I talk to a lot of consultants and coaches to keep a good finger on the pulse of what’s happening in the corporate market. The latest trend with the recent slew of corporate layoffs, often targeting very skilled but also expensive Gen X talent, is for these folks to hang a shingle out as a consultant, either as a temporary stop gap during their often-lengthy job search, or as their next career pivot. It’s not an uncommon strategy during economic “transition periods” and I saw this a lot in 2001 and 2008, as well, when suddenly a lot of people I knew were trying their hand at consulting (with most of them returning to internal roles).

It’s so common that when I started my company in 2000, my father said to me “I certainly hope you aren’t going to become one of those CON-sultants.” My Dad was never one to mince words! But he called them Cons because in his experience so many consultants didn’t bring the value they purported to bring.

It’s part of why I am so passionate about helping Subject Matter Experts create consulting and coaching practices that results in a stellar client experience (think repeat business, referrals and fabulous testimonials). The truth is, there is big difference between being a successful internal SME and being a successful consultant.

Expertise alone isn’t enough to make you a credible consultant or build a successful consulting business.

After working with hundreds of highly capable professionals, I’ve seen a consistent pattern. The very strengths that made them successful inside organizations can become stumbling blocks when they step out on their own.

Here are a few of the most common challenges:

1. Expertise doesn’t automatically translate to value

Clients aren’t buying what you know—they’re buying the results you create. If your messaging focuses on your knowledge instead of outcomes, prospects won’t lean in with you and will disengage.

2. Trying to be everything to everyone

Many SMEs resist narrowing their focus. But without a clear niche, it’s difficult to stand out, attract the right clients, or command premium fees.

3. Visibility suddenly becomes your job

In a company, your work speaks for itself. As an independent consultant, you need to consistently show up—through conversations, content, and relationships. That shift can feel uncomfortable (and easy to avoid).

4. No consistent way to generate business

Relying on referrals alone creates unpredictability. Without a simple, repeatable way to create opportunities, even great consultants experience feast-or-famine cycles.

5. Pricing from time instead of impact

Charging hourly or daily rates or retainers often undervalues your expertise. Sustainable consulting businesses are built on pricing tied to transformation, not time.

6. Difficulty scoping/packaging what you do

Inside organizations, work is often fluid and customized. Outside, clients need clarity and specificity. If your offer isn’t clearly defined, it’s much harder for someone to say “yes.” It also puts you at risk of major scope creep which often eats away your profits and/or balloons the client budget.

7. Identifying and managing the Stakeholders

From the outside, things may appear straightforward and then you realize the Stakeholders, Influencers and Decision Makers may not be who you thought they were, often too late. As an outsider, it’s difficult to course correct if you mis-step, and often will take a lot of unpaid time and energy to get things back on track.

8. The identity shift no one talks about

You’re no longer just the expert—you’re also the marketer, the salesperson, and the business owner. That shift requires new skills, new habits, and a new mindset.

The good news?
None of these are permanent barriers. They’re simply the natural growing pains of moving from expert to entrepreneur.

And with the right structure and support, they’re absolutely solvable.

If you’re navigating this transition—or thinking about it—you don’t have to figure it out alone.

Reach out if you’d like to explore what it would look like to build a consulting business that’s not only successful, but sustainable and aligned.