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How to Start HR Consulting Services for Small Businesses?

By Mahmuda Akter Isha Last Updated -- Sunday, 2021-01-31
HR Consulting Services

Are you excited to start HR consulting services for small businesses? Do you want to become an HR consultant? If yes, you need a complete guideline to provide the right direction to become successful in your career. After the COVID-19 pandemic, there are a lot of scopes to explore your HR consulting business. HR plays a significant role to grow your business and conduct all activities from service to accounting and other executive duties. 

HR consulting service provides the right direction and helps in the development of any small business by investing in the right way. Moreover, the HR system is developed by using artificial intelligence and machine learning. Thus, the HR consulting firms help new startups by training the employees to get the best out of their workforce

Now, I want to go back to the main track of this article. So, let's get started. 

Case Study

When the workers and business owners can not meet specific requirements that will be very tough to manage their workplace and gain expected revenue. In this circumstance, the HR consulting companies come to solve such kinds of problems and help to achieve your individual goal. 

Now, I would like to share my experience, and I hope that will motivate you to start HR consulting services for small businesses.

Mr. Oliver has a small organization, and he plays the role of the HR manager. So, he has enormous responsibilities to manage the employees and enhance productivity. But he did not get any guidance to manage his workforce, and it wasn't very pleasant for him to sustain his business. 

In this situation, he was looking for people who would consult with him and give some useful guidelines. Then, he tried to search for some HR consultants who would provide gleam in this darkness. Here, the primary confusion would have arisen! Whereas there are more than thousands of HR consultancy services available, but all of them would not be able to provide the right direction.  

After that, he has consulted with some large entrepreneurs because they already know which consulting firm will be the best for leading. They helped him to reach his destination and identify the best HR consulting.


From my real experience, it is clear that all business success mainly depends on the proper guideline. If you want to be an HR consultant, you can help other people who are not getting the right guidance, and it will be a great and mighty profession in the present age. Also, this occupation comes with personal satisfaction to assist the nation and guide others. 

Moreover, you can be able to inspire them to take on new challenges and help to solve their sticky problems. Undoubtedly, it is a fantastic feeling to help and guide others to manage their business successfully. So, why not choose this profession for your career?  Now, It's time to prove yourself as a triumphant advisor.

10 Inevitable Steps to Start an HR Consulting Services

Here, I will provide 10 essential steps that can help to start a consulting business. If you follow these approaches, you will definitely become a successful HR consultant. Let's take a look to know these fundamental steps

Step 1: Sketch Your Business Style

Sketch Your Business Style

I think you know Simon Sinek's epic speech "Find Your Why." This step is the base factor to discover the right path for your business. Before starting any business, it will be better if you have a clear concept about what you desire, why you want to do it and how you will reach your destination.  

You need to realize your preferred career path or business style from the numerous career paths. Do you like a freelance lifestyle to create your career path? If so, you need to design an entirely different business style than a traditional job. 

On the other hand, do you want to create an asset that is allowed for further selling? Then, you need to follow a totally different business style than a freelance lifestyle. 

Before setting up your business style, you need to understand the different business styles, various projects, and budgets. As an HR consultant, you should have required the capabilities to resolve any issues and preserve relationships. Also, it is essential for the long-term business to always put people over policies and need to focus on reality, not theory.  

Thus, you need to plan consistently by thinking about which business style you will apply, and you need to be clear about your hope. You can easily climb up the corporate ladder by using the perfect business style.  

Step 2: Design a Lean Startup Business Plan

The first and foremost task for starting any business is to create a clear and detailed business plan. A proper business plan can ensure the quick success of any business. To start HR consulting services, you need to create a complete business plan that will really be helpful to you for execution. In this regard, you can maintain three simple steps to implement a successful strategy.  

  • FIND your business plan
  • EXECUTE it according to your design
  • Check the VALIDATION of your business plan   

Most of the HR consulting firms fail due to the lack of proper planning and invest too much time, effort, and money in the wrong field. An effective business plan will help you to discover the unknowns and mapping the specific needs of your business. To create a lean startup business plan, you need to consider the following aspects. 

