how much do consultants charge for business plans

How Much Does a Business Consultant Cost: Consulting Fees and Pricing Structure

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Consulting fees and pricing can be structured in several ways. But like most businesses offering services, the number one challenge is pricing their offers.

Having closed my first consulting contract back in 2008 before launching several 7-figure businesses (along my business advisory ), I’ve consulted over 400 clients and worked with 50+ consultants across the portfolio of companies I manage with my agency and within my investment companies.

Pricing products is easier than pricing services because, with products, you can easily trace the production costs. However, with services, determining the value of what constitutes your services — time, staff, expertise  — is highly subjective. 

This is why different consultants employ different techniques to ensure they price their services appropriately. In the process, consultants consider every factor necessary to ensure they do not overcharge or undercharge. Otherwise, the risk of losing clients over pricing remains a constant possibility.

So – how much do consultants make?

Different Consulting Fees and Pricing Structures

According to a study conducted by Consulting Success , the following statistics show how most consultants structure the pricing for their consulting services.

• 31.37% of consultants use a project-based rate to price their projects.
• 23.38% of them use hourly billing
• 17.30% use value-based fees
• 15.40% use monthly retainers
• 12.55% of consultants charge daily

Two factors come into play when consultants determine the value of their advice or service and set their fee structures and these are the following:

• What is the cost associated with the service that would make it worthwhile for the consultant?
• What are clients willing to pay for the advice (forecasted ROI)?

Some of the highest-charging consulting firms include the following:

• McKinsey & Company
• Boston Consulting Group
• Bain & Company
• Strategy&
• Roland Berger
• A.T. Kearney

Most of these consulting firms consider their fee structure as a vital competitive asset that they rarely reveal to non-clients which makes it difficult to benchmark rates of other consultants.

And companies like McKinsey charge anywhere between $300 and $800 per hour (broadly) while most projects start at $500K or over. Individual consultants would charge a multiple for smaller projects (let alone one-off calls) if these are allowed in their contracts.

The largest group of consultants that comprise the market are the self-employed or independent ones and they usually charge depending on what they feel they are worth especially since there is usually no ceiling to their rates, particularly for those in the private sector.

1. Hourly or Daily Rate

Charging by the hour is a time-based arrangement. You only charge by the number of hours worked. 

How do consultants determine their hourly rate?

Often, when consultants charge by the hour, they base their pay on how much they were getting from the company they used to work for or still work for on an hourly basis, with a little markup.

According to SBA , the hourly rate is taken from dividing the former salary by 52 work weeks and then dividing that number by 40 or the number of regular work hours in a week.

Next, consultants must check with their competitors to ensure that the markup does not go beyond 25-30 percent.

New consultants undercharge to build a portfolio so you would expect to get great deals from working with one. Although the fees could vary primarily depending on the location among other factors.

The daily rate is basically derived from a consultant’s hourly rate multiplied by the number of hours per day that a consultant is expected to be available for work.

Most consultants prefer to charge this way since clients are usually used to hiring services on a daily basis to avoid limitations on the scope of work which usually happens if you charge by the hour.

Clients are often more comfortable with an hourly or daily rate because they could assess every now and then the need for consulting services without the complications of most long-term agreements.

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2. project-based.

High-level consultants usually charge per project due to the demands of the job that includes strategic planning and management advisory. This is a common strategy if you start as an independent consultant.

The rate is determined by estimating how much time will be spent on a project. Most projects require several stages such as the following:

• implementation

Clients may not have active participation in all of those stages but they are certainly part of the consultant’s job thus necessary in estimating project costs. A reliable consultant will assure you that there will be no hidden charges from start to finish.

3. Monthly Retainer

There are cases wherein a consultant’s services are needed on an ongoing basis. In such cases, a retainer agreement is more appropriate.

Some examples of consultants who render services on a recurring basis are legal consultants, IT consultants, and even financial consultants. You pay a retainer fee in advance to ensure that your consultant will be available anytime you need advisory or assistance.

Hiring consultants on a monthly retainer guarantees that you have help whenever you need it, especially if you are working with high-value consulting firms.

I offer an advisory retainer priced at $1,800/mo available on the Community page . If you’re just starting with your career as a business consultant, I’ve crafted a 4-week email course to help you land your first 3 consultancy clients .

Retainer fees are normally calculated the same as project rates, but putting a consultant on a monthly retainer may get you a discounted rate. Monthly retainers guarantee a consultant a regular income stream without spending on additional sales and marketing costs for securing a project with you. 

You can take advantage of this kind of deal once you have tested a consultant after a month or two, or once you have already covered the entire scope of the project. That said, some consultants are only available for retainer arrangements – given the fact there is the initial investment in exploring the business and its needs, a long-term commitment may be necessary.

How Much Should I Pay a Business Consultant?

As a rule of thumb, some consultants simply take the hourly wage (plus benefits) that they would earn when working on salary for someone else and double or in most cases triple that amount. So for example, if you want to hire a business strategist who makes $150 per hour for longer-term projects, he would charge you between $300 – $1,000 per hour for their services.

Higher profile coaches and strategists can be found on networks like Intro. Sahil Bloom can be booked for $5,000/hour if you’re determined to work with him.

Of course, there are different ways to price the arrangement. One-off calls are often more expensive since there’s back-and-forth and the total amount isn’t too exciting for most consultants. So hourly calls at $500 or so aren’t rare either, even for less skilled consultants.

The reason why many of them charge within the $250 – $500 hourly range is the prospect of expanding a call into a long-term contract, thus the discounted rate. I’ve met a handful of VPs and C-level executives making $500K – $1M+ a year and offering calls for $200/hr as an opportunity for strategic networking and business relationships.

The best option you have is to pay based on the value that the consultant brings your business, not just the time he spares or the materials he gives you. 

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Would you pay a flat fee of $50,000 per month? Imagine that this consultant helps you bring 10% more new sales leads and nurtures a profit increase of $500,000. Then paying that price is absolutely a win-win scenario. But if at the same time, you are paying $3,000 per month for 10 consulting hours and brainstorming sessions with no beneficial outcome, then this is not the value you are looking for.

This is why fractional CXOs often charge monthly retainers instead – distributing their time in the most meaningful way to the business.

Finding the right fit for your business might be extremely hard as navigating through the consulting landscape is very challenging when you don’t have a reliable reference or enough budget for a top industry guru. Check out my lengthy guide on how to find and evaluate a consultant that would help you scale your business.

Factors in Determining Consulting Fees and Pricing Structures

I have discussed pricing with 40+ other business consultants in my network and what I’ve gathered is an estimation based on the following factors :

• Market averages . How much do other consultants charge on average?
• Expected duration of a consulting project. Comparing one-off calls vs. monthly packages or longer sessions lasting for several days at a time.
• Projected business value . What is the consultant’s expected ROI based on the target audience of the consultant? SMB consultants often charge less because the impact is higher as a percentage but lower as a total amount.
• Business package perks . Are there other opportunities you can leverage as part of your deal with a consultant? Brand recognition or connections help a lot.
• Own self-worth . What would the consultant’s efforts result in had he spent the same time on other business/other activities? The best consultants run their own businesses or present at keynote talks worth $50K and more.
• Industry expertise . How well does a consultant understand a specific industry/niche where you are struggling with?

Let’s discuss further each of these factors in the following sections.

A. Market Rates

The market rate refers to the market’s average price or what the customers usually pay for certain products or services. While this does not serve as a mandatory ceiling on your prices, determining the market rate is crucial in structuring consulting fees. 

Across my network, the average consulting fee is between $150 and $1,000 per hour.

The lower amounts usually suggest longer iterations, i.e. booking at least several days for a coaching plan, a training course, or a monthly consulting retainer.

Or working with small businesses in a consulting and implementation capacity, i.e. marketing campaigns, helping out with recruitment, general high-end strategy.

For example, I charge $600/hr for one-off consulting sessions and $300/hr for monthly plans or larger packages. As a fractional CXO, this could go as low as $180/hr for ongoing engagements that also retain DevriX as a vendor. This offers extended value for me where my consultancy and my agency play together, optimize for efficiency, and hedge the risk across both businesses.

B. Consulting Engagement

As indicated above, the type of relationship would dictate the rate since the longer the plan, the larger the final amount, the less time spent on discovery or presales, and better financial planning in the long run.

Some of my peers sell one-time consulting calls and then upsell their other services through their agencies or partners.

Others have a minimum cap of “one day” or some other arbitrary amount of work they feel as a minimum requirement to get a job done. This may include other factors like commuting or conducting video training for in-house departments.

According to The B2B Marketer, there are usually two types of consulting engagement and these are the Project and Service.

The project type of consulting engagement is usually non-recurring, while the service type is recurring.

C. Projected ROI

The services the consultants render are tied to some expectations in terms of return on investment.

If a consultant charges X/hr for implementation work, it’s getting harder to keep a premium rate that is comparable to the work of a senior developer/ marketer /recruiter.

Professional business consultants often focus on strategy and direction, navigating the work of larger departments, analyzing metrics and the existing roadmap, identifying monetization or automation opportunities, and supporting the retention rates of the business.

Working “at scale” and impacting a larger number of people or directly supporting the revenue goals of a business tends to generate a lot more, which justifies a high consulting rate too.

D. Business Plan Benefits

Although this is not set in stone, high-priced consultants often provide external opportunities and benefits that low-cost consultants charge extra (or simply don’t offer).

For instance, I had a couple of calls with a VC charging $600/hr. He introduced me to a large startup community with valuable peers I still network with occasionally.

Another consultant in Australia charging $500/hr gave me access to his coaching community and his blueprints. We’re still using some of them for our lead generation initiatives.

Sometimes, it could be an invite to a mastermind, a business event they host (or a conference), a private Slack community, a free promotion at events, and a lot of other factors included in a larger package.

Low-pricing consultants often lack these kinds of added benefits so clients will end up looking for their own community or investing more in networking through their initiatives that have not been proven to work yet. 

If you think a consultant has something to offer other than his expert counsel that is of great value, consider this in deciding on which consultant to work with.

E. Own Self-Worth

This is especially valid for consultants who don’t offer full-time consulting (at least charged by the hour) but run agencies, a course program, invest in other businesses, etc.

So unless they expect to convert consulting clients to leads, spending the time on coaching takes a while: scheduling calls, preparing for meetings, generating reports, managing emails , etc. This aggregated time can be invested in their businesses instead, which would generate additional ROI or direct revenue.

This revenue comparison also aligns with the hourly rate they decide on.

If an agency business generates $5M in revenue, this is about $420K/mo or $20K per business day. Spending too much time on side consulting activities can jeopardize long-term clients or decrease the loyalty in leadership from key team players. A consultant commands a reasonable rate to justify the time spent on consulting.

We at DevriX provide a lot of consulting and support, which means we need overlap among team members collaborating together, meetings within the team (Slack or Hangouts), deployments for clients, launching new versions, maintenance, and uptime monitoring and the like. 

Since we serve clients across 17 different time zones in a team of 50+ people, that’s important.

We were a lot more flexible with a team of 10 people, but working with enterprise-grade projects and web platforms serving hundreds of millions of monthly page views requires commitment and availability, and a lot of teamwork. We consider these factors since we don’t want to compromise our company in the long run.

F. Industry Expertise

Niche industry expertise can be truly invaluable when choosing a business consultant to partner up with.

For instance, while I work with businesses on marketing , tech, recruitment, management, and general business strategy, I get frequent inquiries from SaaS businesses or enterprises eager to enter the WordPress space.

I’ve been running an expert team building high-scale WordPress projects for a decade and I’m closely familiar with the market , its leadership, top companies and vendors, plugin and theme developers, the evolution of the platform, how businesses can succeed, media outlets open to PR opportunities and a lot more.

Some of my unique skills that are rare and my clients ask about are:

• Scaling digital publishers . My agency has successfully scaled over a dozen publishers past 100 million monthly sessions. We excel in profitable ad layouts, increasing reader engagement, and scaling paid ads.
• Data-driven platforms . My engineering background led to consulting and development engagements with 3 banks, 2 telecoms, large automotive and airline manufacturers, and other high-scale businesses. I’ve helped design and architect data layers, big data warehouses, ETLs, and recurring automation and deployment processes at scale.
• Agency operations . Running and consulting agencies since 2008 has taught me a ton about structuring teams, streamlining lead generation, designing value propositions, crafting retainer plans, hiring and onboarding, and measuring efficiency.
• Fractional CXO . I’ve worked in fractional CTO, CMO, COO roles in different organizations – building and organizing teams, automating processes, creating roadmaps and workflows for improved efficiency and transparency.
• International hiring and outsourcing . I’ve hired over 700 employees over the years, several hundred contractors and freelancers, and over a hundred agencies worldwide. I’ve helped European businesses incorporate in Bulgaria for a 10% flat tax rate and explore US LLCs with doola and their tax packages.
• Efficient content marketing . As a Semrush partner , I’ve ranked DevriX on page one for the most competitive WordPress terms, this blog for “business advisor” and other consulting keywords, and developed content repurposing strategies at scale for publishers and B2B vendors.

My in-depth expertise in this field, combined with my speaking background at WordCamps can be a lot more valuable for businesses who don’t understand the space. Several hours of my time would tap into over a decade of my work almost full-time in this environment, and this can literally save months in R&D for a business navigating the space.

Is Negotiating Fees Reasonable?

I do believe in value-based pricing. And revealing the value of a project (or a fix) upfront works significantly well for several reasons:

• It lets you gauge quickly whether it’s a hit or miss.
• It indicates how important that project is in general. Low-priority projects may cause delays and abandonment; top priorities may be too stressful (yet rewarding).
• You already have a rough ballpark in your head – if it’s the same (or lower), you’re in a good place.
• It prevents the tedious process of discussing requirements in-depth in a discovery phase. Or at least this is taken as a given (if the budget is right).

That said, consultants are valued professionals – and their terms are usually clear.

Underpricing a consulting fee for a one-off project (or a couple of calls) sends the wrong message and may affect the quality of service even if you receive a discounted fee.

With long-term projects, however, there may be some room for negotiation .

Some of my clients allocate annual budgets and plan their consulting sessions accordingly. Arranging an annual contract with a fixed number of hours per month is a good justification to introduce a discount for the work. Moreover, in case of larger contracts (such as training courses or the like), buying a bulk of hours at a lower rate may also be an option.

The Bottom Line

The consulting industry is growing rapidly and there are loads of small business consultants and small niche firms that work fast and can work directly with growing businesses. 

Some businesses hit a plateau at some point and need external advice to keep scaling.

With hundreds of millions of businesses out there, commonalities are discovered in different segments – service vs. product businesses, small vs. large corporations, on-site vs. distributed businesses, and various industries. What works for a 20-person tech shop won’t for Target or Walmart.

Smaller businesses still try to uncover the most profitable and repeatable channels that generate revenue – think of business development and lead generation . 

Large corporations tend to hire niche consultants for areas of expertise outside their own comfort zone. Think of integrating a specific technology or implementing an innovative marketing channel. Digital transformation is a big aspect for many who have primarily positioned themselves locally, including print and billboards as marketing instruments.

Moreover, the best athletes in the world and many Fortune 500’s CEOs work with coaches and mentors.

Make sure you know the problems your business faces before hiring a consultant. Have a budget, and realize that a great advisor can scale your business and change your life but a bad one can simply lose your time and money.

And if you need a personalized consulting session, here’s how it works .

My name is Mario Peshev, a global SME Business Advisor running digital businesses for 20 the past years.

Born in Bulgaria, Europe, I gained diverse management experience through my training work across Europe, North America, and the Arab world. With 10,000+ hours in consulting and training for organizations like SAP, VMware, CERN, I’ve dedicated a huge amount of my time to helping hundreds of SMEs growing in different stages of the business lifecycle.

My martech agency DevriX grew past 50 people and ranks as a top 10 WordPress global agency and Growth Blueprint, my advisory firm, has served 400+ SME founders and executives with monthly ongoing strategy sessions.

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How Much Do Business Plan Writers Cost?

When you’re starting or growing a business, it’s important to have a clear plan in place. Writing a business plan can help you outline your goals and sales strategies, and it can be a valuable tool when seeking funding from potential investors such as venture capitalists or a bank loan. 

If you don’t have time to write your own business plan, or if you need help getting started, professional business plan writing services can be a great option. But, how much do these services cost? And is it worth the investment? Let’s take a closer look.

How Much Should I Pay For a Business Plan Writing Service?

Professional business plan writers and consultants generally charge between $2,000 and $25,000. However, the cost largely depends on the required quality of your plan, the complexity of your business plan, and the length of the document. Professional business plans for very small companies may only require a few thousand dollars to be written, while more complex business plans for larger, growing companies can easily cost over ten thousand dollars.

There are also private consultants who will write or edit your business plan on an hourly fee basis. Fees can range from $50 to $300 per hour or more, depending on the consultant and the complexity of your business plan.

Whoever you choose to get started with your business plan, be sure to consider what’s included in your service. At the very least, you should expect:

• Comprehensive business plan including an executive summary, market analysis, marketing plan, financial plan with 3-5 years of financial projections, and other essential components required by potential investors
• Customization based on your business model and specific to your business needs
• Well-researched business plan based on relevant industry information and a thorough competitive analysis

There are several companies out there that offer complete business plan writing services. However, the quality of their work can vary dramatically. If you’re considering hiring outside help to write your business plan, choose carefully.

It’s important to remember that you get what you pay for when it comes to these types of services. If you go with a cheap plan writer, you run the risk of ending up with a low-quality business plan. If your business plan isn’t strong and professional-looking, it may be harder for you to get funding or attract investors.

Looking for a Business Plan Writer?

You’ve come to the right place!  Since Growthink was founded in 1999, we have provided business plan writing services for thousands of clients including startups, small business owners, nonprofit organizations and mid to large-sized companies. 

We understand that writing a business plan can be a time-consuming process for many entrepreneurs.  Hiring a business plan writer will allow you to quickly and expertly create a custom business plan.

 Expert Team of Business Plan Writers

 Fully Customized Business Plans

 Market & Competitor Research

 Complete Financial Projections

 Strategic Consulting For Growth & Funding

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Call us at (800) 216-3710 or complete the form below and one of our business plan writers will reach out to you to schedule a time to speak about your business plan needs.

You can learn more about our business plan consulting services here

What Factors Impact Business Plan Pricing?

Some things that impact business planning services pricing include:

• Length – Longer, more complex business plans will cost more than shorter business plans.
• Company Size – A business plan for a large or complicated company can be more expensive to write.
• Level of Expertise – Smaller companies may opt to hire less experienced writers who charge lower prices, while larger, well-established companies choose to work with high-quality professionals who charge higher rates. You can’t expect a less experienced writer to help you achieve your goals (funding, growth) for your business plan.
• Turnaround Time – Generally, shorter turnaround times mean increased prices. Typically it will take 3-4 weeks to write a quality business plan.
• Additional Services – Some companies offer additional services, such as business plan presentation and pitch deck editing and support. These can cost extra.

To really get your business off the ground, it’s important to have a business plan in place that has been written by someone with the expertise to put together a successful business plan. A professional business plan consultant is an excellent investment for increasing your chances of securing the funds you need to start and/or grow your business. However, it’s important to do your research and choose carefully when you’re ready to hire.

Who Can I Hire To Write My Business Plan?

When choosing a business plan writer or consulting firm, it’s important to look for a company with significant business experience and proven expertise in business plan development. Look for companies that have been around for at least five years and do business plan writing on a regular basis. They should also be able to provide references from other companies that they’ve worked with.

A Business Plan Writing Company or Consultant

When hiring a business plan writing service , you’ll have two primary options. You can opt to work with a single writer or a dedicated team of experts who will be responsible for the entire project. The price of the service may vary depending on which option you choose.

A business plan writer typically costs less than an entire team, but it’s important to keep in mind that you may have less control over the outcome. The upside is that your business plan will be written by an expert with a deep understanding of the writing process.

When choosing this route, you should ask for references and examples of previous work. Before hiring any business plan writer, be sure they have the proper credentials and experience to meet your needs. You should also ask about any fees associated with revisions or updates.

Many businesses choose to work with a business plan consulting firm that offers a collaborative team of experts. This type of company will give you the best of both worlds. You’ll be able to utilize the knowledge and expertise of all the experts involved in the project, while still retaining control over the direction and vision of your business plan.

If you’re trying to determine how much it will cost to work with a business plan writing service, take some time to explore all of your options before making a final decision. You should consider both pricing models as well as the qualifications offered by the various service providers in your area. Doing so will ensure you find the most qualified choice for your business planning needs.

