To succeed in business, it's crucial for a company to both understand its markets and itself. Sometimes, management is too close to an issue to see the full contours clearly. That's why consultants have become such an integral part of the corporate world. They provide prospective and focused expertise, giving firms the insights they need to compete.

Consultancy has become an enormous industry. Statista estimates that the U.S. consultant market totals more than $60 billion a year. That represents a large pile of cash that you can dig into, leveraging your own specialized knowledge to generate serious revenue.

If you are looking to expand into this market, you'll need to understand how to communicate with your clients. Whether you're operating as an independent consultant, or your small business is offering consulting services, it's important to know how to write an effective consulting report. Learn how in this article.

What is a consulting report?

Almost every company has its blind spots. Organizations have their core businesses, the purpose that defines them. But on the margins, they can lack important knowledge. This could include aspects like technology, marketing, customer relations, HR, or any number of critical functions that could benefit from a specialized approach.

That's where consultants come in. Mastery of a critical business function makes you an in-demand source of knowledge and advice. By making this part of your business (or expanding services you already provide), you have a significant opportunity to find clients and build long-term relationships.

Communication is central to this process. And consulting reports represent the backbone of that connection. They are the vehicles you use to impart the information you want to share with your customers.

A consulting report represents your deliverable any time you take on a consulting project. It encapsulates the information you have compiled and presents your conclusions. Your goal is to produce a document that will act as a guide for your clients — giving them the insights they need to upgrade their businesses.

Your goal is to produce a [consulting report] that will act as a guide for your clients — giving them the insights they need to upgrade their businesses.

What to include in a consulting report

Let's start by breaking down the overall structure of a typical consulting report. The exact details will depend on the individual project. Factors such as length and the specific information to include will be decided with the client before you begin your effort. However, there are some basic format elements that you should keep in mind:

Title

This may seem simple — so simple it doesn't require mentioning. But your title sets the stage for the content inside the report. Creating a pithy, informative title will make sure stakeholders are interested in the more substantive details that follows.

Table of contents

A well-organized report will make it easier to use. In this regard, a table of contents becomes a critical tool. Busy stakeholders can find the information they need. Meanwhile, your report can serve as a reliable reference for future conversations.

Executive summary

Let's face it: most stakeholders won't have time to read your entire report. An efficient abstract will make sure that your key findings get communicated. Interested parties can dive deeper, but a strong executive summary sets the stage for broad understanding.

Full details

The bulk of your report will consist of a detailed explanation of your conclusions (we'll dive into additional details in the following section). In broad strokes, you should provide a comprehensive description of your methods, your data, and the reasoning behind your conclusions. This will grant authority to your findings and give your clients the information they need to move forward.

Conclusion

As your report comes to an end, remember to sum everything up again. Reiterate your key conclusions and outline in clear terms what you suggest your client should do. At the same time, describe any further investigations you think would be helpful.

How to write a consulting report

Now that we've looked at the organization of the report itself, let's take a step back and review the content. While the specifics will depend on the individual project, there are some general themes that should shape your approach. Here are a few tips to maximize the effectiveness of your consulting report:

Deliver actionable recommendations

This is the heart of the consulting report. To provide value, you need to delineate the steps you think would help your client improve. These should be clearly explained, based on hard evidence, guided by your experience and knowledge, and within the capability of your client.

Provide structure

Your consulting report will likely be filled with actionable information. The sheer volume of data can make the document difficult for many clients to digest. It’s important to keep the document readable as well.

For this reason, you want it to have a clear structure that anyone can follow. This will help guide your clients through the dense trove of insights. At the same, tools like a table of contents, an index, and footnotes can make it easier to reference information during future conversations.

Detail your evidence

Your conclusions should be based on hard data. Painstakingly lay out these figures for your clients. Make sure the information is as readable as possible — graphs and tables will help make the numbers more digestible.

Explain your methodology

Along with the data, provide the background of where it came from. How did you gather the information? What procedures went into your analysis? Transparency on this front will add credence to your conclusions.

Summarize effectively

A consulting report often deals with highly technical issues. Meanwhile, the evidence itself (the data you use and the methods you leverage to analyze) can be very intricate. Part of your job will involve cutting through any clutter to articulate clear, actionable advice. Make sure stakeholders, of whatever level of technical acumen, can understand your main points.

Note any challenges or uncertainties

You want to give the best advice you can as part of your consultant report. However, you can't shy away from the complexities. As you unveil your findings, note areas of doubt.

At the same time, remain transparent about the risks and challenges your client might face implementing the strategy you are advocating. This way, they can prepare for the difficulties and make the necessary adjustments.

Describe any next steps

Your consulting report represents the end product of an intense process. But it is also the starting point for further conversation. List clear actions you feel your client should take based on your conclusions.

This part of the process could also open the door to further revenue. Envision other ways you can deliver value for your client. Your consulting report could transition into another project.

Maximize the value of your consulting reports

Consulting represents an excellent way to generate revenue based on your hard-won expertise. Whether on your own or as part of a larger business, you can reap significant financial rewards by sharing advice with other companies.

However, to succeed in this business, you'll need to understand how to deliver an effective consulting report. If you're being asked to create your first consulting report, or you're hoping to create better ones in the future, the information provided in this article can help. Use it to write reports that utilize your data, highlight your professionalism, and keep your clients happy.