Startups…consulting tends to be a fairly low risk business endeavour, but sometimes it paves the way for other opportunities. According to this list of five reasons to create your own start up, an article from the Social Science Research Network says that:
…entrepreneurs who succeeded in a prior venture (i.e., started a company that went public) have a 30% chance of succeeding in their next venture. By contrast, first-time entrepreneurs have only an 18% chance of succeeding and entrepreneurs who previously failed have a 20% chance of succeeding.
So, although most consulting businesses won’t lead you to a $1 billion business sale, the process of starting your own company may help you build a foundation for future success. I realize the quote above references entrepreneurs who take their companies public, but the lesson is the same. Building a business — even a small independent consulting business — teaches you core business management concepts. That’s because independent consultants need to wear many hats — marketer, sales executive, administrator, accountant and so on.
What has starting a consulting business helped you learn?