You Can Write It Yourself

If you are a newer entrepreneur or business owner or you are trying to save money, there are several free resources available online to help you write your business plan. The Small Business Administration (SBA) and your local Chamber of Commerce offer business plan services, workshops, or courses that can help you get started. Using a business plan template is a great way to quickly and easily complete your plan, especially if you are unfamiliar with the business planning process.

Some business owners are comfortable writing business plans without any outside help. This option offers you complete control over the process, but it typically takes more time than you have to spare. For that reason, not writing your own plan is usually recommended for experienced business owners, even those with plenty of business plan writing experience.

In most cases, experienced business owners who write their own business plans will have a better idea of what elements are needed and how they should be presented. However, it can still take considerable time to compile all the necessary information into a cohesive business plan that meets your audience’s needs. And it’s one thing to write a business plan; it’s another to write a business plan that gets investors or lenders to write you a large funding check.

A Combination of Business Planning Services

If your budget doesn’t allow you to hire a comprehensive business plan service, combining outside services with writing your own business plan may be the best option. This approach gives you complete control over the process, while still allowing you to benefit from an expert business plan writer’s advice. It is also a great option for entrepreneurs who don’t have time to write their plan but aren’t quite ready to hire someone else to do it either.

Other business services that could help you include:

• Market Research – Conducting thorough market research can help you determine which business opportunities are viable. Experienced consultants can help you identify your target customer so you can design the right marketing strategy to reach them.
• Copywriting Assistance – Many entrepreneurs have a great product or idea, but lack the writing skills needed to effectively advertise it in their business plans or online marketing materials. A business plan copywriter can help you create a compelling marketing message that resonates with your target audience.
• Startup / Growth Opportunities – If you’re thinking about starting a business or expanding your established business, it’s important to consider all of the potential opportunities before diving into something that may not be feasible for your current situation. A business plan consultant can help you identify what makes your business idea unique and how you can capitalize on those opportunities.
• Business Plan Review – Once you’ve completed your business plan, it’s important to have it reviewed by an expert. They can identify any gaps or mistakes in logic that could affect how potential lenders or investors perceive your business idea.

As with any decision affecting your company’s future, you should take the time to explore all of your options before committing to a specific service provider. The goal is not only to find the best fit for your budget and needs but also to find a business plan consulting service that can meet your expectations and deliver quality content on time and within budget.

Is It Worth It To Use a Professional Business Plan Writing Service?

As with anything else, you’ll get what you pay for. If you are short on time or don’t have the writing skills required to write a business plan, it may be worth considering a professional writing service. These services can help you complete the necessary research and planning to get a comprehensive business plan written for your company.

How Growthink Can Help Your Business

Since 1999, Growthink has developed thousands of business plans for entrepreneurs and business owners to start and/or grow their businesses. From small business owners to Fortune 500 companies, we have provided a variety of business plan services to meet the needs of each client.

Our business planning services include:

• Business Plan Consultants – Our experienced business plan consulting team has helped numerous businesses from small businesses to multi-million dollar corporations identify new opportunities and develop their business plans using existing information where possible, or by conducting new research as needed.
• Business Plan Writing Services – Our business plan writers are experienced professionals who are committed to providing you with a business plan that delivers results. Depending on your needs, our business writers can either help you complete the research and writing process, or write your business plan for you from start to finish.
• Done For You Market Research – Our market research team can conduct independent market research for your business through access to several market research databases. Utilize this research to help you write a business plan that is more in-depth and gives you a distinct advantage over competitors in your industry.
• Private Placement Memorandums – Growthink’s experienced business consultants can help you prepare a private placement memorandum (PPM) that is tailored to the unique needs of your business. PPMs are used to help businesses raise capital from accredited investors.
• Growthink’s Ultimate Business Plan Template – Our simple business plan template is available in MS Word and when completed can be sent to investors and lenders in Adobe PDF format. Use this business plan template to help you focus your business concept on the information that is most relevant for lenders and investors, while also providing a flexible foundation for future growth.
• Business Plan Writing Help Center – We have a wide variety of free resources for business planning on our website. Use our selection of 200+ business plan examples to help you write a business plan specific to your industry or learn more from our selection of business planning and funding articles.

No matter what product or service you choose, we wish you success in your business venture

Consulting Fees: How To Price Your Expertise In The Market

Published: August 14, 2024

For years, I was stuck in a cycle of undercharging. I had no clue how to price my services, and the fear of asking for too much kept me trapped in a cycle of dirt-cheap fees. Like many freelancers, consultants, and others, I struggled with the question: “How much should I charge?”

There was a constant battle between my desire to be fairly compensated and my nagging fear that charging my true value would scare away clients. I was stuck.

If you‘ve ever felt this way, you’re not alone. Determining how much to charge as a consultant is often a complex and emotional journey.

The good news? There are proven methods and factors to consider that can help you set your rates and escape the cycle of undercharging. In this article, I’ll explore the psychology of consultant fees, discuss different pricing models, and highlight the key considerations for calculating your worth.

Use the links below to jump to a section:

Table of Contents

What are consulting fees?

How much am i worth as a consultant, how to price consulting services, 4 tips for communicating pricing, price your worth.

Consulting fees are the fees charged by freelancers or consultants who provide expert knowledge and services to businesses. These fees can range from tens to thousands of dollars. The purpose of charging consultant fees is for businesses to compensate consultants for their expertise.

Ask any business person worth their salt and they will tell you, “The first sale is to yourself.” No, you don’t have to buy your own product or service, but you do have to buy into your ability to deliver it.

If you don‘t believe that you have the qualifications, skills, and talents to live up to the promises you’re making, clients will smell your insecurity a mile away. Confidence is essential. It may take some time to build up that confidence, but be wary of undervaluing your services as you build that belief in yourself.

Why is that the case? Well:

• If you charge too little, potential clients won’t see you as a “bargain,” they will see you as an “amateur.”
• If you don’t value your services, your clients won’t either.
• You'll undervalue the industry as a whole. Yes, your lack of confidence could make it more difficult for another consultant to make a fair living.
• If you offer to do a job for less than you’d like, you will end up resenting the client, the project, and yourself.

If you need to build your skill and confidence as a new consultant or even a small business, consider offering a “Beta Program” for people you already know, making it perfectly clear that you are in the process of learning and you will be charging more once you’ve got a few clients under your belt.

If there is a cause you support, you could even consider donating your time to a nonprofit or charging a nominal fee in order to build up your portfolio.

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Let’s say that you’ve worked through all your insecurities about charging for your services and are confident in your ability to deliver results. You're good at what you do and know that you bring value to your clients. The question becomes, “How do I figure out what my service is worth?”

People have been led to believe that goods and services have an inherent value—but they don't. Pricing comes down to two parties agreeing to a specific number.

That number can be as high or as low as those parties accept. If you're a business consultant who wants to make $10,000 a day and you find a client who is willing to pay $10,000 a day, you’ve just determined the “value” of your service.

In reality, the more important questions in regards to pricing are, “How much are people willing to pay me for my time?” and, “How much am I willing to accept for my time?”

This can be a delicate balance between making sure your needs are met and not pricing yourself out of the sale. You may want to make $100 an hour, but your potential client is only willing to pay $10. Do you undervalue yourself to get the job or walk away and find someone who is willing to part with $100 to see their desired outcome?

There is one more factor to consider that makes this a bit easier. It’s called the “Market Rate” and refers to the range of pay that the average customer or client will pay for your service. It doesn’t dictate what you can charge but provides guidelines as to what you’re most likely to get.

Keep in mind, if the average consulting fees are around $100 per hour, your experience and track record will need to be taken into account. If you are a brand-new consultant, you may be charging closer to $50 per hour.

With 20 years of experience under your belt, you may be charging $150 or even $200 per hour. One other thing to note: While you may be a new “consultant,” if you’ve spent the last 30 years in this specific industry as an employee, you have plenty of experience. Don't shortchange yourself.

• Consulting Fees by Hourly Rate
• Consulting Fees by Project
• Consulting Fees by ROI
• Consulting Fees by Package
• Consulting Fees by Retainer
• Consulting Fees by Percentage

1. Consulting Fees by Hourly Rate

Let’s begin with one of the simplest ways to charge — hourly. We spoke earlier about how it can be difficult to charge $100 if you’ve never made more than $50 per hour. Consider this, what else was included with your $50 an hour paycheck? You likely received:

• Vacation days.
• Health Insurance.
• An office to work in and all the equipment you need.
• Leads on potential customers if you worked a sales position.

Your employer footed the bill for all of that. As an entrepreneur and consultant, you’ll be paying for your own benefits, buying your own computer and workspace, and no one will be paying you to go on vacation. You’ll also spend at least half your time (in the beginning) tracking down new clients rather than working billable hours.

It makes sense that you should charge more, but why should your client be willing to pay more?

If they were to hire you or someone else to provide the service you are about to provide, they’d be paying for all of those things out of their own pocket (not to mention unemployment insurance). Paying you more to not be an employee actually saves them money in the long run.

Calculating Consulting Fees

With all of this in mind, how do you calculate a good rate for yourself?

Consider what you were making at your last job. If you know the hourly rate, you are ahead of the game. If you don’t, use this equation:

Example: $100,000 per year/ 50 = 2,000/ 40 = $50 per hour

2. Consulting Fees by Project

While hourly rates are straightforward, they might not be the best fit for everyone. In my case as a freelance writer, I've developed efficient project management and research processes, and invested in tools that significantly reduce my turnaround time.

Charging by the hour would discount my years of experience and the investments I've made to improve my productivity.

No matter what you do, you’re bound to get better at it the more you do it. You could raise your hourly fee to compensate, but clients may have a hard time swallowing the higher hourly rate.

This is why I've found that charging by project works best for me. It allows me to focus on delivering high-quality work, without feeling pressured to stretch out my hours. My clients appreciate the clarity and predictability of project-based pricing, and I feel it better reflects the value I bring to each assignment.

How do you determine the project rate? You know approximately how much time it will take you and how much you should make. This can become your project rate and make quoting much easier. Here’s a formula to help you figure this out:

(Estimated hours of work + a 20% cushion for the unexpected) X Hourly Rate = Project Cost

This allows you to make what you deserve and gives your client the security of knowing they won’t be hit with a brutal invoice.

3. Consulting Fees by ROI

Rather than say “how to charge based on ROI,” we need to discuss “whether you should charge based on ROI.”

For a new consultant, the idea of getting paid a percentage of what you bring in can sound wonderful. It also sounds like something that a business owner should jump at. After all, if you don’t do a good job, they don’t pay you very much. Sounds perfect, right?

Wrong. If a business knows that you are going to deliver results and they are going to increase their revenue by around $100k, would they rather give you a hefty percentage of that revenue or find someone who will deliver the same results for a (significantly lower) fixed rate?

Obviously, they’re going to look for the best value for them. If you find a business willing to agree to these terms, they either don’t have the money to pay you upfront or lack faith in their follow-through to implement the steps you advise them to take. Either way, they aren’t the type of client you want to work with.

If you have a history with the client and full trust in them, know how to track the ROI, know that they will implement your solutions, and believe they will pay you in a timely fashion, charging based on ROI may have a lucrative payoff.

4. Consulting Fees by Value

Value-based pricing focuses on the value you bring to your clients. Instead of charging for your time, you charge for the outcomes and results you achieve. It requires a deeper understanding of your clients' needs, challenges, and desired outcomes.

Dan Tabaran , marketing consultant at influencer marketing platform Influencity , explains the advantages of this model:

“It ties the fee directly to the outcomes I help clients achieve. This makes sense because clients are usually more willing to pay when they see real results. It also reflects the importance of my advice in solving their problems or improving their business. This approach focuses on quality and the impact of my work, not just the time spent.”

How do you implement it?

Start by identifying the specific problems your clients are facing and the value they place on solving those problems. Consider the impact your services will have on their business, such as increased revenue, cost savings, improved efficiency, or enhanced customer satisfaction.

5. Consulting Fees by P ackage

For those looking to build a career in consulting , package-based pricing can be an excellent way to differentiate your services and make them more appealing to potential clients.

Package-based pricing involves bundling your services into predefined packages, each with a set price. These offer clarity and simplicity for both you and your clients.

It's great for projects with defined scopes and deliverables, as it eliminates the need for hourly tracking and provides clients with a clear understanding of the cost upfront.

In my freelance writing business, I use package-based pricing to attract new clients and provide clear value propositions.

For example, I might offer a “Content Starter Pack” that includes a set number of blog posts and social media posts. This allows clients to understand what they're getting and compare options. I sometimes include a slight discount for more comprehensive packages to encourage clients to commit more upfront.

Unlike retainers, which provide ongoing access to your services, packages are typically project-based or have a defined scope. Packages help clients who have specific, short-term needs or want to try your services before committing to a longer-term arrangement.

Pro tip : Mia Čomić , Founder and Content Strategist Bublgam , a marketing services company, suggests tailoring packages unique to each client.

“Focus on each discovery call you lead and take good notes of the deals you didn’t close. Here’s how you can do this:

• Pay attention to the type of company you’re talking to (e.g., did they receive funding, how big is their team, how many active marketing channels do they have, which growth stage are they in, what internal blockers do they face, what’s their current ARR and how ambitious are they with their goals, etc.)
• Ask questions about their pain points — 𝙗𝙤𝙩𝙝 the ones they face in their role and the one of the company they are expected to solve
• Group insights on three different types of clients: those that are a joy to work with, those that are a nightmare, and those that ghost you/you didn’t manage to close.”

6. Consulting Fees by Retainer

Retainer pricing involves a client paying a recurring fee, often monthly, in exchange for a set amount of your time or services. This model is great for building long-term relationships and providing ongoing support to clients.

Retainers offer stability for you and your client.

Ben Vaughan , vice president of analytics services at Brewster Consulting Group , highlights the advantages of retainer pricing from both the consultant and client perspectives:

“We typically use a monthly flat fee with our clients with no end date to the relationship. We do this because it enables us to have a consistent cash flow, gives the client a consistent cost that they can budget for, and — if you price it correctly — becomes something they don't even consider discontinuing with over time,” Vaughan says.

7. Consulting Fees by Percentage

Percentage-based pricing involves charging a percentage of the client‘s revenue, sales, or spending on a particular project. This model is often used in marketing, sales, and financial consulting, where the consultant’s efforts directly impact the client's bottom line.

Steve Fanous at Teeterme , Toronto's lawyer directory, provides an excellent example of how this model can work.

“The pricing model I use is to charge a percentage-based management fee that is based off of the client’s monthly spend. So, for example, if the client spends $10,000 per month, my fee is 10% which is $1000 for that client,” Fanous says.

Fanous explains the benefits of this approach:

• The client can be flexible & spend as much or as little as they want.
• This model promotes results because I want the client to spend more & that will only happen if they see results.
• It's a transparent model where you know your entire budget will go towards ads & know what fees to expect based on the percentage fee.

“I found this model to be very successful as I typically start with a starter budget, show results & grow the budget strategically with the client. This in turn increases my monthly dollar value in fees. It's a performance-based model,” Fanous says.

Fanous also emphasizes the positive aspect of this pricing model: This approach reframes the fee conversation and positions it as an investment in the client‘s growth rather than an expense. If you align your interests with the client’s success, you'll create a powerful incentive for both parties.

Now that we‘ve covered various pricing strategies, it’s also important to consider how you'll present these to clients. Our free consulting templates can be invaluable here. The consulting kit includes a Consulting Plan Presentation Template that can help you communicate your pricing and value proposition clearly and professionally.

As you learn how to become a consultant , communication can make all the difference in securing clients and justifying your fees. Here are four essential tips to help you confidently navigate pricing conversations:

1. Be transparent.

Want to build trust fast? Be open about your pricing. Put your rates right on your website and break down the costs clearly. This shows clients you're confident in your value and helps them know exactly what to expect.

Taylor Scher , an SEO Consultant , breaks down his pricing packages in detail on his website.

Image Source

Pro tip : Take transparency a step further by conducting audits.

"All of my engagements always start with an audit (before the proposal was signed) to help my clients understand the areas I‘ll be able to help them with. So instead of pitching myself, I’m pitching a desired goal we can reach. Only then, does pricing not really become a factor,” Scher says.

When you lay out the specific areas where you'll make an impact, suddenly your price tag makes a whole lot more sense.

2. Frame it as an investment.

Reframe the fee conversation, and position it as an investment in the client‘s growth rather than an expense. If you align your interests with the client’s success, you'll create a powerful incentive for both parties.

Steve adds, “Typically, pricing is the part everybody hates. However, I turn it into a positive by explaining this pricing model is performance-based. My fees will only go up if their online business and monthly spend is growing. My clients don't look at it so much as an expense. It's more of an investment.”

Highlight how your expertise can lead to increased revenue, improved efficiency, or other measurable benefits that directly impact the client‘s bottom line. Use case studies, testimonials, and data to demonstrate the value you’ve provided to other clients.

This way, you alleviate concerns about cost and position yourself as a partner in their growth.

3. Be direct, yet empathetic.

Strike a balance between clarity and understanding when discussing pricing with potential clients. Being upfront about your rates shows professionalism and saves time for both parties, but it‘s equally important to be receptive to the client’s perspective and concerns.

Will Yang , Head of Growth and Marketing at grant management solution Instrumentl , offers valuable advice on this approach:

"I recommend starting the conversation by clearly outlining your rates and any additional fees. For example, ‘My hourly rate is $X, and I charge a flat fee of $Y for travel expenses.’ Then pause and ask if they have any initial reactions or concerns.

Listen closely to understand their perspective. Make sure to welcome any questions they may have. Pricing discussions go smoother when you convey respect for the client's budget and genuinely work to provide win-win solutions."

This strategy combines directness with empathy. You create an open dialogue by clearly stating your rates. Your client will appreciate your willingness to work together and you can address any budget concerns right away.

4. Highlight the value compared to alternatives.

Comparing your fees with alternatives can be a great way to contextualize your pricing with potential clients. It lets clients know what you offer in relation to other options they might consider.

Ben explains his strategy, “We like to put things in perspective of what the alternative to the client is. For example, if we're proposing a fractional BI Development resource, we may quote them what the salary and benefits are in their local market and compare that to what we're proposing.”

This method accomplishes several things:

• It provides a clear point of reference for your pricing.
• It highlights the cost-effectiveness of your services compared to hiring full-time staff.
• It shows your understanding of the market and the client's needs.

You‘re not just saying a number. You’re showing the value proposition of your services.

Want to learn more about selling your consulting services? Inbound sales methods can help you foster a relationship and become the obvious choice for prospects when they’re ready to commit. You can learn more about inbound sales in our HubSpot Academy course .

As I reflect on my journey in consulting, I'm struck by how much my approach to pricing has evolved. When I started, I was terrified of charging too much. Now, I realize that undervaluing my services was the real danger.

The biggest lesson I‘ve learned is that pricing isn’t just about numbers — it's about confidence. When I believe in the value I provide, it becomes much easier to communicate that value to clients.

Your pricing reflects not just your skills, but your experience, your unique perspective, and the results you deliver. Don‘t be afraid to charge what you’re worth. The right clients always appreciate the value you bring to the table.

Don't forget to share this post!

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How Much Does a Business Plan Cost?

A complete business plan helps you to identify your business goals and how you plan on reaching them. Whether you are a new business owner or an experienced entrepreneur, writing a comprehensive business plan can help you start, grow, and/or attract investors to fund your business.  

How Much Does It Cost to Write a Business Plan ?

Business plan pricing depends on what route you take to create it. However, there are a few essential elements that are common to all business plans:

• Executive Summary
• Business Description
• Market Analysis
• Customer Analysis
• Competitive Analysis
• Marketing Strategy
• Operations Plan
• Management Team
• Financial Plan

There are several ways to approach writing a successful business plan, but the cost of each way varies widely. The cost of a business plan can be a significant investment, but it’s an essential tool for any business. Below we provide some tips for what to consider and the costs for the various methods of completing your own business plan.  

Considerations When Writing Your Own Business Plans

There are several things to consider when writing your own plan. Depending on whether you’re in need of funding and how much, the costs for your business plan will be different.

Take into account:

• How long will your business plan be?
• How many hours does it take to complete the business plan?
• What kind of language is used in the business plan?
• Who will use the business plan?
• Who will fund your business?
• How much are you looking to raise or if you need funding at all?

