How much does it cost to start a consulting biz?
FSB’s reader has a lot of questions about starting a consulting company – can you help him?
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DiggCouple Items:
1 – Change name to a brand-able name, give yourself a title like Partner or Managing Partner and either Inc or LLC.
2 – Get a professional website – and a domain name, setup Email on that domain name. How professional is it for you to want to bill $100+ per hour, as a consultant, and have a yahoo or google email address?
3 – Invest in a high quality logo, use that logo on your website, on word/excel/powerpoint templates, import it into your accounting system (even if it is excel spreadsheets used for invoices)…
3 – Don’t go overboard with technology. A decent laptop, printer, cell phone, is good. Conference bridging, webmeetings, etc can be done on the cheap – gotomeeting.com is great for businesses. Vonage is great if you have decent high-speed internet…
4 – As you grow employees, turn to a good consulting company on technology needs. When you are ready to buy several computers, turn to companies like mine, http://www.net-flowsolutions.com We can help you avoid running to best buy and buying boxed office software and anti-virus software. Many vendors like Microsoft and Symantec, etc require only 5 initial licenses to be purchased before you can start saving money.
5 – Office space – I started Net-Flow Solutions, in 2005, we are now a firm that now has two data centers, two call centers, a staff of close to 12 in sale (direct and inside), pre-sales engineers and engineering consultants… Besides the call centers, I have still have not opened a physical office. My belief is if your in an office, your not billing.. We use technology for meetings… gotomeeting for staff meetings, sharepoint services for coloboration, etc.
6 – Marketing – Marketing – Marketing… Business Cards, Brochures, Novalty Gifts (pens), etc need to be as professional as you can afford. Pay-per-clicks? I would say when you have $500 a month to invest in advertising run pay-per-clicks on Google for 3 months as a test.
Again why your website is import and it does0 Relates to Marketing – When you have it designed have a Blog area and RSS feeds developed on the site, as well as an admin section where you can login and update information (add newletters, or white papers)… This will help you gain momentum on websites like Google.
James, if your need a custom web presence I can help you with it, please visit my web site: http://www.maksuco.com for more information.
The worst crimes were dared by a few, willed by more and tolerated by all — Tacitus
James,
Since you are interested in growing a firm, rather than staying an independent consultant, then I would recommend starting off acting and marketing as your company, not as an individual. Consulting is about building relationships, but it is also about building a brand, and you want all of your early successes to be tied to the company and not just you. This will allow you to bring in new consultants to the company and have them benefit from your earlier successes.
When I started my consulting firm, I spent the first 18 months as the only employee, but I always referred to my company as a “firm” and all marketing materials, website, invoices, etc. had the company name, not mine. There are some very inexpensive ways to create the outward appearance of an established company, even if you are working in your pajamas out of your kitchen. I immediately got a bank account, web-site, a toll-free number, letterhead, sample contracts, a virtual pbx phone system for conference calls with an automated receptionist (I use virtualpbx.com), online time tracking, and a collaboration web site that allows me to host web meetings and share documents with my clients (I use centraldesktop.com).
Since Last June, I have added 4 consultants, and have not had to change the way the company is presented to our clients in any way. Good Luck!
As a marketing/PR consultant, I did exactly as James suggested, work until you have a client or 2 to establish yourself.
I agree a web presence is essential, the first thing people will do is google you and your name.
Make a list of all your contacts, and start meeting them for breakfast to float your idea…that is where you might get your first leads.
Be prepared to take a low price to get your business – don’t expect a high bill rate right away.
A logo is key and a solid company name. Something easy to spell and easy to say . This will be your website, email address, etc…
Incorporate soon than later, an LLC is not hard to establish and well worth it. It also gives you instant credibility that you are the real deal.
Good luck and network, network, network!
James, I can help with the website. I create and maintain websites for small business owners who want their site managed, but also want to have online access to their site for updates. Email me at mary@webpq.com.
Dear James.
Of course you will need working Capital but in small amount to support any staff you will hire and plus to support your own expenses for the first 3 months initally if you are quitting your existing job/business.
You will need to prepare a pilot model for audit,cash management and business plan for loan proposals.
Rgds.
Mikail
James,
I would quibble with James about the value of a Web Site. You need a minimal Web presence, it is the 21st century business card. You can get by with a Web Hosting package that costs less than $50 per year. These packages include a starter site, a domain anmeand an EMAIL address. (I wouldn’t feel comfortable working with a cash management company that has an AOL, Yahoo or Hotmail account.) As a professional you’ll also need a seperate phone number, there are great ways to do that for free or without a separate phone line. You’ll need to look into ways to send and receives faxes. Finally, considering your business plan, you should talk to a lawyer or accountant about the value of incorporation. Your dealing iwth other people’s money, they can be senstitive.
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I am considering starting a consulting business. Your tips were very helpful.
Thank you.