Introduction
Imagine this: You finally started your own consultancy. The first clients trickle in, and you’re making some money. But soon, things get chaotic. You’re juggling several small, unrelated projects, working more hours than you’d planned, and wondering why the freedom you dreamed of feels imposible to achieve.
This is a common scenario for early-stage consultants who never pause to outline their business concept. I’ve seen it - and lived it - in countless engagements. Even the most effective advisor can’t help clients if those clients aren’t clear on their own goals. Likewise, you won’t reach your potential if you haven’t documented your own vision, critical numbers, and engagement strategy.
That’s where your “consultancy concept” comes in. Think of it as a mini-compass - a concise, one-page framework for:
- How much you want to earn (and how hard you’re willing to work for it).
- What type of engagements you’ll deliver (large, in-depth projects vs. smaller, more numerous engagements).
- How you want each week to feel, ensuring you’re building a sustainable practice, not just another job.
Without it, you risk confusion, overwhelm, and wasted resources. With it, you gain focus, clarity, and a roadmap for decisions.
In this article, we’ll explore a three-step process for documenting your consultancy concept:
- The Big Picture: Your vision, your core “why,” and a snapshot of your ideal day.
- The Critical Numbers: Target income, profit ranges, workload, and management preferences.
- The Revenue Blueprint: How you’ll reach your financial goals, including choosing between a few large clients or many smaller ones, setting minimum project sizes, and imagining your future client roster.
You’ll also find an FAQ section at the end, addressing the most common questions consultants ask when documenting the consultancy concept. And if you want a jump start, check out this free PDF (no email needed) that includes three questionnaires - one for clarifying your service orientation, another for your engagement model, and a third for determining your broader consultancy type - plus a one-page template to compile all your answers.
Let’s dig in.
Part 1: The Big Picture
The first item on your consultancy concept is “The Big Picture.” This is where you articulate, in broad strokes, what you want, why you want it, and how running your ideal consulting practice looks in your mind.
Many early-stage consultants jump into client work without ever asking themselves these questions. Yes, you need to bring in business and build momentum, but skipping this step is a recipe for chasing random projects and losing sight of your real goals.
When one of my best friends started his HR practice, his main drive was to achieve location freedom. But then he took on any client who paid. Within a year, he was buried in local, on-site engagements and realized he’d built a job rather than a flexible consultancy. Pivoting two year later was incredibly painful for him.
A written Big Picture spares you that regret.
1.1 What You Want
When we say “What You Want,” we’re talking about both financial (e.g., total income, long-term savings) and qualitative (e.g., the kind of work environment you want, the freedom or lifestyle you envision) goals. For instance, you might say:
- “I want to earn multiple income streams - consulting, digital products, workshops - so I’m not reliant on one source.”
- “I want to work remotely so I’m free from geographical constraints.”
- “I want to devote time only to projects that pay me at least $1,000/hour in effective value - meaning if it’s not that high, I either delegate it or don’t take it on.”
Dream big. Don’t limit yourself to what seems doable right now. If you want a high-value, location-independent practice, claim it. Constraints come later.
1.2 Why You Want It
Next, clarify your personal “why.” Perhaps it’s:
- Independence: Freeing yourself from an endless corporate grind.
- Expertise: You love tackling complex challenges head-on.
- Impact: You believe your consultancy can help businesses innovate, serve new markets, or solve big problems.
- Legacy: You envision writing books, speaking globally, or being recognized as a thought leader.
Most likely, it's a mix of these things. Here's an example: “I want to be a recognized expert who helps small technology firms scale globally while creating a healthy, fulfilling life for myself and my family.”
No need to overcomplicate it - just be sure it’s powerful enough to keep you motivated.
1.3 Your Ideal Day
While it might sound abstract, imagining your ideal day is a powerful exercise. It forces you to think about:
- Time constraints (there are only so many hours in a day).
- Priority tasks (writing, designing frameworks, client calls, outreach, personal development, etc.).
- Personal or family commitments (gym time, dropping kids at school, or personal hobbies).
To write it down, you may ask questions like:
- What time do you start and end work?
- How many client calls do you want per day?
- When do you handle writing, research, or other creative tasks?
- Which tasks do you plan to delegate to contractors or employees?
Real life will throw curveballs - urgent client needs, travel days, and emergencies. But having a default structure ensures you prioritize high-value activities (like content creation or relationship-building) rather than always reacting to daily fires.