According to our business consultants’ surveys of investor requirements, a 15- to 25-page business plan is the ideal length. Adding more pages may cause your time-constrained investor to skim portions of the plan, even if they are interested, which might result in important information being overlooked. However, fewer pages may lead potential investors to believe that the firm has not been thoroughly thought out or simply doesn’t have enough information for them to make an investment decision.  

Business Plan Template Costs

There are a variety of business plan templates online that you can purchase for a one-time fee. These templates range in price but usually start at around $100. Remember, a bargain business plan template may not include all the information that you need, so it’s important to understand what is included with the template you purchase.

Many of these templates also come with instructions to help you fill in the template and make changes as needed. However, if there is something you want to be changed on the template, it may take time and money to have it done.

Be sure to do your research and find the right template for your business. The wrong template could set you back even further and change the face of your business entirely. If you purchase a professional business plan template, make sure it’s from a reputable business plan company with business plan writing skills   in a variety of industries.

The business plan template should be easily editable and customized for your specific business needs and industry trends.

If you do not want to pay for a template, there are companies that will charge by the page and some that offer free resources . However, these templates may not have been professional business plans written for your exact type of business.  

Experienced Consultants & Business Plan Writers Cost

Hiring a business plan writer or professional writing service will help you get a comprehensive business plan written just for your business. A professional business plan consultant will help you identify your goals and how your company will reach these goals. A business plan consultant fee usually costs more but can be worth it if you do not have the time or resources to complete the business plan yourself.

A business plan writer can be found through online directories, but be sure to do your research prior to engaging in business with them. Be sure to ask for references and read reviews before hiring a business plan writing service.

If you choose to hire a business plan consultant, the complexity and length of the plan will determine how much is a business plan. Generally, a consulting firm or private consultants charge between $1,000 and $5,000 to have a comprehensive business plan written . However, a lengthy and complex plan can easily start at a few thousand dollars and stretch into the tens of thousands of dollars based on the needs of the business.

Some experienced business plan writing services also offer package deals that include additional services, such as market research, a marketing plan, and realistic financial projections.

Business Plan Software Costs

There are business plan software applications that can be used for free or have a monthly subscription cost, which may work better for your needs depending on what you need in a business plan. These apps provide templates and make writing a business plan and business planning easier. They help organize the information you enter into the app and will sometimes offer advice on how to do things like financial projections for your business plan .

The information that you put into the application can be used for several different types of business plan needs. These apps are great for startups and small businesses looking to raise capital or secure funding.

Each app or software varies in what it offers. Some are more customizable than others, some have more options for presenting your business plan, and some even offer investment opportunities. With just your business idea, the business planning software can help you write your own business plan quickly and easily. 

Write Your Own Business Plan from Scratch

If you do not want to purchase a template or use software, the easiest and most cost-effective way is to write a business plan from scratch. This route takes time and effort to complete but can be done by anyone willing to put in the work.

When writing your business plan documents, remember that they should be as detailed as possible. This document is your guide to starting and running your business. The more complete it is, the better off you’ll be.

There are a variety of free resources available online to help you write a business plan, including articles, templates, and even video courses.

When writing a business plan from scratch, it’s important to consider all of your business aspects. This includes your business concept or business model , management, production, market research , sales strategies , customer service, operations, human resources, financial projections , and more.

Try to be as thorough as possible when writing the plan. While the task may seem daunting at first, you’ll find that putting together a business plan is not so bad once you get started. After all, if you can dream it, you can write it.

The cost of writing a b usiness plan is dependent on the purpose, type, and length of the business plan. The amount of time it takes to complete a  business plan , the language used, and who will be using the document also play a factor in the cost. You can find templates for a one-time fee or pay by the page, hire a business plan writing service or a business plan writer , contact a consulting firm , or use software/apps to create your business plan. Whichever option you choose, make sure you do your research, conduct an in-depth business plan review, and find the best resource to meet the goals for your business.  

• Business Planning
• Venture Funding

Business Plan Development

Masterplans experts will help you create business plans for investor funding, bank/SBA lending and strategic direction

Investor Materials

A professionally designed pitch deck, lean plan, and cash burn overview will assist you in securing Pre-Seed and Seed Round funding

Immigration Business Plans

A USCIS-compliant business plan serves as the foundation for your E-2, L-1A, EB-5 or E-2 visa application

Customized consulting tailored to your startup's unique challenges and goals

Our team-based approach supports your project with personal communication and technical expertise.

Pricing that is competitive and scalable for early-stage business services regardless of industry or stage.

Client testimonials from just a few of the 18,000+ entrepreneurs we've worked with over the last 20 years

Free tools, research, and templates to help with business plans & pitch decks

Going Beyond Writing: The Multifaceted Role of Business Plan Consultants

Most people think of a professional business plan company primarily as a "business plan writer." However, here at Masterplans, we choose to approach this role more broadly and holistically as that of a "business plan consultant." Crafting a comprehensive business plan is not just about translating information into a narrative. The consulting role goes beyond mere recitation; it involves understanding, analyzing, and interpreting the essence of your business, ensuring that the final plan not only encapsulates your vision but also adds value and insights that can guide your business's direction.

Business plan consulting is a dynamic process that calls for market research, realistic financial modeling, and strategic development of the business model. This approach is about asking the right questions and encouraging the business owner to uncover insights they might not have recognized. This results in a cohesive document that does more than tell a story – it guides the business's direction with informed and actionable insights.

The diverse range of thinking involved in business plan consulting necessitates a collaborative approach, often best undertaken by a team rather than a single freelancer. Leveraging varied expertise ensures that all aspects of the business plan are thoroughly analyzed and articulated. This team-based methodology brings additional depth and breadth to the plan, aligning it more closely with the multifaceted nature of the business landscape. It underscores the importance of viewing the role as that of a business plan consultant, emphasizing strategic guidance, rather than simply focusing on the writing aspect.

Why Is Business Planning Crucial for Startups and Established Businesses?

Business planning is the strategic backbone of both startups and established businesses, guiding critical decisions that mitigate risk, align the team behind a singular vision, and validate the business model. A comprehensive business plan, crafted with the expertise of business plan consultants, serves as the vital written documentation of this strategic process. It reflects the depth of planning, tailored to speak to the audience, whether a bank for Small Business Administration-backed funding or for angel and VC investors . By adhering to specific guidelines and structures, the plan ensures that the audience can find exactly what they need to make informed decisions, laying the groundwork for securing funding and future success.

Engaging a professional business plan writer or utilizing a business plan writing service is not just about creating a document; it's about shaping the future of the business. It infuses the planning process with depth, structure, and insights that go beyond mere numbers or a static business plan template. From financial forecasting to strategic alignment, the expertise of business plan consultants can be a game-changer, turning business ideas into actionable and sustainable business strategies.

The Role of a Business Planning Consultant

Strategic planning.

A business planning consultant's primary role is to provide strategic direction. They assess the business's current position, set future goals, and outline the path to achieve them. They employ their expertise to create a robust and realistic strategic plan that aligns with the business's vision.

Market Research and Analysis

In-depth market research and analysis form the backbone of any successful business plan. A consultant identifies competitors, evaluates market trends, and understands customer behavior. Their insights shape the marketing strategies and competitive positioning, tailored to the business's unique context.

Financial Modeling

Financial projection and modeling are critical components of a comprehensive business plan. A consultant will develop financial statements, budget forecasts, and investment strategies that align with the business's goals. This financial roadmap guides decision-making and prepares the business for potential challenges and opportunities.

Evaluating the Need for a Business Plan Consultant

Assessing the complexities of your business strategy and recognizing the limitations in internal expertise can make engaging a professional consultant essential. Experienced consultants can provide financial projections and strategic insights, significantly enhancing your business plan's quality.

Analyzing Internal Capabilities

Understanding the existing skill set within your organization can guide your decision to hire an external business plan writer. Evaluation of the internal team's ability to handle comprehensive market research and financial planning is crucial. Business plan consulting services offer specialized expertise that might not be available internally. From crafting detailed financial projections to conducting thorough market analysis, consultants bring a depth of knowledge that can enhance the overall quality and effectiveness of the business plan.

Getting An Outside Perspective

A skilled business plan consultant is not merely a scribe; they are a strategic partner in crafting your vision. The more complex your business model or the larger the funding you seek, the more specialized and rigorous the planning that goes into it. Business owners often wonder, "How can I trust an external business plan consultant to understand my business?" The answer lies in the unique synergy between the business owner's expertise and the consultant's ability to craft that vision to resonate with the target audience.

Consultants have the innate capability to align a business plan with the specific industry, target audience, and strategic objectives of a company, whether a startup or an established entity. They not only understand the unique needs and goals of a business but translate that understanding into a compelling, well-structured plan.

The tailored approach ensures that the plan meets the expectations of potential investors, banks, and other stakeholders, providing them precisely what they need to make an informed decision. It's about recognizing the complexities of your business ideas and presenting them in a way that resonates with those who hold the keys to your success. This process of understanding and adaptation is what sets apart professional business plan consultants and enables them to assist in securing pivotal funding.

Timeframe for Developing a Business Plan

Creating a comprehensive business plan is not a one-size-fits-all endeavor. Various elements can influence the timeline, including the complexity of the business model, the depth of market research required, and the specific needs of stakeholders.

Typical Duration with Professional Assistance

Creating a comprehensive business plan can be an intricate and time-consuming task for a business owner, often taking up to a year to complete. Hiring a business plan writer or consulting firm, however, can significantly streamline this process. With professional assistance, the duration to produce a business plan can be reduced substantially, depending on the complexity of the plan and the consultant's approach. Generally, a business plan consultant might take anywhere from a few weeks to a couple of months to craft a well-thought-out business plan, allowing business owners to focus on other vital aspects of their venture.

Efficiency and Quality Balance

While time efficiency is crucial, a rush to complete the plan can lead to oversights. Striking a balance between speed and quality is key. Engaging a consultant who understands this balance ensures that the resulting plan is both timely and robust, aligning with the strategic objectives of the business.

How Much Does A Business Plan Consultant Cost?

Just like the timelines, the cost of hiring a business plan consultant varies widely based on several factors. The complexity of the business plan, the consultant's experience level, industry expertise, and the required timeframe can all influence the price. Specialized skills, such as in-depth financial projection or market analysis, may also add to the cost.

The price range for hiring a business plan writer or consultant can run from a few thousand dollars to tens of thousands, depending on the scope and complexity. Understanding what is included in the package is crucial. A comprehensive business plan should encompass strategic planning, financial modeling, target market analysis, marketing strategy, and ongoing collaboration and revisions.

Evaluating the cost should not only be a matter of price but also the value that the consultant brings to the business. Investing in a seasoned consultant who offers comprehensive services can pay off in the long run by providing a robust and tailored plan that aligns with your business's unique needs and goals.

Can a Business Plan Consultant Guarantee Success?

The pursuit of business success extends beyond mere funding, encompassing various aspects of planning, implementation, and growth. Engaging a professional business plan consultant can significantly increase the chances of success, but it cannot guarantee it, as success goes beyond the plan itself. The comprehensive planning carried out with a consultant plays a crucial role, but it's equally vital for the business to implement and keep the plan updated.

Impact on Growth

A study shows that entrepreneurs who completed a business plan were 2.6 times more likely to launch their business than those who did not. Additionally, businesses that engage in rigorous business planning experience 34% faster growth than those that don't.

Seeking external support from a business plan consultant results in 27% faster growth , highlighting the importance of professional guidance in the business journey.

Enhancing Funding Success Rates

Various factors beyond the plan itself play a role in the funding decision, such as the business's financial standing and market environment. However, a well-structured and persuasive plan developed by a consultant can enhance the chances of securing funding by meeting the expectations of potential lenders and investors. Significantly, those who completed business plans were nearly twice as likely to obtain capital as those who didn’t write a plan.

Selecting the Right Business Plan Consultant

Choosing a business plan consulting service requires examining their professional background and relevant experience. Look for proven expertise in areas such as financial projection, industry analysis, and strategic planning. Past successes, client testimonials , and a strong portfolio can be indicative of a skilled consultant.

Questions to Ask a Prospective Consultant

When selecting a business plan consultant, a potential client should consider asking the following essential questions to ensure that they are the right fit for your specific needs and expectations:

• Who is the person in charge of developing the plan? Understanding the qualifications and experience of the individual(s) responsible can give you insights into their ability to handle the complexities of your project.
• How much communication will we have throughout the process? Clarifying expectations around communication can help create a collaborative and transparent working relationship.
• How does the revision process work? Understanding how revisions are handled will give you confidence in the consultant's willingness to align the plan closely with your vision and feedback.
• What is your experience with businesses in my specific industry? Industry expertise can greatly enhance the effectiveness of your business plan.
• Can you provide references or client testimonials? Past successes and satisfied clients can be indicative of a consultant's skill and reliability.
• What are the timelines and costs for the project, and how what does that inclued? Knowing the expected timelines and fee structure can help you plan accordingly and ensure that your project stays on track, ensuring there are no hidden surprises.

The Masterplans Difference

For over 20 years, the Masterplans team has dedicated ourselves to supporting entrepreneurial visions. Our legacy is not just in the number of years but in the expertise cultivated through those years. Engaging with over 18,000 businesses across various sectors has enabled us to understand unique challenges and opportunities startups face and allows us to tailor our services precisely to each client's needs, providing insights and strategic guidance that are both relevant and impactful. 

Strength in Numbers

Unlike a single freelancer's limited perspective, our team-based approach leverages the diverse skills and experiences of business planning experts working together. Every Masterplans business plan is supported by a strategic planning consultant, a market researcher, and a financial modeler. This collaboration ensures that every angle of your business is thoroughly examined, aligning your vision with realistic and robust strategies.

We work closely with you throughout the planning process, reflecting your vision and meeting your specific business goals. This collaborative approach not only adds depth and structure but also empowers you with the knowledge and tools to feel capable and in control of your venture. 

Proprietary Approach

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We're committed to delivering a top-notch startup business plan written specifically for your needs. No templates or one-size-fits-all solutions. Just comprehensive planning that's rooted in understanding your business, asking the right questions, and encouraging you to see things you might not have seen before. 

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Business Consultants Fees: How Much Should You Charge?

Business consultants play a crucial role in business as they help organizations improve their performance, solve many problems, and achieve their goals.

Whether you work on a small start-up or in a large corporation, having a business consultant around can provide you with valuable insights, expertise, and guidance. Therefore, if you’re thinking about hiring a consultant, it’s important to understand how they charge for their services.

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In this guide, we’ll explore everything about business consultant fees and the various factors that influence how business consultants set their fees.

So, how much do business consultants charge, and how do they charge for their services? Let’s find out!

What are business consultant fees?

A business consultant fee is a payment that a consultant receives from a company or an entity due to completing a project and service. This fee can be highly incremented if additional elements of work-related costs exist. 

Types of business consultants’ fees

Here are some general ranges to provide you with an idea of the typical fees charged by business consultants:

Hourly rate

The hourly rate is when a consultant charges by the hour for the consulting services. They set an hourly rate, track their hours, and then bill the client by the hour .

The exact rate can depend on different factors, such as the consultant’s experience, expertise, industry, geographic location, and the project’s complexity. Many consultants manually fill out a timesheet Excel file to keep track of hourly rates. The downside of this method is that they often forget to update the file, leaving space for human error and second-guessing. A better method to keep track of time is to use an automatic time tracking software such as Timeular, the easiest software on the market to keep track of billable and non-billable hours. You can try it for free for 30 days .

Read: Time Tracking for Consultants: The Ultimate Guide

Timeular’s easy and smart experience, paired with its powerful reporting functionality, makes billing time a delight

Project-based fee

Some people may opt for the project-based fee instead of the hourly rate because it can give them a better sense of how much they will pay at the end.

When it comes to the hourly rate, it can be more uncertain to the client as they don’t know how much time the consultant will be working overall.

Using the project-based fee, the client already knows the final price from the beginning .

The fees can vary significantly based on the nature of the project and the consultant’s estimation of the work involved. 

Read also: What is project billing and how it’s important to your success .

Retainer fee

Retainer fees are commonly used for ongoing services , meaning that this fee is usually a fixed amount paid monthly or quarterly to retain the consultant’s services.

The value of the retainer fees can vary widely depending on the level of involvement required and the consultant’s availability.

Value-based fee

Value-based pricing is when consultants price their services based on the tangible and intangible value they create for the clients.

Meaning that value-based fees are tied to achieving specific outcomes or performance targets. The consultant’s compensation is directly linked to the value they deliver to the client’s business. 

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Types of business consultants’ fees statistics

A recent study conducted by Consulting Success reveals the prevailing pricing structures employed by most consultants for their consulting services are:

• 31.37% of consultants use a project-based rate to price their projects.
• 23.38% of them use hourly billing
• 17.30% use value-based fees
• 15.40% use monthly retainers
• 12.55% of consultants charge daily

Read also: Top-rated client billing tools for offices

Factors that affect business consultants’ fees

Consultants charge fees for their services, taking into consideration many factors, such as:

Expertise and specialized know-how

Business consultants have specialized knowledge and expertise in particular industries or areas. Their skills and insights are honed through education, training, and experience.

Clients highly esteem this expertise and willingly pay fees to leverage the consultant’s valuable knowledge and guidance.

Time and dedication

Business consultants invest their time and effort in comprehending clients’ challenges, conducting research, analyzing data, devising strategies, and offering recommendations.

The fees they charge compensate for the dedicated time, effort, and intellectual overall investment to address the client’s needs effectively.

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Business costs

Like any other professional that provides services, business consultants have their business costs to cover. These costs may include office space, equipment, software, insurance, and marketing.

The fees charged by consultants cover these costs and guarantee the long-term viability of their consulting practice.

Recommended tools:

• Markup Calculator
• Margin Calculator
• Time Card Calculator
• Overtime Calculator

Market demand

The fees that consultants charge are also highly influenced by market dynamics, such as market factors and competition within the industry.

Business consultants possessing specialized skills, high demand, or limited availability can justify higher fees based on their unique value proposition. 

Value creation

Consultants are hired to assist clients in resolving their issues, enhancing performance, and attaining targeted goals. Through their expertise, consultants offer invaluable insights, strategic recommendations, and practical solutions that generate tangible value for clients in the long run.

The fees they charge align with the delivered value and the positive impact on the client’s business.

Independence and objectivity

Business consultants provide an impartial and unbiased perspective as they remain detached from the client’s day-to-day operations.

This independence allows them to offer objective insights and recommendations. Clients appreciate this impartial viewpoint and are willing to invest in the consultant’s independent expertise.

It is worth highlighting that consulting fees are typically negotiated between the consultant and the client, considering the factors we mentioned and striving to establish a mutually satisfactory fee structure.

Open communication, transparency, and a comprehensive understanding of the value proposition are vital in determining appropriate consulting fees.

How much are the average business consulting fees?

The average hourly rate for business consultants in the US can range from $100 to $500 or more.

Higher rates are typically charged by consultants with extensive experience, specialized expertise, and a strong reputation in the business.

How to determine business consulting fees in 7 steps

Determining business consulting fees requires careful consideration of various factors to ensure that pricing is fair, competitive, and reflects the provided value.

So, if you’re a consultant, here are steps to help you determine your consulting fees:

• Conduct market research to understand industry standards and market rates for consultants in your area. This information will give you a benchmark to compare and adjust your fees accordingly.
• Evaluate expertise: assess your level of expertise and specialized skills and know-how. Factors such as your education, certifications, and professional experience, can allow you to set higher fees.
• Define your target : identify your target clients and understand their budgetary constraints, industry norms, and the value they seek from consulting services. This knowledge will help you align your fees with their expectations and financial capacity.
• Determine your cost: calculate your overall expenses, business overheads, and service delivery costs. This will help you establish a baseline for your fees.
• Find your value proposition: assess the distinctive value you bring to clients, such as innovative approaches, specialized methodologies, or niche market expertise. Determine how your unique offerings differentiate you from competitors to justify higher fees.
• Evaluate project complexity: evaluate your projects’ complexity, scope, and duration. More complex or longer-term projects may justify higher fees due to the additional time, effort, and expertise required.
• Set a pricing method: decide on one that better aligns with your business model and client preferences. As previously mentioned, standard methods include hourly rates, project-based fees, retainer fees, or performance-based fees.

Remember that setting your consulting fees is a balancing act. You want to charge a fair price that reflects the value you provide while remaining competitive in the market and meeting your financial goals.

Regularly reassess your fees to ensure they align with the changing market dynamics and your growing expertise.