Startup Business Plan

Value Position

If you do not create your value, then no one else will understand you. Always you should be clear about your product and services. When you clearly describe your services or products, then customers will be more interested, and you will succeed to create your value to the customers. 

Key Partners & Activities

In your business plan, you need to describe your business partners and activities. Otherwise, there will be a chance to create some conflict, which will be very detrimental for your business. 

Key Resources

Without enough resources, you will be nothing, and you can not do anything. So, you need to identify your critical resources and make sure these are included in your business.

Customer Segmentation

Customer segmentation is the most crucial part of your lean startup business plan. You need to describe who you are creating the value for. Without being customer segmentation, you can not serve the nation properly, and you can not achieve your goal. 

Cost Evaluation

You need to describe your ongoing business cost precisely. Some startups can not sustain due to the lack of evaluation between startup costs and ongoing costs. There are several ongoing costs like utility costs, office supplies, travel expenses, office equipment devaluation, etc., that must have to include in your business plan.     

Market Analysis

Proper market analysis is the critical component in your business plan that can help to understand the market niche. So, the market analysis allows you to realize the current situation of the market, and according to this, you can create your business plan.  

Choose an Attractive Name

You can represent your business activities through an attractive name. A perfect name can be able to reflect your business, and customers can easily understand your motive. So, you must have to think about a significant and attractive name in your business plan.

Target Audience

Always remember that it would be better if you prepare yourself as a cooperative person and try to solve all problems that have been faced by your audience. So. you need to understand your target audience to capture their needs and requirements.  

Step 3: Create Legal Structure

Create Legal Structure

You need to consider some factors for determining the legal structure of your business. Your business structure will depend on which type of business you want to start. There are several types of business like limited liability company (LLC), sole proprietorship, partnership, corporation, contractual, and so on. Thus, you need to choose a specific business structure before starting your HR consulting business.

If you want to start your HR consulting firms with the LLC or corporation model, you need to maintain the following steps.

  • Need to form your LLC
  • Pay the required LLC costs

Also, you can hire a business formation service that will help you to launch your business and provide the following services:

  • Business formation 
  • Compliance in business
  • Employer Identification Number (EIN)
  • Operating agreement
  • Accounting estimation 
  • Registered Agent Services 

Step 4: Attain Business Licenses and Permits

Attain Business Licenses and Permits

To conduct your HR consultancy business, you must need some legal permission and license according to your state and location. When you fail to obtain the necessary approvals and permits, you may face a large number of fines at any time, or your business may be closed.

For starting any small business, not only an HR consulting business but also others, you need to acquire permits and licenses from both federal and state agencies. Moreover, the license fees and requirements will vary based on the business activities, location, and government rules and regulations

Federal Licenses and Permits

When you want to control your business activities by federal agencies, you must need to get federal licenses and permits. In this circumstance, you have to select the right agency to get the required licenses and permits. 

There are lots of issuing agencies for providing federal licenses and permits. So, it would be better if you communicate with your chosen issuing agency to know the required cost and fees. Most importantly, expenses and fees will undoubtedly depend on the business activities.   

State Licenses and Permits

To get state licenses and permits, you must research based on your country, location, state, or city. Also, you can visit your state's website to get more and specific information. Moreover, the state licenses and permits also depend on the activities of your business. 

Therefore, the government or state agencies can control a wide range of business activities like auctions, construction, retail, etc. 

But these licenses and permits expire after a certain period. So, you need to be careful about renewing these because it is often simpler to renew than to apply for a new one. Otherwise, you will have to face various problems.  

Step 5: Plan for Cash Flow

Plan for Cash Flow

Cash flow refers to the net amount of cash that has been received or gave out from your business. Before beginning an HR consulting service, you need to create a proper plan for your cash flow. Otherwise, you can drain your capital within a few months. So, be careful! 

If you create an effective plan for your cash flow, it will save your additional setup costs and other recurring expenses. To make a proper plan for cash flow, you need to consider the following things.

