PART II: What is needed to set up ones own consultancy?
In order to call oneself a management consultant in Europe, in principle nothing more is needed than a business card with this 'title'. Certain countries such as Austria also require registration as such with the relevant authorities. As the European market is not protected, there are no limitations to accessing this market. To know more about national rules for registration we advise you to contact your national management consultancy association
Feaco provides information on the following topics:
The First Steps:
If however, one wishes to become a successful management consultant and able to make a living out of this profession, then a thorough preparation is required.
Steps for establishing as a management consultant:
Realistic estimation of one's personality
A thorough analysis of the market, the target group, the competitive environment
Choice of the seat of the company, with an analysis of the local market
Development of a business plan and concept
Choice of a legal form of registration.
It is important to make a realistic and objective analysis of one's personality and capacities before taking the step to becoming an independent consultant. Apart from the high demand clients have upon management consultants, you are also becoming an entrepreneur and have to run your own business.
To make an analysis of the market situation, you need to carry out research into your target group, your competitors and your prospects. The comparison of several market analyses will lead to the best choice for the seat of your company. For the award of projects, location remains important, even in this mobile world, as, as a rule, the client has to pay for travel and hotel expenses.
What does it take to become a successful consultant?
It is not important in how far you are convinced of your own capacities, what is important is that you can convince your potential clients of your capacities so that they engage you. This concerns on one of the most important occupations of a management consultant: acquisition. If you do not yet know any clients who are willing to engage you, you are likely to spend a lot of time acquiring clients. During this period you will need to have some savings or some parallel occupation to foresee in a living.
Some FEACO associations offer courses in the establishment of a management consultancy. Please consult their individual websites for information.
A management consultant creates value for organisations, through the application of knowledge, techniques and assets to improve performance. This is achieved through the rendering of objective advice and/or the implementation of business solutions.
To operate succesfully in one or more of the main service areas as defined by feaco, a good management consultant should have the following traits:
- An interest in learning
- A capability to solve problems under pressure
- Team spirit
- Drive
- Logical-analytical manner of thinking
- Good communication skills (in your mother tongue and in English)
- Creativity
Consultancy in Europe is, as in most of the rest of the world, not a protected profession. Consequentially, less serious 'management consultants' can be found on the market, who may harm the status of the profession.
Naturally also serious management consultants can make errors in the execution of their activities, but as long as they adhere to certain ethical rules, these human errors are unlikely to have a serious negative effect on the status of the management consultancy as a whole.
FEACO disposes of Guidelines for ethical behaviour to which FEACO member associations and member firms voluntarily commit.
For information on the European management consultancy market, please visit the industry pages of our website. For information on national markets, please consult the relevant national association via our members list.
With courtesy of the MCA and the BDU
FEACO European Federation of Management Consultancies - Associations Fédération Européenne des associations de conseils en organisation