Floating A Consulting Business

The consulting industry has come a long way since the emergence of modern firms in the 19th Century, evolving into a cornerstone of contemporary business strategy. Today, management consulting plays a critical role in helping organisations navigate complex challenges, streamline operations, and drive growth in an increasingly competitive and fast-paced marketplace.

The consulting industry has undergone significant transformation since the 19th century, with the 20th century marking a period of remarkable growth. What began as small groups of founding partners has expanded into a globalised sector, with firms offering diverse expertise across borders.

At its core, the consulting business involves delivering professional services by experts to organisations, businesses, or individuals seeking customised advice and solutions. These services typically include analysing operations, diagnosing challenges, identifying growth opportunities, and providing strategic recommendations aimed at improving performance, efficiency, and profitability.

Today, the consulting industry stands as one of the most developed sectors within professional services, projected to achieve a Compound Annual Growth Rate (CAGR) of approximately 4.10 per cent during the period from 2022 to 2028. It is anticipated to reach a market value of $1,048.9 billion by 2028, with major global players including PricewaterhouseCoopers (PwC), McKinsey and Co, Boston Consulting Group (BCG), Accenture, EY Consulting, AT Kearney, KPMG, and Deloitte.

This industry provides a diverse array of services across various functional areas, such as strategy consulting, management, human resources, information technology, and financial advisory. While large and mid-sized firms dominate the landscape, small and medium-sized enterprises (SMEs) and independent consultants also contribute immensely, leveraging specialized consultancy skills.

In Africa, the consulting industry, which initially concentrated on strategy and management, is experiencing robust growth, with an estimated annual increase of five to seven percent in advisory services. Though it represented only 2.2 percent of the global market in 2016, the sector is gaining traction among investors, given its sustainable impact and potential returns.

In Nigeria, the consulting industry is rapidly evolving, driven by high demand and a wealth of economic opportunities. It is estimated to be worth over $1 billion annually, prompting firms to develop innovative solutions to maintain competitiveness.

Established firms such as PWC, KPMG, Deloitte, EY, Accenture, McKinsey, BCG, and Bain have over 60 years of experience, while other prominent firms like Phillips Consulting, BDO, PKF, and Grant Thornton are also making their mark. This competitive environment fuels a desire for excellence across service lines.

Dr. Timi Olubiyi, an esteemed entrepreneur and business management expert, emphasizes the promising nature of the consulting industry in Africa.

He noted, “the consulting field in Africa is still in its early stages but holds tremendous potential for growth. With a continued focus on economic diversification and modernization, the demand for expert advice and consulting services is set to rise. This presents a lucrative opportunity for entrepreneurs and investors willing to engage with this expanding sector.”

Olubiyi further highlighted the diverse range of services offered by consulting businesses, such as strategy, financial, human resources, IT, and marketing consulting, among others.

He believes there is significant potential for exporting consulting services from Nigeria, particularly as the nation is a hub for many multinational companies operating across various sectors.

Business Opportunities In Nigeria’s Consulting Sector

The consulting business offers numerous pathways to success, largely dependent on the area of specialization. With significant expertise, research-driven knowledge, and the ability to formulate effective strategies, aspiring consultants can carve out a lucrative niche for themselves.

Areas of specialization in consulting include: Management Consulting, Financial Consulting, Human Resource Consulting, Marketing Consulting, IT Consulting, Legal Consulting, Environmental Consulting, Energy Consulting, Healthcare Consulting, Education Consulting, Logistics Consulting, Real Estate Consulting, among others.

Steps To Start A Consulting Business in Nigeria

Define Your Niche: Clearly identify the specific area of consulting you wish to specialise in, such as strategy, operations, or human resources.

Registration: Ensure your consultancy business is properly registered with relevant authorities, including the Corporate Affairs Commission of Nigeria and the Institute of Management Consultants in Nigeria.

Develop Expertise: Invest time in building a robust foundation of knowledge and practical experience in your selected niche.

Create a Business Plan: Outline your goals, target market, marketing strategy, and financial projections to guide your business decisions.

By following these steps and capitalising on the growth potential in the consulting sector, aspiring consultants in Nigeria can establish a successful and impactful business.