  • Save your money before starting HR consultancy services
  • Follow some rules and regulation before providing a resignation letter to your employees
  • You may start this business as a part-time or as a side hustle
  • Need to use the best invoicing and billing software for a quick and smooth transaction
  • Productize your knowledge and more!

Sometimes you will not get paid immediately, and then you need to have the right saving plan or another source for income if you want to keep your business's continuous flow.  

Step 6: Construct Your Network

Construct Your Network

Without building a broad and robust network, you can not sustain this competitive market. Similarly, HR consulting is a more competitive and challenging profession, and if you don't have the right plan, you will drop out in the early stages of your business. 

Moreover, you need to build a strong network to spread your business that will ensure to increase your client. It is already proven that, 

"More than 80% of clients come because of the referral network."

Thus, you can create a list of former colleagues, friends, relatives, clients, and suppliers that will help you to make a good relationship. You can also look at your LinkedIn connection, which will be able to play an influential role to build a wide range of networks.

The most significant thing is that you need to consult them about their existing problems and connect your clients by nurturing them. This process ensures to keep the connection with your client and create reconnection with them.    

enlightenedWould you like to read: What Does The HR Manager Do?

Step 7: Develop Sales & Marketing Plan

Develop Sales & Marketing Plan

To increase your clients, you definitely need to create a sales and marketing plan for your business. You may lose all of your attempts due to improper sales and marketing plans. Moreover, your business success not only depends on vital networking but also depends on sales and marketing strategies.

There are various ways to promote your business, and that will be effective for your business success. Those are: 

  • Search Engine Optimization (SEO)
  • Email Marketing
  • Content Marketing
  • Guest Blogging 
  • Google Ads
  • Facebook Ads
  • Social Display Ads
  • Search Engine Marketing
  • Affiliate or Referral
  • Social Platforms like Facebook, LinkedIn, Twitter, etc. 
  • Offline Events 
  • Viral Marketing
  • Engineering as Marketing
  • Community Building 
  • Business Partnership

Also, you can apply the following marketing approaches to get more clients in your HR consulting companies. You can follow these four steps to developing your optimal marketing plan. 

1. Market Segmentation

Market segmentation is one of the most crucial steps to execute your HR consulting business's marketing plan. This step helps you to understand the client's needs, questions, wants, and concerns. With this approach, you can easily capture what they don't need and what they really don't want.

Moreover, you can spend a few days, months, or years to observe your target audience. You also can create a one-page outline that will help to understand the nature of your target market. So, you need to target the potential client because there will be more possibilities to convert them into valuable clients. Otherwise, your time and resources will be wasted choosing the wrong people. 

2. Content Marketing Funnel

Content marketing is a practical step to increase your clients. With this step, you can be able to solve your client's problems and make your clients aware of their problems. When they find their problem's solution, it will help to build trust in you. Also, you can provide different content to create your client's interest, and that will ensure to increase your user's engagement. You need to remember, 

"Almost 95% of visitors visit your site only for researching purposes, and around 70% of them take this product or service from you or others."

When you provide more detailed information and give some proof or evidence to demonstrate that you are the best, it will help create a desire to purchase your products or services. Finally, they will take action to buy your products and services. 

3. Develop Your Marketing Mix

Marketing mix refers to the process of a comprehensive marketing plan that includes 4Ps: Product, Price, Placement, and Promotion. To develop your marketing plan for the HR consulting business, you need to design your service according to your customer demand. Also, the price of your service reflects what your customers are willing to pay for it

Moreover, the marketing mix is the key foundation of modern marketing strategies and provides a direction to execute your business activities. A proper place can influence your customer for taking the goods or services.  

"Around 90% of your sales and revenue will increase because of an appropriate placement." 

Finally, you can promote your business through advertising, marketing, and several sales techniques. Also, web content, podcast, email marketing, and push notification which will help to promote your business successfully. 

4. Create an Easy Marketing Process

Above all, you need to apply an easy but effective marketing process that will help to improve your marketing. In this regard, you can improve your marketing process by following these simple steps. 

