Consulting is undeniably one of the markets that are booming at the moment. This attracts more and more people, who wish to take advantage of this opportunity. Becoming an independent consultant is therefore a profession of the future and the advantages of such a profession are numerous. However, one does not improvise himself as an independent consultant, there is a knowledge base to have, steps to take, etc. If you are interested in this promising profession, here is how to proceed.
Becoming an independent consultant: what does it involve?
Consulting is not something you get into at random. You have to be really interested in this profession to decide to do it. As an independent consultant your activity is based on advice and support. So, you must first of all have certain qualities specific to this profession. These are among others :
- Know how to communicate well to get your message across,
- You must be able to be responsive and curious,
- Knowing how to make a careful analysis of each situation you encounter, etc.
- You need to be well trained at the grassroots level so that your skills are exemplary.
An independent consultant works on his own account and carries out missions as a freelance. It is thus for punctual missions that companies or any other customer solicit you. This implies great reflections and important decisions that impact your whole life.
First, you must study the needs of your target clientele and choose the legal status accordingly. Moreover, each decision you make in this regard will have positive consequences, but also constraints to manage. Think seriously about the offer you bring to this market. Certainly, the demand is great, but the offer does not cease growing since many are those who want today to become independent consultant. So think about how you are going to make your business viable, in order to last.
Don't forget that your activity consists in providing solutions to companies in the form of advice and assistance. The choice is yours depending on the status you choose: to evolve as a consulting firm or as an independent. It is true that it is quite simple to start in this profession. Indeed, there is not so much regulation and you do not need to obtain great diplomas to make this activity. Also, you are not obliged to subscribe to a professional order related to this sector. However, there are various associations and structures that aim to bring together professionals in the consulting field. Nevertheless, joining these associations is absolutely not mandatory.
In what form does the independent consultant practice his profession?
You have the choice to practice your profession through a company. This is the case when you work under a firm or by wage portage for example. Otherwise, you also have the possibility to practice your profession as a freelancer. If you decide to set up a sole proprietorship, then you create a legal entity that will represent your activity. This can be a micro-business, an EURL, an EIRL, etc. With a company, you will have access to tax and social security schemes. At this level, it is advisable to have a legal expert at your side. He or she will help you choose the legal regime that is best suited to your situation. He will also help you to draft your articles of association and will support you in carrying out the various formalities, in particular those related to the creation and registration.
As an independent consultant, you will have to deal with a lot of paperwork concerning the various formalities related to your business. This can be legal, fiscal or administrative. If you are the kind of person who does not want to deal with these formalities, then you can seriously think about freelancing as a solution. By doing so, you keep a status that allows you to be both an employee of the company, but also self-employed. You keep your freedom while letting the company manage the administrative side of your work. On the other hand, the company will receive a certain commission on your sales in compensation.
Why become an independent consultant?
As mentioned above, one does not land in this profession on a whim. It is necessary to mature the reflection and according to the people, the profession of independent consultant can be chosen just with the aim of being able to earn a big income. For some people, the motivation is to enjoy the freedom to lead their professional life as they see fit by being self-employed. For others, being their own boss is essential, etc.
Others still, end up choosing freelancing as a profession because of the prejudice against them. These are often people over 45 years old, who are considered a bit too old and therefore outdated for this kind of position. So instead of stagnating, they prefer to retire and start their own business or become independent consultants. In this situation, these people are far from being beginners. As a result, they have often had time to build up many relationships and become quite well known. They also have great skills and sometimes long years of experience. This capital of expertise means that the logical next step for this category of people is to become independent and to fly on their own in their profession.
What is the appropriate legal form for an independent consultant?
You can exercise the profession of independent consultant according to various legal forms. Of course, the regulations in this field are rather lax compared to other professions, which explains why there is no mandatory training to become an independent consultant. However, it is essential that you carefully draft your statutes concerning the activity you wish to carry out. For this purpose, you will have the choice between four different legal statutes: the portage salarial, the EIRL, the EURL, the micro-enterprise or the SASU.
The portage salarial
You are called the ported employee, in this tripartite contractual relationship. With freelance administration, a contract binds you to a company and you work for the companies that are your clients. This way of working is quite new with its own collective agreement that gives you the possibility to practice your profession in total freedom. Better still, you benefit from all the advantages normally granted to an employee. This includes social protection, unemployment benefits, paid vacations, etc.
The micro-business
For many reasons, most independent consultants prefer the auto-entrepreneur regime. It must be said that thanks to the mode of operation of this regime, you will have the possibility to pay the social contributions which result and which depend on the realized turnover. Nevertheless, there is a certain ceiling which is in force and which determines the maintenance or not of this status.
THE EIRL
There is the limited liability that appears in this status of sole proprietorship with limited liability. This clause of the status offers you the advantage of protecting your personal assets. However, there is also a ceiling to take into account here. However, with the EIRL, you have far fewer formalities to complete. This also applies to the cost, which is reduced.
