Starting a consulting business? Get up and running in 5 steps

If you’re taking your consulting expertise directly to the market, congratulations! It’s great that you’ve decided to take the leap and start your own business. 

It’s a smart move. The UK consulting market is valued at over £20 billion and is expected to keep growing, especially in areas like digital, AI, and sustainability.

The great news is you don’t need an office to start a consulting business — just a laptop, a strong idea, and a plan.

But we know that becoming your own boss can feel daunting.  So, consider this guide your helping hand. We’ll walk you through the essentials, from how to keep your business admin simple to what you might charge for your services.  

Ready? Let’s dive in.

In this article:

• What do I need to start a consulting business in the UK?
• How much does it cost to start a consulting business?
• How to start a consulting business
• What insurance do I need to start a consulting company?
• Do I need a licence to start a consulting business?
• What can I charge as a business consultant?
• What are the best consulting businesses to start in the UK?
• Tips for starting a consulting business
• Starting a consulting business checklist
• Should I start a consulting business?

One of the best things about consulting is the relatively low barrier to entry. This means you can keep your startup very lean with minimal costs.

To get going, you mostly need digital tools, an official way to register your company, and a professional safety net. 

Let’s look at the essentials:

• Professional tools: You need a reliable laptop, a secure internet connection, a professional email address, and access to an online meeting or collaboration tool (like Zoom or Microsoft Teams) so you can book virtual meetings with clients 
• Legal structure: You need to choose a clear business structure to operate under — consultants usually choose between setting up a limited company or operating as a sole trader
• Business account: To keep your business and personal finances separate, which makes tax filing and reporting easier, it’s a good idea to open a business current account. FYI: this is a requirement for limited companies 
• Insurance: Protecting your business against any claims or where your advice is misinterpreted is really important, so you may want to consider taking out professional indemnity insurance
• Contracts: You can find simple contract templates online or get them drafted by a legal professional. Specifically, you’ll most likely need client agreements (also called statements of work) for each project. A non-disclosure agreement (NDA) template is often needed if you’re handling sensitive client information

Unlike other industries, you generally don’t need expensive equipment to start a consulting business. If you have a way to communicate with clients and a way to deliver your advice, you’re pretty much good to go. 

If you’re worried about breaking the bank to launch your startup, don’t be. Because you’re selling consulting services, your overheads will be quite small. 

Generally, you can get a lean startup consulting business up and running for as little as £500.

Expense	Typical cost	Cost details
Company registration	£12 – £50	The fee to register a limited company at Companies House is £50 or £12 if you let Countingup handle your company registration for you
Insurance (Professional indemnity insurance)	£100 – £500 per year	Your most important business essential if you’re setting up as a consultant
Website and domain	£50 – £200 per year	A domain name and hosting for a simple, professional website
Software	£10 – £50 per month	Project management tools (like Trello), accounting software, and professional email (this could be included in your website and domain bundle, though)
Business bank account	£0 – £10 per month	Costs vary but many providers like Countingup offer free or very low-cost accounts for startups

You can spend more, of course. You might choose to invest in your branding or decide you want co-working space membership — but strictly speaking, you can start getting clients and earning with very little upfront investment.

Now it’s time to make your business consulting company official!

If you’re wondering how to start a consulting business, we’ll show you how to take your expertise and package it into a thriving company — in just five easy steps.

You want to be the expert that people hunt down because you solve a very specific (and hopefully expensive) problem. Look at your experience. Where have you added the most value in your career? 

Research shows that UK consumers are willing to pay more for better service and deeper expertise, so don’t be afraid to narrow your focus — it could help you market your services more effectively. 

• Define your expertise: For example, “I’m a business consultant” doesn’t tell your potential clients what you do or the value you bring. “I help fintech startups navigate the complexities of FCA compliance” does. The more specific you are, the easier it is for your ideal client to find you
• Follow the demand: Look for where the UK market is showing growth. Current high-demand areas include digital transformation, ESG (environmental, social, and governance), and cybersecurity. Specialising in a future-focused niche will give your business a huge advantage
• Do your research: Take some time to look at competitors in your space. What are they charging? What are they not offering? Knowing what others are doing helps you create a unique value proposition that sets your business apart

The goal here is clarity. You don’t need to write a big, multi-page business plan. Just aim to create a document that helps you clearly define your services and financial goals. 

Your business plan should include:

1. Your services and fees: Write down what problems you solve and what your pricing structure looks like (whether you charge by the hour, day or per project)
2. Your target client: Create a clear profile of the companies or people who need your help the most
3. Financial projections: Consider the amount of money you need to make to cover your costs and pay yourself a good salary. This helps you work out your minimum daily rate

If you’re not someone who likes putting pen to paper, you might be interested to know that research shows that describing your goals in written form is strongly associated with goal success — so get those goals out of your head and onto the page! 

This is where you decide how you’ll legally trade. 

