How To Become A Human Resources Consultant

Some HR professionals go it alone to pursue a long-held desire of being their own boss. Others are forced to go into business for themselves after being laid off or furloughed, as several have been during the epidemic.

Regardless of how you got here, working as an HR consultant offers both possibilities and challenges. We sought guidance from HR professionals who have successfully made the switch for tips on how to plan and handle such a significant career change.

 

Examine Your Motivations

Before diving in, Adam Calli, SHRM-SCP, a principal at Arc Human Capital in Woodbridge, Va., and a Society for Human Resource Management certification teacher, advises, "take a step back and ask yourself why you want to become a consultant." Following a layoff in 2015, he became a consultant. "Are you going to start your own business or are you just searching for a way to supplement your income while you're seeking for work?" That's because they're two very distinct things."

Before making the jump, HR consultant Mary Ellen Brennan, SHRM-SCP, of Arlington, Va., recommends weighing the benefits and drawbacks of consulting employment. Whether or whether a certain feature counts as a benefit or a disadvantage will be determined by your own tastes. Some people want to be their own boss, while others prefer to operate in a group.

"I appreciate having the diversity of working with different clients as opposed to only working for one company," says Brennan, who became a consultant in 2018. I get to assist multiple missions, something I didn't get to do for the 13 years prior to being a consultant when I worked in an HR office of one."

 

Lay The Foundation

If you're currently working, there are a few things you should do before quitting your job to become a consultant, according to Brennan and Calli, to ensure that your firm is up and running right away:

Create a limited liability company (LLC). Organizing your firm as a limited liability corporation (LLC) adds an extra degree of security. Any claims, liens, or lawsuits filed against your company will be confined to the company's assets, thereby protecting your personal assets. According to Nolo.com, a provider of self-help legal books and software, filing fees vary by state, but LLC applications typically cost $50 to $100.

Create a professional-looking website. This can assist potential clients in locating you and learning more about the consulting services you provide. You can make a website for free using WordPress, but the site's premium plan ($8 per month) includes a custom domain, sophisticated design tools, Google Analytics integration, and the possibility to monetise your site with adverts.

Create a business bank account. Open a separate checking account for your business to prevent mixing your personal and business funds (and making a mess). Writing checks for company spending, monitoring receipts, and completing tax returns will all be much easier with a corporate bank account.

Invest in an emergency fund. One thing the epidemic has demonstrated is that small-business owners, particularly HR consultants, must be prepared for the unexpected, including potential revenue disruptions. So, if you haven't already, set up a rainy-day fund before you start your firm. Many financial gurus advocate setting aside three to six months' worth of critical expenses in an emergency fund. "You need a cushion," says Susan Heathfield, a management consultant and human resources writer for The Balance Careers in Williamston, Mich., who began her career as a consultant in 1987 after working for General Motors. "If you don't, you're putting yourself in danger."

 

 

Establish A Client Base

Prepare to spend a significant amount of time developing references, marketing your services, and reaching out to new clients when you first start out, advises Heathfield.

Is this a good place to start? Brennan advises, "Try to convert your existing employer into a customer." "I informed my CEO many months ahead of time that I was considering leaving to establish my own company, and he agreed to allow me transition out with consulting work." Brennan also solicited business by attending conferences and contacting everyone in her professional network. "I told people what I was doing, and everyone in my area responded positively," she adds.

Another alternative, according to Calli, is to join a consulting business before going it alone. "There's nothing wrong with joining an existing consulting firm that can supply you with clients," he adds, "particularly if you're supporting a family and can't afford to go without a salary while you're getting your business off the ground."

He continues, "Building a customer base is similar to farming." "They will grow if you put the seeds in the correct soil and care for them."

 

Make A Niche For Yourself

Consider identifying yourself as an expert in a certain sector or service rather than being a generalist who works with clients from a variety of businesses. Brennan went down that path. She explains, "I specialize in association management, which I promote on my LinkedIn page." Heathfield, on the other hand, focuses on working with small to medium industrial and technology firms, as well as major organizations.

According to Heathfield, carving out a niche "may also help you understand your value proposition and what you offer to the table."

However, avoid boxing yourself in or otherwise limiting your alternatives. "Think about how you want to represent yourself in your local market," Calli says. "As a specialist, you may be able to charge a premium cost for what you do, but you may be restricting your customer base at the same time." Because you can handle a number of various things as a generalist, you'll have a better chance of finding clients that require your services. At the same time, charging a greater fee may be more challenging for you."

 

Look For A Mentor

Starting your own consulting firm might be daunting, especially if you've never worked for yourself before. You don't have to go it alone, though. "Getting a coach was one of the things I did that was incredibly beneficial," Brennan adds. "I discovered one that works in the same field as myself, and they've really helped me gain confidence."