8 most valuable tips for negotiating business consulting fees

Navigating the negotiation process for business consulting fees is significant in securing client contracts and establishing a mutually beneficial arrangement.

Here are a few tips that we believe can help you out:

• Understand client’s needs: clearly understanding your client’s requirements, goals, and financial limitations is essential. This understanding will enable you to customize your value proposition and fee structure to align precisely with their needs.
• Highlight your value : articulate your distinctive value to the partnership and elucidate how your services will contribute to the client’s business growth. Highlight the precise outcomes, cost efficiencies, or revenue expansion they can anticipate by collaborating with you.
• Be prepared: research industry standards, market rates, and competitor pricing so you have all the arguments on your side. Be prepared with various options and pricing models to accommodate your clients’ budgets and project scopes.
• Have service packages : Another great tip is to consider bundling your services into different packs that offer a clear value proposition instead of charging solely based on hourly rates. This can help clients see the overall value of your services rather than focusing exclusively on the hourly fee.
• Focus on ROI: ROI is the Return on Investment. Demonstrate to your clients how your value will exceed the fees charged, highlighting long-term benefits and potential cost savings.
• Prioritize win-win solutions : approach every negotiation with a cooperative mindset. Seek mutually beneficial outcomes that address your financial goals and the client’s budget limitations. Find creative solutions that add value while remaining within budget constraints.
• Display testimonials and case studies: sharing testimonials, success stories, and case studies that highlight your past achievements and client satisfaction can work as proof of the overall quality of your services and help you strengthen your position during negotiations, as well as build trust with the client.
• Be flexible and consider long-term relationships: if you see that a particular client has the potential for long-term engagement or repeat business, be open and flexible to adjusting your fees to reflect the value of the ongoing relationship. Sometimes, a slightly lower fee upfront can lead to more significant long-term benefits.

Boost productivity: How consultant Kasia took control of her time

Time tracking is crucial for business consulting.

Time tracking is the act of monitoring every hour you’ve dedicated to a project, service, or task .

This process increases profit, efficiency, and productivity as a business consultant. So, it’s evident that

time tracking is critical for business consultants businesses. 

Let’s explore in detail why time tracking is crucial for business consulting:

Accurate billing

As we already referred, consultants often charge clients based on the time spent on their projects.

Using time tracking, consultants ensure they accurately capture and record the time spent on various tasks. This allows consultants to invoice clients correctly and avoid disputes over billing .

Project management

Time tracking provides valuable data for project management as it allows consultants to correctly estimate the duration of a project, monitor time wasters, identify potential bottlenecks or inefficiencies , and adjust to keep projects on track.

It helps to stay organized, meet deadlines , and promptly complete project deliverables. Learn more about improving business efficiency .

Optimize profitability

By tracking time, consultants gain insights into how much time they allocate to different activities.

This information helps them evaluate the profitability of projects and identify areas where they may be spending more time than anticipated.

It enables them to make informed decisions to optimize resource allocation and control costs .

Read also: Resource allocation methods

Data-informed decisions

Over time, collected time tracking data can provide valuable insights into work patterns, project profitability, and client preferences.

Analyzing this data can help any consultant make informed business decisions , such as adjusting pricing structure, optimizing service offerings, or identifying general areas of improvement.

Evaluate performance

Tracking time helps consultants to assess productivity and performance.

By comparing the estimated time for tasks or projects with the actual time spent, consultants can identify areas where they excel and areas that may need improvement.

This self-evaluation allows consultants to enhance their efficiency and effectiveness continually.

Mutual trust

Time tracking data can provide clients transparency regarding the time and effort invested in their projects.

It helps to demonstrate the value of the consultant’s services and build trust by providing detailed reports or invoices.

Overall, time tracking is essential for effective business consulting as it supports all the information business consultants must give their clients: accurate billing, cost control, project management, performance evaluation, scope management, data analysis, and transparent client communication. By implementing robust time tracking practices, consultants can optimize their operations, enhance client satisfaction, and drive their business success.

How much should I charge as a business consultant?

It depends! The average business consulting fee is around $100 per hour, but consider your experience and expertise.

You may charge closer to $50 or $75 per hour if you are a brand-new business consultant. On the other hand, with more experience, you can charge $150 or even $200 per hour.

How much do business consultants charge for business plans?

The fees for business plan consulting can vary considerably due to several factors, such as the project’s complexity, the consultant’s experience and expertise, the geographic location, and the industry in which the business operates.

How much do small business consultant companies charge in the USA?

The average fee per hour is $100 when you’re working as a freelancer. Small business consulting fees range from $95 to $1,500, with an average cost of $399.

How much do business consultants charge in the UK?

The average price goes from £80 – £250 per hour. Like the USA, the fees for business consultants in the UK can vary depending on various factors, including the consultant’s experience, expertise, location, and the specific services being provided.

How much do business consultants make in Canada?

The average business consultant’s salary per year in Canada is $67,248.

How much do business consultants make a year?

According to Payscale , the average business consultant salary in the US per year is $78,943.

We hope we helped you understand more about business consultant fees and how business consultants charge for their services. The success of your consulting business also depends on how well you keep track of time. That’s why using a time tracking software like Timeular will help you boost your profitability and increase clients’ trust.

Determining the fees charged by business consultants involves considering multiple factors such as the consultant’s experience, project complexity, required time and effort, delivered value, and market dynamics.

Pricing models employed range from hourly rates to project-based fees, retainers, performance-based fees, or a blend of these approaches, whatever works best. 

Before engaging a business consultant, it is crucial to truly comprehend the pricing structure and negotiate terms aligned with your budget and desired outcomes and goals.

Open communication and discussing expectations with the consultant promote a mutually advantageous agreement and enhance the likelihood of a successful consulting partnership.

You might be interested in the following:

• The best time tracking and billing software for consultants
• The best ways to increase revenue
• How to increase revenue from existing customers
• Consultant fees: how much to charge for consulting
• How to get consulting fees
• Examples of artificial intelligence in business

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Written by Jesse Sumrak | February 27, 2024

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Setting your consultation fees is the best and worst part of running a consulting business. It’s the best because you get to decide your worth (not management or HR)—and it’s the worst because you likely hate talking money with your clients.

We get it. It’s not easy.

Yet, setting your consulting rates doesn’t need to be an anxiety-inducing experience that keeps you up at night. Done right, it should be a downright rewarding experience for both you and the client. Let’s show you how it’s done.

Table of Contents

5 Must-Know Tips on Pricing

Calculating Your Consulting Rates

How to Calculate Average Hourly Rates

How to Calculate Per-Project Rates

How to Charge Retainer Fees

Communicating Your Consulting Rates

Reminder: Revenue Is Vanity

Consulting fees faqs.

Whether you’re brand-new to consulting or looking at signing a new client, you’re probably wondering, “How much should I charge for my services?”

Well, it depends.

Pricing is relative. If you came looking for a golden number for us to tell you, we’re sorry to disappoint, but price is just a perception of value—not a hard and fast number.

While we’ll get into average consultant salaries and consulting rates by industry later, these are just averages. They can influence your decision-making, but your ultimate price point is entirely up to you.

Don’t worry—we won’t leave you hanging at that. Let’s look at a few tips to help you dial in your price.

1. Estimate Your Value

Estimating your value isn’t quite the same as playing the game The Price Is Right. Your value isn’t just an end product like an article, podcast episode, research insights, or 1:1 training—it’s much more than that.

Your value is long-term financial gain, removing annoying roadblocks, revealing business-changing insights, creating ongoing traffic, and more. It’s not just the time you put into consulting—it’s the results of the consulting.

Imagine the US Declaration of Independence, for example. It’s only a 1,458-word document, which is almost half the length of this article. Yet, as much as we love this piece, we’d argue the Declaration of Independence is worth approximately 2.5 billion times more. The end value is different from the input—and your consulting fees should reflect that.

Think of why your client may be hiring you. It could be for several reasons, but most likely it’s because:

• You have the expertise or a skillset that your clients need.
• It’s more cost-efficient for you to do the work.
• Your client doesn’t have the time to do it.

All these reasons have value beyond the actual work to complete, and they should be factored into your price. Here are a few additional factors to consider when estimating your value:

• Size of client
• Time constraints
• Resources available
• Availability of substitute consultants

Have a Salary In Mind

You’re most likely transitioning to a consultant career from a previous job, business, or corporation. How much you made there might contribute to going off on your own, but it can help provide a baseline of what you need to hit. Ask these questions to ensure your aspirational salary can pay your bills and be realistic.

• What salary do I need to support my lifestyle?
• What salary would support my ideal lifestyle?
• What is the value of the perks from my previous job that I need to include in my salary (healthcare, insurance, company car)?

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2. Predict the Amount of Work

The scope of work should be a large determinant of your rates, but pricing per hour or project is challenging to estimate. For example, it may be quicker for you to write a 2,000-word article for a company than to help produce a 5-minute podcast episode.

It’s all relative. Don’t get stuck doing massive amounts of work for less than you’re worth—it’ll impact your work, happiness, and your client’s future expectations.

Before you set a price, ensure you understand everything that the project entails. If you’re offering a 1-hour consulting session, consider the amount of prep work necessary and if your client will be able to send any post-consultation follow-up questions. These might seem like small additions, but they can start to add up quickly.

For example, if a client offers you a massive sum for a big project, you may dissect the work and find it’s taking you twice as much time and effort to make what a smaller project with a smaller budget rewards you.

Once you have a better grasp of the amount of work required, you’ll be better able to set your rates.

3. Establish Your Client’s Perceptions

You get what you pay for. A free steak at a friend’s house is never going to taste quite as good as the $60 steak you bought at an acclaimed restaurant—and that has nothing to do with the actual food or cooking.

If you set your rates too low, then clients may perceive the work as amateur or low-quality—before they even see it!

Because your fee is an expression of value, low consulting rates don’t necessarily lead to work or respect. If your clients have regularly hired consultants or freelancers, they’ll be familiar with average consulting market rates. Pitching yourself on the low end simply to undercut competitors won’t always serve you well.

However, if you set your rates too high, you may alienate yourself from the client and out price yourself out of the project. Clients may perceive you as the high-end of the consulting or freelance market, and they may decide to settle for a less experienced but more affordable alternative.

When you’re starting out, finding the right rate is tricky. If you don’t have much experience, find an initial client and offer to do work for a discounted price or free. Focus on delivering the best results possible, which means don’t try and get additional clients. Once you’ve shown the results, create a case study from that first client. Repeat this step and start scaling your rates up from there until you find a comfortable cost for your clients.

Finding the Goldilocks-approved consultation rate is easier said than done, but know it exists somewhere in the middle ground.

4. Manage Your Cash Flow

Set rates that make sense for your business and personal expenses. This tip goes beyond value, the scope of work, and client perceptions—you have to set prices that’ll lead to adequate quality of life and profitability for your business.

Look at your expenses. What rate do you need to set to cover your costs, make a profit, and live the life you want to live? This answer varies for everyone, so you’re not going to find a golden number anywhere.

While you’re at it, start looking at your future. What are your goals for your business and yourself? Don’t discount your ambitions as a consultant and business owner. You have a right to live comfortably and thrive financially, too.

5. Find Baseline Expectations

This is a tricky tip. Proceed with caution. Many consultants and freelancers make the mistake of confusing average consultant rates with standard pricing—that’s not the case. Averages don’t take into account your value, the scope of work, client perceptions, or even your cash flow.

Feel free to look at consulting rates by industry, but don’t use them as your bible to pricing—use them as another data point to reference.

However, remember that your client is likely going to be looking for these same numbers. They’ll want to know how much they should be charging a consultant, so they don’t get duped. If your rates vary from industry benchmarks, be prepared to back it up.

How to Calculate Your Consulting Fees Based on Different Payment Methods

Your pricing methods won’t always be the same. Some clients will prefer to pay consultants per hour, while others may want to pay per project or retainer. Rather than putting your foot down on one single method, it’s best to flexibly price yourself so that you’re earning what you’re worth—regardless of the systems and processes.

The tips above paired with the processes below should help you settle on what to charge for your consulting services and formulate a consulting business price guide.

Note that your pricing structure should be under consistent review, especially as you grow your skills and attempt to expand your consultancy. Your rates should change (preferably upwards) every year as you gain experience, build your portfolio, and prove your worth. Return to these steps as you scale your business .

How to Calculate Average Hourly Rates for Consulting Services

We don’t necessarily recommend charging by the hour, but you may want to structure your pricing this way if your consulting work involves meetings and a lot of in-person work. Determining an hourly rate is also an important part of calculating per-project or retainer rates, allowing you a baseline to work from. So whether you want to use the 3 x hourly method for like-for-like rates or the more complicated 52 week, your starting rate is critical to the long-term viability of your consultancy.

3 x Hourly Method

A quick and simple way to calculate your consulting rates is the 3 x hourly method. This method is best if you’re transitioning from a similar agency role or consulting as a side hustle. Using 3 x hourly, you can accurately match your current or previous rate without undercutting or overcharging your clients.

To calculate your rate using the 3 x hourly method follow these steps:

• Take your current hourly rate
• Multiply it by 3

Example: $30 per hour x 3 = $90 per hour consultancy rate.

52-Week Method

The 52-week method is a bit more complicated. This should be used if you’re looking to make a full transition from a corporate job to running a full-time consultancy. To calculate your hourly consulting rate from your working week salary follow these steps:

• Determine what salary you’d like to make.
• Take that number and divide it by 52 (number of working weeks), then again by 40 (number of hours each week).
• Take that number and mark it up by 25% to 50%.

For example, let’s say you wanted to make a gross salary of $60,000 per year. To calculate your hourly rate, you’d divide $60,000 by 52 (which is roughly $1,154), then divide that by 40 (which is $28.85). Then, mark that up 40%, which results in an hourly rate of about $40.

That 40% markup would cover the cost of your expertise and business expenses like overhead, benefits, taxes, and more. These costs are different for everyone, depending on tax status and type of business.

When making your calculations, feel free to play with the numbers to satisfy the lifestyle you want. As a consultant, you’re not getting paid for vacation or maternity leave, so you’ll need to factor this time into your rates.

For example, you may want to divide your gross salary goal by 49 (instead of 52) to compensate yourself for 3 weeks of “paid time off.” Or you may want to work just 4 days a week instead of 5—in that case, you might divide your weekly rate by 32 hours instead of 40.

That’s the beauty of consulting and freelancing—you get to play with the numbers to make them work for you.

How to Calculate Per-Project Consultant Rates

Charging by the project is more aligned with the value-based pricing model we’ve been discussing. Fixed fees create a more straightforward workflow (as you don’t have to be worried about tracking hours), but this structure can be tricky due to scope creep and the natural tendency to underestimate how long a job will take.

Defining and reinforcing a predetermined scope of work is crucial when charging by the project. The best way to determine your per-project rate is to figure out how many hours you estimate the job will take. You can make an educated guess based on your knowledge of the subject and how long it’s taken you to complete certain tasks in the past.

This step can be tricky for new consultants, so this is where industry averages come in handy.

For example, let’s say you were hired to write a feature article for a magazine. The first thing to do is figure out how many hours the project will take:

• Research: 1 hour
• Review of interview transcript: 2 hours
• First draft: 5 hours
• Two rounds of edits: 2 hours

In total, the project will take about 10 hours. Multiply that by your hourly rate and then add a 10-20% markup for unexpected contingencies, and voila—you have a rough estimate for a per-project consultant rate.

However, remember that this kind of pricing still excludes the true value of your work. Think back to the Declaration of Independence example. If you’re performing business-altering work, that has a financial price tag to it, as well.

How to Charge Consulting Retainer Fees

Working “on retainer” means you receive a monthly fee for working a certain number of hours or performing routine tasks. Retainer fees can be wonderful for your consulting business as it’s income that you can rely on and plan for (a rare commodity in the freelancing world).

It’s hard to charge a retainer fee from the get-go since you’ll only have an estimate of the scope of work. It’s best to switch from a per-project or per-hour basis to a retainer fee once you have nailed down expectations for both you and the client. Plus, some clients aren’t sure what exactly they need, and you don’t want to get locked into a rate that doesn’t cover the entire scope.

Calculate your consulting retainer fee the same way you’d do your project rates—it’s essentially a comprehensive monthly project rather than smaller one-off assignments. Some consultants offer discounts for retainer fees as they’d prefer consistent income over hourly or per-project invoices. The choice is up to you.

Communicating Your Consulting Rates Without Crumbling

Knowing how much to charge for your consulting fees is just half the battle. Now, it’s time to learn how to communicate your prices with clarity and confidence.

The conversation about rates happens with every client, sometimes more than once. Sometimes it’s pleasant, sometimes it’s awkward, and sometimes it’s ugly. Here are a few tips to make it as smooth as possible.

Remember That Every Client Is Different

Some clients will start the conversation by proposing their standard rates , while others will ask what you charge. And some might not even know where to begin.

Every client is different. They have different needs, processes, and expectations. Be patient, and don’t expect them to know exactly what they want from the get-go.

Do your research and prepare yourself with the rates we outlined above, and you’ll be ready and adaptable going into any conversation.

Don’t Talk Numbers Until You Understand the Scope

Understanding what the client needs (and how well they understand it themselves) play a major role in how you price or whether you want to move forward at all. Toss out a number too early, and it might be hard to change it later if the project evolves.

If a client asks, “How much do you charge for consulting?” right out the gate, try to guide the conversation towards the project details. For example, you can say, “I’d like to get a good idea of the scope of work before discussing rates.”

Be Confident, But Be Willing to Compromise

Confidence goes a long way. Your client wants a consultant they can trust, and that trust is established throughout negotiations and working together.

When asked, don’t present your rates as a question. State your prices and be prepared to stand your ground. If the client accepts your rate, congratulations! However, that doesn’t always happen.

Sometimes, you’ll need to compromise. For example, a client’s budget might not be able to afford you. Instead of altogether rejecting the client (or the client rejecting you), steer the client towards negotiation.

You may convince your client to cut out some of the scope to meet your pricing constraints, or you may insert a clause into the agreement to raise your rates after 2 to 3 months of satisfactory work.

It’s invigorating when your client pays your invoice, and those dollar figures spring up in your bank account. But remember, revenue builds momentum, but profitability keeps your business alive.

That’s why if you’re starting as a consultant, attempt to build your business as lean as possible. That means no wild spending on conferences or CRMs. The leaner you run, the more profits you’ll make.

And with those profits, you can reinvest into your consulting business by making a rainy day fund, ideally three months of operating expenses. Then, you can hire extra help or upgrade your laptop. We suggest your first hire be a part-time bookkeeper to ensure your business runs smoothly in the black.

So, remember that how much you charge for consulting trickles down to what makes your business run and remain profitable and secure.

What do you charge for consulting when starting out?

Find a client and offer to do work pro bono. Don't get distracted by adding new clients or branding your business—just do your best possible work. Then, create a case study on your results. Rinse and repeat, slowly raising your prices with each new client.

What type of consultants makes the highest fees?

The consultants who charge the highest fees are lawyers, finance, and tax professionals. Why? Because they have unique and specific expertise that is rare. So, you might not be a copyright lawyer or investment consultant, but think about where your expertise is rare in your field. By differentiating your skillset and developing a niche, you'll become more valuable as a consultant.

Should I charge consulting fees under an LLC?

We suggest talking to a tax professional before going into the consulting world. If you're consulting as a side hustle to help some friends with their marketing, it might be OK just to claim the income as an independent contractor. But the more you consult, especially B2B, the greater your risk of being liable for legal action. Forming an LLC for your consulting business will protect your personal assets.

Keep Learning: Statement of Work Templates and Examples for Consultants

Believe in Your Value and the Right Price Will Follow

It’s natural to dislike the process of setting your consulting rates, but you shouldn’t have to give up money or sleep because of it. With a bit of know-how and practice, you can become confident in your value as a consultant and ensure your pricing reflects that.

Now that you know your consulting fees, you’re ready for launch—let us help get you across the finish line. Sign up for foundr+ for $1 to learn how to start a consulting agency. We’ll walk you through our proven roadmap for turning your talent into income.

About Jesse Sumrak

Jesse Sumrak is a writing zealot focused on creating killer content. He’s spent almost a decade writing about startup, marketing, and entrepreneurship topics, having built and sold his own post-apocalyptic fitness bootstrapped business. A writer by day and a peak bagger by night (and early early morning), you can usually find Jesse preparing for the apocalypse on a precipitous peak somewhere in the Rocky Mountains of Colorado.