For a startup consulting business in the UK, you generally have two choices: operate as a sole trader or set up a limited company. Let’s look at the differences between these two structures:

• Sole trader: This is the simplest option. You and your business are treated as one single entity for tax and legal purposes. It’s quick to set up (you just need to register for self-assessment with HMRC), but you’re personally responsible for any business debts
• Limited company: Setting up a limited company makes you and your business a separate legal entity. It means your personal assets (like your home and car) are protected if the business runs into financial difficulty — a big advantage for many first-time founders

While there’s a bit more admin when you set up a limited company, with the right tools — like our business current account — the extra paperwork is very manageable, making the liability protection worth it. This is what makes the limited company structure popular with business consultant startups. 

Once you’ve decided on your structure, it’s time to make it official.

If you choose to be a sole trader, you just need to inform HMRC that you’re self-employed. Easy-peasy.

If you opt for the greater protection of a limited company, you’ll need to register it with Companies House. You can register your company yourself on the Companies House website, or you can choose to use Countingup’s company registration service.

With Countingup, the process is quick and simple. Our team handles the application for you, and you can start trading within 24 hours. 

Think of your website as your digital shopfront. At a minimum, it should be a clean, professional website that explains who you are, what you do, and how to contact you.

To help get you started, you can use this simple page structure to plan your website content:

1. Home: State what your consulting business offers — include the specific problem you solve and position your services towards your target audience 
2. Services: Clearly outline your solutions, process and fee structure — be as transparent as possible
3. Case studies and testimonials: Make sure you include proof that you’re good at what you do — you could ask previous colleagues and clients to provide testimonials as a way to get started 
4. Contact: Include your business phone number, business email, or a simple contact form so clients can book a discovery meeting

Once your website is up, the final step is to open a business current account. 

This separates your business and personal finances, whilst keeping your finances tidy and making tax time infinitely less stressful. To recap: having a business bank account is a legal requirement for all limited companies. 

For a consultant, insurance provides a safety net against any claims or unexpected issues.  For instance, if there’s any loss of client data — or if a client trips and injures themselves in your office. 

Generally, if you want to work with large corporate clients, they expect you to have insurance in place. Many won’t want to sign a contract with consultants who are uninsured.

Large clients aside, the most important policy for anyone starting a business consulting company is:

• Professional indemnity insurance: This is your main line of defence. It protects you financially if a client claims you gave them bad advice, made a mistake, or were negligent, leading to a financial loss for them. It covers the legal costs of defending the claim and any compensation you might have to pay.

Depending on your set-up and business plans, you might also want to consider:

• Public liability insurance: This insurance covers you if a member of the public (like your clients, or anyone working in their offices) is injured or has their property damaged because of your business activities
• Cyber liability insurance: If you handle sensitive client data (which nearly all consultants do), this covers the cost and liability of a data breach or cyberattack
• Employers’ liability insurance: This is a legal requirement if you decide to hire any staff down the line — even if they’re part-time or temporary

In the UK, you do not need a specific licence to start a consulting business or to work as a business consultant. Unlike certain regulated industries (like financial advice or legal services, which require specific qualifications and authorisations from the FCA), the general consulting industry is unregulated. 

Your expertise, reputation, and professional indemnity insurance are your credentials. 

However, one thing to bear in mind is: if you store client data (names, emails, details) on your laptop or phone — which you almost certainly will — you usually need to pay a small data protection fee to the Information Commissioner’s Office (ICO). 

This is because, under the Data Protection Act 2018 and GDPR rules,  all organisations (including sole traders and limited companies) that process personal information electronically must pay an annual data protection fee to the ICO. This includes consulting and advisory services. 

There are exemptions, but this is focused towards charitable organisations and not-for-profits. 

Starting a business consulting company allows you to break free from a fixed salary, but setting your rate can be tricky — or fun, depending on your perspective!

Because you’re selling high-value expertise, your rates should reflect that. 

How much you charge depends on your niche, experience, and the fee structure you choose. Let’s look at the common fee structures now. 

Fee structures
The three main ways a startup business consultant charges are:

Fee structure	How it works	Best for
Day rate	A fixed daily fee for your time	Short-term projects or defined blocks of time
Project fee	A fixed fee for an agreed set of deliverables (e.g. £5,000 for a three-month strategy plan)	Projects with a clear scope and defined outcome
Retainer fee	A fixed monthly fee for a set amount of availability or ongoing service (e.g. five days of support per month)	Long-term partnerships and ongoing client support

Ballpark figures
For independent consultants, the day rate is a good benchmark to research and focus on.

You’ll find that rates can vary hugely, especially by location (for example, the typical consultancy day rate in London in 2024/2025 is £575), but here are some rough industry averages for day rates in the UK:

Experience level	Typical UK day rate
Junior/mid-level specialist	£300 – £700
Senior consultant/manager	£700 – £1,500+
Highly experienced/niche strategist	£1,500 – £3,000+

So, when you’re pricing up your services, consider these hidden costs. Don’t let yourself get caught out — charge extra for your niche so you’re always rewarded for the high commitment your expertise requires. 

