Service Consulting Business Image" width="696" height="391" />Customer service can make or break a business. When a customer calls in with a question, problem, or concern, the way they're treated often determined whether they will remain a customer or buy from a competitor. Service also determines how well a customer's problem is addressed and, ultimately, whether the business does a good job solving it.This is why a customer service consulting business is so valuable. It helps businesses and firms improve their customer service by doing customer surveys, offering customer service training lessons, examining the workflow of customer service processes, or trying to develop an improved culture of service.
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We have put together this simple guide to starting your customer service consulting business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas.
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
Luckily we have done a lot of this research for you.
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Customer Service Consulting Business Name Generator
If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
When registering a business name, we recommend researching your business name by checking:
It's very important to secure your domain name before someone else does.
Costs involved in starting an agency are minimal. You can start with less than $1,000. You will need a CRM system for managing your clients, a computer, and a phone.
Ongoing expenses for a customer service consulting business are minimal. Basically, you have to cover rent and utilities and costs for whatever customer relationship management software you use.
Target market are successful businesses that have hit a sticking point in revenues and profit and need help improving customer relationships so they can break through to the next level.
Customer service consulting companies make money by charging clients fees for consultation services.
Most customer service consultants can charge clients between $100/hr and $300/hr for services. The exact charge depends on your experience in the industry and your name recognition. The more successful you are, the more you can charge.
Profitability is high. Most consulting companies can make a 20% profit margin if they hire assistants to help them with their consulting business. If you're working alone, your margin is higher, but your total income may be less. Average consultant income ranges between $60,000 per year and $150,000 per year.
Make your business more profitable by partnering with non-competing firms to offer ancillary services. For example, a company may need more than just customer service help. They may need a coordinated marketing and customer service overhaul. If you can provide that to them, then you stand to make more money by consolidating both services into one.
You can also try increasing your fees over time as you gain experience.
Finally, consider creating tiered service levels, where you hire assistants to perform routine consulting jobs based on a service template you design. These lower-cost services could add substantially to your base income.
Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!
One crucial aspect that cannot be overlooked when starting your customer service consulting business is the importance of establishing a solid business foundation. While sole proprietorships and partnerships are the most common entity types for small businesses, they're a far less stable and advantageous option than LLCs.
This is because unincorporated business structures (i.e., sole proprietorships and partnerships) expose you as an owner to personal liability for your business's debts and legal actions, while LLCs protect you by keeping your personal assets separate from your business's liabilities.
In practice, this means that if your customer service consulting business were to face a lawsuit or incur any debts, your savings, home, and other personal assets could not be used to cover these costs. On top of this, forming your business as an LLC also helps it to appear more legitimate and trustworthy.
More than 84% of our readers opt to collaborate with a professional LLC formation service to kickstart their venture. We've negotiated a tailored discount for our readers, bringing the total down to just $29.
Note: If you're interested in more information before getting started, we recommend having a look at our state-specific How to Start an LLC guide (DIY) or our in-depth Best LLC Services review (for those opting for a professional service).
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Besides being a requirement when applying for business loans, opening a business bank account:
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
Certain state permits and licenses may be needed to operate a customer service consulting business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .
For information about local licenses and permits:
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
Customer service consulting businesses should require clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership.
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
FInd out what types of insurance your Customer Service Consulting Business needs and how much it will cost you by reading our guide Business Insurance for Customer Service Consulting Business.
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
Promote your services locally through the newspaper, online on your social media accounts, and through pay-per-click advertising. Reach out to local businesses and ask them if you could conduct a free customer service study for them. If they agree, analyze their business and offer to improve sales through better customer service.
Retaining customers is easy. As long as you can improve profits for them, most businesses will be happy to keep hiring you.
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.
Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
This business is perfect for individuals with good people skills and a drive to facilitate good communication between two or more people.
Take our Entrepreneurship Quiz to find out!
A day in the life of a consulting company consists of meeting with clients, following up with prospects and managing client attitude and behaviors.
Most consulting firms spend a lot of time researching their clients' customers and target market. This takes up the bulk of the time spend on a client's project. For example, a consulting company working with a coffee shop might spend a significant amount of time researching the local demographic, comparing it to how much the coffee shop charges for its coffee and teas, what type of clientele it is trying to serve, the coffee shop's location, and so on.
If a coffee shop owner is serving a high-end client, who demands microlots and custom brews, including hand poured coffee, then service should be focused on providing a unique experience for each customer. This is not the type of coffee shop that sells coffee as a commodity.
A consultant might stress the need for knowledgeable baristas with years of experience, education, and training.
If, on the other hand, a coffee shop is mass marketing its coffee to a middle or low-income market, then the customer service strategy might be more focused on providing fast and polite service.
Consulting companies must also document all recommendations to their clients, maintain excellent records and, of course, provide excellent service to its own clients. Consulting companies also typically provide monthly or quarterly reports to clients.
Excellent management, and customer service, is a must. If you do not know how to talk to people, you obviously cannot sell that service to others. Aside from that, you must have good organizational skills and the ability to communicate your message effectively to another company's management.
Working for another consulting agency helps you "get your feet wet," and also gives you the relevant experience.
A business degree may help, but customer service strategies are often driven by experience as opposed to academic theory or study.
Companies are typically run as small agencies. However, larger companies do exist. Some of them cross over from customer service to providing a blend of customer service and management consulting, like McKinsey & Co., Accenture and Marsh & McLennan.
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