How to start an HR consultancy business

By
Omoleye Omoruyi
-
266
7309

As far as growth goes, Human Resources may have ticked all the boxes and keeps creating more to be ticked. And even when the pandemic came, there was conversation on what to do with that department, especially with the emergence of HR Tech, artificial intelligence, and machine learning, but there is still a big market for new start-up HR consultancies to help employers get the best out of their workforce. 

No doubt, the pandemic changed our work styles and introduced a now-generalised idea of work from home. Even with this change(s), businesses must meet certain requirements as they employ new staff and may need to adhere to certain policies, regulations, and overcome practical challenges. This is where the human resources consultancy business comes in – for companies that do not have in-house HR departments.  

A human resource consultancy may help other businesses with employee handbooks, personnel forms, benefits programs or any other employment-related issue. There are opportunities in all aspects of HR consulting, including generalist HR consulting, recruitment & selection, employee engagement, training, learning & development, employment law, and so on. 

For business-oriented individuals with experience in the human resources field, starting am HR consultancy business can be a promising venture.  

It should not end thinking of the idea and does not end with registering the business. You need to take it to the next steps; this is why we have this piece to guide through starting your own human resources consulting business.  

Note that these steps on how to open an HR consultancy business are for an independent HR consultant or small new HR consultancy to follow, not for large corporations or well-funded HR Tech startups. 

Read also: Affiliate Marketing – How To Get Started, (For Nigerians)

Contents

Find Your ‘Why’ – remember Simon Sinek? 

Now that you are ready to do more than just imagine what your idea – an HR consultancy business – can turn into, it is important to reflect on what you want and how you want to achieve it.  

Do you want to build an HR consultancy business that may become a sellable asset in the future, or are you aiming for a freestyle business away from your 9-5 job?  

Do you aim to build a highly systemised, pop-culture dependent business that may expand and eventually become a franchised business model?  

Do you just want to pay bills and keep the lights on while you work on an exciting new HR Tech product or information product on the side? 

Do you want to be a generalist consultant or narrow your focus on a particular skill or industry?  

Take time to think about what you really want, and change the ‘Why’ if you need to at some point.  

Plan your HR consultancy business 

You may not go beyond the first few weeks if there is no plan in place. A plan will help you map out the specifics of your business and discover some unknowns. However, don’t do a plan that becomes a lengthy softcover that quickly gathers dust in the corner of your office. 

Start with your target, their challenges and then work through the solutions. Doing this will take you back to the ‘Why’ as you will begin to consider options like generalist human resources or specialist? Go all in or target a small market? Small projects vs large projects or retainer jobs?  

As you do this, consider the right legal structure for a new human resources consultancy business.  

In summary, think about the name of the business and target market, how to make money as an HR consultancy business, how to charge customers, growth structure, and expenses.  

Build a reliable network 

Like every other item on the list, this is too important to miss, knowing that your income will dip in the first stages before your first payments.  

You need to start building your referral network before you even launch or immediately after you launch.  

Make a list of family, friends, current and former colleagues, clients and suppliers, and acquaintances. LinkedIn is one sure way to go for this.  

Create a startup sales & marketing plan for your HR consulting business 

The Internet has made it so that there are many ways of getting people to your side, who become customers. There are many channels to choose from to acquire new HR consulting clients. These include: 

Getting found in search engines’ organic search results – Search Engine Optimisation (SEO);  

Search Engine Marketing (SEM – such as Google Adwords);  

Content Marketing or storytelling in all/any visual and text form;  

Email Marketing;  

Sponsoring posts on other websites;  

Social Display Ads (such as Facebook or Quora ads); 

Traditional advertising (such as newspapers); 

Business Partnerships with other companies, such as HR software companies; 

Affiliate/Referral Programs; 

Activity on social media platforms; 

Offline Events; 

Speaking Engagements. 

Read also: How to Choose Between Investing and Trading

Define your brand 

As you build an online presence, register your HR consultancy business with Corporate and Affairs Commission (CAC), get your insurance, open a bank account (separate from your personal account), you need to actively define with what your brand stands for, as this will affect how your business will be perceived by the public. 

Entrepreneurs can stand out from the competition and establish themselves as specialised experts.  

Let everyone know where you are  

A website, an address, a social media page are important items on the list of to-dos. If you are going to do virtual HR consultancy, your website and social pages have to stay active. And, if you are going to have a mixture of virtual and physical consultancy, an address is non-negotiable.  

Also have a phone number anyone will call during your defined work hours and be active.  

It is important to note that starting your own business will be one of the most challenging experiences which will surely push you to your limits in every way, one would need to focus, persevere and be very patient. 

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Quick Summary

Prefer the short version? Here is a concise recap of the key ideas in this article.

You need to take it to the next steps; this is why we have this piece to guide through starting your own human resources consulting business.   Note that these steps on how to open an HR consultancy business are for an independent HR consultant or small new HR consultancy to follow, not for large corporations or well-funded HR Tech startups.  Read also: Affiliate Marketing – How To Get Started, (For Nigerians) Find Your ‘Why’ - remember Simon Sinek?  Now that you are ready to do more than just imagine what your idea – an HR consultancy business - can turn into, it is important to reflect on what you want and.

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