SASU or EURL
Both are one-person companies based on the model of the simplified joint stock company (SAS) and the limited liability company (SARL). The difference between the SASU and the EURL concerns mainly the taxation rules and the social regimes of the person who will take the reins. With the SASU, the flexibility is there, even if it is still quite complex to create and also to manage.
What are the administrative formalities to be completed to become an independent consultant?
They are not very constraining compared to most other professions. Very often, the administrative formalities to become an independent consultant come down to setting up a legal structure, in order to be able to exercise the activity. By the way, this can be one of the business forms we mentioned above. Also, as an independent consultant, you do not need a head office as it is the case with the other professions. You are not obliged to invest in the purchase or the rent of a room intended for your activity. You can decide to work from home. Better yet, you can also decide to travel each time to the clients you are prospecting. However, you will still need to domicile your business. This can be at your home, at your coworking space if you have chosen to do so, or at a domiciliation center.
Apart from the domiciliation, the biggest constraint concerning the formalities to become an independent consultant is the subscription to a professional insurance. It is an important step because this insurance protects you from possible prejudices linked to the activity of consulting. In the same way, a litigation could appear between a customer and you. You will also have to subscribe to a health insurance and to a specific retirement organization to protect you. All these formalities will have to be carried out in the three months which will follow the starting of your activities as an independent consultant.
As far asthe creation of the legal entity of your company is concerned, you can simply do it online. Nevertheless, you will have to choose a legal regime in the case of a sole proprietorship. One way or another, you will also have to write the statutes, pay up capital, open a separate bank account, etc. You will have to register your business with the RCS. To do this, you will need to leave a complete file with the CFE, the Centre de formalités des entreprises. In order to confirm the registration of your company, you will receive a K-Bis.
What is the appropriate social regime for a freelance consultant?
It is according to the legal form or the status of your consulting company that the social regime to be applied will be defined. In the case of a micro-enterprise, the adapted social regime is that of the non-salaried workers. It is still called simplified microsocial regime and it is the same as for a liberal profession. When you become a company, you will benefit from the general regime for salaried workers. Note that this regime does not apply to you if you hold more than 50% of the company's capital. You will then be a majority partner.
What is the variable tax regime for an independent consultant?
It is possible that you will be subject to income tax for non-commercial profits, or to corporate tax. If you opt for a real legal structure by evolving in the form of a company, it is to the latter regime that you will be subject. However, this does not apply to special legal regimes. As far as the SASU, the EIRL, or the EURL are concerned, it is the income tax that applies. In the case of a portage salarial, it is also the income tax, only on the income generated by the consulting profession. In addition, you may benefit from tax deductions in certain situations where the micro-BNC regime is involved.
How to succeed as an independent consultant
When after careful consideration you decide to go into consulting, apart from the legal, administrative, etc. aspects, there are also other parameters to take into account.
Find your true target
Your knowledge and expertise are to be made available to clients who specifically need them. Of course, in the field of consulting there are many requests, but they are quite specific. It is up to you to focus on a well-defined target that corresponds perfectly to your field of predilection. This is how you will be able to provide your clients with the best possible expertise.
To make it easier for you, you can do business demonstrations, which will highlight your professional qualities. To this end, avoid being general and think about specializing in a specific field, because consulting includes many branches. Thus, you can be a consultant in management, in finance, in referencing, etc.
The best of all offers
Finding your place in an already well-developed market is never easy. You'll need to develop strategies to establish yourself and gain market share. However, this does not mean that you have to offer your services at low prices. You risk tarnishing your reputation and image by undervaluing your skills and expertise. Simply apply a reasonable rate according to the service rendered, the rarity of your offer, as well as your expenses.
Communication
Everything is linked to communication since it is the means you will use to prospect your customers. It is also by having a good communication strategy that you will be able to convince your prospects to become your customers and maybe even build their loyalty. Don't forget also that we are completely in the digital age and that today, everything happens via the web and social networks.
Use these tools to reach your targets by being visible. Try to gain visibility in search engines to increase your chances of being found by your targets. However, if the Internet allows you to be visible and attract customers, it is not enough. A good communication plan relies on different parameters at the same time. So don't be satisfied with the internet. Do not hesitate to organize professional events because if the internet allows you to attract customers, you also need to have a network, which you will have to maintain.
Get help if you need it
To claim to provide advice to clients, you must first be well versed in the field. You must therefore be an expert in your field of activity to claim to be an independent consultant. This does not mean that you excel in other areas such as administrative procedures for example. To help you, do not hesitate to call upon public and private organizations whose work it is.
This is important because in case of disputes, you will have problems. To this end, you can call upon the Chamber of Commerce and Industry, the business incubators, the portage companies, etc. You should know that even if you are currently unemployed and need help to start your own business, you can benefit (under certain conditions) from the payment of your benefits with your future remuneration in the case of a portage activity.
Becoming an independent consultant: in summary
There is no easy job and consulting, even if the steps to get started are less complicated, is not a simple job either. Therefore, faced with the reality of the situation soon after the activities have been launched, many independent consultants can get discouraged because of the complications that could arise. It will then be necessary to stay the course in spite of everything, to become an excellent independent consultant.
