How to Start a Consulting Business in 2025: Actionable Guide

So, you’ve racked up a decade of experience, gotten pretty damn good at something, and now you’re wondering: “Could I do this on my own?”

Yes, you absolutely can. Consulting is one of the most flexible and profitable ways to turn expertise into income – but it’s also riddled with traps: clients who ghost, fees that barely cover lunch, websites no one visits, and proposals that die quietly in inboxes.

This guide isn’t just another dry ‘how to set up a business’ post. 

We’ll cover the official steps, but the real gold is here: how to actually find clients, charge what you’re worth and get noticed without shouting.

Ready to turn your know-how into a business? Let’s do it.

Set up a business in 4 steps

You do need a solid foundation before you can sell yourself as an expert. Here’s how to build it – without overthinking it for six months.

1. Choose your niche and consulting model

Don’t just call yourself a “business consultant.” That’s like saying “I make food.” In the UK’s competitive consulting market, specificity is your superpower.

#1 Choose your niche (Who you serve)

Pick a sector or problem you know inside out. The more specific, the better. UK businesses increasingly seek experts who understand their unique challenges-especially in fast-changing areas.

UK niches with strong demand right now:

🎯 Tip: Score your potential niches by:

#2 Choose your consulting model (How you deliver)

Once you know your niche, decide how you want to deliver your expertise.

Main models:

#3 How to choose the right model for you

#4 UK market insights to inform your choice

2️. Research the market

Before you print business cards or spend £2K on a logo, figure out:

Use LinkedIn to reach out for chats. People love talking about their problems. That’s your research, right there.

3. Register your consulting business

Get legit. Choose a structure:

Register with HMRC or Companies House, grab a business bank account, and consider a virtual office for that professional gloss.

But, ANNA makes the whole process faster, simpler, and smarter. You can register a UK limited company in under 10 minutes, get a business bank account on the spot, and manage everything from VAT to invoicing in one sleek app.

Plus, you get a virtual London office address to protect your privacy and impress clients. No paperwork, no stress – just a fully set-up business, ready to go.

4. Set up your brand and online presence

Clients will Google you. What will they find?

You don’t need a viral TikTok. You do need to look competent and consistent.

💡If you need more info on how to budget before you start your business, check out our How Much Does it Cost to Start a Business in the UK? [Detailed Calculation] blog post!

How to charge the right fees (Without guessing or underselling yourself)

Many consultants struggle with pricing because they either guess or copy competitors’ rates without a clear strategy. Here’s a more reliable approach:

1. Calculate your baseline day rate

Start with your previous salary as a reference point. For example, if you earned £60,000 per year, divide that by approximately 220 working days to get a baseline of about £270 per day.

📌 Note: The 220 days estimate accounts for weekends, holidays, and non-billable time typical in UK consulting roles.

However, as a consultant, you need to cover additional costs like holidays, administrative tasks, client acquisition, taxes, and business risk. To account for these, multiply your baseline by 2 or even 3. 

This brings your daily rate to around £800+, which is a fair starting point for mid-to-senior level consultants in sectors such as management, strategy, digital transformation, and regulatory compliance consulting in the UK.

2. Consider project fees instead of just day rates

Many clients prefer knowing the total cost upfront rather than an hourly or daily rate. If you can clearly define the scope, offer fixed project fees. For example:

                             Strategy audit + recommendations = £3,000

                             Full project design + delivery = £10,000

Clients appreciate clarity, and if your work saves them significant money or drives revenue, your fees should reflect that value.

3. Offer tiered pricing options

If you’re unsure what clients need or can afford, present tiered packages:

                             Tier 1: Strategy + document (£3,500)

                             Tier 2: Strategy + document + workshops (£7,000)

                             Tier 3: Full implementation + 3-month support (£12,000)

This helps clients choose the right level of service and positions you as flexible and professional.

4. Validate your fees

Finally, research market rates in your niche and consider the value your consulting delivers. Pricing based on client outcomes rather than just your costs will help you command better fees and build a sustainable business.

How to find clients for your consulting business

You can have the best offer in the world, but if no one sees it, it’s worthless. Getting your first few clients is everything.

🔸Start with direct outreach

Use LinkedIn or industry directories to find decision-makers. Send a short, no-fluff message:

"Hi Emma, saw your work at X Ltd. I help businesses in [industry] improve [thing you do]. Happy to connect."

No pitch. Just a connection. Once accepted, share something useful or ask about a current challenge. Be curious, not salesy.

🔸 Tap your network

Email past colleagues and contacts. Something like:

"I’ve launched a consultancy focused on [niche]. If you know anyone struggling with [problem], I’d really appreciate an intro."

