HR Consulting

Provide human resources support, compliance, and employee management services to businesses

Startup Cost
$3,000-$10,000
Difficulty
Intermediate
Time to Profit
4-8 months
Profit Potential
$6,000-$30,000/month

Overview

HR consultants help businesses with employee-related matters - hiring, onboarding, compliance, policies, performance management, benefits administration, and conflict resolution.

Small and mid-sized businesses often lack dedicated HR departments, creating strong demand for fractional or project-based HR support.

Services include policy development, compliance audits, recruiting support, employee handbooks, HR software implementation, and ongoing advisory.

Success requires HR experience, knowledge of employment law, and business partnering skills.

Certification (SHRM-CP, PHR) enhances credibility though isn't always required with strong experience.

Pricing models include monthly retainers ($1,000-5,000 for fractional HR), project fees (handbook creation $2,000-5,000), hourly consulting ($100-250), or recruiting fees (15-25% of salary).

Startup costs are minimal - certifications, website, HR software subscriptions, and insurance under $5,000.

Building client base leverages existing professional network, partnerships with business consultants/accountants, speaking at business groups, and LinkedIn marketing.

Revenue becomes predictable with retainer clients.

Operating costs include software, insurance, continuing education, and liability insurance.

Challenges include keeping current with changing employment laws, difficult employee situations, and client expectations of handling all people problems.

Success requires staying current on compliance, balancing business and employee advocacy, and systematic approaches to common HR needs.

Required Skills

  • HR Expertise
  • Employment Law
  • Communication
  • Conflict Resolution
  • Business Partnering

Pros and Cons

Pros

  • Strong demand from small/mid-sized businesses
  • Recurring retainer revenue potential
  • Work remotely with flexible schedule
  • Leverage existing HR experience
  • Multiple service offerings and revenue streams

Cons

  • Requires significant HR experience
  • Employment law constantly changing
  • Dealing with difficult employee situations
  • Liability concerns around compliance
  • Client expectations can be unrealistic

How to Get Started

  1. Get HR certification (SHRM-CP or PHR)
  2. Define services (compliance, recruiting, fractional HR)
  3. Create service packages and pricing
  4. Build website highlighting expertise and testimonials
  5. Network with business consultants and accountants
  6. Offer free HR audits to demonstrate value
  7. Start with retainer clients for stable revenue

Explore More Professional Services Ideas

Discover additional business opportunities in this category.

View All Professional Services Ideas →