver results, upselling to a larger engagement is dramatically easier because you have already proven your value.

Build Your Professional Online Presence (In One Weekend)

You need a website. Not a complicated one. Not an expensive one. Just a clean, professional landing page that tells potential clients who you are, what you do, and how to hire you.

This is where most aspiring consultants stall out. They spend weeks agonizing over logos, color schemes, and domain names instead of just getting something live.

Here is the good news. You can build a professional consulting website in a single weekend using a platform like Squarespace. Their templates are designed for exactly this kind of professional service site, and you do not need any technical skills to get it up and running.

What Your Consulting Website Needs

Your site only needs four elements to start converting visitors into clients:

1. A clear headline that states what you do and who you help

Skip the clever wordplay. “I help SaaS startups reduce customer churn through data-driven retention strategies” is infinitely more powerful than “Strategic Business Consulting Solutions.”

2. A brief “About” section that builds credibility

This is where your professional experience becomes your greatest asset. Mention your years of experience, notable companies or industries you have worked in, and specific results you have delivered. Keep it to 3 to 4 sentences.

3. Your signature service with clear pricing or a “starting at” range

Do not make potential clients guess what it costs to work with you. Transparency builds trust and filters out people who are not serious.

4. A simple contact form or scheduling link

Make it ridiculously easy for someone to reach out. A contact form plus a link to a free scheduling tool like Calendly is all you need.

That is it. Four elements. One page. You can have this live by Sunday evening.

Squarespace is particularly well-suited for consultants because their templates look polished without any customization, they include built-in scheduling and contact forms, and the whole thing works beautifully on mobile. Plans start at $16 per month, which you will earn back with your very first billable hour.

Domain Name Tips

Keep your domain simple. FirstNameLastName.com or YourNameConsulting.com both work well. If your name is common and taken, try adding your niche: “JohnSmithMarketing.com” or “SmithOpsConsulting.com.”

Do not spend more than 30 minutes choosing a domain. Perfection is the enemy of progress, and you can always change it later.

How to Land Your First Client in 30 Days

Having a website and a clear offer is great. But you also need clients. Here is a practical, step-by-step approach to landing your first consulting engagement within 30 days.

Week 1: Warm Outreach (Your Existing Network)

Your first client is almost certainly someone you already know, or someone one connection away.

Start by making a list of 20 to 30 people in your professional network who either run small businesses, work at companies that could use your expertise, or know people who do.

Send them a short, personalized message. Not a sales pitch. Just a heads-up that you are offering consulting services while you explore your next full-time opportunity. Something like:

“Hey Sarah, I wanted to let you know I am doing independent consulting work in [your specialty] while I explore my next role. If you know anyone who could use help with [specific problem you solve], I would love an introduction. Hope you are doing well!”

This works because it is low-pressure, specific, and easy to forward. Most people genuinely want to help, they just need to know what you are looking for.

Week 2: LinkedIn Positioning

Update your LinkedIn profile to reflect your consulting work. This does not mean changing your headline to “Unemployed and Available.” It means positioning yourself as an active professional who is delivering value right now.

Update your headline to something like: “Helping [target clients] solve [specific problem] | Independent Consultant | Open to Full-Time Opportunities”

Post about your area of expertise 2 to 3 times per week. Share insights, mini case studies, or practical tips that demonstrate your knowledge. This is not about going viral. It is about showing potential clients and future employers that you are actively engaged in your field.

Week 3: Strategic Cold Outreach

Identify 10 to 15 small businesses or startups in your target market that clearly have the problem you solve. Then reach out with a short, value-first message.

The key to cold outreach that works: Lead with a specific observation about their business, not a generic pitch. “I noticed your email signup form is buried on page 3 of your website, and you are probably leaving thousands of subscribers on the table” is infinitely more compelling than “I am a marketing consultant looking for new clients.”

Week 4: Freelance Platforms as a Supplement

While your direct outreach builds momentum, create profiles on platforms like Upwork and Fiverr as additional lead channels. These platforms have a massive base of clients actively looking for consulting help.

The competition on platforms can be fierce, but here is the advantage you have as a professional with real corporate experience. Most freelancers on these platforms are generalists. Your specificity and track record make you stand out immediately.

Interview Guys Tip: Do not wait until everything is perfect to start reaching out. The consultants who earn the most money are not the ones with the best websites or the most polished pitches. They are the ones who started having conversations the fastest. Send your first outreach message today, even if your website is not live yet.

How a Consulting Business Supercharges Your Career

Here is the part most people overlook. Starting a consulting business does not just generate extra income. It actively makes you more valuable in your full-time career, and a stronger candidate if you ever decide to make a move.

Fresh, Relevant Experience

Whether you are eyeing a promotion, preparing to make a career move, or just want leverage in your next salary negotiation, consulting gives you a portfolio of results that goes beyond your day job responsibilities.

When an interviewer asks Tell me about yourself, you can lead with “Outside of my full-time role, I have been consulting with three startups on their go-to-market strategy, and I just helped one of them increase qualified leads by 40% in six weeks.” That answer is dramatically more compelling than anything your competition is saying.

Built-In SOAR Stories

Every consulting project gives you ready-made stories for behavioral interviews using the SOAR Method (Situation, Obstacle, Action, Result). You will have fresh examples of problem-solving, client management, working under constraints, and delivering measurable results.

