Understanding The Business of Consulting
An Interview About What It Means To Be A Successful Consultant
What comes to your mind when you hear the word ‘consulting?’
Whether you’ve spent your career in big companies or small organizations, it’s more likely than not that a company you’ve been a part of has utilized consultants at one point or another.
According to industry reports, the global market size of the consulting sector tops $250 billion. This astronomical amount, which encompasses management, leadership, and general business consultants, represents an entire industry that many people know little about.
I’ve always been intrigued by the space, so much so that a few months back, I wrote a brief post about a few ways to know if you are ready to be a consultant, based on research I gathered.
The allure of independence, autonomy, and entrepreneurship makes it an interesting career path for those with an appetite for ambiguity and self-determination.
A good friend of mine, who is also a former business partner and current newsletter subscriber, Tim Parkin, is one such consultant that I’ve admired for a long time.
He’s successfully built his consulting business over the last nine years into an impressive machine.
I wanted to understand more about this world so I requested that he join me for a rapid-fire five-question Q&A.
If you have ever considered being a consultant or wonder what they do, this brief interview is for you.
[Also, if you are in a career that others would find interesting too, let me know - I would love to do a similar interview. Reply to this email and we can set up a time to connect.]
Mark Hall: Describe what consulting really means, without using any industry jargon.
Tim Parkin: A consultant is someone who helps improve your condition, often by solving a problem or providing advice. With that definition, we are all consultants. Every day we help others, in our jobs and our personal lives. It's not hard to be a consultant because there is no barrier to entry.
MH: Why did you get into consulting and when did you realize you are pretty good at it?
TP: I never planned on getting into consulting. I started doing freelance work by writing code to build websites and apps for companies. My first paid gig was when I was 10 years old, and I had a project for $20,000 when I was in middle school.
After freelancing for many years and working with a variety of companies, I realized they didn't have a technology problem - they had a marketing problem. And thus, my consulting career began. Since then, I've helped national and global brands, including Fortune 500 companies, unlock millions of dollars in growth by building high-performance marketing teams.
When companies started seeing incredible results from taking my advice, and my business grew through unsolicited referrals, I realized I was on the right track. It's been 9 years since I formalized my business and I can't imagine doing anything else.
MH: Why do you think the term and industry sometimes gets a questionable reputation?
TP: "Consulting" is a broad term and many people interpret it in different ways. Since there is no barrier to entry (anyone can call themselves a consultant), many people have had a bad experience or have heard horror stories about consultants.
It doesn't help that the big firms send in a dozen junior "consultants" who just graduated from college and are being billed out at $250/hour. In fact, there's a common joke that a consultant is someone who borrows your watch to tell you the time, then charges you for it.
Many consultants charge hourly (which is unethical) and most fail to produce a tangible improvement or accomplish the objectives set forth. The combination of these issues perpetuates the assumption that consultants are expensive and ineffective.
MH: What factors should people consider if they want to get into the industry?
TP: Alan Weiss, the leading expert on the consulting profession, says you must have Market Need, Competency, and Passion. That is, you must identify an existing problem you can solve, have the ability to solve it, and be passionate about it. You can't be successful without all three.
You also need a support system. A supportive spouse or family, a network of peers, and ideally a mentor.
In my experience, positioning is everything. You must be able to articulate who you help and the value you contribute. And you need to be able to raise awareness of your existence. It doesn't matter how great you are if no one knows you exist. And finally, confidence and resilience are essential. Working for yourself is exciting, challenging, and rewarding. But it's not easy. It's a journey filled with the highest highs and the lowest lows.
MH: What other things should readers know about the consulting business?
TP: Consulting is a profession that's never going away, and it's one of the easiest businesses to start. I encourage everyone who wants to be self-employed to consider becoming a consultant.
To be successful, read everything Alan Weiss has written, beginning with "Getting Started In Consulting" or "Million Dollar Consulting". Alan Weiss often says that people who quit their jobs to work for themselves end up with a worse boss. And in my experience, it's absolutely true.
If I can help anyone on their journey in consulting, please reach out on LinkedIn.