The UK consulting sector is growing rapidly, with total industry revenue currently valued at over £20 billion (2024). 

But where is the demand right now?

Generally, demand is strongest in areas where businesses are tackling major shifts. Here are the current top growth areas:

• Digital transformation and AI: Businesses are busy figuring out how to integrate new digital tools and AI, so consultants with expertise in cloud computing, data analytics, and implementing AI strategies could flourish in this area 
• ESG and sustainability: Environmental, social, and governance (ESG) consulting is on the rise as consumers and regulators demand greener business practices. You’ll be considered hugely valuable if you can help businesses become more sustainable and ESG compliant
• Cybersecurity and risk: With increasing cyber threats, including data hacks and customer scams, UK businesses need specialists to help secure their systems and train their staff
• Business operations and cost reduction: Companies are always looking for ways to save money, so if you’re an expert in streamlining processes and finding ways to increase efficiency, you could find huge opportunities in this area

A few simple strategies can help you transform from being an expert into being a successful business owner with a flourishing consulting business.

It can be tempting to try to talk to everyone — but to use an old marketing adage, if you’re talking to everyone, you’re talking to no one. Spend time thinking about how best to connect with your defined target audience — from your messaging to what case studies you put on your website.

Your unique selling point (USP) should be clear and connected to what your target audience is looking for. For example, instead of offering “HR consulting,” you could specialise in “attracting and retaining talent for UK tech startups.” By clearly communicating your niche expertise, you can potentially charge premium rates because you are the definitive expert.

Finding new clients every month could get exhausting. It’s a good idea to try and get clients on a retainer pricing model. This is where clients pay you a fixed monthly fee for a set amount of support. It gives you much more stability — and lets you sleep easier at night.

Your first few clients will likely be ex-colleagues, old bosses, or friends of friends. Let everyone know you are starting a consulting business. Buy people coffee. Reconnect. Attend industry events, be active on LinkedIn, and reach out to other consultants who work in adjacent areas — they can become your best source of referrals. 

The key to business ownership is organisation — and this includes getting your finances sorted. Choose a business current account that automatically categorises transactions and prepares your tax data — this helps to relieve stress, especially at tax time. 

Ready to take the leap into consulting? Here’s a handy checklist to get you on your way: 

1. Define your niche: What specific problem do you solve?
2. Create your business plan: Who is your target client, and what are your services and fees?
3. Choose your structure: Will you operate as a sole trader or a limited company?
4. Register your company: Formalise your business with HMRC or Companies House — have you checked your preferred business name is available using our company name availability checker?
5. Open your business bank account: Have you chosen your preferred business bank?
6. Get insured: Have you bought your professional indemnity insurance and other relevant insurance policies? 
7. Build your website: Do you have everything you need to create a website that brings your value to life? 
8. Set your rates: Have you undersold or underpriced yourself? Know your worth! 

If you crave autonomy, have a valuable skill, and want the potential to earn more than your current salary, then you could definitely consider setting up a consulting business.

You do have to be comfortable with a bit of uncertainty, and you have to be willing to sell yourself. But for many, the trade-off is absolutely worth it. You get to build something that is yours, after all.

If you’re on the fence, don’t worry, we’ve put together the main advantages and disadvantages of starting a consulting business:

Pros of starting a consulting business	Cons of starting a consulting business
High earning potential	Clients can come and go — you need to budget for slow months
Flexibility — you decide your hours, location, and clients	You constantly need to market yourself and pitch for new work
Low overheads — you only need a laptop and insurance	Clients expect big results for high fees, which can lead to high pressure
Impact — you get to solve challenging problems for businesses	Handling contracts, invoicing, and tax can take up valuable time

Ultimately, starting a consulting business means you have complete control over your time and your income.

We’ve got your back, though. Our business current account is built for small limited companies like yours. It simplifies tax preparation and invoicing so you can focus on what you love.

If you’re looking for a little more business support, head over to our resource hub where you’ll find guides, tips and advice on company formation, finances and growing a business. 

It’s technically possible to start a consulting business with no direct experience, but it’s not advisable. Your core product is your expertise, and clients expect a proven track record. Focus on getting significant experience in your chosen field first, then launch when you can confidently guarantee results.

Yes. In the UK, you must tell HMRC that you are trading, either by registering as a sole trader (which just means notifying them of your income via a self-assessment tax return) or by registering a limited company with Companies House. 

Yes, you can. A nonprofit consulting firm typically offers services to charities, social enterprises, or other nonprofit organisations, often at a reduced rate or for free. You need to register the business as a non-profit organisation or charity with the Charity Commission and Companies House.