Again, specificity matters. Nobody refers people to “general consultants.”

🔸 Show up where they are

Join industry groups, Slack communities, and local meetups. Get visible, contribute insights, and follow up with anyone who seems interested.

This isn’t about pitching at strangers. It’s about starting conversations and building relationships, which leads to clients.

How to market your consulting business

Consultants don’t need flashy ads or funnels. They need authority and trust.

Start by clarifying your message:

"I help fintech teams reduce compliance delays by redesigning internal workflows."

Then build content that proves it. Post once a week on LinkedIn. Share:

Bonus: Turn your insights into short videos or one-pagers. They position you as someone worth paying attention to and eventually paying.

Always end content with a soft CTA: "If this sounds familiar, message me."

How to handle discovery calls and close clients (Without feeling like a sales rep)

This is where people freeze. But think of it as a two-way diagnostic, not a pitch.

On the call, start with:

"Tell me a bit about what’s going on, and what outcome you’re hoping for."

Then listen. Ask clarifying questions. Find the real problem beneath the symptoms.

When it feels like a good fit, offer a solution:

"Here’s how I’d approach it… I’ve done similar work for [type of company]."

Outline your steps, your timeline, and then give them clear pricing options. Always follow up with a proposal and suggested next step.

If they’re not ready now, that’s fine. Keep them in your pipeline. A simple spreadsheet with stages (Lead → Call → Proposal → Won/Lost/Nurture) is all you need.

This is a relationship business. The goal isn’t to close every lead. It’s to stay relevant until the timing is right.

Smart systems to run your consulting business smoothly

Once clients start saying yes, you’ll quickly realise that delivery is only half the job. Admin, invoicing, and project management can creep into your evenings unless you systemise early.

🔸Proposals and contracts

Have templates ready. Use tools like PandaDoc, Bonsai, or even a well-designed Google Doc. Every proposal should cover:

Keep contracts simple but clear. When things go wrong (and they will), your contract saves you from awkward back-and-forths.

🔸Client onboarding

A simple onboarding sequence gives your clients confidence and saves you hours of emails. Include:

🔸 Time tracking and invoicing

Even if you charge fixed fees, track time to understand how profitable your projects really are. Use tools like Toggl, ANNA, or Harvest.

For invoicing, platforms like Xero, FreeAgent, or QuickBooks automate the boring stuff. Or just use ANNA if you want banking + invoicing + tax in one place.

🔸Stay on top of taxes

In the UK, taxes aren’t scary if you plan ahead. Set aside 25–30% of income, register for VAT if you cross the threshold, and file everything on time.

How to grow beyond one-on-one work

You’ll eventually hit a point where you can’t take on more without burning out. Here’s how to grow smartly without sacrificing quality or control.

🔸Productise a service

What do clients ask for again and again? Turn that into a fixed-scope offer. Give it a name, price, and outcome.

Examples:

“Strategy Sprint”

“90-Day Positioning Makeover”

“Retention Optimisation Package”

This reduces time spent scoping and selling and lets clients buy with confidence.

🔸Build a micro-team

If delivery is eating up your time, bring in freelance support. Writers, researchers, junior consultants – whatever helps.

Start small. Hire per project. Make sure they align with your standards. This lets you take on more without diluting your work.

🔸Add a scalable offer

Could you teach what you do? Package your process into a workshop, mini-course, or group program. Use it for:

You’re not replacing 1:1 work – you’re complementing it. This makes your income more stable and your work more flexible.

Final word: Your first client is the hardest, not the last

You don’t need a fancy brand, team, or endless leads. You need a process that works, one good client, and the momentum that follows. Most of this comes down to showing up, saying something useful, and offering to help.

If you do that consistently, you'll be well on your way to a consulting business that's profitable, purposeful, and entirely your own.

Starting a UK business doesn’t have to cost a fortune — ANNA makes it easy

ANNA Money takes the hassle out of setting up and running your business. From company registration to tax filing, everything’s handled in one smart app.

With ANNA, you can:

🔸 Register your business and open a bank account in minutes

🔸 Get invoice reminders to help you get paid on time

🔸 Snap receipts and automate expense tracking

🔸 Handle VAT, PAYE, and Corporation Tax with built-in filing tools

🔸 Use smart pots to set money aside for taxes

🔸 Generate payslips, P45s, and P60s automatically

🔸 Stay compliant with HMRC deadlines

🔸 Pay only for what you need – no hidden fees

Smart, affordable, and stress-free. That’s how ANNA helps you build your business.