Why Consultants Fail Fast

Why do 80% of consulting businesses fail within five years — even when the consultant is brilliant? In this episode, we unpack the brutal truths behind short-lived firms and reveal 9 critical principles every consultant must master to build a sustainable business. From pricing for outcomes to systematising client acquisition, you’ll learn how to think like a CEO, not a freelancer. Whether you’re new or experienced, this is essential listening for any transformation leader. 

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Transcript

1. Why Good Consultants Still Fail

Last week, I watched another talented consultant shut down her business. Ten years of corporate experience. MBA from Wharton. Clients loved her. But 18 months into running her own firm, she was back in a full-time role. And this isn’t rare.

Four out of five consulting businesses don’t survive the first two years. Over 80% are gone within five. And it’s not because these people weren’t capable.

It’s because they never learned the difference between being good at consulting— and being good at running a consulting business.

In this video, I’m going to walk you through 9 principles that separate the consultants who survive from the ones who don’t. These aren’t theories. They come from working closely with consultants who’ve built businesses that actually last.

Let’s get started.

2. Think Like a CEO, Not a Freelancer

Here’s the first mistake I see far too often:

Great consultants who spend all their time delivering work — and barely any time building the business behind it. Sarah is a perfect example. Twenty years of experience in supply chain leadership. Brilliant at what she does. But when she went solo, she spent 90% of her time on client projects — and 10% thinking about the future.

One slow month and she was scrambling. The consultants who succeed flip that ratio. They treat their business like a business. They work on their positioning, pricing, systems, and visibility. If you want long-term stability, you can’t just be the product. You’ve got to be the CEO too.

3. Fix the Offer — Not Yourself

Let’s talk about Marcus. He messaged me after losing yet another proposal:

“Maybe I’m not senior enough for this kind of work.” But that wasn’t the issue. His CV was solid. His results were real. The problem was the way he packaged his offer. He was selling “strategic planning” at £200 an hour. No clear outcome. No edge.

So we repositioned it:

“90-Day Revenue Acceleration System — Guaranteed £500K Impact or Your Money Back.” Same expertise. Different language. Different outcome. He closed his next three proposals. When a client says no, it doesn’t always mean you’re the problem. It usually means the offer isn’t sharp enough. Your credibility is fine. But your offer might need serious work.

4. Systematise Your Breakthrough Work

We’ve all had that one engagement where everything went perfectly. The client was happy. The results were strong. You walked away thinking, That’s how it should always be. But what do most consultants do next? They move on. Hope it happens again. Smart consultants don’t do that. They take what worked — and turn it into a repeatable system. 

Jennifer did exactly that. She supported a tech firm through a difficult transformation, then mapped the entire process: The questions that unlocked trust, the exercises that got clarity, the frameworks that delivered change. That became her “90-Day Change Blueprint.” It’s now used across 40+ client engagements — and 70% of her delivery is repeatable. Don’t let your best work become a one-off. Turn it into your operating model.

5. Show, Don’t Tell

Here’s a classic example of what not to post on LinkedIn: 

“I’m a senior advisor with 20 years of experience supporting Fortune 500 companies.” Bland. Forgettable.

Now here’s what David, an operations consultant, posted instead:

“Yesterday I helped a manufacturer uncover a £2.3M annual loss caused by a 47-second delay. Here’s how we diagnosed it…” Which one are you going to remember? Consultants who stand out don’t shout. They demonstrate. They share how they think. They post case studies. They walk people through frameworks. And when a client says, “That’s exactly how we think too” — they’re already halfway to hiring you.

6. Let Results Build Your Reputation

I know a consultant who’s brilliant at working a room. Always networking. Always visible. Always charming. But constantly chasing work. Then there’s Lisa — quiet, focused, not especially active online. But her projects deliver clear, measurable results in 90 days or less. And guess what? She’s booked out six months in advance. 

Charisma can open doors. But outcomes? Outcomes keep them open — and open more. Your reputation shouldn’t rest on personality. It should be grounded in performance.

7. Stay Visible — Even When You’re Busy

This is one of the most common patterns I see:

Consultant lands a big project → Disappears from the market → Project ends → Starts scrambling for leads. And then starts posting again. That inconsistency is a killer. Tom made this mistake over and over. Every quiet spell became a panic phase.

Then there’s Anna. Even during her busiest months, she shares one practical insight per week. That’s it. And because of that consistency, she always has warm leads in the pipeline. Visibility doesn’t mean shouting. It just means being present — regularly — so you’re not forgotten.

8. Serve So Well That Referrals Are Inevitable

Most consultants ask for referrals. The best ones earn them — without asking.  

Rachel finishes her projects by building a proper transition plan, training internal teams, and offering 30 days of light-touch support. She doesn’t just deliver and disappear. She sets clients up for success after she’s gone. And because of that, her clients become her salesforce.

If you want referrals to flow, don’t chase them. Serve so well that people feel compelled to share your name.

9. Sell Outcomes — Not Hours

Let’s be honest — hourly pricing is a trap. It makes clients obsess over time, not results. It puts a ceiling on your income. And worst of all — the faster and better you get, the less you earn. High-performing consultants reframe everything around outcomes.

Instead of “£300/hr for marketing strategy,” it becomes: “60-Day Customer Acquisition System — Predictable £50K Monthly Growth.” The client isn’t paying for your time. They’re paying for their result. So price accordingly — and deliver accordingly.

10. Build a System That Brings Clients to You

Here’s what separates a consulting business from a side hustle: 

You have systems that attract, nurture, and convert leads — without constant manual effort. Mike figured this out. He shares one high-quality case study a month on LinkedIn. Each one ends with:

“Want the framework I used? Get it below.”

 People download it. Join his email list. They receive five short emails with insights, tools — and an invitation to a diagnostic call. Three new clients a month. No cold calls. No networking events. Your system doesn’t need to be fancy. It just needs to run — even when you’re not.

11. Don’t Leave Your Business to Chance 

Let’s be clear. These nine principles aren’t suggestions. They’re the difference between consultants who last — and consultants who quietly fade away. Every struggling consultant I’ve ever met is skipping at least five of these.

Every successful one is following all nine. If you’ve got the expertise — and you’re ready to build the structure around it — this is your roadmap.

It’s not magic. It’s method.