The consultancy industry has been flourishing in recent years. As a consultant, you’re expected to gather data, analyze that data and suggest changes that can help businesses and organizations meet their financial goals. There are various kinds of consultants you can become, from business consultants to IT consultants, HR consultants to sales consultants.
Out of all the niches within the consultancy industry, business consultancy is often seen as the most lucrative. So, how much do business consultants make?
What business consultants in the US make in a year
Business consultants typically deal with helping businesses reach their overarching objectives. Although these are usually related to financial milestones, other aspects of business operations can also fall within the job purview.
As a business consultant, you’ll have to follow a career trajectory, especially if you join a consultancy. For new business consultants, it’s typically a better idea to work with a consultancy firm first. This enables you to gather the experience and know-how you need to start your own business or freelance someday.
As of February 26th, 2020, the average salary made by business consultants in the United States was around $73,624. The salary range for business consultants can go anywhere between $60,423 to $90,511. Aside from this, business consultants can get benefits as well. These benefits and compensation packages can go up to $10,000.
The kind of compensation packages available change depending on the company, with the bigger consultancy firms offering greater salary and compensation packages. In general, this is how much you can expect to make as a business consultant across the hierarchy in the industry:
1. Business Analyst
This is the entry-level position for a business consultant. At this level, you’re expected to do research and gather data. While analysis isn’t a core part of your job description at this stage, making presentations is. Having skills in PowerPoint and Excel can give you an edge.
You’re expected to present the data you gather in a thorough and digestible way to senior consultants. This is usually done through presentations. Business analysts typically make around $95K in top firms yearly.
2. Junior Analyst/Consultant
After working as a business analyst, the next step up the ladder is towards becoming a consultant. At this stage, you’re expected to learn how to do analyses. However, a majority of analysis and client management is handled by senior consultants.
The skills you learned as a business analyst are still relevant at this stage. A large part of what you’ll be doing is similar to what you did as a business analyst. At this stage, you can expect to make around $125K a year.
3. Senior Consultants
When you reach the position of a senior consultant, that’s when you can expect to start handling analysis and interact with clients. Until this point, your job role including mainly gathering data and providing that to higher-ups.
Senior consultants are responsible for two main things – they help manage consultants at lower levels and handle lead generation. At this level, you’ll be responsible for finding new clients and interacting with them. You’ll also have to manage business analysts and junior consultants. You can expect to receive an average of around $185K per year at top firms.
The next step in the business consultant career ladder is a manager. A manager handles multiple job roles, especially when compared to previous positions. They manage client relationships and ensure that deadlines are met. They also handle teams, mainly of business analysts and junior consultants.
They are also responsible for handling various projects. The data gathered and research done by their teams are properly assessed. Then the recommendations made are handed over to the clients. At this level, you can expect to make an average of $230K per year at top firms.
As a principal manager, you can make nearly double what you made as a manager. At this level, you’ll be handling the brunt of client management and project work. Not only do you have to handle several projects and help your team complete their work, but you also need to sell new projects.
This means that a principal manager also has the responsibility of securing new clients. Unlike a manager who handles only a few projects at a time, you’ll need to handle many. But the perks come in the form of your salary, which can reach an average of $400K per year at top firms.
This level belongs to the owners, shareholders, and the best of the best of the company. A partner is responsible for creating business strategies for the firm, operational management, and ensuring that the firm is scaling. They are also responsible for securing new projects.
As a partner, the success of the business is your success. But the returns come in the form of your salary. Depending on the consultancy firm you’re working at, you can earn anywhere between $500K to $2000K per year. However, payment at this level is heavily dependent on the overall success of the firm.
What you earn as a business consultant is determined by your job role. But certain additional factors can boost your salary as well. These factors include your educational background, industry experience, skills and certifications. The more skills and qualifications you have, the more you can make as a business consultant.
Business consultants can also consider business insurance as a way to protect their business. If you want to learn more about business insurance for business consultants, then click here.