Author Topic: Starting an IT consulting business  (Read 919 times)

dafoe1999

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Starting an IT consulting business
« on: March 05, 2017, 10:49:22 PM »
I am starting an IT consulting business and I have my first consult this week any tips on being successful in this endeavor? Thank you for your future replies.

Smokystache

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Re: Starting an IT consulting business
« Reply #1 on: March 06, 2017, 05:10:36 AM »
I don't have any answers, but I have lots of questions:

- How are you setting up your pricing? Hourly or project-based? Based on hours you spend working or value-based (how much the project is worth to the client)?
- Can you share what types of services do you provide? Will this be one-time gig or do you have something recurring to sell/provide?
- Are you going with a written contract or verbal agreement?
- Is this an initial meeting about a potential future project OR do you mean that you've been hired already and this is the first meeting after being hired?

I've got more, but that may help get things started.

Papa bear

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Re: Starting an IT consulting business
« Reply #2 on: March 06, 2017, 05:13:18 AM »
Are you the consultant or are you hiring people to be the consultant for the project?


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SeattleCPA

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Re: Starting an IT consulting business
« Reply #3 on: March 06, 2017, 07:26:07 AM »
You can often become very successful very quickly with a business where you do hourly consulting. One big client can take literally all your time.

I'd throw out two tips therefore:

1. Use a real accounting system so you capture all your expenses. I guarantee you'll miss deductions if you use the grocery bag system or MS-Excel. (I love Excel... but it's a terrible accounting platform.)

2. Consider forming an LLC ASAP and have your business be the LLC. I.e., the LLC contracts with customers. An LLC gives you the opportunity to jump to subchapter S status if (when?) this venture sparks up... but in the meantime, you can run your tax accounting as if you're a sole proprietor. You may also get some liability protection.
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Heroes821

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Re: Starting an IT consulting business
« Reply #4 on: March 06, 2017, 02:34:16 PM »
Technically this is what I am currently doing.  I guess my tips would be to decide the kind of work you want to do.  In my personal example I am on a 1 year contract with my client that entirely focuses on a specific product that I have experience with, if everything works out this might be extended to 2 or 5 years total.  If something like that is interesting to you then I might have some advice.

If you want to do other kinds of consulting in IT the only advice can offer to make sure that your contract specifically lists a monetary fee for days late on invoice payments.

dafoe1999

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Re: Starting an IT consulting business
« Reply #5 on: March 07, 2017, 11:59:57 PM »
How are you setting up your pricing? Hourly or project-based? Based on hours you spend working or value-based (how much the project is worth to the client)?

I was thinking hourly to start, but also doing ongoing maintenance for so much a month.

- Can you share what types of services do you provide? Will this be one-time gig or do you have something recurring to sell/provide?

I will be doing wiring cleanusp configuring network cleanup, social media marketing. anything technology related to better ones business

- Are you going with a written contract or verbal agreement?

Written contract

- Is this an initial meeting about a potential future project OR do you mean that you've been hired already and this is the first meeting after being hired?

Future client about a project where he wants to be able to remote to his machine anywhere in the world.



I've got more, but that may help get things started.

Are you the consultant or are you hiring people to be the consultant for the project?

I will try to do as much as I can, but I can see this getting very busy very quickly

dafoe1999

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Re: Starting an IT consulting business
« Reply #6 on: March 08, 2017, 12:01:07 AM »
also what is the best form of advertising in your mind to get your message out? Email, Facebook, Twitter, Pinterest, Other?

Axecleaver

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Re: Starting an IT consulting business
« Reply #7 on: March 08, 2017, 05:04:22 AM »
Pipeline management. Start figuring out who else you can work with and get in front of them to pitch. One of the big risks in this business, is that if a big portion (or all) of your time is going to one client, it can all disappear overnight. Ideally, you want to be selling work to 3 or more clients and have work booked at least two or three months out. The more clients you can spread out your time to, the lower your risk.

Bidding work fixed price is great in IT consulting, especially when you have very complete information about the problem, and can minimize your risks. Scope management is the biggest issue when you bid fixed price, so constrain the problem very carefully in your SOW.

Heroes821

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Re: Starting an IT consulting business
« Reply #8 on: March 08, 2017, 06:11:35 AM »
How are you setting up your pricing? Hourly or project-based? Based on hours you spend working or value-based (how much the project is worth to the client)?

I was thinking hourly to start, but also doing ongoing maintenance for so much a month.

- Can you share what types of services do you provide? Will this be one-time gig or do you have something recurring to sell/provide?

I will be doing wiring cleanusp configuring network cleanup, social media marketing. anything technology related to better ones business

- Are you going with a written contract or verbal agreement?

Written contract

- Is this an initial meeting about a potential future project OR do you mean that you've been hired already and this is the first meeting after being hired?

Future client about a project where he wants to be able to remote to his machine anywhere in the world.



I've got more, but that may help get things started.

Are you the consultant or are you hiring people to be the consultant for the project?

I will try to do as much as I can, but I can see this getting very busy very quickly

If you want to do consulting work involving cable management or network cleanup etc. I would suggest looking into bicsi certification.