Quick Summary: The Big Picture
- What it covers: Your broad aspirations (financial and lifestyle), your personal “why,” and a vision of your ideal day.
- Why it matters: Provides a motivating North Star that keeps you focused on what truly matters, rather than chasing short-term gains.
- Action: Brainstorm 3–5 bullet points describing your dream consultancy, articulate your “why,” and block out your ideal day schedule.
(Want to see an example for your Big Picture? Grab our one-page template, no email required.)
Part 2: The Critical Numbers
Once you’ve clarified what you want, why you want it, and how you’d like to spend your time, it’s useful to ground those aspirations in hard numbers. This step saves you from undervaluing your work, overloading yourself, or letting your business drift without direction. Focus on:
- Your Target Income
- Your Profit Range
- Your Revenue Ranges
- Maximum Workload
- Management Preferences & Team Size
Many consultants skip these financial fundamentals, then wonder why they’re stuck spinning their wheels.
2.1 Your Target Income (Personal Compensation)
How much do you want to earn (net income for yourself)? Break it down into:
Short-Term (12 months): Many founders set $100k a year for net personal compensation as a first milestone. It’s a good psychological “six-figure” mark, though you can set $80k, $120k, or $150k if that resonates more.
Long-Term (5 years): This is where you see your annual compensation once the business matures. $300k? $500k? The number will depend on your ambitions and preferred lifestyle, but it’s good to remember each additional dollar will typically require more time, energy, or staff. The few founders I’ve met who aimed at bringing 7-figures of profit home ended up making huge sacrifices that impacted their health and family life.
2.2 Your Profit Range
To meet your target income, your profit (EBIT) must be higher. You’ll have taxes, expenses, subscriptions, staff, and so on. You might also want to reinvest part of the profit to scale or create a safety net. A 1.3–1.6 multiplier is a handy rule of thumb:
- Lower bound profit = (Desired income) × 1.3
- Upper bound profit = (Desired income) × 1.6
For $100,000 in net income: $130,000 as a lower bound profit, $160,000 as an upper bound.
2.3 Your Revenue Ranges
From those profit targets, you can reverse-engineer approximate revenue. Let’s apply some typical multipliers:
- For profit goals below $300,000, assume you need 1.4x revenue at the low end, and 2.0x at the high end.
- For profit goals $300,000 or above, you might bump that to 2.5x on the low end and 5.0x on the high end, reflecting the higher complexity or overhead often needed at scale.
So if your lower bound profit is $130,000 (under $300k):
- Revenue (low) = $130,000 x 1.4 = $182,000
- Revenue (high) = $130,000 x 2.0 = $260,000
This gives you a decent range ($182k–$260k) for a short-term revenue target. Remember, these are ballpark figures - there are many ways you can improve your margins and capture more of what you sell. The point is to have a framework for deciding if your rates or client volumes align with your ambitions.
2.4 Maximum Workload
How many hours are you willing and able to work per week?
- Side-gig: <20 hours
- Balanced: 20–40 hours
- Build mode: 40–55 hours
Remember, workload includes not just paid client time but also marketing and business development, strategy, admin tasks. In your estimate, account for everything.
2.5 Management Preferences & Team Size
Do you see yourself managing a team in the near future? How many people do you eventually want on board? 2, 10, or 50?
No two consultancies are exactly alike - some are built as a practice (or “lifestyle boutique”), while others aim to become a performance (or “scale-oriented”) business. This distinction has a massive impact on how you manage everything from pricing and staffing to branding and exit strategies.
Both can be successful, but it’s important to clarify which orientation you want your consultancy to have.
Practice (Lifestyle Boutique) Consultancy:
- Usually revolves around your personal brand or expertise. You are the face of the business.
- May hire minimal staff - perhaps a part-time assistant in the beginning, expanding to an internal team of 5 to 13 FTEs. You work closely with each person in the team, and have full visibility on what they’re doing.
- Prefers steady, sustainable income to large but risky growth initiatives.
- Lacks a major “exit strategy” (selling the consultancy) because it’s an extension of you. The business was designed to fit your preferred lifestyle.
Many practice-style founders love their hands-on role with clients and value the work-life balance it affords. It’s not necessarily smaller in revenue - some practices can be highly profitable—but growth is often limited by the founder’s time and involvement.
Performance (Scale-Oriented) Consultancy:
- Intends to serve clients across multiple markets or locations.
