How To Start A Consulting Company

You can make money as a consultant if you know how to start a consulting company and meet these criteria:

• Know things and have skills that others do not have
• Have a knack for understanding and solving technical or other complex problems
• Can promote your skillset
• Identify areas where the need is great and expertise is scarce
• Can reliably provide value for your customers
• Understand who can and will pay for your advice and services

Developing a consulting business is not just about promoting your abilities. It starts with building your technical skills, learning to network, and developing the ability to spot opportunities. Here are some ideas of how to start a consulting company from the ground up.

Look for a Combination of Scarcity and Value

An excellent example of where a consultant can prosper is in the various interfaces between the world of computers and the internet and the many evolving uses of this area of technology. If you know computers, programming, and new applications, and you always stay ahead of the learning curve, you can make money as a consultant. The work here is always on the cutting edge of technology and its applications.

It is tempting to think that consulting jobs in this niche will all go to “techies” who are computer savvy. But, computer geeks usually do not know anything about other businesses. Companies working in every business niche from sales, online sales, consumer goods, food processing, or energy extraction and distribution need help integrating new technology into their businesses.

These are businesses that commonly need consulting services today.

• Auditing and accounting
• Technology and computers
• Public relations and advertising
• Business management
• Communications, editing, content writing
• Sales and marketing

Starting on the Path to a Consulting Business

To start a consulting company, you need to decide which of these areas, or any others, are niches where you can offer help, create value, and make money.

Then you need to decide if you have the time to do the necessary work. Many consultants leave their “day job” to work in this niche. If you already have been doing similar work, you have a good idea of the requirements. Otherwise, you need to make sure that you have the resources to support yourself while waiting for your first consulting check.

You will want to develop various service “packages.” Does the client just need advice on which way to go with new technology, or do they need every detail spelled out for them? Will you study the issue, write a report, give a slideshow presentation, and walk away with a check? Or will you spend months working with people in the business to get a new project or application up and running?

Decide How Much to Charge for Consulting Services

The best way to set your pricing is to find out what other consultants are charging. It would help if you charged enough to cover your expenses and make a living, and you don’t want to price yourself out of jobs. As a rule, those who are new to the field and have not developed a reputation will need to set their prices on the lower end of the scale. Because you want to develop a reputation and have a list of satisfied clients, doing work for less is smart when you start.

Understand the Consulting Job before Agreeing to the Price and Terms

A trap that too many new consultants fall into is not to understand how long a job will take or how much it will cost out of pocket. Consider charging by the hour, day, week, or month when you start. You can always agree to upper and lower limits of time and price, but don’t sign up for an attractive consulting arrangement that turns into an unending nightmare with a paycheck that never arrives because the job is never finished!

If you want to know how to start a consulting company, our business lawyers can help. Give us a call at (305) 921-0440 or email us at [email protected] for a consultation today.