Making the transition from association professional to consultant can be both exciting and challenging. Drawing on the experiences of four consultants who successfully made the leap, we’ve compiled the 10 considerations that will help you evaluate the opportunity, prepare for the change, and build a successful consulting practice.

1. Define your niche clearly.

Pick an area of focus, whether it be the types of products you work on, the function, the type of association, etc. In a world where everyone can do everything, trust is built in specializing in something you have a proven track record of experience in. Bonus tip: Pilot the idea with others. Sometimes the niche is not what the market needs, so it’s a careful balance between both your niche and something that the market desires.

2. Build a financial runway.

Before you make the leap into consulting, aim to have enough funds set aside to cover at least three to six months of personal and business expenses. You may land your first engagement quickly, but the next one could take months to materialize. A healthy financial buffer gives you the flexibility to make conservative choices early on and avoid accepting work simply because you need immediate cash flow.

3. Understand your expenses.

Costs can vary significantly depending on the services you offer, whether you work virtually or in person, and how much infrastructure you want to build from the start.

Some common expenses include:

• LLC formation and business registration fees, which vary by state
• Office setup costs such as a computer, monitor, desk, chair, and other equipment
• Software subscriptions for tools like Microsoft 365, Canva, QuickBooks, Zoom, project management platforms, and other business applications
• Cloud storage and file-sharing services
• Website design, hosting, domain registration, and maintenance
• A professional email address using your business domain
• Membership dues for professional and industry associations
• Conference registration fees, travel, lodging, and related expenses if networking trips and speaking engagements are part of your business strategy
• Professional services such as an accountant to help with tax planning and preparation, and an attorney to assist with contracts and legal matters
• Marketing expenses, including branding, graphic design, advertising, email marketing platforms, and promotional materials
• Healthcare

4. Develop a brand/marketing plan.

When you’re taking the leap into entrepreneurship, having a defined target audience is essential. Some might say, “I'm going to start consulting” without clearly understanding which market they want to target or what unique value they offer that market. Both elements contribute to your brand’s development. Start with the gaps: In the industry you want to serve, what challenges do you see in your area of expertise, and how can you solve them? Don’t try to boil the ocean; keep it simple and stay in your unique zone of genius (which you do have)!

5. Your network is your pipeline.

In the association community, relationships are everything. Former colleagues, industry peers, and professional connections can become your greatest multipliers by making introductions, sharing opportunities, and referring your services to others. Take every opportunity to build new relationships and nurture the ones you already have. Attend conferences, participate in networking events, and volunteer with organizations such as ASAE. Most importantly, be authentic. Focus on building genuine relationships and being helpful, rather than treating every interaction as a sales opportunity.

6. Plan for taxes.

One of the biggest adjustments to consulting is realizing that you are responsible for managing your own tax obligations. Depending on your circumstances, this may include federal estimated tax payments and applicable state taxes. Find a qualified accountant early who can help you establish a payment process, track your expenses, and identify legitimate deductions. Treat taxes as a regular business expense, set funds aside as revenue comes in, and budget accordingly so deadlines don’t become an unpleasant surprise.

7. Decide whether you want to be a solopreneur or have a team.

The decision to be a solopreneur or hire a team is largely dependent on the scope of your work and how your business progresses over time. Some service models are designed inherently to step into an organization as an individual; in this scenario, solopreneurship makes sense. As the business grows you may expand to a full team, either to multiply the existing model to take on a larger client load, or to expand your portfolio of services. Also, inevitably, clients will have needs adjacent to your scope of work. It may or may not be the work that you want to take on yourself (saying no requires discipline!). In these cases, you may partner with other professionals in the industry, hiring on a contract basis.

8. Success often looks different than expected.

The key to the early days of entrepreneurship is staying disciplined in your offering while remaining flexible to opportunities. Your early supporters might need you for your core offering, plus see an opportunity for you to contribute your skill set in a way you didn’t anticipate. You never know - an opportunity like this might become one of your biggest success stories!

9. Know what you need to earn.

Too many new consultants take their old 9-5 hourly rate and assume that is enough, but there are so many new things you must pay for. While we cannot fix a price for consultants to begin at, do speak to peers and inquire what their rate is.  It’s probably much higher than you're thinking of.  Also, remember that you aren’t billing 40 hours per week.  You will easily spend about half of your time on marketing, sales, networking, operations, accounting, etc., and half of your time in billable hours- so budget set your rate accordingly for that hourly rate. Be realistic about your revenue expectations. If you think you’ll earn the same amount every month, think again. I’ve found we have two big quarters and two slow quarters every year—and year over year those quarters can change.  Also, consider that clients don’t always pay on schedule. Having savings and planning for uneven cash flow can help make the transition less stressful.

While every consulting journey is different, understanding these considerations before making the leap can help you build a stronger foundation for long-term success. If you’re interested in learning more and hearing additional insights from consultants who have successfully made the move, watch the recording of “Transitioning From Association Professional to Consultant” webinar where we shared practical advice from real-world experience.