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Jacky Sherman

The Consultant's Consultant

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5 Challenges Consultants Face Setting Up Their Own Business

And 3 tips on how to address them ...

POSTED BY JACKY SHERMAN ON 22/01/2025 @ 9:00AM

#TheConsultantsConsultant #Northampton #MiltonKeynes #UK

I remember a fellow attendee at my first sales training course when I was preparing my own transition from employee to consultant. She confided in me that before making her first sales meeting she threw up in the car park ...

Becoming an independent consultant, advisor or coach is going to be a challenge!

Becoming an independent consultant, advisor or coach is going to be a challenge!

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Being the sensible woman that she was, her next step was to book a place on the course where I met her which taught the both of us the 5 most common personal challenges that the independent consultant, advisor or coach faces when making the transition from employee to adviser.

Of course, this is my list there may be others you've experienced:

  • Loss of confidence - As the list of things you don't know about running a business grows, the confidence in your own abilities, even in your core skills, takes a nose dive. This is called Imposter Syndrome.

  • Coping with rejection - If you have never been in a sales or marketing role. As a consultant, you will be selling yourself rather than the company so the rejection can seem personal. Even when you've won the work your client can still reject your solution.

  • Managing your finances - Many consultants underestimate the working capital they will need to get off the ground. The first year feels like it's paying out rather than earning in. Cash flow suddenly becomes deeply personal when the regular paycheck doesn't drop automatically into your bank at the end of each month.

  • Managing your time - One of your reasons for going it alone may well have been to be more in control over the hours you put into work and which hours they are.

    At first, an empty diary and a phone that doesn't ring may knock your confidence further. Once you start signing up clients the pressure becomes about fitting all your new tasks that must be done around delivering your promise to your hard-won clients.

    Other time pressures are around project creep when clients expect always to be your priority, add in additional out-of-hours support, and there is no one there to delegate to.

  • Loss of peer support - Lastly there is the informal personal support of others in your workplace. You used to go to lunch with a colleague and bounce ideas off them before you take them to the CEO.

    As a consultant, you have no peers within the business and care needs to be taken to manage the power dynamics in each client company. You may not be watching who you talk to the most or choose to confide in, but others in the organisation will.

These may seem trivial side issues, but they will impact your effectiveness in your new role and more than that, they may impact your mental health and the sustainability of your business long term.

I offer three related tips to make the biggest difference in tackling these challenges:

  1. You need to look after yourself before you can help others. So, have a self-development section in your annual business plan and give it the same priority as you would to any key workers in your business.

  2. Invest in a coach/mentor who will hold you to account both in getting this written up and, more importantly, putting all of it into practice. After all, if it was easy to do on your own it wouldn't be a challenge. It's too easy to race through the easy bits without regard to the implications and think yourself too busy to address the tough stuff.

  3. And finally, imagine what your business would look like and how your life would feel if you were operating at the top of your game. Feeling confident, with just enough people saying yes to assure you've got your prices right. Your back office systems mean you get paid on time and all your compliance systems are up to date. Celebrate your success with your friends, family and fellow business owners.

Until next time ...



JACKY SHERMAN



Would you like to know more?

If anything I've written in this blog post resonates with you and you'd like to get your business off to a good start by having me create a personal development plan with you, it may be a great idea to give me a call on 07970 638857. Let's have an initial chat over a coffee and see how I can help you.

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