General consultancy is an extremely crowded space. As a startup CEO, I get at least 3 emails per week from software agencies and consultants. On top of that, they're usually located in India/Ukraine and the rates they offer are very low, so I assume it's very difficult to compete.

My advice would be to differentiate yourself:

- Become an expert in 1 thing, and one thing only: either start an open source project, or become the main collaborator in one. And be an EXPERT in that ONE thing. Not a generalist.

- Go personal: I can't see who you are or where are you based in your website. If I want to hire an EXPERT (see point before) consultant, I want to see their face and why they're different. I need a feeling of trust.

- Network the hell out of it: once you're an expert on one thing and you have a face, people will recognize you and recommend you

> Become an expert in 1 thing

I endorse this. I've been doing generalist consulting for about six years, and I love flying solo. I've been successful in landing some big customers and interesting projects, but I'm tired of the inefficiency that comes with being a generalist, so I've decided to specialize vertically.

I had a super-interesting project in executive search in the last couple years, and I've decided to settle around that area: executive search and recruitment firms. Maybe later, as an extension I'll target other B2B, relationship-driven professional service firms tha share a common core of processes.

I've only recently pivoted but I'm already starting to see the fruits. It's commercially efficient. Many potential customers seem happy to open the door and chat. I know where to find them, online and off. And then it's operationally efficient. I'm confident I could jump on a customer project and recognize most of their processes and systems immediately and have a quick impact. I already have a base of IP (documented business procedures, code, etc.) and only intend to grow it in the coming years and even turn it into a "productized service".

I think people refuse to specialize for three main reasons. The first is for lack of a clear thesis. That's fine, you need to explore for a bit. The second is for a fear of lack of opportunities, which is often unfounded. The third is due to psychological reasons related to the image of self. On this last one I can only advise that (a) even in specialization there is way more variety than you think, (b) you can always keep growing as a generalist with side projects and self-directed learning and (c) nothing is ever fixed in stone, everything is in flow - you can always pivot out into other interesting directions.

> As a startup CEO, I get at least 3 emails per week from software agencies and consultants. On top of that, they're usually located in India/Ukraine and the rates they offer are very low, so I assume it's very difficult to compete.

This is why cold outreach is rarely effective. Until you’ve seen it, you don’t realize the volume of incoming freelancing pitches coming from all of the freelancers. It’s getting worse with AI automation, now.

Any real networking at all will set you apart. It has to be more than sending someone a LinkedIn request because that’s what all of the other agencies are doing too. You have to establish yourself as a real and trusted person.

+3 for focus / personal and networking.

I don't consult anymore, but for an extended period I did so at a premium rate and as an independent. I remember a hiring manager's boss saying something to me like "I could get 2 or more consultants for the same money" and I replied, " I don't really see myself as competing with those organizations, but if you can get the job done it makes sense to take that path." It was both cocky and true (not sure today-me would say that). The thing I understood well was that differentiating as a skilled individual makes you much harder to displace; there are countless "$TECH programmer with N years of experience in $FOOBAR" while there are very few "$YOU".

+1 about overseas freelancers. And US customer to European freelancer is not the arb it used to be. The California SaaS sector has collapsed in the wake of venture capital rotating into AI-native, saas budgets (salaries) are down, the dollar is down, and remote European salaries are up. Zoom latency across 7-8h timezone difference is workable, the current arb is to hire from further and further east. Unless there is a war disruption such as an attack on the trans Atlantic internet pipes.

>>I get at least 3 emails per week from software agencies and consultants. On top of that, they're usually located in India/Ukraine and the rates they offer are very low, so I assume it's very difficult to compete.

One place hired me thinking I could fix some software they farmed out to India. I was not aware of that when they hired me. Afterwards they said they wanted it fixed in two weeks and fired me when I told them it wasn't possible. The software was in a language I'd never used on hardware I never programmed for.

They hired someone locally who was something of an expert in the area who claimed he could fix it in a month. It took him six months to fix the problems.

Lesson of hiring cheap overseas.

Becoming an expert in one thing also narrows down the potential suitable work tremendously. Also these days nobody wants to pay the expert prices since.. Claude can so the expert stuff with a non-expert (at least in their mind)