What a feasibility study analyses in this sector
- Specialisation & value proposition
- Target client segment
- Pricing model
- Billable-hours ratio
- Client-acquisition plan
Examples of consulting businesses we study
Management, financial and engineering consultancies, accounting and audit firms, marketing and advertising agencies, recruitment and HR firms, and technology and digital-transformation consultancies.
What does a consulting-firm feasibility study analyse?
- Specialisation and value proposition: the field in which the founders have sellable expertise and the client problem they solve.
- Target clients: small businesses, large corporates or government bodies, and how each makes buying decisions.
- Competition: local, regional and international firms in the field and their price levels.
- Pricing model: comparing hourly, project-based and retainer pricing and their effect on revenue stability.
- Team and capacity: number of consultants, billable-hours ratio and the cost of using freelance experts.
- Client acquisition: marketing and relationship channels, sales-cycle length and the cost of winning each contract.
Key risks in consulting businesses
The core capital of these firms is expertise and reputation, so they are exposed to dependence on a few clients or on the founding partners themselves, long sales cycles and late payments. The study shows how to diversify revenue and the minimum number of contracts needed to stay viable.
What to prepare before the study starts
It helps to define your specialisation and the services you will offer, the founders’ experience and existing network, any prospective clients you are already talking to, whether you will work from your own office, a co-working space or remotely, and the capital available to cover costs until the first contracts are signed. These factors shape how fast you can build a client base more than anything else, and tell us whether to start with a lean team supported by freelance experts.
How SCOOP helps
As a consultancy ourselves, we help you define your specialisation, target segment and pricing model, build realistic financial projections tied to contract numbers and utilisation, and propose a client-acquisition plan for the first year.
FAQ: feasibility studies in the Consulting & Professional Services
Does a consulting office need a feasibility study if set-up costs are low?
Yes. The main risk is not the set-up cost but winning enough contracts at the right price, which the study measures before you commit to a team and fixed overheads.
What is the best pricing model for a new consultancy?
It depends on the service and the clients: retainers give stable revenue, while project pricing suits clearly scoped work. The study compares the options for your case.