- Plans to hire employees to manage and deliver core services, aiming to operate without day-to-day founder dependence. Often has an internal team of 15 to 50 FTEs during the “scale-up” phase, and the few ones who manage to successfully cross it end up with a team of 50 to 250 FTEs. Here everything gets measured, everyone has a role and responsibilities, and people need to stick to it - it's the required structure for the firm to function.
- Often invests heavily in brand identity, standardized processes, and robust management systems.
- Typically include an exit strategy (eventual sale of the firm).
Performance consultancies treat scaling like a strategic priority. The founder’s personal engagement with each client gradually diminishes, allowing the business to continue to grow without much hands-on involvement. Founders have a “built-to-sell” mindset.
This distinction is often useful for you to come up with a ballpark number of how many people (if any) you want or are willing to manage in your consultancy.
Get the quick questionnaire to help you identify your consultancy’s orientation - no email needed.
Quick Summary: The Critical Numbers
- What it covers: Your desired income, profit range, revenue range, workload, and potential team size.
- Why it matters: Protects you from undercharging, overworking, or building a model that can’t meet your lifestyle goals.
- Action: Write down specific numbers (or ranges) for each category and do a quick “reality check” to confirm they align with the type of consultancy you want to build.
Part 3: The Revenue Blueprint
With The Big Picture and The Critical Numbers set, the last big piece is your Revenue Blueprint: how you’ll actually generate revenue at your chosen scale, with the client types you want.
This is where many consultants get stuck if they haven’t clarified the fundamentals. They jump into marketing or service design without knowing how many clients they need, how big each deal should be, or whether they even want a large roster.
3.1 Engagement Model
Consultancies typically choose between two high-level engagement models:
- Small Number of Clients, Each Spending a Lot
- Sometimes called “elephant hunting.”
- High per-project fees ($50k, $100k, or more).
- Pros: Potentially large paydays, deep client relationships.
- Cons: Revenue can be lumpy; losing one client can sting.
- Large Number of Clients, Each Spending a Little
- Sometimes called “rabbit hunting.”
- More clients at lower fees ($5k, $10k, or $15k).
- Pros: Diversified income, safer if one client drops off, simpler if you standardize your offer well.
- Cons: Requires robust systems to handle higher volume; you’ll need significant marketing.
We recommend picking one, because it’s extremely difficult to juggle both simultaneously. Managing finances, priorities, and marketing strategies for two vastly different engagement sizes often leads to confusion and inefficiency.
What if you’re “in the middle?”
- For example, your revenue target is $300k, and you think you can handle 10 clients a year. That implies $30k average per client.
- Now ask yourself: Is $30k feasible in your market? If not, maybe you need to handle more clients at a lower price point - or consider that you might be undervaluing your services (doubling your current fees might still be reasonable if you package and position effectively).
If you need help to define your engagement model, you can find a quick questionnaire alongside our consultancy concept template here.
3.2 Minimum Client Lifetime Value (LTV)
Once you pick an engagement model, decide on a minimum client lifetime value (LTV). For instance:
- “Every client must be worth at least $50,000 over 12 months.”
- “I’ll take $10k LTV but aim for 20–30 clients a year.”
Defining this threshold helps you not only filter prospects, but also make sure the services you are offering now can help you reach your financial, workload, and team size numbers. Chances are:
- Your current pricing is too low: The services you are offering or had in mind are priced way lower than your minimum LTV, so you would need to sell and deliver to more clients than your ideal capacity to hit your revenue targets; or
- You are the delivery bottleneck: You are dedicating way too much time to deliver your services to each client, so even if you could sell as many engagements as you want to, this would require working more hours than your maximum ideal workload; or
- You're more labor-intensive than you’d like to: Delivering the amount of work you need to see to reach your revenue goals would require a larger team/staff than what you’re willing to manage.
All of these are signs that your current services cannot help you reach your critical numbers, even if you have a waiting list of clients that want to hire you. That’s why the exercise of crafting your consultancy concept is useful. It prevents you from undervaluing your time or taking on “busywork” that doesn’t align with your firm’s financial and lifestyle goals.
3.3 Ideal Client Roster
Finally, visualize your short- and long-term rosters. Here's an example:
- Short Term (12 months): 5 retainer clients at $3k/month plus one ad-hoc project priced at $30k.
- Long Term (5 years): 8 retainer clients at $5k/month, plus a low-touch membership or digital product with 50 paying members at $5k/year.
This exercise brings your financial forecasts to life. It translates your broad revenue targets into a concrete image of what your client bench could look like.
