Startup cost
$500–$5k
TRUiC Business Ideas
How to Start a Project Management Consulting Business
Decision Snapshot
Project Management Consulting
Idea Score
69
Profit margin
41%
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 Project Management Consulting business - Background
Managers who have to juggle complex business projects are under a lot of stress. This is why project management consultants are so valuable. They use their expertise within a specific field to help other businesses and firms to develop and manage a project. It reduces the stress managers experience and helps a business complete a project on schedule and within its budget.
Consultants typically assist upper level management in overseeing a project from its beginning to its completion, providing a “soup to nuts” service that’s often very “hands on.”
You may also be interested in additional low cost business ideas.
Our guide is in 3 parts:
- Part 1 - How to start a Project Management 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 project management consulting business?
A project management consulting business is a low overhead business. You only need access to a computer, a phone, and a small office to run this business. You can start for less than $1,000.
What are the ongoing expenses for a project management consulting business?
Ongoing expenses are minimal and include costs for office space, computer maintenance and software maintenance and upgrades for project management applications. These costs may range from several hundred dollars per month to several thousand dollars, depending on how large the agency is.
Who is the target market?
Target market for this service are reasonably successful businesses that need help planning and completing complex business projects.
How does a project management consulting business make money?
Project management consulting businesses make money by charging clients a fee for service (per project) or a per-hour fee for consulting. Service contracts are common in some industries, but many businesses hire consultants on a per project or even a per-month basis.
How much can you charge customers?
Project management consultants can charge anywhere between $100 and $500 per hour for consulting. Consultants can also charge on a “per-project” basis, with fees ranging from $1,000 to several hundred thousand dollars.
How much profit can a project management consulting business make?
Project management consultants can make anywhere from $50,000 per year per consultant to $1 million or more in fees for large projects with large corporate clients.
How can you make your business more profitable?
If you want to make the business even more profitable, consider partnering with other non-competing consultants. For example, a project management consultant may need the help of a marketing consultant, a customer service consultant, or some other outside agency which can implement some or all the solutions your agency proposes for your client. By becoming a “one stop shop,” you can simplify the process for your clients, making it more convenient to do business with you.
This, in turn, can command higher consulting fees.
Day-to-Day and Growth
What happens during a typical day at a project management consulting business?
A typical day at a project management consulting firm consists of meeting with clients, reviewing a project’s scope, analyzing key performance indicators, and assessing the viability of various projects a business wants to undertake.
Consultants must perform detailed analysis of a project and submit reports to management and sometimes the board of directors to get approval for funding and even the project itself.
A project management consulting business may juggle many different projects at once, relying on an organized system of assistants and templates to complete various project milestones.
Consulting companies must also manage client expectations, behaviors, and attitudes toward the project and set realistic expectations about completion times and budgets.
What are some skills and experiences that will help you build a successful project management consulting business?
Business consultants are highly specialized in their education. They often have extensive experience in business management, project management, and financial management. Project managers must have excellent time management and communication skills. Finally, the consultant must understand all aspects of the project management process that most corporations use.
What is the growth potential for a project management consulting business?
This type of consulting business can grow into a large enterprise, but most businesses are run as small agencies. This is because project management consulting is a highly specialized industry where only one or a few individuals have the expertise to advice a business through all stages of a project. Therefore, it’s difficult to scale this business.
What are some insider tips for jump starting a project management consulting business?
Work with local businesses that you already have relationships with. Consider approaching local businesses and offering them complimentary services in exchange for testimonials or referrals for successfully completed projects. You may have to offer discounted rates until your name recognition is enough to command higher fees.
How and when to build a team
Building a team isn’t necessary, but some agencies decide to hire assistants to handle various aspects of the consulting process. Sometimes, an assistant can reduce some of the workload of a consultant by performing routine tasks, working from a template. This can save clients money and simultaneously increase total revenue for the consulting business by streamlining various processes.
For example, the project management process is mostly the same for all businesses. Initial interviews reveal basic information, like costs, project goals, scope, and budgets. This information can be gathered and analyzed by an assistant before a consultant comes in to take over the project. Maintaining a “pipeline” of leads this way, where assistants are completing the initial phases of the consulting work, helps optimize workflow for the consulting business.
Part 2 - Is a Project Management 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 Project Management 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 Project Management 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 Project Management 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.