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Starting a consulting business

Let's first make the distinction between becoming an independant consultant, and starting or operating a consulting firm. These are two entirely different animals. If you're considering striking out on your own as an independant consultant I'd recommend you consider building a business around your practice. If you're like most you already have that one engagement that will get you started, build from there.
Read more on starting a consulting business, or our new article on
becoming an independent consultant.

Starting a consulting business because you're out of work.
It happens to the best of us. In today's economy you can be on top of the world one day, and out of a job the next. The silver lining is you can succeed, it just takes an aggressive track. Read our advice for starting a consulting business when you have to.

Just want to become your own consultant?
If you don't want to start a consulting business with employees you'll still need to set up the basic structure of a business, and market and sell yourself. Going out on your own is just as daunting a task as starting your own business.
Read starting a consulting business working by yourself.

Setting fees for your consulting company
It doesn't matter if you're starting a computer consulting business, or a real estate consulting business, a consultant is pricing himself. Half of the people starting a consulting business set their fees to high. The other half set their fees to low. How do you determine how much to charge? This is one of those questions that seems to have a different answer every time you asked. Is there a way to know what to charge? Absolutely, and it's very easy. Figure out how much you need to make to survive at your current standard of living. Add in factors like the expected duration between jobs, the length of the existing contract, and overhead to cover your taxes, social security etc. Then figure out a decent profit margin and add that to the top. What's decent? If you're just starting out figure a premium of 20% to 30%. Every engagement is a little different.

Click to determine how to set your consulting business hourly rate.

Marketing your consulting business
When you're first starting out, most of your business will come through word of mouth. But you have to get the ball rolling. You should have a good looking web site, and professional marketing letters and brochures ready to go. The first mailing is intended just to create awareness. Send as many letters as you can to target customers. The letter should introduce yourself, contain a brief history of your experience and a skills based resume'. Tell them more about what you have done and what you can do, and less about who you've done it for. The letter should also have clear instructions for contacting you by phone, e-mail and your website address.

Starting a computer consulting business

Setting fees for you consulting business.

Step by step guides to starting a consulting business, getting financing, and small business management.

Top 20 consulting businesses from entrepreneur.com