business consulting

How Innovation Consulting May Help Your Business

By Anne Carpenter 17 August, 2023 2 mins read

Your business can benefit from innovation consulting services. This involves analysing trends in the market and listening to customers to help you generate ideas for new products and services. A consultant in innovation can help you spot inefficient working practices and suggest a new approach. This can result in better ideas and better business results.

Business model innovation

Business model innovation consulting focuses on creating the most effective form of innovation for a company. This approach has proven to bring about the greatest growth and sustainability. Although disruptive innovation is commonly associated with this approach. However, many companies have introduced innovative products and/or services without disrupting existing markets. Business model innovation consulting utilizes methods and tools that are proven to work across multiple industries.

Branding changes

The Berkeley Innovation Group hired JUST Creative to help redefine their brand. Their identity was not representative of the quality of the services they offered or of their personal brand identity. As a result, they had trouble connecting with their dream clients.

New marketing concepts

Market research is essential in order to develop new marketing concepts. Grand Shoes, a Swedish brand that sells footwear for women from sizes 12 to 17, is an example. This product is not usually available to mass consumers but it is an excellent example for an innovative idea.

New business models

There are many different definitions of business model innovation, but the following common elements typify the process. They are focused on value creation, customer relationships and revenue streams. They also prioritize essential resources. The challenge is building a system around your core strengths.

New product development

Innovation is key to the development and implementation of new products and services. It is important that you meet customer expectations in order to gain a competitive advantage. A sound strategy must be developed by organizations based upon the most recent insights and competitive landscape. One of the best ways to implement innovation is to maximize your product management capabilities.

New business model innovation

Business model innovation in consulting is a way for clients to increase profitability. It involves changing your value proposition, operating model, as well your revenue model, to increase profits. The main goal of business model innovation is to create a competitive advantage for your business, and to provide value to your customers.

FAQ

How is consulting different from freelancing

Freelancers are self-employed individuals who offer their services to clients without employees of a company or agency. They generally charge an hourly rate depending on how long they spend on a client project. Consultants usually work for agencies or companies that employ them. Their salaries are paid usually monthly or annually.

Consultants have less flexibility than freelancers because they can control their work hours, and set their own prices. Consultants often offer better benefits such as vacation days and retirement plans, health insurance, and vacation days.

Do I have to pay tax on consulting income

Yes, you must pay tax on the consultancy profits. This amount will depend on how much you earn each year.

If you are self-employed, expenses can be claimed on top of your salary. These expenses include rent, childcare and food.

But, interest payments on loans, vehicle and equipment depreciation will not be allowed to be deducted.

You can only claim back 25% of your expenses if you earn less than PS10,000 a year.

You might be taxed even if you make more than the threshold depending on whether your income is contractor or employee.

Employees are generally taxed through PAYE (pay as you earn) and contractors through VAT.

Why would a company employ a consultant to help them?

Consulting provides expert advice about how to improve your business performance. Consultants are not there to help you sell products.

A consultant is a person who helps companies make better choices by providing sound analysis, and making recommendations for improvement.

Consultants often work closely alongside senior management teams to help understand what they need to succeed.

They offer coaching and leadership training to help employees achieve their highest potential.

They may advise businesses on reducing costs, streamlining processes, and increasing efficiency.

Do I need legal counsel?

Yes! Consultants often create contracts with clients without getting legal advice. This can lead into problems down-the-road. For example, what happens to the contract if the client terminates it before the consultant has completed? What happens if the consultant doesn’t meet the deadlines specified in the contract.

It's best to consult with a lawyer to avoid potential problems.

Who hires consultants?

Many businesses hire consultants to assist them with their projects. These can include small businesses and large corporations, government agencies as well non-profits and educational institutions.

Some consultants work directly for these organisations, while others freelance. The hiring process will vary depending on the complexity and size of the project.

You will likely go through multiple rounds of interviews when hiring consultants before you choose the candidate you feel is the best fit for the job.

What degree do I need to become a consultant?

Studying a subject deeply and then applying your knowledge is the best way for you to become an expert.

Start studying today if you want the skills to be a great manager!

If you have a degree but no relevant experience, you may struggle to get hired. If you can show that your education is comparable to the job applicants, you may still be eligible for employment.

Employers will always search for candidates with real-world experience.

How do I attract clients to my consultancy business

It is important to identify an area of passion. It could be anything from social media to public relations, but there must be something you feel strongly about. You might have to start small, such as by finding niche markets like web design. Once you have identified the niche, be sure to fully understand its characteristics. What problems does it solve? What are the benefits? And most importantly, how can you help them?

You can also try approaching businesses directly - perhaps they need someone who understands SEO or content creation, or maybe they just want to know where to go for advice on social media strategy.

If all else fails, why not offer your services at free events like networking evenings and conferences? You'll meet many potential customers without spending money on advertising, and you'll be able to show off your skills.

Statistics

"From there, I told them my rates were going up 25%, this is the new hourly rate, and every single one of them said 'done, fine.' (nerdwallet.com)
Over 62% of consultants were dissatisfied with their former jobs before starting their consulting business. (consultingsuccess.com)
According to statistics from the ONS, the UK has around 300,000 consultants, of which around 63,000 professionals work as management consultants. (consultancy.uk)
Over 50% of consultants get their first consulting client through a referral from their network. (consultingsuccess.com)
67% of consultants start their consulting businesses after quitting their jobs, while 33% start while they're still at their jobs. (consultingsuccess.com)