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BUSINESS STRATEGIES

How to create a consultant business plan

• Nirit Braun
• Oct 30, 2023
• 13 min read

When launching your consulting business, one of the essential first steps is crafting a well-structured and detailed business plan. Your consulting business plan is like a strategic playbook that lays out your goals, tactics and financial projections. It not only steers you toward success but also equips you to adapt and thrive in the dynamic world of consulting.

Keep reading for tips on how to build a strong business plan for your business. Use the template provided at the end to get started on your own plan.

Looking to kick off your consultancy business? Create a business website today with Wix.

Why create a consultant business plan? Top benefits to consider

A business plan forces entrepreneurs to thoroughly evaluate their business idea, target audience and competitive landscape. This process clarifies their vision and mission, ensuring that they have a clear understanding of how their consultancy will provide value to clients. A business plan helps you in the following ways:

Create a business blueprint : With a business plan in place, entrepreneurs looking to start a business can make informed decisions based on a solid foundation of research and analysis. They can choose the most effective strategies for marketing, pricing and service delivery, enhancing their chances of success. Your business plan can also be used to explain what type of business you'll start - whether that's an LLC, Corporation or something else. Learn more about how to start an LLC .

Secure funding : The cost to start a consultancy business can range from around $60 to several thousand dollars . For those seeking external funding, a well-developed business plan demonstrates credibility and professionalism. Investors and lenders are more likely to support a venture with a thought-out plan that showcases its potential for growth and profitability.

Set measurable goals : A business plan sets measurable goals and performance metrics, which is vital with this type of business . This allows entrepreneurs to track their progress, adapt strategies as needed and celebrate milestones along the way.

Want to remind yourself of the basics? Learn more about how to start a service business .

How to create a successful consultant business plan in 6 steps

In this section, we'll break down the key components involved in crafting a successful consultant business plan in six steps.

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

An executive summary serves as a concise overview of the consultant's business plan, providing a snapshot of the key components and the business' essence. It's usually the first section investors, lenders and stakeholders read, so it must encapsulate the business' value proposition, objectives, strategies and projected growth. To write a clear executive summary for a consultant business make sure to keep it succinct yet informative. Clearly state the purpose of the business, the services offered, the target market and the unique value proposition. Avoid technical jargon that may confuse readers.

Then you can mention the business' strengths, such as the expertise of the consultants, unique methodologies or specialized services. Emphasize factors that set your consultancy apart from competitors.

Briefly discuss the market need for your services and how your consultancy plans to fulfill it. It’s worth noting that strategy and management consulting, as well as technology consulting, financial consulting and HR consulting are in high demand . Highlight any trends or changes in the industry that your business can capitalize on.

Remember to include a snapshot of your financial projections, indicating expected revenue, costs and profitability. This provides a glimpse into the business' potential financial success.

Example of an executive summary for a consultant business

"XYZ Consulting is a boutique consultancy firm specializing in digital transformation for small and medium-sized enterprises (SMEs). With a team of seasoned professionals, we offer tailored solutions to help businesses harness the power of technology for growth. Our unique approach blends strategic consulting with hands-on implementation, ensuring tangible results. In a rapidly evolving tech landscape, XYZ Consulting is poised to be the partner SMEs need to thrive. Our financial projections forecast a steady growth trajectory, with a focus on achieving profitability within the first two years. With a proven track record and a finger on the pulse of industry trends, XYZ Consulting is well-equipped to guide businesses toward digital success."

02. Business and domain names

Knowing how to name a business is crucial for a consultancy venture and a key step before you register your business . It's the foundation of your brand and influences how clients perceive your services. With Wix , you can use a free business name generator or consulting company name generator as helpful tools for brainstorming unique and memorable names. Ensure the name reflects your expertise and the services you offer.

Similarly, the domain name for your business website is vital. It should be easy to remember, relevant to your services and ideally, match your company name. Check the domain's availability using domain registration platforms. Ensure the domain name aligns with your consultancy's focus and services. Generally, this means keeping it short and easy to spell and pronounce.

Learn more: How to make a consulting website

03. Market analysis and research

Incorporating a thorough market analysis within your consultant business plan is essential. Understand the competitive landscape, target audience and market trends. Research your competitors' strengths and weaknesses, pricing strategies and client base. This information will shape your business strategies and help you identify gaps in the market that your consultancy can fill.

04. Operations plan

The operations plan outlines the logistical aspects of your consultancy. It covers location, premises, equipment and staffing requirements. Determine whether your consultancy will be home-based, have a physical office or operate virtually. Define the equipment and software needed to deliver services effectively. Outline your staffing needs, including the roles and expertise required.

05. Marketing and advertising plan

Your marketing and advertising plan outlines how you will promote your consultant business. Identify the most effective strategies to reach your target audience. Consider content marketing, social media campaigns, networking events and speaking engagements to showcase your expertise. Emphasize how your marketing efforts will build brand awareness and attract clients.

You’ll need to develop a suite of brand assets to use in your marketing as well, starting with a company logo. You can use a free logo maker to get a professional logo in minutes.

06. Financial plan

The financial plan is a critical component of any business plan. It outlines how you will raise money for your business initially and provides a timeline for reaching profitability. Detail your startup costs, including equipment, marketing expenses and personnel. Present your revenue projections, taking into account different pricing models and growth scenarios. Highlight your break-even point and the strategies you'll employ to achieve profitability.

By addressing each part of their plan, entrepreneurs can create a robust business plan that guides them toward achieving their business goals and building a reputable consulting brand.

Consultant business plan examples

These templates illustrate two hypothetical consultant business plans, each tailored to a specific niche. These are just templates and should be adapted to your specific business goals and industry dynamics.

Consultant business plan template 1: XYZ Digital Consultants

XYZ Digital Consultants is a pioneering consultancy firm focused on digital transformation for businesses seeking to thrive in the digital age. Our team of experienced professionals offers strategic guidance and hands-on implementation to drive growth through technology adoption. With projected profitability within two years and a commitment to excellence, XYZ Digital Consultants is poised to lead businesses into a successful digital future.

Company and domain name

Company name: XYZ Digital Consultants

Domain name: xyzdigitalconsultants.com

Market opportunity: The rapid shift toward digital operations has created a substantial demand for expert guidance. Our analysis reveals a gap in the market for holistic digital transformation solutions tailored to the needs of SMEs.

Competitor research: We've identified key competitors and their strengths, which informs our strategy to emphasize personalized service and comprehensive implementation.

Location: Primarily virtual, with occasional in-person consultations as needed.

Premises: Home-based setup with access to modern communication tools.

Equipment: High-speed internet, latest software tools and virtual meeting platforms.

Staffing: Founder and lead consultant, supported by contract specialists as projects demand.

Content marketing: Regular blog posts on digital transformation trends, case studies and client success stories.

Social media campaigns: Active presence on LinkedIn and X to engage with potential clients and share valuable insights.

Networking events: Participation in industry webinars, seminars and local business events to showcase expertise.

Speaking engagements: Leveraging speaking opportunities at conferences and workshops to establish authority in the field.

Startup costs (equipment, website development, marketing materials): $15,000

Revenue projections (year one): $150,000

Revenue projections (year two) : $300,000

Break-even point: Achieved by the end of year one

Funding: Initial investment and savings from the founder

Consultant business plan template 2: LeadersEdge Consultants

LeadersEdge Consultants is a dynamic consultancy dedicated to leadership development and organizational excellence. Our experienced team offers customized programs that empower leaders to drive positive change. With a projected growth trajectory and a commitment to fostering impactful leadership, LeadersEdge Consultants is poised to transform organizations and elevate their success.

Company name: LeadersEdge Consultants

Domain name: leadersedgeconsultants.com

Market opportunity: Our analysis reveals a growing need for leadership development programs in diverse industries.

Competitor research: We've identified competitors' offerings and recognized an opportunity to provide a unique blend of coaching, training and strategy implementation.

Location: Virtual consultations, with the option for on-site workshops

Premises: Virtual office setup with video conferencing capabilities

Equipment: High-quality audiovisual tools, assessment software and learning platforms

Staffing : Founder will serve as the lead consultant, supported by certified leadership coaches

Customized workshops: Designing tailored leadership development programs for individual organizations.

Webinars: Hosting webinars on leadership best practices to showcase expertise and engage potential clients.

Thought leadership content: Publishing whitepapers, eBooks and video content on leadership topics.

Collaborations: Partnering with HR and talent development professionals to expand reach.

Startup costs ( making a website , training materials) : $10,000

Revenue projections (year one): $120,000

Revenue projections (year two): $250,000

Break-even point: Achieved within the first six months

Funding: Initial investment from the founder.

How much should you be charging as a consultant?

The amount you charge as a consultant will depend on a number of factors, including:

Your experience and expertise

The type of consulting services you offer

The value you provide to your clients

The market rate for consulting services in your field

In general, consultants charge between $100 and $500 per hour. However, some experienced and highly specialized consultants can charge upwards of $1,000 per hour.

To determine your consulting rate, you can use the following formula:

Consulting rate = Hourly rate * Value multiplier

Your hourly rate should reflect your experience and expertise, as well as the type of consulting services you offer. For example, if you have 10 years of experience and you offer specialized consulting services, you can charge a higher hourly rate than a consultant with less experience and who offers more general consulting services.

Your value multiplier should reflect the value you provide to your clients. For example, if you can help your clients to achieve significant results, you can charge a higher value multiplier.

Here is an example of how to use the formula:

Consultant: Experienced consultant with 10 years of experience offering specialized consulting services

Hourly rate: $200 per hour

Value multiplier: 2

Consulting rate: $200 per hour * 2 = $400 per hour

Can a consulting business be profitable?

Yes, a consulting business can be profitable. In fact, consulting is one of the most profitable industries in the world. According to a report by IBISWorld, the average profit margin for consulting businesses is 20%. This means that for every $100 in revenue, consulting businesses generate $20 in profit.

There are a number of factors that contribute to the profitability of consulting businesses. First, consultants are able to charge high fees for their services. Second, consulting businesses have relatively low overhead costs. Third, the demand for consulting services is high, and it's only expected to grow in the coming years.

Of course, not all consulting businesses are successful. Some consultants struggle to find clients or to charge high enough fees. Others may not be able to deliver the results that their clients expect. However, for consultants who are able to overcome these challenges, the potential rewards are great.

Here are some tips for increasing your chances of success as a consultant:

Specialize in a high-demand area of consulting. This will allow you to charge higher fees and attract more clients.

Build a strong reputation and network of clients. This will help you to generate word-of-mouth referrals and land new clients.

Market your services effectively. Make sure that potential clients know about your services and how you can help them.

Deliver high-quality results. This is the most important thing you can do to ensure that your clients are satisfied and that they continue to use your services in the future.

How much does it cost to start a consulting business?

The cost to start a consulting business can vary depending on a number of factors, such as the type of consulting services you offer, the size of your business and your location. However, in general, you can expect to spend between $10,000 and $50,000 to start a consulting business.

Here is a breakdown of some of the typical start-up costs for a consulting business:

Business formation: $100 to $1,000

Website and domain name: $100 to $2,500

Marketing and advertising: $500 to $5,000

Office equipment and supplies: $500 to $5,000

Professional liability insurance: $500 to $1,000

Other miscellaneous expenses: $500 to $5,000

Total start-up costs: $10,000 to $50,000

You can reduce your start-up costs by working from home, using free or low-cost marketing tools and purchasing used equipment. You can also start your consulting business part-time while you continue to work your full-time job. This will give you a chance to generate revenue and build a client base before you leave your full-time job.

If you need financial assistance to start your consulting business, you may be able to qualify for a loan from a bank or credit union. You may also be able to find investors who are willing to invest in your business.

Which clients to avoid and which to take on?

Here are some tips on which clients to avoid and which to take on in a consulting business:

Clients to avoid

Clients who aren't willing to pay your rates. If a client isn't willing to pay your rates, it's a sign that they don't value your services.

Clients who are unrealistic about their expectations. If a client has unrealistic expectations about what you can achieve, you're likely to set yourself up for failure.

Clients who are difficult to work with. If a client is demanding, rude or disrespectful, it's best to avoid them.

Clients who aren't a good fit for your business. If a client isn't in your target market or if their business isn't aligned with your values, it's best to decline working with them.

Clients to take on

Clients who are willing to pay your rates. This shows that they value your services and are committed to working with you.

Clients who have realistic expectations. This makes it more likely that you will be able to meet their needs and exceed their expectations.

Clients who are easy to work with. This will make the consulting process more enjoyable and productive for both of you.

Clients who are a good fit for your business. This means that they're in your target market and that their business is aligned with your values.

In addition to the above, here are some other factors to consider when deciding which clients to take on:

Your own skills and experience. Make sure that you have the skills and experience to help the client achieve their goals.

The client's budget. Make sure that the client has a budget that's sufficient to cover your fees.

The client's timeline. Make sure that you have the time and resources to meet the client's timeline.

Your gut feeling. If you have a bad feeling about a client, it's best to trust your gut and decline working with them.

It's important to be selective about the clients you take on. By avoiding difficult clients and focusing on good-fit clients, you can set yourself up for success in your consulting business.

Consultant business plan FAQ

What qualifies you as a consultant.

To qualify as a consultant, you need to have the expertise and experience in the area that you're consulting in. You also need to be able to communicate your ideas effectively and build relationships with clients.

How do you start off as a consultant?

How to make 6 figures as a consultant, how do you pay yourself as a consultant, do consultants pay their own taxes, want to create another business plan.

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How much do business consultants charge: 7 factors affecting consulting fees

If you’re looking to bring in a business consultant, you probably want to know, “How much does a business consultant cost?” Figuring out the factors that influence consulting fees can help you make smart decisions and get the most out of your investment.

In this guide, we’ll break down the key factors that impact how much a business consultant charges. These insights will better equip you to find the right consultant and pricing structure that aligns with your needs and budget.

Let’s dive in!

1. Experience and expertise

The most important factor in determining consulting fees is the experience and expertise of the business consultant. Consultants who have a longer track record of success typically come with higher prices, but they also bring more value.

If you’re looking for consulting services in a specific area such as digital marketing or financial analysis, you should look for consultants with deep knowledge in that field. They may be more expensive, but their expertise could help you make smarter decisions and reap bigger returns on your investment.

2. Scope of work

The scope of work is another important factor that affects consulting fees. The size and duration of the project will determine how much time and resources the consultant needs to complete it, which can affect pricing.

For example, a single-day consultation may cost less than a long-term project that requires significant research or specialized knowledge. Your business consultant should be able to provide you with a detailed assessment of the project scope and timeline before beginning the work.

3. Timeframe

The timeframe of the project is also important. If you need a consultant to complete a project quickly, they may charge higher fees due to the added rush and complexity of delivering results in a short period of time.

On the other hand, if you want your consultant to spread out their work over several months (or even years), this could lower consulting costs since it allows them to balance other projects.

4. Industry expertise

Consulting fees can also vary based on the industry. Different industries have different challenges and regulations that could affect pricing. For example, a business development or marketing consultant who specializes in your industry may be able to provide more tailored solutions, which can provide better ROI over time.

5. Geographical location

Geographical location can also affect consulting fees. If you’re in a major metropolitan area, expect to pay more than you would in a smaller city or rural area.

Keep in mind that consultants are effectively running a consulting business, so they have to take into account costs of living and overhead associated with working in these places.

6. Consultant’s reputation

The reputation of the business consultant can also affect how much they charge.

Consultants with a good track record of success usually come with higher prices, but they are also more likely to deliver better results.

7. Project complexity

The complexity of the project can also be a factor in determining consulting fees.

If you’re undertaking a complex project that requires specialized knowledge or resources, you may have to pay more for your consultant’s services.

However, this added cost could result in better outcomes and bigger returns on your investment.

8. Market rate

The market rate is the final factor that can influence consulting fees.

Consultants tend to charge more per hour in areas where there are fewer qualified professionals, so you’ll pay a premium if you’re looking for talent in an underserved area.

On the other hand, consultants may be able to lower their prices in places where there are more qualified professionals competing for work.

Other factors that affect consultant fees

When you’re thinking about hiring a business consultant, there are some other things that can influence how much they charge. Let’s take a look at these factors so you can make a smart decision and get the most value for your money.

1. How they charge

How the consultant charges for their services affects how much it’ll cost you.

Most consultants charge a fixed fee for the whole project, no matter how long it takes.

Others charge by the hour, so you pay for the time they spend on your project. And some may ask for a monthly fee for ongoing support.

If your project needs a lot of time and work, the hourly rate might lead to higher costs. But with a fixed fee, you know the cost upfront, even if the project takes longer than expected. The monthly retainer is good for continuous help, but if you only need occasional support, it might not be the best choice.

Make sure to pick the charging method that fits your project and budget best.

2. What they bring to the table

Think about not only what the consultant delivers but also what extra tangible and intangible value they can provide. Sure, they may give you reports or strategies, but what about their industry insights, best practices, and connections? Those things can be super valuable for your business in the long run.

3. When they’re available and how busy they are

The consultant’s availability and workload can play a role in their fees. If they’re in high demand with other consulting clients or have a tight schedule, they might charge more for their time. On the flip side, if they have more flexibility, they might offer better rates.

Tips for getting the best consultant at the best rates

Here are some helpful tips to find the right consultant at the best rates:

Define your needs clearly

Before you start searching for a consultant, be clear about what you need help with.

Having a well-defined project scope and objectives will help you communicate your requirements to potential consultants accurately.

This clarity will also prevent any misunderstandings and ensure you receive relevant proposals and pricing.

Shop around and compare

Don’t settle for the first consultant you come across. Take the time to shop around and get quotes from multiple consultants. By comparing their offerings, expertise, and fees, you can identify the best fit for your business and budget.

Look beyond the price tag

While it’s essential to consider the cost, don’t solely focus on their consulting rate.

Look for a consultant who offers a good balance of experience, expertise, and value for your specific needs.

Remember that a consultant that charges the lowest hourly fee may not provide the level of support and insight necessary to achieve your goals.

Negotiate and be flexible

Don’t be afraid to negotiate with the consultant regarding their fees and terms.

Sometimes, they may be willing to adjust their pricing or offer alternative arrangements to accommodate your budget.

Being flexible with your timeline or scope of work can also lead to more cost-effective solutions.

Consider remote consultants

If the consultant’s physical presence isn’t necessary for your project, consider hiring a remote consultant . Remote consultants may offer more competitive rates, as they don’t have to account for travel or office expenses.

Evaluate the value of long-term partnerships

If you anticipate requiring ongoing support or multiple projects, consider the value of establishing a long-term partnership with a consultant.

Some consultants may offer discounts or favorable terms for repeat business, and building a relationship can lead to a better understanding and more tailored solutions for your business’s unique needs.

Don’t rush the decision

Choosing the right consultant is a crucial decision for your business. Don’t rush it. Take the time to evaluate your options, ask questions, and gather all the information you need before making your final choice.

We cut out the complexity

At Right People Group, we provide access to a wide network of highly experienced and reputable business consultants. Our pricing structure takes into account the factors discussed above, ensuring that you receive the best value for your investment.

Contact us today to discuss your consulting needs and find the perfect consultant for your project.

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“Our needs were very specific and we expected that they would be difficult to solve. Yet, shortly after we contacted Right People they delivered a top consultant at a fair price. It has worked perfectly.”

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Average Consulting Rates By Industry

The world of business is changing. The old maxim, “You get what you pay for,” doesn’t apply to consulting work anymore. What does? Well, it’s complicated. But here are some basic tips to help you negotiate your hourly consulting rate and take advantage of this new era in the global economy.

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• Chapter 3: How to Price Your Offers to Add More Revenue, Save You More Time, and Scale Your Business
• Chapter 4: The Roadmap To Scaling Your Consulting Business To $1 Million and Beyond

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Consulting Services Pricing Models

Before delving into what factors influence consulting fee structures, it’s helpful to understand the different pricing strategies that are typically used:

• Hourly Rate : An hourly rate is common for short-term projects or when a client wants to retain control over the project’s scope and budget.
• Fixed Rate : A fixed fee is set for a specific project with agreed-upon deliverables. This is often used for longer-term consulting projects.
• Variable Fee : A variable fee is based on the number of consulting services or products delivered.
• Percentage of Sales : A percentage of sales is a commission-based fee that’s paid as a percentage of the sales generated by the consultant’s work.
• Monthly Retainer or Fee : A monthly fee or retainer is a flat fee paid each month for access to the consultant’s advice and/or services.
• Project-Based Rate : The project rate is determined by the scope of the project and the amount of time required to complete it.
• Value-Based Fees : This method is a pricing approach in which the business consultant determines the value of the services to be provided and charges a fee that represents that value.
• Package Pricing : This is when you charge a set price for a package of services. For example, you may offer a package that includes a certain number of hours of consulting, the installation of software, and a report or other deliverables.