  • Need to use free Google tools such as Google Analytics, Google Data Studio, and Google Search Console.
  • Productivity tools
  • Marketing tools
  • Email Outreach
  • Google developer tools

Step 8: Spread Your Brand

Your brand can be able to reflect your company's motive and differentiate from your competitor. Also, your brand can help to create your self-identity and act as an influencer to show your art or product, or services. In a word, branding is the way to observe your business, and it reflects the customer's service style, business cards, staff uniforms, marketing materials, and so on. 

The right branding process helps to implement your marketing plan successfully. To brand your HR consulting services, you can follow the given ideas that will assist you in shaping your business in the right form.

Spread Your Brand

Here I will briefly provide some branding guidelines for your HR consulting service.

1. Understand Challenges 

Firstly, you need to identify your challenges, and then you can be able to determine your opportunities. Without observing your problems or difficulties, you can not be branding your HR consulting companies. You need to remember that your clients do not know what you do and your mission or vision. So, it will be useful if you understand your client's challenges and adequately serve them.

2. Create Unique & Memorable Brand

The essential thing is that you need to do something different from others to create uniqueness and keep your brand's remembrance. Do you want to keep in mind your brand?

If yes, you can conduct the following tactics.

  • Emotion is the best thing to remember something, so you can emotionally attach your clients 
  • You need to be consistent with your clients 
  • To ensure your brand's success, you need to keep engaging your visitors and stir up about their benefits.   
  • You can create various helpful content to connect and guide them. 

Branding = Reputation x Visibility   

The above equation refers to when you can be able to build an excellent reputation with higher visibility, and it helps to create a strong branding for your consulting business. 

3. Choose an Expert 

It will be very effective to have visible experts in your consulting firms that can help to build greater visibility and ensure to drive your business success.

4. Focus on Reality 

It would be best to research your target audience, clients, and prospects because they can influence your industry. So, it will be conducive to build your branding plan based on empirical evidence. Sometimes you may execute your business plan without any experiment, just based on your opinions, but that will definitely fail!

5. Communication Channels 

The brand acts as the soul of your organization, and it helps to represent your firm. Thus, you need to communicate with your audience that will assist you to keep the engagement with your brand. Therefore, you can choose these channels to interact with your clients

  • Website 
  • Social marketing
  • Proposals
  • Newsletters 
  • Blogging  

enlightenedLearn More: What is an HRIS System? A Comprehensive Guide!

Step 9: Build Your Online Presence

Build Your Online Presence

In this present era, people are more familiar with the technology. You can create better engagement and serve quick service through an online presence rather than a traditional system. Moreover, it helps the customer to learn more about you, your company, and your services that will ensure to build trust in you and your services.

"Almost 80% of your business success and revenue depend on your online presence and engagement."

With your website, you can provide various types of blogs, articles, newsletters, which will be very useful for your visitors. Thus, you can easily attract your audience by providing them different informative content. 

You can start your blogging to develop your HR consulting business. In this regard, you must need a perfect blogging website that can help to manage your content quickly and smoothly.

How Can You Create Your Online Presence?  

The CMS software has an attractive and organized font view. So, this content management system helps you to promote your business, and you can easily manage your blogs and articles through this website. 

The process will not end here! You can provide sufficient information and guidelines through blogging. Also, these blogs or articles could be able to train them or learn them, but what about the reality? The HR manager needs to manage the entire human resource-related activities of your business. So, it is obvious to think about the whole field. 

In this circumstance, you can suggest your clients use an automated software solution. It will save your client's time and resources. Also, the HRMS software can enhance productivity and improve the coordination of their business. As an HR consultant, you can suggest your client integrate a dynamic system that will help to boost up their business revenue

Step 10: Get Business Insurance

Get Business Insurance

To follow the above steps, you can start and manage your HR consulting services for small businesses. Moreover, your business needs to require insurance to operate safely and securely. There are several types of business insurance, so you need to pick anyone according to your business criteria. Thus, the main six common types of business insurance are

  • General liability insurance 
  • Product liability insurance 
  • Professional liability insurance 
  • Home-based business insurance
  • Business owner's policy
  • Commercial property insurance 
  • Employee insurance policy 

You can get any business insurance based on your business type and requirements. In fact, business insurance acts as a financial support system. You can increase your business credibility through this process. Moreover, you just need to follow the four steps, and it's all about a circular flow that can play an essential role to buy your business insurance.

