Business Consulting Industry Report 2012
After a career working for others Sandler Training franchisee, Nigel Dunand, was looking for a change.
“I was bored, frustrated, successful and stuck in a comfort zone that was not motivating me,” says Dunand. After going through his initial research process he decided to focus in the area of “white-collar” franchises. Once he made the decision on which type of franchise to invest in, his past work experiences led him to his future.
“I had been a Sandler Training client, so I knew firsthand the product was good. It changed our business in my previous company and it changed lives,” explained Dunand. “I wanted to achieve my full potential in life, and the success I owed myself and my family. I saw Sandler Training as the ideal business to enable me to achieve those goals.”
It’s a common testimonial from many within the business consulting franchise industry: it’s satisfying to help clients be more effective, and assist them in finding a better way to work, while also discovering a higher level of work satisfaction personally. If helping others improve their work environment, or assisting them through a problem they have encountered, sounds like an area you would fit well into, a business consulting franchise might be the right option for you. The following is an overview of the industry, including some perspective from Roger Murphy, the founder of Murphy Business & Financial Corporation, a franchisor within the industry, as well as a profile of 15 franchises.
Overview of Industry
Business consulting deals with a service that’s always in demand: advice. Even when people are doing well, they are continually looking for ways to get better, especially in the business world. Simply put, business consulting is an industry that sells advice. However, in reality it is much more complex than that. The business consulting franchise industry is comprised of numerous businesses that deal with many different subjects and issues.
Here is a sample of the areas business consultants cover:
- Information Technology
- And more
As alluded to above, the U.S. consulting services industry is fragmented, but brings in combined annual revenue of about $140 billion annually.1 According to the U.S. Bureau of Labor Statistics (BLS), the employment rate within the whole
|Franchise vs. Business Opportunity
Please note that a large number of opportunities within this industry are business opportunities not franchises. While they are similar, business opportunities and franchises have some functional differences that govern your long-term relationship with the business proprietor you are investing with. In the case of either, it is wise to do your due diligence before committing to any system.
management, scientific, and technical consulting services industry is expected to grow 83 percent between 2008 and 2018. “This [growth rate] represents both the fastest projected rate of growth and the largest expected job gain of all detailed industries,” says John Mullins, an economist in the Office of Occupational Statistics and Employment Projections, BLS. “And even during the recent recession, this industry has proven resilient, recovering nearly all of the jobs it lost in the downturn.” Specifically, the management analyst (consultant) segment is expected to grow 24 percent from 2008 to 2010, which is substantially faster than the overall average for all occupations (10 percent).2
Although – and potentially because – there is expected to be plenty of opportunity, competition to enter the industry will most likely be high, fostered by these and other factors:
- The unemployment and underemployment of qualified business professionals who are unable to find a job where they can earn a living comparable to the one they had to replace their lost income.
- A number of professionals are seeking more independence when it comes to taking control of their business destiny. In many cases, these professionals simply want to breakaway from corporate life and see franchising as a viable alternative.
- Along the lines of the previous factor, a number of professionals are shifting their priorities. These professionals are placing a higher emphasis on the lives they want to lead, which for many includes more time with family, and turning to franchising as an avenue to get them there.
- Availability of financing will be an additional obstacle to overcome, as it is in many other industries in the foreseeable future.
Larger companies like Deloitte, McKinsey, Ernst and Young, and Accenture lead the consulting business pack in terms of visibility. However, there are numerous franchises within the industry for those who aspire to have a career in the field. Franchise market leaders within the industry include ActionCoach, The Growth Coach, Padgett Business Services, The Entrepreneur's Source, Sandler Training, and others.