Determining the best consulting fee structure for your business will depend on a number of factors, including the type of consulting services you offer, your business model, and your target market. Your fee structure is important to understand when using a business plan template to complete the financial projections of your consulting business plan.

For example, a consultant who specializes in short-term projects and offers a fixed fee for services may be more successful than one who charges by the hour. On the other hand, a consultant who provides ongoing monthly services may want to bill on a monthly retainer.

Factors Influencing Consulting Industry Rates

There are many factors that can influence the hourly consulting rate a consultant charges for their services. Some of these include:

• Location : Consulting firms in major metropolitan areas can typically charge more than those in smaller towns.
• Level of Experience : An experienced consultant with an established track record can charge more for their services.
• Specialty : A consulting business that specializes in a specific niche or industry can often charge more than those who don’t.
• Demand : In a high-demand consulting market, consultants charge more for their services. The economy and job market also play a role in the demand for consulting services.
• Time Availability : Consultants who are in high demand and have limited availability can often charge more for their services.

Now that you understand some of the factors that influence average consulting fees, let’s take a look at some averages by industry. Keep in mind that these are just average hourly consulting rates.

Consulting fees vary drastically by industry, and it would be impossible to list an average hourly rate for every industry. However, some general averages can be provided. The table below lists the average consulting hourly rate by industry.

As you can see, the average hourly rate varies widely by industry. However, the table provides a general idea of the ranges that can be expected.

How to Price Your Consulting Services

Now that you have a better understanding of what factors influence consulting rates, how can you go about pricing your services?

The most important thing is to be realistic about what you’re worth and to price your services accordingly. Don’t sell yourself short, but don’t overprice your services either.

When consultants set their hourly consulting rates, it’s important to consider the following:

• The estimated hours it will take to complete the project
• The level of experience and expertise 
• The location where the project will be completed
• The type of project
• Availability

If you’re just starting out, it’s generally recommended to charge a lower rate until you build up your experience and expertise. You can always increase your rate later as you become more established.

What if the Client Wants to Negotiate Your Hourly Rate?

Even the best consultants can occasionally experience a lull in business and may need to lower their rate temporarily. However, you don’t want to price yourself out of potential work. If a client requests an hourly rate that’s below your normal fee, it’s important to be flexible and negotiate.

There are a few things you can do to increase your chances of success when negotiating your consulting rate:

• Be prepared to walk away : If the client isn’t willing to pay your asking price, be prepared to walk away. There are plenty of other clients out there who will be happy to work with you.
• Know your worth : Do your research to determine the average market rate and make sure you know what you’re worth. This will give you more leverage when negotiating with a client.
• Stay professional : Don’t get emotional and be prepared to compromise. Remember, it’s important to maintain a positive relationship with your clients.

By following these tips, you’ll be able to negotiate consulting rates that work for both you and the client.

How to write a consulting business plan

If you want to work as a consultant, you'll need a plan. Here's how to create one just for you.

Consultants do things differently

If you’re a self-employed consultant your work isn't like other forms of business. Unlike retailers or manufacturers, you're not making and/or selling tangible products. And unlike service companies, you're not employing a team of people to provide solutions.

Remember you’re not not just selling your time. As a consultant, you will be paid for the skills, knowledge and abilities you've developed over your career.

We have some useful background reading about the benefits of becoming a consultant or contractor , which will help explain how such businesses work. But having decided to become a consultant, what's the next step?

Like all new small businesses, you'll need a plan. That plan will have to cover funding, growth, pay rates, expenses, marketing, equipment costs, training and qualifications. It will also have to cover your goals, and the strategy you'll use to reach them.

Consulting business plans are a little different to other business plans. Here's what you need to know to get your consulting career off the ground.

Who are you writing the plan for?

This is an important question to ask yourself before you start. For most conventional businesses the answer will be "For the bank and investors." That's because small businesses usually need startup funding to get off the ground.

But consultants setting up their own business might not need much funding – if any. It's still important to have a business plan though – not only to clarify the details in your own mind, but also to help you understand the potential risks and rewards.

A good business plan will combine elements of both finance and strategy, but the contents will vary depending on the target audience. We'll take a look at the options next.

A business plan for banks and investors

You may not need funding for capital equipment expenses or office rent. But you might need a loan to tide you over for the first few months, until you have a regular cash flow. The initial period for any new business can be a tough time – money worries will just make it tougher.

You may also decide that you want to make more of an impression by hiring office space, perhaps in a shared office environment. Or you might want funds to spend on marketing and advertising, particularly if you're offering consulting services in a competitive market.

For all of this, you'll need money. You could apply for a bank loan, look for grants, or try other forms of capital-raising such as crowdfunding. Whichever method you choose, any potential investors will want to see the important numbers. That means you'll need to cover the following points in your business plan:

• target market and sector analysis
• business objectives and USP (unique selling proposition)
• startup expenses and assets, including equipment
• overheads and fixed costs
• marketing strategy and budget
• funding requirements, loan collateral and cost of interest
• pay rates, revenue and cash flow projections
• sales forecasts in monthly intervals
• ongoing expenses
• growth projections and strategy

Some of this information will be difficult for you to estimate. It might be even harder for you to present clearly. Use your accounting software to help with figures and to produce professional tables and charts. Then, an accountant can help you include the right information in your plan.

A business plan for you

Of course, you might not need any funding. Perhaps you have enough savings to keep you going for a few months and clients already lined up. Or you may be starting your consulting career after an inheritance or unexpected windfall.

If money isn't an immediate concern, you can afford to be less formal when drafting your plan. That means making sensible predictions and setting goals for yourself, not just financial targets – though you should include those too.

This isn't an exercise in creative writing. The purpose of creating a plan is to help you concentrate on what you want to achieve. Some points to consider include:

Reasons for being a consultant

Why are you doing this? It's important to answer honestly. If the answer is “to make more money” or “because I'm good at what I do” then write that down. Write down all the reasons you can think of, then read them back. Do they sound convincing? Make sure you know your true motivation, as it will help you focus on your goals.

Consulting can mean you have an irregular income. Sometimes you might be busy, other times less so. It makes sense to keep some money in savings accounts, especially if you'll be paying tax at the end of the year instead of while you're earning.

Relationship risks

Think about the impact of consulting on your family or friends. Consultants often work irregular hours, sometimes from home, and they might be working at weekends. That can put a strain on relationships. Be realistic about this and set boundaries around when and where you will work.

Which clients to avoid and which to take on

You will already have an idea of the types of client you don't want to work for, because you know the industry you work in. For example, known late-payers can damage your cash flow so it's sensible to avoid them where possible. Look for clients who are reliable, as they’ll help make your business a success. Know that you can let go of clients who are more trouble than they're worth.

Training and certification

In many industries, especially IT, it's important to keep your skills up to date. But your clients are unlikely to pay for you to go on training courses – that's an expense you'll have to cover yourself. How will you stay up to date? Think about industry magazines, websites, forums, news feeds, conferences, courses, distance learning, peer groups and self-teaching strategies.

Personal goals

Perhaps you're planning to be a consultant for the rest of your working life. Maybe you want to do it for a couple of years and then move back in-house as an employee. Or you might want to start employing other consultants at some stage and build up an agency – maybe even sell it. It doesn't matter what your personal goals are, as long as you have some. Write them down and bear them in mind when making big decisions.

What to do with your profits

This is a good opportunity to think about how much money you want to make . Consider how much you will charge and what you will do with your commission. For example you may decide to use 50% to cover costs, pay yourself with 30% and put 20% back into your business.

Some of this information would be inappropriate to include in a financial business plan for banks or investors. But it can be very helpful in guiding you through the early part of your consulting career.

Five top tips for writing a good consulting business plan

Business plans can be difficult documents to write. If you've never done it before, thinking clearly and logically about your business strategy may not be easy. Here are some tips to help you succeed:

1. Write the first draft

Don't worry about grammar, structure or neatness. Just get the thoughts out of your head and onto the paper or screen. Some people find this easier to do in an informal setting, such as a library or café.

2. Do your research

Understand the market you're going to be working in. Get to know all the details, as it'll help you write a more effective consulting business plan.

3. Identify your USP

That's your unique selling proposition. Why should companies hire you and not one of your competitors? Think carefully about what you're particularly good at, then use that as a basis for marketing yourself.

4. Get feedback

Talk to your peers, friends, previous business associates and potential customers. Show them your plan and listen to their feedback.

5. Keep it simple

Don't write dozens of pages. You'll bore the investors and your plan will end up on a pile where nobody will ever look at it again – including you. Stick to the important points.

Update your business plan regularly

A business plan isn't a static document. It should change and evolve over time as your business grows. You will learn a great deal in your first few months working as a consultant, and that knowledge should be applied to your business plan. It's a good idea to review your plan every month.

You may find that some of what you initially wrote turns out to have been misguided, inaccurate or just plain wrong. That's normal. Nobody can predict every step a business will take. The important thing is to learn as you go along – and make use of that knowledge to improve your plan.

Plan for consulting success

A consulting business plan is written as much for you, the consultant, as for anyone else. The point of writing it is to concentrate on what's important. That clarity is what will help you succeed.

So don't look at a business plan as just another box to be ticked. It's a fundamental process when starting any business, particularly a consulting business where you will need initiative and drive to succeed.

Take the time to write a proper business plan, and keep it regularly updated as your business grows. You can use our free business plan template . You'll find it an invaluable guide to becoming a successful consultant.

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

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How Much Do Business Plan Writing Services Cost?

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The expense of a business plan varies greatly depending on which kind of plan you need. Some plans could be as straightforward as a executive summary and also a one-page financial worksheet, while some can be well more than 50 pages and contain many years of financial projections. Decide what type of business plan your company needs so as to help ascertain the cost of this strategy.

Hiring a Business Plan Writing Service It’s possible to hire a business plan writing service to write your business plan. More complex plans can range into the high thousands, based upon the firm, the amount of staff members operating on the strategy along with the range of the plan. Costs typically start at $1,500 for more simple projects.

Hiring A Traditional Consulting Company Using a traditional consulting company to write your business plan might make more sense when you are looking to raise a larger amount with your business plan. A lengthy plan with five years of financial projections might still cost a few thousand dollars, however, the total price can be much higher depending on the scope of work and the amount of consulting required. Some traditional consultants charge by the hour and let the customer decide how many hours client can budget for the work. For larger corporate jobs, expect to find costs ranging $25,000 to $50,000.

Our approach at GoBusinessPlans is to custom scope each engagement based on the the specific requirements of each client. Our business plan writing services typically cost between $2,000 and $10,000 depending on the work that needs to be completed.

Writing It Yourself The least expensive way to acquire a business plan usually is to compose it yourself. Purchasing the software to speed up this procedure ranges from $50 to $500, and free resources on the Web can offer both templates and suggestions. The U.S. Small Business Administration offers guides, outlines and blogs, and the SBA’s Business Strategy Tool provides step-by-step assistance in building your plan. For companies with very low startup capital, this can be the ideal option.

Combining Services Another option for businesses looking for a business plan option is potentially doing some of the initial leg work and then working with a business plan company to finalize the business plan.  A business plan can cost less if you do the research and make a draft on your own, and then introduce it to a company or consultant for review and completion. For instance, you could complete the written part of the company plan and have somebody else help with the financials. This is sometimes a good option for entrepreneurs that will articulate their business idea clearly but may need help putting together financial projections that are realistic. Review choices are offered for those who need an expert eye to check at their plan before proceeding.

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Every business startup, from one person home operations on up, requires some form of business plan. For small to medium businesses, it's possible to write your own business plan for free. For larger business or entrepreneurs with limited time, professional business plans from a consultant or business services firm can cost anywhere from several hundred to many thousands of dollars.

What does Business Plan Include?

Business plans aren't mysterious or difficult to write, but they can be complicated and time consuming depending on your operation. Business plans are written documents containing all details of your business startup and operational objectives and strategies. Startup and operating costs, sales, marketing advertising and sales strategies, pricing and profit margins, supplier lists, insurance information and other topics are included to give you blueprint of your business.

They are also used for obtaining business loans, securing investors and for other analytical purposes, and may be modified as the business matures to better outline and guide future operations.

DIY Business Plans

Free and low-cost training – $25 seminar from Service Corps Of Retired Executives or SCORE of Austin, Texas – is available from government agencies and other sources to help the startup business owner write their own business plans. Low-cost software – for under $12 a month – is available from private companies and other sources to aid in the outline and completion of your business plan, or you may simply list topics, costs and other associated information in a notebook for reference.

A business plan is not mandated or required for any business unless requested by an outside entity, and there is no "set format," so you will save money by doing it yourself if time permits.

Business Plans From Private Companies

Business plan providers and business consultants are available for hire to complete your business plan. Some firms charge by the hour, with others charging a flat fee based on the complexity of the plan. Costs vary widely, and are only as good as the information you provide, with better plans including multiple stages of the plan process.

Analysis And Outline

The business plan process begins with an analysis and outline, for which some companies will charge hourly rate, or a flat fee of several hundred to several thousand dollars. The analysis fee is charged for the business plan writer to analyze all of the information you've provided. The resulting outline is a written report given to you that highlights and details the information before it is transferred to the business plan document.

If you are paying an hourly fee, you may save money by providing the company with as much detailed information as possible. Research, phone calls and other information-gathering activities will add to the hourly rate.

Additional Business Plan Considerations

If you are using your business plan to attract investors, obtain financing, venture capital or grants, a professional business plan company can provide plans with the necessary format and information needed to suit the particular objective. This type of plan usually on the more expensive side and you may be charged hourly or an estimated flat fee depending on the providing company, your business type, and complexity and the nature and purpose of the plan itself.

If you are a small business and do not require a professionally produced plan, the cost to produce one yourself is equal to the hourly rate you've placed on your time plus the cost of any training or software you choose.

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Matt McKay began his writing career in 1999, writing training programs and articles for a national corporation. His work has appeared in various online publications and materials for private companies. McKay has experience in entrepreneurship, corporate training, human resources, technology and the music business.

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Money Talks → Consultants & Freelancers

How Much Should I Charge as a Consultant?

October 1, 2019

• Calculate your needs
• Calculate your value
• Decide on your pricing model

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Setting (and sticking) to your rates can be one of the most difficult parts of running your own consulting business.

Of course, sticking to your rates is a lot easier when you set them based on solid research. Among the factors you’ll need to consider are your own personal skillset and the going market rates within your industry.

First, though, you’ll need to know your baseline salary goals and business expenses. Then, you can determine the salary you want to grow into, and choose the best pricing model to get there.

Let’s dig in.

Ready to start your consulting business?

1. calculate your needs.

If you’re ready to make the leap to consulting full time, but you’d like to maintain your current cost of living, you need to determine the cost of doing business. To do that, the colloquial advice is to charge roughly three times what your current hourly rate is.

Why so much higher? That higher rate fills in the gaps of a true consulting schedule (it may feel like you’re working 60 hours with administrative tasks, hustling, and networking, but you won’t be billing a solid 40 anymore). You’ll also need to account for additional expenses your employer previously covered, like healthcare, vacation days, sick time, and a 401k plan.

That’s just the baseline. Next, you need to consider the cost of running your business. Will you need to rent office space to meet with clients, or will you be running your business from home ? Are there professional membership organizations you’ll need to pay for? Any technical certifications to increase your value and skills? Don’t forget software and mileage costs.

Once you know how much you’re making now, and everything you’ll need to pay for, you’ll have a good idea how much you need to charge in order to maintain a certain quality of life and get your business off the ground.

But that’s just the starting point. To attract better clients and grow your business, you need to value yourself properly. Remember that your consulting rates aren’t just your price of doing business; they’re a representation of the value you bring to clients. Price your services too low, and you’re underselling your talent and experience.

2. Calculate your value

Now, it’s time to mix a bit of art with science. Typically, your value as a consultant depends on three things:

• The market rates for your industry
• Your experience and the scope of services you offer
• What your competitors are charging

Finding the market rates for your industry

Just like a regular job, the rates people are willing to pay for various skill sets can vary widely, from a few dozen to a few hundred dollars per hour. Here’s what we found:

• Marketing consultants charge between $25 to $300 per hour, with $100 being the average. SEO specialists may be on the higher end of that range, while social media consultants are on the lower end, with brand strategists falling somewhere in the middle. 1
• HR consultants charge between $95 to $190 per hour, with $140 being the average. 2
• Tax consultants charge around $200 per hour. 3
• Web designers charge around $30 to $80 per hour, with $75 being the average. Alternately, they might charge a flat project rate of $500 to $5,000 per website. 4
• Management consultants charge between $100 to $350 per hour. 5
• UX consultants charge between $25 to $190 per hour, with $70 being the average. 6

If you’re working with clients locally, know that where you live can also affect how much you can charge. Clients in big cities and coastal areas often have bigger budgets and are willing to pay more. If you’re providing remote services, set your rates based on your client’s location, not your own.

Assessing your experience and services

Once you’ve familiarized yourself with the going market rates, consider where you fall within those ranges. Do you have expertise on par with a specialist, with a few working years behind you? You may want to charge a lower rate until you’ve worked with more clients. If, on the other hand, you’ve been working for five or more years, and have a wealth of industry-specific experience and happy client testimonials, you can charge on the higher end.

Then, consider everything you’re bringing to the table. This includes tangible qualities like the specific services you’re providing, your level of expertise, and any industry certifications or awards that verify that expertise. It also includes intangible qualities like your flexibility, adaptability to your client’s needs, responsiveness, and ability to meet deadlines. These can all enhance or detract from your overall value.

Discovering what your competitors are charging

Once you have the industry rates and a firm feel for your own worth based on your knowledge and experience, you can further adjust your rates by looking to your competition.

Why compare yourself to the competition? Chances are that you’re not the first consultant your client has hired. Businesses are in the practice of regularly engaging contractors and consultants, so they’ll have some awareness of the going rates—and they’ll perceive your value based on where you fall within that range.

When looking at your competitors, be realistic. Don’t compare yourself to the industry thought leaders who were featured in Forbes (unless you’re one of them!). At the same time, don’t undercut yourself simply because you’re new at this.

Search the websites of people offering similar services to yours. These folks should have a comparable level of expertise, industry tenure, and be targeting clients similar to yourself. Are your rates in line with theirs? You can also attend networking groups to get this intel.

3. Decide on your pricing model

At last, you know how much you want to make. Now, it’s a matter of figuring out how to get that money from clients. Congratulations! It’s time to figure out your pricing model.

Project-based pricing models are the most popular, but they’re not the only viable option. 7 A decent number of consultants also charge by the hour, by the day, or on a monthly retainer basis. We review each of these below.

Deciding between hourly and per-project pricing models

Are your consulting services going to involve a lot of client meetings or phone calls? If so, it can make sense to charge for your time on an hourly basis as opposed to a project-based rate.

Some people get a bit squeamish at the idea of telling a client their hourly rate. In these cases, it can be easier (and smarter) to give someone a project rate.

Clients tend to prefer project rates. A flat rate gives them a defined amount of money they can expect to spend. Consultants enjoy this pricing model because they can earn more than they would with a traditional hourly rate. For instance, if you know a certain project takes seven hours, you can charge a set rate that’s closer to ten hours. That’s three hours worth of extra profit.

Of course, the reverse can be true as well. Let’s say you’re a new graphic designer and quoted a rate based on the amount of time it would take you to create an infographic for a client.

Then it turned out the client wanted to have several kickoff calls discussing the infographic before you could actually get started on the project. The project suddenly becomes a lot less profitable.

Whichever path you choose, you’ll need to know how to calculate your rates.

How to calculate your hourly consulting rate

To determine your hourly rate, start by considering your ideal salary. Let’s say it’s $80,000. Divide that by 5 (for the number of weeks in a year), and again by 40 (assuming a normal workweek). That brings us to $38.50 or so.

Now, it’s very unlikely that you’ll actually bill 40 hours a week, especially in the beginning stages of your consulting business. Plus, you need to account for sick time, vacation days, healthcare, and other overhead expenses. So, you’ll want to double, or even triple that, to get a better idea of your goal hourly rate (which would be somewhere between $77 and $115 per hour, in this example).

