Starting your own consultancy is a game-changer. It allows you to shift from being a contractor to a high-value, strategic consultant. But how do you make that transition successfully within the UK? Unlike the US, where consultancy models are widely discussed, the UK market presents unique challenges and opportunities.

Having guided many professionals through this process, I’ve identified the key steps to setting up a consultancy that not only has credibility but also attracts high-value clients, what Alan Weiss calls “economic buyers.” Let’s break it down.

1. Structuring Your Consultancy for Credibility

One of the first things you need to do is ensure your business structure reflects professionalism and trustworthiness. While there’s no single way to structure your consultancy, a well-organized setup helps establish credibility and attract high-value clients.

Register as a Limited Company

Many consultants start as sole traders, but transitioning to a limited company offers several advantages:

• Tax benefits – You can optimize your tax position more effectively.
• Professionalism – It signals to clients that you’re running a serious business.
• Legal protection – Your personal assets are separate from business liabilities.

If you’re unsure about the best structure for your situation, consult an accountant who specializes in consultancy businesses. If you want the same person I use, message me on LinkedIn and reference this newsletter.

Secure the Right Insurance

Having the correct insurance is crucial for protecting your business and meeting client expectations. At a minimum, consider:

• Professional indemnity insurance – Covers you against claims of professional negligence.
• Public liability insurance – Protects against third-party claims if you’re running events or dealing with the public.
• Employer’s liability insurance – Essential if you hire employees.

You can get insurance by checking out Kingbridge’s Business Insurance.

Compliance and Accreditation

Depending on your niche, certain accreditations can enhance your credibility. For example, if you work in programme management, certifications like Managing Successful Programmes (MSP) can help. Additionally, if your contracts fall outside IR35 (a UK tax legislation), consider IR35 determination insurance to safeguard against unexpected tax liabilities.

The more structured and compliant your consultancy is, the more trustworthy and attractive it becomes to high-value clients.

2. Identifying and Engaging Economic Buyers

A critical factor in running a successful consultancy is engaging with economic buyers, the decision-makers who control budgets and can say “yes” to your services.

Who Are Economic Buyers?

Economic buyers are not HR reps or procurement officers. They are:

• CEOs and Managing Directors
• Directors of Transformation or Strategy
• Programme or Portfolio Managers with budget authority

How to Find Them

1. Industry Events

Attending targeted industry events is one of the best ways to network with decision-makers. Research the most relevant conferences and forums in your niche, especially those focused on emerging trends like AI, digital transformation, or leadership development.

2. LinkedIn and Sales Navigator

Using LinkedIn Sales Navigator, you can filter economic buyers by industry, job title, and company size. If you don’t have Sales Navigator, the free LinkedIn search still allows for targeted outreach, just with limited daily messaging.

3. Recruiters

Recruiters hold valuable connections. While they primarily work with contractors, if you establish a solid relationship, they may introduce you to decision-makers seeking consultancy expertise.

4. Marketplaces and Procurement Portals

For those interested in public sector contracts, framework agreements, and procurement portals they list bigger consulting opportunities.

Stop wasting time with middlemen, go straight to the economic buyers who have decision-making power. With this in mind, the process of securing these types of contracts are very competitive but lucrative in the long run.

3. Building a Brand That Commands High Fees

Your brand is what separates you from other consultants. It’s not just about having a polished LinkedIn profile, it’s about positioning yourself as an authority in your niche.

Develop Thought Leadership

Publishing insights on platforms like LinkedIn, Medium, and industry blogs showcases your expertise. Share case studies, industry trends, and strategic advice tailored to your audience. Here’s an example of case studies that I have on my consulting website: https://masterigroup.com/case-studies/ 

Create a Clear Value Proposition

Your consultancy should have a unique value proposition (UVP) that answers:

• What specific problem do you solve?
• Who do you solve it for?
• Why should they choose you over competitors?

For example, instead of saying: “I help businesses with digital transformation.” Try: “I help mid-sized financial firms streamline their operations through AI-driven transformation, reducing costs by 30%.”

This gets you in the door, and if your brand and reputation excels you can be more generic overtime as your credibility and results speaks for itself.

Build a Referral Network

Word-of-mouth is powerful. Deliver outstanding results, and ask satisfied clients to introduce you to other decision-makers.

A strong brand backed by thought leadership and a clear value proposition allows you to charge premium fees.

4. Pricing and Packaging Your Consultancy Services

Many consultants struggle with pricing. Should you charge daily rates, project fees, or retainers? The key is to move away from hourly billing and instead focus on value-based pricing. Of course, many consulting opportunities charge a day rate, but if you are going for an unstructured process that does not require a big commercial procurement process, then charge based on value.

Steps to Effective Pricing:

1. Understand the client’s problem deeply.
2. Quantify the impact of your solution (e.g., revenue growth, cost reduction, efficiency gains).
3. Package your services as solutions, not just time.

For example, instead of charging £800 per day, position your service as: “A six-week transformation programme delivering X outcome, priced at £15,000.”

This shifts the conversation from cost to investment and return.

Don’t sell time, sell impact. Price your services based on the transformation you deliver, not the hours you work.

Bonus Tip: Leverage Technology to Streamline Operations

Running a consultancy efficiently requires the right tools. Some essentials include:

• Toggl – Time tracking and project management.
• Notion – Organizing tasks and client projects.
• ChatGPT – Drafting proposals, content, and email outreach.
• Tide – Business bank for managing your business income.

Using the right tech allows you to focus on delivering value rather than getting bogged down in admin work.

Automate and streamline as much as possible to maximize efficiency and scalability.

Take Action Now

Setting up a consultancy in the UK isn’t just about registering a company, it’s about positioning yourself as a strategic expert, engaging with economic buyers, and pricing your services based on value.

If you’re serious about making this transition, start today.

• Review your business structure.
• Identify key economic buyers.
• Build your authority online.
• Shift your pricing to reflect value.

As always, my friends, understand, reach, and expand. Peace.