Negotiating Leverage

When you have consulting income, you are no longer negotiating from a position of desperation. You have alternatives. And that changes the entire dynamic of salary conversations.

According to recent research, 75% of side hustlers report being more satisfied with their freelance work than their primary full-time jobs. Many consultants who start as a bridge during job searching end up keeping their consulting practice as a permanent income stream, even after landing a full-time role.

Resume Enhancement

Add your consulting work to your resume as a current position. Frame it as “[Your Name] Consulting” with bullet points that quantify your results. This fills employment gaps with active, impressive experience rather than a blank space that raises questions.

For more on how to make your resume work for you during a career transition, check out our detailed guide.

The Legal and Financial Basics (Keep It Simple)

Do not let legal and financial concerns stop you from getting started. Here is what you actually need to worry about right now, and what can wait.

What You Need Now

A simple invoicing system. FreshBooks or Wave (free) will handle sending invoices and tracking payments. Professional invoicing makes you look legitimate and keeps your finances organized from day one.

A separate bank account. Open a free business checking account to keep your consulting income separate from personal finances. This makes tax time dramatically easier.

Basic contracts. A simple one-page agreement that outlines the scope of work, timeline, payment terms, and what happens if either party wants to cancel. You can find templates online for free, or have an attorney review one for under $200.

What Can Wait

LLC formation. You can operate as a sole proprietor to start. An LLC provides liability protection and can be worth setting up once you are consistently earning, but it is not required on day one.

Business insurance. Worth exploring once you have a few clients, but not a barrier to getting started.

Fancy accounting software. A spreadsheet works fine when you have one to three clients. Upgrade when your business justifies it.

Tax Considerations

As a freelance consultant, you are responsible for self-employment tax (roughly 15.3% on top of your regular income tax). A good rule of thumb is to set aside 25 to 30% of every payment you receive for taxes.

Consider making quarterly estimated tax payments to the IRS to avoid a large bill in April. A basic consultation with a tax professional (often $100 to $200) can save you thousands and keep you compliant.

Your 30-Day Consulting Business Launch Checklist

Here is your complete action plan, broken down day by day.

Days 1 to 3: Define Your Offer

• Identify your consulting niche using the “One Thing” framework
• Create your signature service with scope, timeline, and pricing
• Write a one-paragraph description of who you help and what results you deliver

Days 4 to 7: Build Your Online Presence

• Purchase a domain name
• Build your consulting website using Squarespace (one page is enough)
• Update your LinkedIn headline and summary to reflect your consulting work
• Set up a free Calendly account for scheduling calls

Days 8 to 14: Start Outreach

• Make your list of 20 to 30 warm contacts and send personalized messages
• Post your first LinkedIn content piece about your area of expertise
• Create profiles on Upwork and Fiverr as supplemental channels

Days 15 to 21: Follow Up and Expand

• Follow up with anyone who responded positively to your initial outreach
• Identify 10 to 15 cold prospects and send value-first messages
• Continue posting on LinkedIn 2 to 3 times per week
• Ask for introductions from warm contacts who could not help directly

Days 22 to 30: Close and Deliver

• Schedule discovery calls with interested prospects
• Send proposals for your signature service
• Close your first client and begin delivering results
• Set up your invoicing system and send your first invoice

Frequently Asked Questions

Can I freelance consult while receiving unemployment benefits?

This varies by state. In most cases, you can earn some income while receiving unemployment, but you must report it. Contact your state’s unemployment office for specific guidelines. Many states reduce your benefits dollar-for-dollar above a certain threshold rather than cutting them off entirely.

How do I handle consulting if I have a non-compete agreement?

Non-compete agreements typically restrict you from working with direct competitors of your former employer. They usually do not prevent you from offering consulting services in a different industry or to non-competing businesses. Review your agreement carefully and consider a brief consultation with an employment attorney if you are unsure.

What if I do not have enough experience to consult?

If you have at least 3 to 5 years of professional experience in any field, you almost certainly have knowledge that someone else would pay for. Remember, you do not need to be the world’s foremost expert. You just need to know more than your client about the specific problem they are trying to solve.

How do I price my first project if I have never consulted before?

Start with the 1.5x to 2x formula mentioned above (based on your last hourly salary equivalent), and offer your first one to two projects at a slight discount in exchange for a testimonial and case study. This gives you social proof to command higher rates going forward.

Should I form an LLC before I start?

Not necessarily. You can begin consulting as a sole proprietor with zero paperwork. If you decide to form an LLC later for liability protection and tax benefits, the process typically costs $50 to $500 depending on your state.

How do I explain consulting work to future employers?

Frame it as proactive professional development, not a fallback plan. Lead with results: “During my transition, I consulted with three companies on their operations, helping one reduce processing time by 30%.” Hiring managers respect candidates who stay active and productive.

The Bottom Line

Now you know how to start a consulting business while keeping your day job. And the truth is, it is one of the highest-leverage moves you can make for your career right now. You earn extra income during a time when most people are leaving money on the table. You build fresh experience that makes you more valuable. You develop professional relationships that can lead to new opportunities. And you gain the confidence that comes from knowing your skills have real market value.

The consultants who succeed are not the ones who wait until everything is perfect. They are the ones who define a clear offer, build a simple website, and start having conversations with people who need their help.

You already have the skills. Now go put them to work.

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