Startup cost
$500–$5k
TRUiC Business Ideas
How to Start a Customer Service Consulting Business
Decision Snapshot
Customer Service Consulting
Idea Score
64
Profit margin
20%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Low
Time commitment
Full time
Part 1 - How to start a Customer Service Consulting business - Background
Customer service can make or break a business. When a customer calls in with a question, problem, or concern, the way they’re treated often determined whether they will remain a customer or buy from a competitor. Service also determines how well a customer’s problem is addressed and, ultimately, whether the business does a good job solving it.This is why a customer service consulting business is so valuable. It helps businesses and firms improve their customer service by doing customer surveys, offering customer service training lessons, examining the workflow of customer service processes, or trying to develop an improved culture of service.
Our guide is in 3 parts:
- Part 1 - How to start a Customer Service Consulting business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a customer service consulting business?
Costs involved in starting an agency are minimal. You can start with less than $1,000. You will need a CRM system for managing your clients, a computer, and a phone.
What are the ongoing expenses for a customer service consulting business?
Ongoing expenses for a customer service consulting business are minimal. Basically, you have to cover rent and utilities and costs for whatever customer relationship management software you use.
Who is the target market?
Target market are successful businesses that have hit a sticking point in revenues and profit and need help improving customer relationships so they can break through to the next level.
How does a customer service consulting business make money?
Customer service consulting companies make money by charging clients fees for consultation services.
How much can you charge customers?
Most customer service consultants can charge clients between $100/hr and $300/hr for services. The exact charge depends on your experience in the industry and your name recognition. The more successful you are, the more you can charge.
How much profit can a customer service consulting business make?
Profitability is high. Most consulting companies can make a 20% profit margin if they hire assistants to help them with their consulting business. If you’re working alone, your margin is higher, but your total income may be less. Average consultant income ranges between $60,000 per year and $150,000 per year.
How can you make your business more profitable?
Make your business more profitable by partnering with non-competing firms to offer ancillary services. For example, a company may need more than just customer service help. They may need a coordinated marketing and customer service overhaul. If you can provide that to them, then you stand to make more money by consolidating both services into one.
You can also try increasing your fees over time as you gain experience.
Finally, consider creating tiered service levels, where you hire assistants to perform routine consulting jobs based on a service template you design. These lower-cost services could add substantially to your base income.
Day-to-Day and Growth
What happens during a typical day at a customer service consulting business?
A day in the life of a consulting company consists of meeting with clients, following up with prospects and managing client attitude and behaviors.
Most consulting firms spend a lot of time researching their clients’ customers and target market. This takes up the bulk of the time spend on a client’s project. For example, a consulting company working with a coffee shop might spend a significant amount of time researching the local demographic, comparing it to how much the coffee shop charges for its coffee and teas, what type of clientele it is trying to serve, the coffee shop’s location, and so on.
If a coffee shop owner is serving a high-end client, who demands microlots and custom brews, including hand poured coffee, then service should be focused on providing a unique experience for each customer. This is not the type of coffee shop that sells coffee as a commodity.
A consultant might stress the need for knowledgeable baristas with years of experience, education, and training.
If, on the other hand, a coffee shop is mass marketing its coffee to a middle or low-income market, then the customer service strategy might be more focused on providing fast and polite service.
Consulting companies must also document all recommendations to their clients, maintain excellent records and, of course, provide excellent service to its own clients. Consulting companies also typically provide monthly or quarterly reports to clients.
What are some skills and experiences that will help you build a successful customer service consulting business?
Excellent management, and customer service, is a must. If you do not know how to talk to people, you obviously cannot sell that service to others. Aside from that, you must have good organizational skills and the ability to communicate your message effectively to another company’s management.
Working for another consulting agency helps you “get your feet wet,” and also gives you the relevant experience.
A business degree may help, but customer service strategies are often driven by experience as opposed to academic theory or study.
What is the growth potential for a customer service consulting business?
Companies are typically run as small agencies. However, larger companies do exist. Some of them cross over from customer service to providing a blend of customer service and management consulting, like McKinsey & Co., Accenture and Marsh & McLennan.
What are some insider tips for jump starting a customer service consulting business?
Work in industries you understand. It helps to have experience in industries other than consulting. For example, if you’ve been a successful restaurateur in several different markets for 20 years, you probably have a good idea about how to improve customer service in that industry.
You understand the unique challenges of the restaurant business as well as the clientele that frequent various types of restaurants. A 5-star French restaurant, for example, will have a very different client base than an Italian sandwich shop.
How and when to build a team
Build a team only as and when needed. This is a business that’s difficult to scale because it depends on your unique insights into a particular industry or business. Hire support staff (when you can afford it) to take over mundane tasks, like bookkeeping and HR.
Part 2 - Is a Customer Service Consulting business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Customer Service Consulting business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Customer Service Consulting Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Customer Service Consulting business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.