1. Risk Assessment

Before buying your business insurance, you need to assess your risk, you think about which type of threats or challenges you will face. Moreover, the National Federation of Independent Businesses (NFIB) can provide the necessary information to choose insurance. So, you need to identify your risks to get the insurance that will make sure the security of your business.  

2. Choose License Agent

You need to select any commercial license agent because they help you to find out the policies that will match your business needs and requirements. When they sell the guidelines, they will get a commission. So, it's an essential task to choose the right license agent.  

3. Shop Around

You must consider the price and benefits before buying business insurance. So, you have to compare the rating, terms, and conditions, and services to select the insurance agent.   

4. Reassessment Every Year

When you have purchased or replaced any equipment, you need to contact your insurance agent, and you can realize how these changes will affect your business through discussing with them. 

HR Consulting Services Info

How Can an HR Consulting Service Assist You to Build a Quality Workforce?

If you organize your business correctly, your business will grow fast and increase your productivity. The human resource consulting business is a blessing for any kind of small organization. Moreover, HR consultants help to provide a guideline to build and utilize your workforce. Also, the HR consultancy business has some benefits that will ensure your business success.

  • It helps to motivate your human resources
  • Enrich you and your employee's confidence
  • Build an effective working environment 
  • Provides managing expertise 
  • Effective compliance management system
  • Teaches your personnel to be proactive not just reactive
  • It helps to learn to use time properly
  • Provides employee training and development 
  • Assists you to apply optimum recruiting strategy
  • Effective performance management and evaluation system  

Almost 99% of Startups Fail Within The First Few Months!

Are you worried about your business sustainability? Do you know the perfect way to manage your workforce? It's not easy to manage any business's activities and its human resources. In fact, it is really very difficult to survive in the real competitive marketplace. You may have various problems even your startups may fail within a few months. 

"Effective planning and accurate guidelines ensure any business success."

In this circumstance, your fundamental priority is to consult with a professional HR consultant. An HR consultant can be able to provide the right direction to save your dream. Moreover, the HR consulting service plays a significant role in shaping your business and enhancing your productivity. 

HR consultants provide some useful advice that will be helpful for your business. Also, an HR manager can get the perfect way of recruiting and some legal compliance. So, the HR consulting business provides the safety and security of your business.   

Save 50% of Your Business Cost With The Assistance of an HR Consultant

Do you want to reduce the cost of your business? Are you concerned about the additional cost? You can get all your solutions from the HR consultancy business. Moreover, an HR consultant helps to hire the right talent, and you can get some effective tips that will ensure maximum ROI.

Without consulting with HR consultants, you can not get the proper guideline and can not apply the effective recruiting strategy. Ultimately, it will create a negative impact on your business. So, the HR consultancy business acts as a pillar or foundation of all business.

Are you looking for an HR software solution? As an HR consultant, it will be essential for you because the world is being more automated, and the dynamic system can save both time and effort

When you suggest a computerized system and train your clients to use the system, it will be very convenient for you and your clients both. Let's take a look at HR Manager software


Now, you have come to the ending part of this article, and I would like to thank you for reading this. You can get a complete guide on how to start HR consulting services through this content. Also, this article can assist an HR manager in alerting them about their mistake. When you want to launch your HR consulting firms, absolutely, it will be a remarkable initiative for you. 

To start your business, you must need proper planning, and you will get a comprehensive explanation in this article. So, this article will be conducive for those who want to start an HR consulting service, and you can apply these approaches for unstable businesses.  

Would you like to read: 10 Best HR Software for Small Business