1/ A lot of people ask me about starting their own consulting / advisory firm

My #1 advice - pick a niche within a niche within a niche. Yes, you are smart and can solve problems. But without laser focus you can't explain what you do with sufficient clarity to win work.

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2/ First, some context. These questions come from smart people with some consulting background. Ex-MBB, big 4. Or, some deep industry expertise.

They want to use that expertise to start their own firm

Drivers are often lifestyle or money (or both)

3/ They (believe they) have a strong network of ex-clients who will use them in future. Some will. Some won't - the old firm brand name was more important than they thought

For a year or two, they can still make good money as an independent consultant - often working less hard

4/ Then they decide to grow. Bring in Associates, hire a team

Lack of focus starts to bite now. As an independent, they've under-invested in their methodology and their visible expertise. Working for any client who will engage them means a lack of consistent track record

5/ Marketing yourself as a generalist is HARD. People who don't know you will not engage you if all you can offer is "I worked at McKinsey for a few years"

Track record, reputation, and expertise matter

6/ Which is where focus comes in. Pick a niche within a niche within a niche.

You advise on "pricing"? Make it pricing decision effectiveness for InsurTech scale-ups in London

Customer Service expert? Make it customer issue resolution scorecards for challenger banks

7/ Why do this? It enables your target customer to know instantly that you are the person to solve their problem. All your methodologies, all your case studies, all your content is focused on them.

You speak directly to them

This is the advisory equivalent of product market fit

8/ Making this call isn't easy. It means turning down revenue, that feels necessary to fund growth

But every time you take a project outside your core focus, you are not building relevant track record, developing your team's expertise, or creating killer case studies

9/ Growing revenue as an advisor requires three core processes. A set of processes to win work, a set of processes to resource & deliver, and a set of processes to build your IP.

Building IP is the big unlock, but the most easily ignored

10/ Building IP means improving your methodologies after every project. Creating and updating case studies. Turning that into content that gives value to your target clients.

If you've just spent 3 months on a project that is irrelevant to your target clients, that's... tricky

11/ So, if you want to start your own consulting firm. Pick a niche within a niche within a niche.

Focus narrowly enough that it scares you

Then become the real go-to expert in that space. And make sure everyone that matters know who you are.

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