Online Consultancy Business – Plan, How To Start

Business Plan to Start Online Consultancy Business

Introduction

If you are aware of the fact about the increasing competition within in countries in terms of GDP, Per-capita, Infrastructure and living standards.

Then the increasing competition among the people in terms of self-actualization, social status, need for appreciation, etc. are the main reasons for the development of various businesses, new ventures, and professions.

These aspects currently would have been different if it wasn’t for the assistance these businesses have made in terms of consultancy, a business that comprises pushing up other businesses.

A step-by-step guide to starting an Online Consultancy Business

The consulting industry in India stands at ₹19,000 crores currently with 2.2 lakh people employed in it. The highly concentrated consulting services are concentrated in Delhi-25.7%, Chennai-12.1%, Mumbai-25.5%, and Calcutta-9.1%.

Guide to starting an Online Consultancy Business
Guide to start a Online Consultancy Business (image credit: pixabay)

The growing need for constant support in the dynamically changing economic, demographical, political, legal, and social environment has driven the consulting service which now paved its way online, a perfect business opportunity you can easily afford.

Market potential of Online Consultancy Business

Online consultancy service, comprises helping people who specialize in helping customers to resolve any issues, projects, and difficulties that are business or profession-oriented at an online platform.

If you have the skills for investigating information and recognizing the best and the most profitable path for a business experiencing any change then you are all set to operate this business.

The online consultancy business is venture based, your project and your contract with the company gets over after your guidance, suggestion and consultancy has been realized by the client. The market potential for this business can be explained based on the types of online consultancy services.

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Types of Online Consultancy Business services

  • Strategy consulting         
  • Marketing consulting    
  • Operation consulting    
  • Financial consulting       
  • HR consulting                    
  • Compliance consulting
  • Technology consulting 
  • Legal consulting
  • Sustainability consulting
  • Sales consulting
  • Wellness consultancy
  • Growth marketing consultancy
  • Wellness coaching consultancy
  • Career coaching consultancy
  • PR consultancy

Uses of Online Consultancy Business Services

Based on the use of online consultancy services

  • For seeking an independent assistance
  • For keeping with the changes in the business setting
  • For seeking financial and HR guidance
  • Economical and inexpensive
  • For starting up a new business immediately
  • Source for temporary proficiency
  • For decision making
  • For time-saving purposes

Advantages of Online Consultancy Business Services

  • Fast-paced
  • Constant knowledge
  • Challenging and satisfying
  • Process of establishing an online consultancy service
  • Identify your expertise
  • Obtain the license you require
  • Identify your target market niche
  • Build your profile
  • Get started with your work

License, registrations required for starting Online Consultancy Business in India

It is very important to register your business similar to any other trade either as a sole proprietorship, or LLC. You must obtain essential trade registrations and business licenses for example the Shop and Establishment Act license. Also, if you plan to sell computer software, some important licenses should be applied. You shall apply for PAN and TAN and must register for suitable taxes such as GST, Vat, etc. Take legal assistance for these as in India, bureaucratic matters do not customarily run effortlessly.

The license essential to set up an online consultancy business is

  • Registration of your business
  • ISI standard registration
  • MSME registration
  • CE certificate
  • GMP certificate
  • Trade license
  • GST registration
  • No Pollution Certificate
  • No Objection Certificate
  • Shop and Establishment Act License

Below is the list of licenses required before starting the Online Consultancy Business making business in India: Registration of firm, GST registration, Trade license, Pollution certificate, MSME/SSI registration, EPI and ESI registrations, Trademark, FSSAI registration, IEC code, FPO act.

  • Business Entity: The first registration for any business is to register it as a business entity by knowing about the form of the organization. It could be as a sole proprietorship or a partnership or a limited liability partnership or a one-person company. This will help in availing a few benefits to the business and must, therefore, be selected carefully before registering the business at the Registrar’s office.
  • Shop Act or Trade License: The Online Consultancy Business for example in Maharashtra, India requires applying for a Shop Act License from the local municipal authority to run the business. This license helps manage the working conditions along with working hours, leaves, wages, holidays, etc. of the employees and supports the business to run smoothly.
  • Udyog Aadhaar Registration: The Online Consultancy Business is categorized as a small business and hence it must be registered under Udyog Aadhaar which is a registration and recognition for MSMEs- micro, small, and medium enterprises.
  • GST Registration: Every business, including the Online Consultancy Business, should associate with taxes at some point and for monitoring a single uniform taxation structure, the business should get a common GST number which stands for Service Tax.
  • BIS certification: Apart from these registrations the business should get BIS certification as well as tax liabilities.

Investment required for starting Online Consultancy Business in India

The investment that is needed to set up an online consultancy service business is about ₹50000-₹1lakh.

Profit in Online Consultancy Business

The profits gained from an online consultancy service business is about ₹5000-₹70000 per month.

Target consumers in Online Consultancy Business

The target consumers for this business are as stated below:

  • Startups: The major target customers for your business are startups who need assistance in terms of tax, funding, strategy, HR, and legal consultancy
  • MSME: The medium and small-scale initiatives also need your consultancy service for the pupated of expanding their business in terms of marketing and strategy consultancy services.
  • Online businesses: The newly established e-commerce business is the main target customer for your online consultancy business in terms of looking for consultancy for compliance, sales, and many other aspects.
  • Students: Students from colleges and universities are also your target customers to seek career guidance in terms of further education like masters, PG courses, etc. through your online consultancy services.
  • Social media: The social media platforms like LinkedIn are also your target customers who focus to boost the presence of their business on that platform and might opt for your consultancy services to broaden it.

Area required to start Online Consultancy Business

The operations can be done from home. To set up an office it might require 200-600 sq. ft. to continue the operations.

Materials required for starting Online Consultancy Business

The raw materials necessary to set this business up are:

  • Computers
  • Printers
  • Software
  • Logo and brand

Manpower required for starting Online Consultancy Business

The manpower essential to set up this online consultancy service is around 5-10 skilled employees.

Business model and growth in Online Consultancy Business

The business model of an online consultancy service can be described using these four variants.

Value proposition: The value of this business is likely to provide to you is No/minimal investment.

High-profit margin: Large target customer base

Target consumers: The target consumer for Online Consultancy Business are:

  • Startups
  • Online business
  • E-commerce websites
  • Social media
  • MSMEs

Competitor review: The major opponents to your online consulting services are as follows:

  • Kelly Services India
  • ABC job placement
  • Randstad

Marketing strategy: The marketing strategy which can be implemented by your business are

  • Google listings
  • Presence on a social platform
  • Pamphlets and Banner hoardings

Growth in Online Consultancy Business

The online consultancy business in India has been observed and has the prospective for the following growth prospects. The online consultancy service in India is predicted to grow at a CAGR of 30%. The growing number of startups and e-commerce based businesses has augmented the incidence of online consultancy businesses.

Profit margin in Online Consultancy Business

You will attain about 50-70% of the profit margin.

Suggestions for making your business a successful one

You may not require to approach an online consultant for this business as it’s just the business you need.

  • Firstly, this business comes with very moderate or no investment and generates incomes with a higher profit margin.
  • Secondly, the targeting customers to this business/service are wide and it’s as easy as a selection of a niche and focusing on it.

Conclusion of starting a online consultancy business in India

We hope, this Online Consultancy Business plan will aid to set up in India will help you to begin your venture in your locality successfully without much investment.

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