How to calculate your project rates

To maximize the profitability of your consulting projects, create a clear outline of the various tasks included within a project, and estimate the amount of time it will take you to complete each one. Add up the total, multiply it by your hourly rate, and tack on an extra 15% to 20% to account for unexpected items (like an extra revision or follow up meeting).

You can also add a clause to your contract stating that this project rate is based on the items outlined in the statement of work. Anything that comes up that’s out of scope will either be renegotiated or charged at your hourly rate.

As you work with more clients, keep track of how long it really does take you to perform these various tasks, so you can get better at setting these rates moving forward.

Calculating a monthly retainer

Retainers are yet another option. Consultants love these because they’re a set amount of money you can rely on each month, and clients appreciate knowing that they’ve reserved your time on an ongoing basis. However, clients can be wary of agreeing to a monthly retainer before they’ve seen your work. After working with a client on a few projects or at a set hourly rate for a few months, you can present a retainer as a more valuable option moving forward. By that point, you’ll have a better idea of their monthly needs, and they’ll trust you and your work.

Retainers also make sense for certain types of work more than others, such as a graphic designer who agrees to deliver a set number of graphics each month, or an IT consultant who provides website monitoring services.

Regardless of which pricing model you choose, be confident in your rates and know that the client doesn’t care about the “time” it takes you to complete a project. They care about the business result. Evaluate the value of that end result, and charge accordingly.

Setting your rates is a major milestone in getting your consulting business off the ground. Take the next step towards building your business by protecting it with consultant insurance . 

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How Much Does a Business Plan Cost?

Back to Business Plans

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 19, 2023 Updated on December 11, 2023

Are you dreading writing a business plan and feeling unqualified to do it yourself? If so, that’s totally normal. Writing a business plan is hard work! That’s why first-time business owners, not to mention experienced entrepreneurs, often hire professionals to do the job for them.  

The price of a business plan varies depending on a variety of factors, and this guide lays out all your options for creating the kind of excellent business plan your new venture deserves. 

Search online and you’ll quickly find business plan templates and software to guide you through the process. The main advantage of crafting your own business plan is that you’ll learn a great deal about your business as you do the work, including operations, management, financials, marketing and more.  

And that knowledge could prove to be the difference between success and failure. But if you do go this route, it’s wise to have a knowledgeable person review the plan for you and make sure it’s all good. If you’re not a writer, you also might want to have an editor go over it as well. 

This option will likely cost between $0 and $400, for travel, printing and materials. 

• Freelancers

Finding freelancers to write a business plan is another option. You can find them online and you’ll pay anywhere from $200 to $2,000, depending on the length and depth of the plan. At the lower end of that scale, you’ll do the vast majority of research and preparation, which you’ll then hand over to the freelancer to put it all together into a well written plan. 

At the higher end of that price range, you should be able to find freelancers who will do the research and deliver something like a professional business plan. But if you’re looking for venture capital, this is probably not the wisest route. 

• Consultants

A professional business plan firm or consultancy is likely to do a great job, but it will cost you a pretty penny – perhaps $10,000 or more. But you’ll also get a great deal of guidance when it comes to market research , strategy, and financials. You’ll work closely with the pros to structure and develop the plan and learn from their professional expertise. 

This route will give you a plan that you can present to any investor or lender, underscoring your seriousness and strongly making your business case. If you can’t afford this option, you could go the DIY route and have a professional review it and make recommendations, which would cost much less. 

• Which Option Should You Choose?

If you don’t expect to look for funding, the DIY route is a smart move as you’ll gain so much valuable knowledge. If you plan to apply for a business loan, you may want to go with a high-end freelancer, as you should end up with a relatively polished business plan that will suffice for lenders.

If you hope to attract investor capital, professional assistance is the best way to go. It will be costly, but it should turn out to be a worthwhile investment. 

Before you make your decision, be sure to look into what’s available in terms of local resources. You might have a small business development center in your area that can provide useful guidance or even review your business plan for free. 

Whichever route you choose, just be sure to do a business plan! You’ll need that roadmap to guide you; it could be the difference between failure and success. 

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Consulting Fees Calculator

Introducing the Consulting Fees Calculator

This calculator provides a great starting point to help you figure out how much much to charge in order to make the amount of money you want each day, month, and year.

If you've studied our Momentum Program for Consultants you know that we advise consultants against charging based on number of hours worked . We're making this calculator available to give you an idea of how many projects you would need to complete to reach your income goals and to give you a baseline for your fees.

Note: The needs and goals of each consultant will be different and this calculator is not meant to be a perfect one-size fits all.

Learn To Double, Triple, Or Even Quadruple Your Consulting Fees (Without Scaring Away Clients)

If you want to build a predictable, profitable, scalable consulting business with premium pricing , then our new Consulting Fees Multiplier mini-course is for you.

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A Short Guide to Pricing Your Services as a Consultant or Coach

• Dorie Clark,
• Alisa Cohn,
• Marshall Goldsmith

Here are five options.

The coaches and consultants that succeed are those who you get pricing right. There are five key pricing strategies you can use: hourly billing, retainer agreements, productized services, value-based pricing, and pay for results. Hourly billing may make sense if you don’t know how long a project will take. But there are significant drawbacks to this approach, including intensive record keeping and the level of scrutiny it invites. A better arrangement, once you’ve built trust with a client, is a monthly retainer. In this situation, clients pay you a flat fee each month for access to your services. A third option is to develop a standard suite of products for sale (“productized services”). Or you can try value-based pricing which involves having a detailed conversation with the prospect to understand and agree upon the value the engagement, if successful, would have on the business and then determining a price. And finally, there’s pay for results. This model is only risky if you 1) don’t have a solid process and 2) don’t pick your clients well. If you do have a coaching or consulting process that you know works, a way to measure your client’s progress, and a willing and able client, your chances of success are high.

Many executives dream about starting an executive coaching or consulting practice, or launching one after they retire. But a touchy subject soon emerges: what should you charge?

• Dorie Clark is a marketing strategist and keynote speaker who teaches at Duke University’s Fuqua School of Business and has been named one of the Top 50 business thinkers in the world by Thinkers50. Her latest book is The Long Game: How to Be a Long-Term Thinker in a Short-Term World (HBR Press, 2021) and you can receive her free Long Game strategic thinking self-assessment .
• Alisa Cohn  is an executive coach who specializes in work with Fortune 500 companies and prominent startups, including Google, Microsoft, DraftKings, Venmo, and Etsy. She is the author of From Start-Up to Grown-Up . You can download her 5 scripts to handle delicate conversations here . Learn more at AlisaCohn.com .
• MG Marshall Goldsmith is recognized as one of the world’s leading executive educators and coaches. Dr. Goldsmith’s 30 books include What Got You Here Won’t Get You There and MOJO .

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Consulting Rates and Fees: How Much Should You Charge Clients

When you’re starting as a consultant, one of the most important decisions you’ll need to make is what to charge your clients. This can be tricky, especially if you don’t have a lot of experience setting rates.

In this article, we’ll discuss some fundamental tips on pricing yourself, as well as how to charge for consulting based on different payment methods. We’ll also talk about how to communicate and negotiate your consulting fees with potential clients.

What goes into determining your consulting services fee

There are a few key factors that you should consider when setting your consulting services fee. The first is your experience level. If you’re just starting, you may want to charge less than someone who has been in the industry for many years.

Another important factor to consider is the scope of work. If you’re only providing a small service or project, you’ll likely charge less than if you’re taking on a larger project with more responsibility.

Finally, another thing to keep in mind is the market rate for similar services in your area. You don’t want to charge too much and price yourself out of the market, but you also don’t want to charge too little and leave money on the table.

Calculate your needs

If you’re ready to start a full-time business in consulting but want to keep your existing cost of living, figure out how much it costs to run your business. To determine that, the popular advice is to charge roughly three times your current hourly rate.

A higher hourly charge covers any gaps in a genuine consulting strategy. You’ll also need to include any other expenses your employer has previously paid, such as healthcare, vacation days, sick time, and a 401(k) plan.

That’s just to get you started. Then there’s the question of how much it will cost you to run your company. If you’re working from home, will you need office space to meet with clients? Are there any professional membership organizations that you’ll need to join up for? Remember to include software and travel costs as well.

You’ll know how much you need to charge to maintain your current lifestyle and start your own company after you figure out how much money you’re making now and what you need to pay for.

Remember that to get better clients and grow your firm, you need to value yourself properly. This means that you should not price your services too low. This will show people that you do not think your talent and experience are valuable.

Figure out your value

Look at what other firms in your area are charging. Do some research and see what the going rate is for your services. You don’t want to undercut yourself, but you also don’t want to overprice yourself.

Once you have a good idea of how much you should be charging, it’s time to come up with a fee schedule. This will outline the different rates that you charge for different types of work. It’s important to be flexible with your fees, as each project will likely have its own unique set of needs.

You’ll also need to factor in taxes and insurance costs. Make sure to consult an accountant or tax specialist so that you can get an accurate estimate. And finally, remember to include any additional expenses you’ll expect to incur.

Research your competitors

Competitor research will help you come up with a fair consulting fees estimate. It is important to remember that you are not just competing on price, but also the quality of service. You may want to consider what services you offer that your competitors do not, and highlight those in your proposal. Charging too much or too little can hurt your business, so it is important to find the right balance.

When setting your rates, be sure to take into account the cost of doing business. This includes things like overhead costs, marketing expenses, and taxes. Don’t forget to factor in your time commitment as well – you don’t want to work for free!

How to price your consulting business so you’re profitable and your clients are happy

With your own consulting business, it’s important to price your services in a way that is both profitable for your business and affordable for your clients. There are a few factors to consider when setting your rates, including the cost of doing business, the value you provide to clients, and the going rate for similar services in your industry.

When pricing your consulting services, be sure to keep these factors in mind so you can find the sweet spot that works for both you and your clients. With a little bit of research and planning, you can set prices that will help your business thrive.

Here are some tips that’ll keep both you and your clients happy:

1. Communicate your value

One of the most important things you can do when setting your consulting rates is to communicate your value to potential clients. Be clear about what you bring to the table and why your services are worth the price you’re charging. If you can’t articulate your value, it’ll be difficult to convince clients that they should pay top dollar for your services.

2. Establish the scope of work

Be clear from the beginning about the work that you’re willing to do and what’s expected of the client. This will help avoid any confusion or misunderstandings down the road. Charge by the hour, day, or project, but make it clear from the beginning.

3. Create clear expectations for clients

For clients to be able to accurately budget for your services, they need to have a good understanding of what’s included in your rate. Spell out the details of what they can expect from you and what you’ll expect from them. This includes things like turnaround time, feedback cycles, and communication frequency.

The importance of value-based pricing

Finally, you’ve determined how much money you want to make. Now comes the question of pricing structure. It’s time to decide how you’ll charge your clients now. First, let’s discuss the most common ways:

• Hourly rates: Hourly rates are the most common way to price consulting services. You simply bill your client for each hour that you work on their project. This can be a good option if you’re just starting out.
• Project based rate: You charge a flat rate for an entire project, no matter how many hours it ends up taking you.
• Value-based rates: You price your services based on the value that you bring to the client, rather than the time it takes you to complete the project.
• Monthly retainer: A set amount of money that you charge your clients monthly, regardless of how many hours you work.

These consulting rate methods are great but to ensure maximum value for you and your clients, consider value-based pricing.

Value-based pricing is when you price your services based on the value that you bring to the client, rather than the time it takes you to complete the project. This is a good option if you have a lot of experience and are confident in your ability to deliver results.

Project calculations according to value-based pricing

Charging by the job is more in line with a value-based pricing approach we’ve been talking about. Fixed charges make it simpler to charge for your work because you don’t have to worry about keeping track of hours. But this method can be difficult because of scope creep and natural human imperfection.

When you approach a business owner and charge for a project, it is important to understand the work that will be done. You need to know what your responsibilities will be. The best way to estimate how much you should charge is by estimating how many hours the task will take. Do this by figuring out how long it would take you to do the work based on your knowledge and experience.

The first step may be difficult for inexperienced consultants, so this is where industry standards come in useful.

Consider a scenario in which you were hired to complete a feature article for a magazine. The first step is to figure out how long the project will take:

• Researching time: 2 hours
• Reviewing the transcript: 3 hours
• Draft completed: 5 hours
• Three further edits: 4 hours

The project will take approximately 14 hours in total. Multiply it by your hourly rate and then a 10-20 percent margin for unanticipated events, resulting in a rough estimate for a per-project consultant fee.

When deciding what pricing model to use, you should consider what will work best for both you and your clients. hourly rates are simple and easy to understand, but they may not be the most profitable option for you. Project rates can be a good middle ground, but keep in mind that if a project takes longer than expected, you won’t make any extra money. Value-based pricing is more complex but can be more profitable if done correctly.

Negotiating rates with clients

No matter which pricing model you choose, you’ll need to be able to negotiate consultancy fees with clients. Here are a few tips:

• Be confident in your value. If you don’t believe in your value, neither will your client.
• Do your research. Find out what other consultants in your field are charging for similar services. This will give you a good starting point for negotiation.
• Be prepared to compromise. In any negotiation, both parties have to be willing to give up something to reach an agreement.

Any business consultant needs to have a firm grasp of their bottom line. You should never enter into negotiations without knowing your lowest acceptable hourly rate. This is referred to as your Minimum Acceptable Rate (or MAR).

The formula you use to calculate your MAR should resemble this:

( (personal cost of living + business costs / hours worked ) + tax

Let’s use a real-world example. Assume your personal cost of living is $60,000, and your business cost is around $15,000. You decide to take on a client service for 5 each day for 50 weeks (1750 hours in all). Your MAR is

( (60,000 + 15,000) / 1750) = $42.86

Add (let’s say) 30% tax to this you get: 42.86 + 12.86 =$55.72.

In a situation where you have no room in your budget to take on new business, this is the crucial figure that determines how much money you may earn. It is simply the difference between what you charge and what the client pays. This is the lowest you’ll go, but this shouldn’t be your starting negotiation number.

It’s also important to consider the client’s budget. If a client can’t afford your bottom fee, it’s best to move on to the next prospect.

Sample rates for different types of consulting work

Rates for certain skill sets might differ considerably, from a few dozen to a few hundred dollars per hour, much like any other work. Here’s what we discovered:

• A Marketing consultant/management consultant costs between $25 and $300 per hour, with $100 being the average. SEO experts may be more expensive than social media consultants, whereas strategy consultants fall in the middle of that range.
• The cost of a UX consultant’s time depends on the situation and project. The hourly rate ranges from $25 to $190, with $70 being typical.
• Consultants that specialize in tax preparation cost around $200 an hour.
• Consultants who specialize in HR charge between $95 and $190 per hour, with $140 being the average.
• Management consultants set rates between $80 to $380 per hour.
• The average cost for web designers is between $30 and $80 per hour, with $75 being a typical fee. Alternatively, they may charge a one-time project rate of $500 to $5,000 per website.

Sample rates for different types of consulting work can be found all over the internet, but it’s important to remember that these average consulting fees are just guidelines. What you charge should be based on your own experience, skillset, and what the client is willing to pay.

When creating a fee structure, it’s important to remember that you’re providing a valuable service to your clients. By charging a fair price, you not only ensure that you’re making a good income, but you also show your clients that you’re worth their investment. Keep these things in mind when establishing your fees, and you’ll be able to charge what your services are worth.

There is no one answer for how much to charge for consulting projects – the fee depends on many factors such as experience level, skill set, and type of work. The more you work as a consultant, the better you’ll get at setting rates and charging fees.

Once your consulting business takes off the ground. It’s important to keep growing it. Read our guide on how to grow your business to learn more.

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Consulting Cost & Fees Calculator: Pricing Guide

Monthly billable days, monthly expenses, monthly target income before tax, guide to using the consulting fees calculator.

• Access the Calculator: Open the Consulting Fees Calculator on your device. You will be greeted with a simple and user-friendly interface.
• Number of Working Days : Enter the number of days you plan to work in a month. This does not include weekends or days you choose not to work. The maximum value is 31.
• Average Working Hours per Day : Input the average number of hours you work each day. This helps in calculating your hourly rate.
• Advertising and Marketing : Costs related to promoting your services.
• Equipment, Hardware, and Software : Expenses for the tools and technology required for your work.
• Training and Education : Costs for any ongoing professional development or courses.
• Memberships and Associations : Fees for professional bodies or networks.
• Business Insurance : Your monthly insurance expenses.
• Office Expenses : Regular costs such as telephone, internet, and electricity.
• Rent : If you rent an office space, or a portion of your home used as an office.
• Office Supplies, Shipping, Printing : Miscellaneous office materials and shipping costs.
• Accounting and Legal Fees : Professional services for legal advice or accounting.
• Enter the amount you aim to earn before taxes each month. This is your target income.

Understanding the Results

• Once you have entered all the necessary data, the calculator will automatically update the results at the bottom of the form.
• Daily Billable Rate : This is how much you should charge per day to meet your financial goals based on the data provided.
• Hourly Rate : This breaks down your daily rate into an hourly figure, giving you flexibility in how you charge for shorter engagements or consultations.

Tips for Use

• Regular Updates : Revisit and update the calculator regularly, especially when your expenses or income goals change.
• Contextual Adjustments : Consider the context of each project. For more complex or demanding projects, you might want to adjust your rates accordingly.
• Market Trends : Keep an eye on market rates and adjust your fees if necessary to stay competitive.

This calculator is a valuable tool to help ensure that your consulting work is priced correctly, balancing your business costs with your income goals.

Consulting Fees Calculator

In the dynamic and diverse world of consulting, one of the most critical decisions a consultant faces is determining the right fee to charge their clients. This decision is far from straightforward and involves a delicate balance between valuing one’s expertise and understanding the client’s perspective and market standards. Consultants, whether they are working independently or as part of a firm, must navigate through various factors to arrive at a fee that is both fair and competitive.

The complexity of this task is where a Consulting Fees Calculator becomes a game-changer. This tool is designed to help consultants systematically evaluate and determine appropriate charges for their services. It takes into account various influencing factors such as the consultant’s experience, the nature of the project, the duration of the engagement, and current market trends. By inputting these variables, the calculator provides a fee estimate that aligns with industry standards while also reflecting the consultant’s unique value proposition.

The purpose of this comprehensive guide is to explore the intricacies of consulting fees and the role of a Consulting Fees Calculator in setting these fees. We will start by understanding the different types of consulting fees, the factors that influence these fees, and how a calculator can aid consultants in making informed pricing decisions.

Understanding Consulting Fees

A crucial aspect of consulting is the understanding of different fee structures and how they align with various types of projects and client needs. Here, we delve into the common types of fee structures in the consulting world and the market trends affecting these fees.

1. Types of Fee Structures

Hourly Rate: This is one of the most straightforward fee structures. Consultants charge clients based on the number of hours they spend working on a project. It’s a flexible model that can accommodate changes in the scope of work. However, it can sometimes lead to unpredictability in total costs for the client.

Project-Based Rate: Under this structure, consultants charge a fixed fee for the entire project. This fee is agreed upon before the commencement of the project and is based on an estimate of the work involved. This model is beneficial for projects with a well-defined scope and offers clients a clear understanding of the total cost upfront.

Retainer: A retainer fee is a regular, recurring payment made by a client for ongoing services. This model is typically used for long-term relationships where the consultant provides continuous, as-needed services. It ensures a steady income for the consultant and readily available expertise for the client.

Value-Based Pricing: In this model, fees are determined based on the value or results provided to the client, rather than the time spent or the specific service delivered. This approach aligns the consultant’s incentives with the client’s goals and can lead to higher compensation for highly impactful work. However, it requires a clear understanding of the value delivered and can be more complex to negotiate.

2. Market Trends in Consulting Fees

Consulting fees are not static and vary widely based on several factors. Some of the key determinants include:

• Industry : Different industries have varying standard rates. For example, consultants in fields like finance or technology may command higher fees due to the specialized knowledge required.
• Consultant’s Experience : More experienced consultants, especially those with specialized skills or reputations as thought leaders in their field, can often charge higher rates.
• Geographic Location : The cost of living and the economic conditions of a consultant’s location can influence fee structures. Consultants in major metropolitan areas or high-cost regions may have higher rates than those in less expensive areas.
• Specialized Skills : As the demand for niche skills or expertise increases, consultants possessing these capabilities can charge premium rates.

