What Is Business Consulting?

Organizations across various sectors turn to business consulting services to tackle challenges, boost efficiency, and expand their operations.

Business consultants team up with companies and small businesses to pinpoint the hurdles that stand in the way of achieving their objectives. These experts are tasked with crafting innovative strategies to help businesses navigate their difficulties.

Ready to learn more about business consulting? In this guide, we’ll explore the following topics:

An Overview of Business Consulting

A career in business consulting hinges on strong planning and organizational skills, along with a dash of creativity and strategic thinking to assist business owners and organizations in troubleshooting and resolving issues.

“Business consulting is all about offering expert advice and guidance to organizations, helping them enhance their operations, reach their goals, and tackle complex business challenges,” explains Michael Tschudy, founder and CEO of David Edward Business Solutions, a consulting firm dedicated to small businesses focusing on financial and operational optimization.

So, why would a company consider hiring business consulting services? One key reason is cost-effectiveness; bringing in a consultant with specialized knowledge to address common business roadblocks can often be far more budget-friendly than recruiting a full-time employee.

Business consulting services cover a wide range of areas, including strategic planning, financial management, marketing, operations management, IT, and organizational development.

Business Consulting vs. Management Consulting

While both management consulting and business consulting fall under the umbrella of consulting services, they each have their own unique focus.

Business consulting is mainly about helping organizations tackle process-related challenges, particularly in areas like production and finance. In contrast, management consulting often deals with risk management and is more geared towards assisting senior management teams in navigating transitions and changes within the organization.

Business Consulting Industries

Business consultants can be found across a diverse range of industries. According to Tschudy, the most prevalent sectors are those characterized by high complexity, rapid change, and fierce competition, where organizations must continuously adapt and enhance their operations to remain competitive.

“Business consultants are present in every industry because the demand for practical expertise and insights is universal,” says Vince Burruano, an independent business consultant and president of Vince Burruano Consulting Services, LLC.

“This spans nonprofits, government entities, non-governmental organizations, and virtually any type of organization aiming to achieve a profit or fulfill a specific mission. Whenever an organization is striving to reach particular outcomes but is facing challenges, bringing in a consultant can be incredibly beneficial.”

Some common industries that often seek out business consulting services include:

• Health care
• Finance
• Technology
• Retail
• Manufacturing
• Energy and Environment
• Public sector

How to Get Into a Business Consulting Career

Looking to dive into a business consulting career? You’re in luck! According to the U.S. Bureau of Labor Statistics, the job market for management analysts, which includes business consultants, is expected to grow by 11% from 2021 to 2031. That translates to about 102,000 new job openings each year, which is fantastic news for those eager to break into the field. So, how can you best prepare for a career in business consulting?

Education and Training

A common path to becoming a business consultant is to earn a bachelor’s degree in fields like business, social sciences, or engineering. Many consultants also pursue an MBA. However, various other training options and experiences can help you kickstart your journey in this field.

“While having a college degree and possibly some post-graduate education is certainly beneficial, what matters is gaining hands-on experience and expertise,” says Burruano. “You need to bring a unique perspective that helps clients see what they might be missing or don’t have the time to address. It’s crucial to identify the specific skills and insights you can offer that will truly benefit others.”

Burruano also highlights that there are typically two main types of consulting setups: firms with a team of employees and solo practitioners. This means there are several pathways into the profession, depending on where you find yourself in your career journey. “Some people view consulting as a way to shift from being an employee to working independently, allowing them to choose how much they want to work—or at least to cut back on their weekly hours,” he explains.

Skills for Business Consulting

To do well in business consulting, you need a mix of technical know-how and good people skills. Some important technical skills include:

• Knowledge of business processes
• Data analysis
• Project management
• Technical expertise
• Business writing
• Public speaking

Some key soft skills include: 

• Communication
• Problem-solving
• Critical thinking
• Interpersonal
• Organizational
• Executive presence

Burruano emphasizes that when it comes to soft skills, the key to success for any aspiring business consultant is adopting a business development mindset. “You should always be on the lookout for new opportunities, especially if you’re working solo,” he points out. “If you’re not actively seeking the next chance, who’s going to do it for you?”

He also notes that if you choose to join a consulting firm, even though they might have marketing and business development teams to scout for new opportunities, it’s still up to you to nurture that initial contact into a lasting relationship. “A consultant’s job is to transform a one-time customer into a loyal client who keeps coming back,” Burruano clarifies.

Pros and Cons of Working in Business Consulting

Are you still on the fence about whether business consulting is the right path for you? It’s definitely a good idea to explore the potential upsides and downsides of being a business consultant. Here’s a look at some of the pros and cons of this career, as shared by industry experts.

Pros

Exposure to Diverse Industries and Clients

One of the great things about being a business consultant is the chance to work across a variety of industries. Since so many different sectors need consulting services, you’ll get to engage with a wide array of clients.

“If you enjoy diverse work experiences, consulting is a fantastic way to collaborate with a variety of people and organizations on numerous projects,” says Burruano.

Intellectual Stimulation and Problem-Solving

At its core, business consulting revolves around strategic problem-solving, which can be quite intellectually rewarding.

“I really thrive in this kind of environment, and if you appreciate variety in your work and projects, you’ll likely find it a great fit,” shares Jacques du Toit, an independent business consultant who frequently advises small entrepreneurs on their ventures, in addition to his role as finance and operations director at ZAHomes.

Skills Development and Career Growth

Consulting can really boost your professional journey by giving you a taste of various projects, industries, and situations. “This experience can help you build a solid skill set and make you more appealing for future opportunities,” says du Toit.

Opportunity to Work for Yourself

Burruano believes that one of the greatest advantages of being a business consultant is the chance to work independently if you decide to go solo. “You get to set your own schedule and choose the projects you want to take on,” he explains.

Competitive Compensation

For du Toit, the most enticing aspect was the potential salary that business consultants can earn. According to Payscale, total pay for business consultants in the U.S. can reach up to $140,000, but if you’re self-employed, the earning potential is limitless.

“My hourly rate as a consultant is significantly higher than what I could make, say, as a senior accountant or IT professional,” du Toit shares. “Consulting firms typically provide competitive salaries and benefits, especially for those at top-tier firms or in specialized fields.”

Cons

Long Hours and High Pressure

Consulting can be quite a demanding field, often involving long hours, tight deadlines, and high expectations from both clients and firms. Du Toit points out that this can create a tough work-life balance and even lead to burnout. “I often find myself working around the clock, and I really have to set boundaries, especially in this new work-from-home world,” he shares.

Client-Driven Priorities

As a business consultant, your main job is to meet the needs and priorities of your clients. “These demands don’t always match up with your own interests or values,” du Toit explains.

Job Uncertainty

Consulting work is often project-based, which can lead to periods of uncertainty or job instability, especially during economic downturns. “I always tell consultants who are going solo to secure at least two clients before jumping in headfirst,” du Toit advises.

Limited Control Over Projects

Business consultants frequently have little say over the projects they’re assigned, which can result in working on tasks that don’t ignite their passion. “I’m fortunate to have the option to decline certain projects, but that’s not always the case for everyone,” du Toit mentions. “Having more clients does give you that flexibility.”

High Competition

The consulting industry is incredibly competitive, with many skilled professionals competing for a limited number of positions, particularly at top firms. “This makes it tough to break into the field and to climb the ladder,” du Toit concludes.