Starting a consulting business can be a rewarding option for you if you have gained substantial knowledge and experience in a particular field. It offers you the satisfaction of running the show and also offers flexibility. This business could be started with little investment and can be lucrative. Prepare a business plan. It will help you define your goals and plan to achieve them. Gather up to date information about that field/industry. You could start by looking for information online. You can also go through journals, reports and books related to the field that you plan to work in. You can also use your existing network get industry information. Register your business and get the licenses required. These rules may differ from state to state and also depend on the type of consultation service you plan to provide. Hiring a lawyer for this purpose can be a good option. Select a place for your office. You can build your office in your home to cut expenses or even look for an office in a business center. The place that you choose should be well connected to other parts of the city. Market your business. You could start with your existing network of firms, professionals, family and friends who might require your service. As your business grows you can consider advertising and joining local clubs. These clubs can serve as the best ground to network and gain publicity.

You first need a ABN number

A consultant of what? Saying "I am a consultant" is about as precise as saying "I work for money" --- it really doesnt say much. You need to be specialised in something. Remember, you need to sell your expertise to somebody who is willing to pay for your knowledge. You need to have knowledge that you can sell somehow (i.e. consult to other people).

Get to the top of the tree in your subject first.

Anyone can call themselves a consultant. The trick is getting someone else to pay you for it. First become very knowledgeable in a specific area. Best if you specialize in one small, necessary, marketable area. Be a problem-solver, money-saver to your target market. Get letters of referral from people in your field that tell what you can do (in a short term, project orientation) to help others be more successful/profitable/leaner/meaner/cutting edge. Then approach it like you were conducting an executive job search.

Be friends with a corrupt politician or one who has freshly accepted the stimulus package. You can get yourself a nice chunk of that cash for consulting them on how to spend the cash. Well that's how it works in the UK. So many ex-civil servants are consultants these days. I work in the accounting section of a huge governmental organisation and have seen many highly paid employees "made redundant" and then immediately become consultants even before they have spent their redundancy payouts. You will be shocked. In other words, build up a contact base, do a lot of mingling and attending political social events, talk their talk and the offers will start pouring in as long as you offer those contacts some "expenses/benefits" in return.