To do this, it’s helpful to forget your current pricing or service formats - focus on where you want to be. You might add advisory retainers, digital products, speaking engagements, or licensing fees.
If you find that meeting your $300k revenue target means signing 15 clients at $20k each, but you only want to manage 6 clients at a time, that’s a sign you need to restructure your offer or raise your average deal size.
Quick Summary: The Revenue Blueprint
- What it covers: Your preferred engagement model (elephant or rabbit), a minimum LTV, and a vision of your ideal client roster.
- Why it matters: Bridges your numbers with actual client acquisition and service strategies, preventing you from chasing deals that don’t align.
- Action: Decide if you’ll serve a few high-paying clients or many smaller ones, set a minimum LTV, and outline how many clients/projects you want short-term vs. long-term.
FAQ (Frequently Asked Questions)
Below is a compilation of FAQs that come up when consultants define their business concepts. Each question is based on real challenges.
- “Do I really need to narrow down to one engagement model? Can’t I serve both large and small clients?”
- Technically, yes - but it’s an uphill battle. Each model demands different marketing, operational structures, and delivery processes. Attempting both often causes confusion and diluted brand positioning. If you’re torn, do scenario planning for each approach. If you still end up “in the middle,” calculate your average engagement size and consider if you’re undervaluing your work.
- “What if I’m just starting out and have no idea how to set an income target?”
- Use ballpark figures. For Year 1, you might guess $60k, $80k, or $100k in personal compensation. Then back into the profit and revenue ranges. Even if you’re off by 25–50%, you’ll have a roadmap for pricing and marketing. Refine as real data arrives.
- “How often should I revisit my consultancy concept?”
- A yearly check-in works well for most. Also revisit if you hit a big milestone or feel stuck. It’s a living document, not a rigid plan.
- “How detailed should my ‘ideal day’ be?”
- That depends on your style. Some prefer hour-by-hour, others block out general periods for deep work, calls, or marketing. The goal is ensuring your schedule aligns with your key priorities - client delivery, biz dev, personal downtime.
- “Do I really need a team?”
- Not necessarily. Some consultancies thrive with a “solo operator + specialized contractors” approach. Others aim to hire staff for synergy and scalability. If your 5-year vision involves stepping away from day-to-day client work, you’ll likely need employees or associates who can run the show.
- “Isn’t all this planning just distracting me from selling and growing?”
- Yes, you need clients - no argument there. But a baseline plan ensures you’re not just desperately selling; you’re selling to the right clients at the right price. That’s the recipe for sustainable, profitable growth. Also, this isn’t a 100-page plan; it’s typically a one-pager (plus some quick calculations).
- “Can I skip formalizing all this if I’m already making good money organically?”
- You can, but you might be leaving higher profits and personal satisfaction on the table. A documented concept helps you avoid stagnation or random growth. It’s also a powerful motivational reminder to keep pushing your boundaries - personally and in your market.
- “Where can I find more structured prompts and a one-page template?”
- We’ve created an ungated PDF with three sets of questionnaires - one for clarifying your service orientation, another for engagement type, and a third for determining the broader type of consultancy you’re leaning toward. It also contains a one-page template that consolidates your answers into a concise business concept. No email signup required - you can find the link to it below.
Putting It All Together
Documenting your consultancy concept isn’t about creating a rigid rulebook. It’s about putting your dreams, preferences, and numbers into a concise document that you can refer to - and revise -whenever you need direction. The payoff is huge:
- Less Randomness: You’ll waste less time chasing projects that don’t fit your long-term goals.
- Higher Earnings, More Focus: By reverse-engineering your revenue targets and picking an engagement model, you’ll price more confidently and deliver better results.
- A Sustainable Lifestyle: An ideal day plus clarity on your workload and team preferences helps you avoid the hamster wheel of overwork.
- Better Decision-Making: When you face forks in the road - new partnership offers, big potential client leads, or expansions - you can see if they align with your documented concept.
Once you’ve read this guide, take action:
- Grab the free PDF (no email required).
- Complete the three questionnaires (Service Orientation, Engagement Type, Consultancy Type).
- Use the one-page template provided to put it all together.
Keep it handy - on your desktop, in your cloud notes, or pinned to your office wall - so you can look at it whenever you sense you’re drifting off-course. Then review it once a year to see if you’re on the right track or if any of your preferences have changed.
Clarity leads to confidence, confidence leads to better clients, and better clients lead to the kind of profitability and lifestyle freedom you initially dreamed of. That’s the real magic of writing everything down. Good luck - and happy building!