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Yesterday we were talking about the dark side of consulting.
Today I want to talk about why, despite some of the negatives, I still believe consulting is the best business model for most people to start with... and the perfect cash-flow machine you can bolt on to almost any other business.
Here are 10 reasons:
1. Get started quickly. You can be up and running generating clients (and cash) in as little as 2 weeks. It's a very "lightweight" business with few moving parts.
2. Get stated cheaply. All you need is a phone and an internet connection and you're in business. There's no expensive product development costs... no inventory to stock up on... no infrastructure to setup... no staff to worry about.
3. Get started easily. Many of my students got their first client using a 2-page direct mail letter and no website. Some went to a local networking meeting and got clients there. Others simply walked into a local business, started chatting, and walked out with a check. No complicated funnels or ninja-level skills required.
4. Leverage your skill set. When you apply basic internet marketing strategies to an already established business -- especially one with an existing customer base or budget for traffic -- you exponentially multiply the value of your skills.
5. Get paid to learn. Once you've established "trusted advisor" positioning with a client you will find they often want you to help with other projects as well... and they're happy to pay you to learn on the job. For example, we just added a new Facebook content promotion strategy to our arsenal after a client asked me to develop it for his business.
6. Cash flow. You get paid up-front before you do a lick of work. Enough said.
7. Recurring income. The way we setup our offerings, you're typically going to get paid an up-front fee plus a recurring monthly fee. For most people it only takes 3-5 clients to be in a very stable position financially. Recurring income is the holy grail in business.
8. Huge margins. Your cost on a service you sell for $5000 might only be $1000. Compare that to the razor-thin margins in ecommerce drop shipping and your ecom store would need to do $40,000 to get the same profit.
9. You see inside successful businesses. The majority of my students have no prior business experience. They didn't come from entrepreneurial families. They've never run a "bricks-n-mortar" business. They've never seen what it takes to run a 7 or 8 figure enterprise. Getting to see the inner workings of your client's business is a priceless education hard to get anywhere else.
10. You meet successful people. Most of your clients are going to be fairly successful... some wildly so. They all know other successful business owners. These are very handy people to know. Consulting puts you right where the action is.
11. It's an easy playing field. The world of marketing at the local small business level is still largely an easy playing field to learn the ropes. Just knowing the basics gives you an advantage. Unlike the cut-throat world of supplements where you need world-class marketing skills, helping a local lawyer generate more leads is a piece of cake.
Here's what I advise:
Then get leverage by becoming your own client.