How to Start an IT Consulting Business

IT consulting services are worth almost $48 billion—accounting for 20% of the total global consulting market. But despite these figures, starting an IT consulting business can be a risky affair if you don’t know what you’re doing. However, building a successful IT consulting business makes it worthwhile. The business is flexible and open to customization.

The industry’s revenues are expected to reach $471 billion by 2022, so it’s a lucrative field to venture into. If you want to start an IT consulting business today, here are a few steps to take:

Improve your IT Skills

The IT field requires some technical knowledge and work experience. Work experience is gained by working for another company and helps you master essential  IT skills. One great way to hone your skills is to start your IT business while working for another IT company part-time, then transition to the business full-time down the road. 

Many IT firms (almost 75%) are either currently “looking to hire” or are understaffed. So, it’s easy to find a company that can hire you.

Buy the Right Equipment

Another important step to take is to buy the right equipment for your business. You can also get a car to streamline your business operations and explore opportunities for your business’s growth.

You can get pre-approved for an auto loan and have greater negotiating power at a dealership. To access an affordable auto loan, ask your bank to pre qualify auto loan. With pre-qualification, dealerships will give you better offers to ensure you choose their financing solutions.

Register Your Business

To register your business, pick a name for it, create a mission and vision statement, form a legal structure (partnership, limited liability company, or sole proprietorship), and write a business plan. 

For the record, your business has a 30% chance of success if you have a business plan. So, come up with a great plan for your business then proceed to register and obtain a license to operate within your area.

Explore Different Marketing Strategies

Effective marketing strategies will scale your business and help you attract potential customers. The best way to market your IT consultancy business is to identify businesses you want to work with.

Also, explore marketing strategies such as traditional and digital advertising to make your business visible to potential customers. Asking people in your network for connections and referrals is also a great way to market your business.

Decide How Much to Charge

Besides offering a vital service, business is all about making money. So, decide early on how much you’ll charge clients for your consultancy services.

Be smart when deciding how much to charge your clients. Of course, you want to charge a good rate to earn a profit and cover business overheads. However, it’s also important to ensure your rates aren’t too high. 

Once you decide how much to charge for your services, determine how you’ll charge your clients—on retainer, by project, or per hour? Before choosing one option, ensure you compare the benefits and drawbacks of each.