Overall, the trend in consulting fees has been observed to align closely with market demands, especially for specialized skills and expertise. This dynamic nature of consulting fees makes it essential for consultants to stay informed about market rates and adjust their fee structures accordingly.

Factors Influencing Consulting Fees

Determining the right fee for consulting services isn’t just about picking a number. It’s a nuanced decision influenced by a variety of factors. Understanding these factors is crucial for consultants to set fair and competitive fees that reflect the value they offer. Here, we explore the key elements that play a significant role in shaping consulting fees.

1. Experience and Expertise

The level of experience and the breadth of expertise a consultant brings to the table are among the most significant factors influencing fee levels. Typically, more experienced consultants, especially those with specialized skills or unique expertise, can command higher fees. This is attributed to their ability to provide greater value to clients, often in the form of more insightful advice, efficient problem-solving, and access to a broader network of resources.

2. Industry and Project Type

The industry in which a consultant operates can have a substantial impact on fee structures. Some sectors, like technology, finance, or legal, tend to have higher standard fees due to the specialized knowledge and skills required. Furthermore, the nature of the project also plays a crucial role. Strategic projects, for instance, might command higher fees compared to more operational tasks. The complexity, scope, and impact of the project are all considered when setting fees.

3. Location

Geographical factors cannot be overlooked when discussing consulting fees. The cost of living and the economic conditions in a consultant’s location significantly affect the fee levels. For example, consultants based in major cities or regions with a higher cost of living generally charge more than those in less expensive areas. This variation is also reflective of the varying market rates and economic conditions across different regions.

4. Client Relationship

The nature of the relationship with the client can also influence fee decisions. For long-term clients, or those offering high-volume work, consultants might offer discounted rates as a gesture of goodwill and to foster a lasting relationship. Such arrangements are beneficial in creating a steady stream of work and ensuring client loyalty, but they must be balanced against the need to maintain a sustainable fee structure.

The Role of a Consulting Fees Calculator

In the ever-evolving landscape of consulting, setting the right fee for services can be a challenging task. This is where a Consulting Fees Calculator becomes a valuable asset. It serves as a tool that simplifies the process of estimating appropriate fees by integrating various critical factors.

Purpose of a Consulting Fees Calculator

A Consulting Fees Calculator is designed to help consultants estimate a fee that is fair, competitive, and aligned with market standards. This tool takes into consideration a range of inputs, including:

• Experience level of the consultant
• Industry standards
• Project duration
• Complexity of the project
• Additional costs and expenses

By analyzing these factors, the calculator provides an estimated fee that accounts for the unique aspects of each consulting engagement.

Creating a Consulting Fees Calculator

Developing an effective Consulting Fees Calculator involves several key steps:

1. Identifying Key Variables

To create a practical and useful calculator, it is essential to identify and incorporate the variables that significantly influence consulting fees. These include:

• Experience Level: Categorizing consultants as Junior, Mid-level, or Senior, each with different base rates reflecting their expertise and market value.
• Industry: Recognizing the differing standard fees across various industries such as Technology, Healthcare, Finance, and more.
• Project Complexity: Classifying projects based on their complexity – Low, Medium, or High – which affects the effort and resources required.
• Duration: Considering the project duration, which can range from a few hours to several months, impacting the fee structure.

2. Developing the Calculator

The development of the calculator involves creating a simple yet effective algorithm that utilizes the identified variables. This algorithm typically:

• Starts with a Base Rate: Determined by the consultant’s experience level.
• Applies Industry Modifiers: Adjusting the base rate based on the specific industry involved.
• Considers Project Complexity and Duration: Further refining the fee based on the complexity and length of the project.

For instance, a senior consultant working on a high-complexity project in the finance industry for a month-long duration would have a different fee calculation compared to a junior consultant working on a low-complexity project in the healthcare industry for just a few days.

Example Calculation Using a Consulting Fees Calculator

To illustrate how a Consulting Fees Calculator works, let’s consider a hypothetical example. This example will demonstrate how the calculator integrates various factors like the consultant’s experience level, industry type, project complexity, and duration to arrive at an appropriate fee.

Step-by-Step Calculation

• Junior Consultant: $100 per hour
• Mid-level Consultant: $200 per hour
• Senior Consultant: $300 per hour
• Technology: 1.2x
• Healthcare: 1.1x
• Finance: 1.3x
• Low Complexity: 1.0x (no change)
• Medium Complexity: 1.1x
• High Complexity: 1.2x
• Consider the Duration: The duration of the project can also influence the overall fee. For shorter projects, a higher rate might be charged to cover the initial setup and administrative costs.

Example Scenario

Let’s assume a mid-level consultant is working on a medium-complexity project in the healthcare industry for a duration of 30 days. Here’s how the fee would be calculated:

• Base Rate: $200 per hour (mid-level consultant)
• Industry Modifier: 1.1x for Healthcare
• Complexity Modifier: 1.1x for Medium Complexity

Calculation:

• Adjusted Hourly Rate: $200 (Base Rate) * 1.1 (Industry Modifier) * 1.1 (Complexity Modifier) = $242
• Total Fee for the Project: If the consultant works an average of 8 hours per day, the total fee for a 30-day project would be $242 * 8 hours/day * 30 days = $57,984

Visualizing Consulting Fees: A Graphical Overview

Graph 1: Average Hourly Rates by Experience Level

Here is the graph illustrating “Average Hourly Rates by Experience Level” in consulting:

• The graph shows a clear trend of increasing hourly rates with rising experience levels.
• For Junior consultants, the hourly rates range between $50 to $100.
• Mid-level consultants have hourly rates ranging from $100 to $200.
• Senior consultants command the highest rates, from $200, and can go above $300.

This graphical representation provides a visual understanding of how experience significantly impacts the hourly rates that consultants can charge, reflecting the value of expertise and experience in the consulting field.

Graph 2: Fee Variation by Industry

Here is the graph illustrating “Average Consulting Fees by Industry”:

• It highlights that Technology and Finance industries tend to have higher consulting fees compared to other sectors like Healthcare, Education, and Manufacturing.
• This graph provides a clear visual representation of how industry choice impacts the average consulting fees.

The graph has been saved as an image file. You can download it using the following link:

Final Thouth for Consulting Cost Calculator

The Consulting Fees Calculator emerges as an indispensable tool in the arsenal of modern consultants. Its primary value lies in enabling consultants to objectively and accurately determine fees that are not only fair but also competitive in the current market landscape. This tool takes the guesswork out of fee setting, replacing it with a structured and data-driven approach.

By integrating a variety of crucial factors such as experience level, industry norms, project complexity, and duration, the calculator allows consultants to tailor their fees to each unique project and client. This customization ensures that the fees charged are a true reflection of the value provided, balancing the consultant’s expertise and the specific needs of the project.

Moreover, the use of such a calculator acknowledges and adapts to the evolving market trends. As the demand for specialized skills fluctuates and the consulting industry continues to grow and change, having a dynamic tool that can adjust to these changes is invaluable. It helps consultants stay competitive and relevant, ensuring that their pricing strategies align with the current market conditions.

In essence, a Consulting Fees Calculator is more than just a tool for setting fees; it’s a means for consultants to validate their worth, maintain fairness in their pricing, and establish a transparent and trust-based relationship with their clients. It reinforces the idea that a well-considered and justified fee structure is fundamental to the success and sustainability of a consulting practice.

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• How Much Should You Pay for Business Consulting Services?

When it comes to hiring a business consultant, the cost can vary greatly depending on the type of services you need, your location, and whether you require one-time or ongoing consulting. It's important to understand all the factors that influence the cost of hiring a qualified management consultant, so you can make an informed decision. To begin with, you should consider your starting hourly rate. If you feel it's too low, you can always increase it.

Most companies don't need a large global management consulting firm like McKinsey, Bain, Kearney, or Deloitte. Instead, they can hire a consultant or team of consultants who can help management proactively identify vulnerabilities in employee relationships and develop a response plan. When calculating your consulting fee, you must also factor in additional expenses such as medical care. This means that you should increase your fee by 50% to account for these costs.

The advantage of hiring management consulting services through a company is that you gain access to consultants and their network of resources. It's also important to be aware of labor management consulting trends. Consulting firms don't usually publish their consulting rates, so it's best to start your search by contacting companies that seem appropriate based on an overall evaluation of what they offer. When it comes to pricing your consulting services, it's important to know your value as a consultant.

Many consultants and freelancers make the mistake of confusing average consultant rates with standard prices; this is not the case. Whether you're a new consultant or have been in the game for years, getting the right price is key. If your clients have regularly hired consultants or freelancers, they'll be familiar with the average consulting market rates. It's also worth noting that certain consultants such as graphic designers or IT consultants may charge a different type of fee.

In conclusion, knowing how much to charge as a consultant depends on understanding your value and being willing to make the necessary changes and adjustments as your consulting business grows.

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Social Media Marketing Strategy Tips For 2024

Published: Aug 15, 2024, 8:25am

Table of Contents

What is social media marketing, why social media marketing is important, 11 tips to build your social media marketing strategy, bottom line, frequently asked questions (faqs).

Social media marketing was born in the mid-2000s with the rise of platforms such as MySpace, Facebook and Twitter, but did not start hitting its stride until Facebook introduced “Facebook Flyers Pro” in 2007. Since then, it has revolutionized the marketing landscape by allowing companies to reach an unprecedented amount of potential customers worldwide.

But how exactly do businesses harness the power of the 5 billion-plus people using social media? In this article, we will dive into what exactly social media marketing is, why it is important and provide tips for you to up your social media marketing strategy in 2024.

Social media marketing is all about using social media platforms such as Facebook, Instagram, X and TikTok to chat with your audience, get your brand recognized and increase sales. It involves creating posts, images and videos that your audience will love, interact with and share. This method capitalizes on the interactive nature of social media to foster engagement, allow businesses to showcase their products and build a community around their brand. Creating an effective social media marketing campaign requires setting clear objectives, choosing the right social media platform or platforms, using analytics tools to track performance and adjusting strategies accordingly.

Traditional marketing methods such as print ads, television commercials and billboards often hoped to grab interested customers from a broad reach. The digital age of social media marketing has ushered in an era of personalization and precision targeting. Social media allows businesses to gather insights into user behavior, preferences, disinterests and online activities. Marketers can then create social media campaigns that target the direct audience that they want to attract. This new level of personalization has transformed the way businesses interact with their audiences.

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Social media marketing is a game-changer for businesses because it allows you to reach so many people around the world in real time. It is no wonder why so many businesses have ditched old-school marketing strategies such as billboards or radio spots in exchange for comprehensive social media campaigns. Some of the biggest advantages of social media marketing include:

• Increase brand awareness: You can expand your brand’s awareness by consistently posting on social media sites. This is especially useful for small or new businesses to be able to introduce themselves and their business personality to a new audience.
• Drive traffic: Creating intriguing content with compelling calls to action can drive followers to visit your website. You can funnel users directly from your social media platform to your website by including tailored links in your posts, stories or reels. For example, promoting a new blog post on X with a “Read Now” button can bring followers onto your site.
• Generate leads: Social media platforms provide tools for lead generation such as Instagram’s “Swipe Up” feature or LinkedIn’s lead-generation forms. Let’s say you’ve launched a new e-book. You can gather new leads to expand your email list by advertising the e-book on Facebook and attaching a direct download link in exchange for an email address.
• Real-time discovery of industry trends: Social media serves as a live feed for market patterns and trends. You can capitalize on viral topics by watching trending hashtags or popular discussion points within your industry.
• Cost-effective: In comparison to traditional marketing channels such as print or TV ads, social media marketing offers ways to publicize your product without spending a fortune. Social media marketing can be completely free if you do not have a marketing budget. You can, however, leverage your reach through sponsored content or ads on platforms such as Facebook, Instagram and LinkedIn.
• Humanize your brand: Consumers appreciate brands with authentic personalities. You can create a relatable brand by sharing “behind-the-scenes” content or telling your company’s story through posts or stories. For example, Patagonia regularly shares posts highlighting its commitment to environmental conservation, which strongly resonates with its customer base.

At first glance, social media marketing might appear straightforward, but to truly make an impact it requires more than just a few posts online every now and again. Along with any successful marketing strategy, it involves meticulous planning, consistent content creation, thorough analysis and strategic adjustments. Here are 12 tips on building a comprehensive social media marketing strategy to help you harness the full potential of social media for your business.

• Set S.M.A.R.T., relevant goals: Before starting your social media marketing strategy, make sure to set S.M.A.R.T. goals. S.M.A.R.T. stands for specific, measurable, achievable, relevant and time-bound. Begin by outlining clear, actionable goals using this criterion. For instance, instead of vaguely aiming to “increase sales,” strive to “increase sales by 15% over the next quarter through social media referral traffic.” This will provide a precise path for your strategy.In addition, set goals that are relevant to your business. Do you want to increase brand awareness? Do you want to increase your social media footprint? Do you want to drive traffic to your website? Reach, impressions and engagement rate are among the 13 essential social media metrics to measure in 2024 . Make sure the goals you set are relevant to your business’s objectives.
• Identify target audience: Before you begin, it is important to know who you are talking to. Create a sketch of your ideal customer. Describe their demographic traits including age, location and gender as well as psychographic traits such as interests, problems and values. If you deal in luxury watches, your audience likely consists of older, affluent individuals with an interest in style and status. Or if you have a boutique yoga studio, your ideal audience is probably a woman between 25 and 50 who prioritizes health and wellness.
• Choose the right platforms: The big seven social media platforms are Facebook, X, Instagram, TikTok, YouTube, Pinterest and LinkedIn. Each platform attracts a different type of audience. Analyze where your core audience spends the most time online and target those platforms. For example, if your brand caters to professionals or B2B clients, LinkedIn may prove more beneficial than TikTok.
• Create valuable content: Never publish content just to post something. Always create content that your audience will find beneficial. Aim to inform, engage or inspire. For a fitness brand, this might include workout tips, healthy recipes or motivational posts. In addition, it is a good idea to occasionally incorporate interactive elements such as Q&As, polls or challenges to engage your audience actively and foster a sense of community.
• Consistent branding: Maintain uniform design elements such as logo and brand colors and voice, whether it is formal or casual across platforms. This consistency will help with brand recognition.
• Use visual content: As the old saying goes, a picture is with a thousand words. Make use of visuals—photos, infographics or videos—to increase engagement. Leverage visual storytelling in order to convey your brand’s personality. For example, a bakery might post mouthwatering photos of its cupcakes or a step-by-step video tutorial on dough kneading. Additionally, incorporating user-generated content such as customer photos or reviews can add authenticity to your feed.
• Automate scheduling: Use social media management tools to schedule posts in advance. Not only will this help you save time, it will also ensure your content is delivered on a consistent basis. A regular posting schedule helps keep your brand’s presence fresh in the minds of your audience. Buffer, Hootsuite and Zoho Social are three of the best social media management software platforms on the market.
• Engage actively: Join conversations and reply promptly to comments. Don’t be afraid to show a human side to your interactions. Chipotle, for instance, has more than 30 million followers on social media. The company is renowned for its witty, engaging responses in its social media interactions.
• Collaborate with influencers: Partner with relevant influencers to get your brand in front of new eyes. Collaborating with these partners can help you tap into specific communities and boost your credibility by leveraging the trust they’ve established with their followers. A children’s clothing brand might collaborate with parenting bloggers while a new restaurant might collaborate with a local food blogger.
• Analyze and adapt: Use analytics tools to track your performance. If Instagram Stories drive more engagement than regular posts, for instance, shift your focus accordingly. This data-driven approach allows you to understand your audience better so you can tailor your strategy for maximum impact.
• Monitor trends: Social media trends evolve rapidly. Keeping up to date can unlock new avenues—be it new features such as Instagram Reels or trends such as the sustainability movement—to align your strategy with broader user behavior. Adapting to the latest trend helps keep you relevant and can even open doors to innovative methods of customer engagement and user-generated content.

Since its inception in the early 2000s, social media has revolutionized the marketing landscape by offering businesses an unprecedented ability to reach audiences, prioritize personalization and build real-time connections between brands and consumers. It helps businesses ramp up brand visibility, drives traffic, pulls in potential leads and catches the wave of trending topics—all while being budget-friendly. If your business wants to ride the social media wave, you should focus on creating clear and achievable goals, targeting your ideal audience and creating valuable content. Mix in some smart scheduling tools, actively engage with your followers and use analytics to continually fine-tune your strategies and you can significantly amplify your brand’s online impact.

What are the five Ps of social media marketing?

The five Ps of marketing—Product, Price, Promotion, Place and People—form the cornerstone of marketing strategies. “Product” refers to what a company sells, whether it is tangible goods or intangible services. “Price” is the cost consumers are willing to pay. “Promotion” is all communicative tactics used including advertising, PR or social media engagement. “Place” is the channels or physical locations where the product or service is sold. “People” refers to everyone involved in the business including customers, employees, vendors and partners.

What are the seven Cs of social media marketing?

The seven Cs of social media marketing are the guiding principles for building a robust social media marketing plan. They include “Community,” referring to the group of people your brand brings together, while “Collaboration” and “Communication” refer to the value of working alongside users and other brands to collaborate and share valuable insights. “Constraints” acknowledge the limitations that social media platforms can present to marketers. “Connectivity” and “Channels” focus on establishing a seamless link between social media platforms and choosing the right mediums to reach your target audience. “Content” is central to attracting an audience through relevant, engaging and high-quality content.

What is the golden rule of social media marketing?

The golden rule of social media marketing is to foster genuine interactions that build trust and community. Crafting content that initiates conversations enables brands to spark conversations and build a community. This strategy emphasizes authentic connection with the audience to help brands achieve enduring marketing success through active participation.

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Jennifer Simonson draws on two decades as a journalist covering everything from local economic developement to small business marketing. Beyond writing, she tested entrepreneurial waters by launching a mobile massage service, a content marketing firm and an e-commerce venture. These experiences enriched her understanding of small business management and marketing strategies. Today, she channels this first-hand knowledge into her articles for Forbes Advisor.

Biden, Harris hail Medicare drug price cuts that will save billions

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Jeff Mason is a White House Correspondent for Reuters. He has covered the presidencies of Barack Obama, Donald Trump and Joe Biden and the presidential campaigns of Biden, Trump, Obama, Hillary Clinton and John McCain. He served as president of the White House Correspondents’ Association in 2016-2017, leading the press corps in advocating for press freedom in the early days of the Trump administration. His and the WHCA's work was recognized with Deutsche Welle's "Freedom of Speech Award." Jeff has asked pointed questions of domestic and foreign leaders, including Russian President Vladimir Putin and North Korea's Kim Jong Un. He is a winner of the WHCA's “Excellence in Presidential News Coverage Under Deadline Pressure" award and co-winner of the Association for Business Journalists' "Breaking News" award. Jeff began his career in Frankfurt, Germany as a business reporter before being posted to Brussels, Belgium, where he covered the European Union. Jeff appears regularly on television and radio and teaches political journalism at Georgetown University. He is a graduate of Northwestern University's Medill School of Journalism and a former Fulbright scholar.

South Korean AI chip makers Rebellions and Sapeon agree to merge

South Korean artificial-intelligence chip makers Rebellions Inc and Sapeon Korea Inc have signed a definitive merger agreement, the privately held companies said on Sunday.

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How Los Angeles Aims to Make a Profit on the 2028 Olympics

The Summer Games will be the third for Los Angeles as host, but it will be a challenge to repeat the financial success of 1984.

By Kurtis Lee

Reporting from Los Angeles

What Paris Olympics? Los Angeles is already looking ahead.

As the city prepares to host the 2028 Games, construction crews have fanned out, racing to bolster the area’s infrastructure to accommodate hundreds of thousands of visitors.

Three main projects — expanding the rail system, revamping the airport and renovating the downtown convention center, which will be the competition venue for five sports — will have lasting effects on the region. The projects are funded through a mix of federal and city dollars as well as airport fees. And there will also be the tourist dollars spent while the Games take place.

The city sees the Olympics as a revenue producer, not an expense. Now it must disprove the skeptics who say it could be a boondoggle.

In 2019, two years after Los Angeles was awarded the Games, Eric Garcetti, then the mayor, said he expected the city to turn a $1 billion profit.

For the current mayor, Karen Bass, hosting the Olympics is more than an opportunity to showcase familiar attractions like Hollywood or Venice Beach. It’s also about connecting visitors with small businesses citywide.

“What determines success is for everybody to benefit,” Ms. Bass said in an interview. “They need to know about Little Bangladesh and Little Ethiopia and Little Armenia.”

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