Starting A Small Consulting Business

In an age of the internet, and changing lifestyle choices, more and more people are looking to starting a small consulting business,nnThis makes sense but the decision must be made carefully; and be just as thoroughly researched and planned as in starting a small business from scratch. nnA consultant offers their expertise in a specialist field; for example, information technology; publishing. Most start their professional lives in salaried positions and want the flexibility and satisfaction that working for yourself gives.nnBut beware. It is not easy and many people start out part-time and build a client base up over time before leaving the security of a full-time job.nnAnd there is fear. Everyone has debt of some sort; a mortgage, credit cards. Don’t let fear stop you working for yourself. nnStart out SmallnnThe best way is to take a look around at what others are doing. Make a list of your skills. Answer questions like:nn- What skills do I have (engineering, graphic design)?n- Strengths and weaknesses?n- What is your market?n- What do you want to make annually?n- How do you achieve that?n- What equipment do you need?n- How do you feel about working long hours?n- What customer service will you offer?nnLet People KnownnMarketing is important. Do your research. This can mean hours of looking at the market on and off line. Use word of mouth. nn- Let people know you are available on a contract basis. n- Join reputable websites where you can promote yourself. n- Create a website that showcases your skills.nnWhat to ChargennThis is difficult and there is a lot of advice out there. Take a look at you’re your competitors charge. Starting out you want to be competitive to build a reputation so putting a value on your time is difficult. Here are some things to consider when working out an hourly rate:nn- Determine a yearly figuren- Add taxes and any other costs your employer used to pay (healthcare, superannuation, etc)n- Costs for marketing (around 5%)n- Fees to professional organizationsn- Backup fund (about $200 a month for unexpected expenses) n- Add up the amount and divide by the total number of hours you bill per annum (be reasonable, base your calculations on around a 30 hour week)nnDo your research, start marketing, set a pricing structure, meet deadlines and you will be working for yourself before you know it.