What are the pros and cons of starting a budget consultant business?
A budget consultant business has a few pros and cons, which you should be aware of before getting started.
Here are the high level benefits and drawbacks of a budget consultant business:
|• Flexibility||• Low margins|
|• Ability to start your business from home||• Taxes|
|• Meaningful business connections||• Niche Market|
|• High customer retention rates||• You may need to charge sales tax|
|• Pick & choose the clients you work with||• Customer churn|
|• Unlimited income potential||• Time commitment|
|• Gain exposure and experience||• Difficult to build trust with your customer|
|• You are your own boss!||• Impatient customers|
|• Predictable income stream||• Difficult to scale|
|• Higher likelihood of getting referrals||• Learning Curve|
|• Simple business model||• Answering Phones|
|• Greater Income Potential||• More challenging to earn passive income|
|• You get to do something you truly love|
|• You can decide who you work with|
|• Express your opinions|
|• Strong Demand & Relatively Recession Proof|
|• You establish yourself as an expert|
|• You can work from anywhere!|
|• Results and revenue happen quickly!|
You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
• Ability to start your business from home
It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
• Meaningful business connections
You never know who you will meet or get to work with for your budget consultant business. This could be the start of an incredible business opportunity!
• High customer retention rates
Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your budget consultant business becomes an integral piece of their every day lives.
• Pick & choose the clients you work with
Budget Consultant Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
• Unlimited income potential
With your budget consultant business, there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
• Gain exposure and experience
This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
• You are your own boss!
With starting a budget consultant business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
• Predictable income stream
With a budget consultant business, your income stream is typically predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!
• Higher likelihood of getting referrals
The budget consultant business is all about referrals, which is a very effective way of attracting and retaining customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.
• Simple business model
A budget consultant business has the advantage of a simple business model, which makes launching and building the business more seamless.
• Greater Income Potential
When you start your own budget consultant business, you have the ability to make as much money as you want. You no longer work for someone else where at any point, you could be let go or get a pay cut.
• You get to do something you truly love
With starting a budget consultant business, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.
• You can decide who you work with
Gone are the days of working in a toxic work environment with employees that you may not vibe with. As a small business owner, you get to decide who you work and surround yourself with.
• Express your opinions
With your budget consultant business, you have the ability to get your point across and express your opinions to a large audience, which can be very empowering.
• Strong Demand & Relatively Recession Proof
The demand for budget consultant business is increasing year over year and the business is known to be relatively recession proof.
• You establish yourself as an expert
Starting a budget consultant business helps to establish yourself as an expert in your niche. In return, people are more likely to trust you, refer you to friends/family, and support your business.
• You can work from anywhere!
Not only can you start your budget consultant business from home, you can also run your business from anywhere in the world. This is the entrepreneur dream.
• Results and revenue happen quickly!
Unlike other businesses, it can be relatively quick to start seeing results and revenue for your budget consultant business. As long as you follow all the steps to validate your idea before launch, you are likely to see immediate results and ROI.
• Low margins
The gross margins for your budget consultant business are typically around 32%, which can make it more challenging to incur new expenses and maintain profitability.
As a budget consultant business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
• Niche Market
A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
• You may need to charge sales tax
If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article
• Customer churn
With a budget consultant business, people can cancel their subscription - which can make income unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
• Time commitment
With starting a budget consultant business, all responsibilities and duties will be in your hands. Although this is not necessarily a negative thing, it's important to understand that your work-life balance may be a bit unbalanced at times. This can place a strain on friends and family and add to the pressure of launching a new business.
• Difficult to build trust with your customer
With a budget consultant business and any online business, there is little physical interaction, which means it can be a lot more difficult to establish trust and clout with your customers. You'll need to go the extra mile with your customer to grab their attention as soon as they reach your site + assure them that your brand is legit and trustworthy.
• Impatient customers
Your budget consultant business may offer an engaging user experience for your customer, but it's important to note that customers expect a lot when it comes to your product, and are more likely to become impatient with you and your product if there are any bugs or equipment breakdowns.
• Difficult to scale
With a budget consultant business, it can be challenging to find ways to scale. Check out this article that discusses scaling your business and the challenges that come with it.
• Learning Curve
When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.
• Answering Phones
The budget consultant business is still considered a traditional business, which means answering phones is a big part of the job. If you or your team miss phone calls, you could be missing out on potential revenue opportunities. If you are unable to attend to your phone throughout the day, it would be in your best interest to hire a call center or an employee dedicated to this.
• More challenging to earn passive income
One of the disadvantages of starting a budget consultant business is that it's much more challenging to make passive income. Typically, the amount of revenue you bring in is limited by the amount of time you have in the day and there is a ceiling to your earning potential.