Your own Management Consultancy

• Network and ecosystem
  Sales opportunities can be leveraged within the own network or ecosystem, such as participating in events, conferences, trade fairs or by connecting to potential new clients through existing client. Additionally, a direct cooperation with other consultancies or companies is also a viable option.
• Marketing
  Besides the own website, LinkedIn or Xing are a good channels to present the company. The content to market the own company could be in the format of blog posts, studies, whitepaper or online webinars. With the use of press releases or book articles, interesting information could also reach a wider audience.

Typical consulting revenues are incurred via consulting projects that are time & material (e.g., x hours times y price per hour) or with a fixed price for a specific deliverable or timeframe.

The break-even is the point in time when neither profit nor loss is occurred. In this case it can be viewed on a monthly basis, but more importantly it is to look at it from a year-to-date perspective (the cumulation of all revenue and all costs) to identify when the overall break-even point is met.
One way to determine the break-even is to identify when more revenue is realized than the costs:

• 100% utilization: 5 days per week with 8 hours a day
• maximum assumed revenue per consultant per month: (250 € average rate per
  hour * 8 hours per day * 5 days * 4 weeks) = 40.000 €
• 10 consultants = 400.000 € as maximum revenue per month

(The target is a utilization rate of 70 %; In the months of January - April, it is even lower.)
January: 400.000 € * 30 % utilization = 120.000 €
February: 400.000 € * 40 % utilization = 160.000 €
Etc. 

At the beginning of a business, it is essential to have an overview of the cash flow, in order to avoid running into insolvency at the early stages of the company (e.g., when and who do we have to pay vs. when do we expect inward cash flow?). As such, the payment terms and the KPI “days sales outstanding (DSO)” is vital.

Customer satisfaction must always be kept in mind, in order to achieve continued business for an existing customer with future projects.

Employee productivity and utilization should be monitored. This gives information whether existing capacities (e.g., consultants) are utilized enough.

In the early stages of a startup, it is common to wear multiple hats and take on multiple responsibilities.

• Management

The Management must set a clear vision and strategy, ensure resources are available, provide motivational leadership, monitor the progress – adjust as needed and manage risks.

• Delivery teams

The delivery teams within the consulting start-up have the responsibility of consulting/ helping the clients by executing the projects. They play a critical role in the success, as they create the value-add for the company. They must be highly motivated, innovative, and customer-focused.

• Marketing & Sales

In the early stages, the marketing and sales team must focus on acquiring new potential customers with a clear brand identity.

• HR & Recruiting

The HR and recruiting team are responsible for processes in recruiting, interviewing, and onboarding new employees. It also develops and executes a strategy for employee development and career advancement.

• IT

The IT team focuses on building technical infrastructure, the cybersecurity and selecting and implementing tools and hardware for consultants (e.g., laptops).

• Finance & Reporting

The finance team reports on all financials and business growth, while at the same time implementing accounting practices and doing the bookkeeping.

• Administration & Organisation

General administrative and organizational activities need to be taken care of as well. This includes for example coordinating and scheduling appointments, meetings and other events.