Business models
The consulting business model
The consulting business model: companies pay for your expertise, advice and judgement on a specific problem. You charge by the project, by the day or by the result.
How it makes money
You charge by the project, by the day or by the result. There is little to invest, but your income is limited by your own time, until you add a team or products.
Real examples
- McKinsey and Bain advise large companies.
- Many independent experts advise a handful of clients in their field.
The numbers to watch
- Day rate or project value
- Share of the year booked
- Share of work from referrals
Who it fits
People with years in an industry and a record they can show.
What goes wrong
Income stops when you stop. Clients also expect results that are outside your control, so agree on the scope carefully.
Try it this week
Write down the one problem you have solved the most, and tell 10 people about it.
Then give it a time: one block of 90 minutes this week, in your calendar. Our playbooks have the next steps for finding your first customers.
Questions
What is an example of the consulting model?
McKinsey and Bain advise large companies.
What is the biggest risk with the consulting model?
Income stops when you stop.
Plan your first week of building it
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