How to start a consulting business

How to start a consulting business

Starting a consulting business begins with identifying your area of expertise and understanding where it meets market demand. Clients hire consultants to solve problems, improve processes, or provide specialised advice. To be successful, you need to offer clear value.

Here are the key areas to consider when starting:

• Define your niche: Focus on a specific area where you have proven skills or experience. This could be anything from marketing strategy to project management to IT infrastructure.
• Identify your ideal clients: Understand who would benefit most from your services. Are they small business owners? Corporate executives? Government agencies?
• Research demand and competition: Study the market to ensure there is enough demand and that you can differentiate your offer.
• Set pricing: Decide whether to charge hourly, per project, or on retainer. Research what competitors charge to set a realistic rate.
• Establish a business structure: Register your business name, apply for an ABN, and choose a business structure (sole trader, company, or partnership).
• Get the right tools: Use professional tools for client management, project delivery, and finances. This is where Thriday can make life much easier, as I’ll explain later.

The benefits of consulting

Consulting offers many benefits, which is why it appeals to professionals from so many backgrounds. Here are some key advantages:

• Flexibility: Consulting allows you to control your schedule and location. Many consultants work from home or travel as needed.
• Earning potential: If you have in-demand skills, consulting can be highly lucrative. Rates can rise as your reputation grows.
• Variety: Consulting exposes you to a range of industries, businesses, and challenges. No two projects are the same.
• Low start-up costs: Compared to other businesses, consulting requires little upfront investment. Often, a laptop, phone, and internet connection are all you need.
• Work-life balance: Because you set your own schedule, consulting offers more opportunity to balance professional and personal life.

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What consultants are popular?

Certain types of consulting are always in demand, while new niches are emerging constantly. Popular consulting areas include:

• Management consulting: Helping businesses improve strategy, operations, and performance.
• Marketing consulting: Advising on digital marketing, content, branding, SEO, and advertising.
• Financial consulting: Providing financial planning, forecasting, or tax advice.
• IT consulting: Helping businesses implement new technologies or improve systems.
• HR consulting: Advising on recruitment, performance, and compliance.
• Sustainability consulting: Supporting organisations to become more environmentally responsible.
• Coaching and training: Providing leadership, career, or personal development coaching.

Emerging areas include AI consulting, cyber security, and remote work optimisation. One of the beauties of consulting is that niches can be tailored to the exact skills and passions of the consultant.

How much money can you make from consulting?

One of the most common questions is about potential income. The answer depends on the field, experience, and client base.

Typical consulting rates in Australia range from $100 to $300 per hour, although specialists in areas such as legal, IT, or financial services can command far more. Project rates can run from a few thousand dollars for short engagements to six figures for longer-term advisory work.

Here is a simple income example:

• If you charge $150 per hour and bill 20 hours per week, your gross income would be approximately $12,000 per month or $144,000 per year.
• With 30 hours per week at the same rate, income rises to $216,000 annually.

Of course, this is gross income before expenses and tax, which is why efficient financial management is essential — something I will return to shortly.

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What steps are involved in starting?

To get your consulting business off the ground, follow these steps:

1. Define your offer

Clarify what services you will provide, your ideal clients, and how your services solve their problems.

2. Register your business

Choose a business structure (sole trader is common to start), register your business name, and obtain an ABN.

3. Set up your finances

Open a business bank account, and set up accounting and tax tools. I recommend using Thriday, which automates much of the financial admin — more on this below.

4. Create a simple website

Even a basic website helps you appear professional and allows potential clients to find and contact you.

5. Develop a marketing plan

Decide how you will attract clients — networking, content marketing, paid ads, LinkedIn outreach, or referrals.

6. Establish contracts and processes

Use clear client agreements and project outlines. Create processes for onboarding clients, delivering work, and invoicing.

7. Start prospecting

Reach out to your network and potential clients. The first few clients are often found through word of mouth.

8. Track income and expenses

Monitor cash flow, set aside tax, and stay on top of invoicing — this is where Thriday excels and can save hours of admin time each week.

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Why Thriday is the best platform for consultants

Consulting businesses are often run lean, with the consultant focusing on delivering value to clients — not on bookkeeping or tax.

This is where Thriday comes in. It is the ideal platform for consultants because it combines banking, accounting, and tax in one place — automated and easy to use.

Here is why I recommend it:

• Automated bookkeeping: Every business transaction is automatically categorised and reconciled. No more manual spreadsheets.
• Integrated tax calculations: GST, income tax, and BAS are calculated as you go. You always know what you owe.
• Real-time cash flow visibility: Instantly see how much is in your account, what is coming in, and what is due.
• Professional invoicing: Generate branded invoices and track payments.
• Smart expense tracking: Snap receipts and track expenses in seconds.
• AI-powered insights: Identify opportunities to save tax or improve cash flow.
• Registered tax agent support: Lodgements can be completed through Thriday, saving the hassle of finding an external accountant.

As a consultant, time is your most valuable resource. I have seen many consultants waste hours every month managing spreadsheets, invoices, and tax. Thriday eliminates that burden, allowing you to focus on delivering great work and building your income.

If you are starting a consulting business, I strongly encourage you to sign up to Thriday — it will make your financial admin far easier from day one.

Final thoughts

Starting a consulting business is an exciting opportunity to take control of your career and income. The flexibility, variety, and earning potential make it one of the most attractive paths for skilled professionals.

The key to success lies in choosing the right niche, marketing effectively, and managing your business professionally. Getting the financial side right from the start is crucial — and this is why I believe Thriday is the best partner for consultants.

If you are considering launching a consulting business, there is no better time. The demand for specialist advice continues to grow, and with the right tools and approach, you can build a highly rewarding business.