Any IT Consulants here who have their own consulant business
22-02-2006, 10:43 AM
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Any IT Consulants here who have their own consulant business
Me and 2 mates who are shit hot on IT etc are toying with the idea of setting up an IT Consulanty business (part times at the mo) basically we are just going through the whats needed stage, Does anyone on here do this? and if so can they offer any advice on setting up such a business etc
cheer for any help
Gra
cheer for any help
Gra
22-02-2006, 12:24 PM
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One of the lads here in work owns his own Support Consultancy company, and suggests the following:
- Market research (before doing anything else, find out if anyone in the area would be interested in the services you're offering first)
- Set up a limited company
- Look into public-liability insurance
- Make sure you have all the necessary tools
- Cover as many hours in the day, as possible
- Research prices fully, don't set them too low (nobody will trust you if the prices compared to competitors are much lower) or too high (you won't get any customers, obviously)
- Advertise. Lots. Everywhere (as long as you can find decent (ie. free) places to place adverts - although he says word-of-mouth is the best advert)
He said to put a link to his website here, if you're interested in a read-through...
http://www.libre-revolutions.co.uk/
- Market research (before doing anything else, find out if anyone in the area would be interested in the services you're offering first)
- Set up a limited company
- Look into public-liability insurance
- Make sure you have all the necessary tools
- Cover as many hours in the day, as possible
- Research prices fully, don't set them too low (nobody will trust you if the prices compared to competitors are much lower) or too high (you won't get any customers, obviously)
- Advertise. Lots. Everywhere (as long as you can find decent (ie. free) places to place adverts - although he says word-of-mouth is the best advert)
He said to put a link to his website here, if you're interested in a read-through...
http://www.libre-revolutions.co.uk/
23-02-2006, 08:11 AM
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Hi Gra
I do it and have done since the beginning of 1999.
Its a very competitive market and there are so so so many chancers out there.
Because it is very difficult to qualify how good an 'IT Consultant' is until you've employed them and so many are shite, many businesses are very nervous of employing the services of a consultancy.
Also, just because someone can fix things and do support work doesnt make them a consultant.
Being a good consultant requires an understanding of business and business need along with the application of technology to facilitate business, be it in a direct way, such as a website etc or indirectly in the improvement of efficiency.
When I first started my business I made a point of joining the Chamber of Commerce and the Federation of Small Business as a way of networking with other people in the hope of finding customers.
But at these events there were always several other people who were 'IT Consultants' and whenever people asked what I did and I replied I did IT Consultantcy the conversation went dead.
The minute I started talking about my internet business supplying classic car parts around the world the conversation changed and people were very interested to find out how to start an internet business and about the experiences and pitfalls etc.
If you want to make more money then go contracting but even that is a saturated market and its getting harder and harder to get a decent rate.
The other thing to do is stick an ad in the local paper and set yourselves up as 'PC Doctors' Keep your full time jobs and just repair peoples PC's in the evenings and at weekends.
Its all cash, there are plenty of fooked up computers out there and as long as you are cheaper than the local computer shops, PC World etc then you are on a winner
I do a few 'homers' for people and use the money to buy kebabs and things for my cars....
As for finding customers for my 'real' business I work on a word of mouth basis. Might not be the best way as I have alot of free time and drive Anglias not Porches... but quailty of life is important.
Good Luck in whatever you do mate !
I do it and have done since the beginning of 1999.
Its a very competitive market and there are so so so many chancers out there.
Because it is very difficult to qualify how good an 'IT Consultant' is until you've employed them and so many are shite, many businesses are very nervous of employing the services of a consultancy.
Also, just because someone can fix things and do support work doesnt make them a consultant.
Being a good consultant requires an understanding of business and business need along with the application of technology to facilitate business, be it in a direct way, such as a website etc or indirectly in the improvement of efficiency.
When I first started my business I made a point of joining the Chamber of Commerce and the Federation of Small Business as a way of networking with other people in the hope of finding customers.
But at these events there were always several other people who were 'IT Consultants' and whenever people asked what I did and I replied I did IT Consultantcy the conversation went dead.
The minute I started talking about my internet business supplying classic car parts around the world the conversation changed and people were very interested to find out how to start an internet business and about the experiences and pitfalls etc.
If you want to make more money then go contracting but even that is a saturated market and its getting harder and harder to get a decent rate.
The other thing to do is stick an ad in the local paper and set yourselves up as 'PC Doctors' Keep your full time jobs and just repair peoples PC's in the evenings and at weekends.
Its all cash, there are plenty of fooked up computers out there and as long as you are cheaper than the local computer shops, PC World etc then you are on a winner
I do a few 'homers' for people and use the money to buy kebabs and things for my cars....
As for finding customers for my 'real' business I work on a word of mouth basis. Might not be the best way as I have alot of free time and drive Anglias not Porches... but quailty of life is important.
Good Luck in whatever you do mate !
23-02-2006, 08:45 AM
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Hi Gra
Agree with Neil's sentiments above it is a VERY VERY VERY competitive market and you'll find yourself in a catch 22 scenario you need the bigger clients to make any decent money, but you can't get into the bigger clients because you're not big enough to do it etc etc etc etc!!!
I wouldn't bother with the limited company route unless you're deadly serious about it because that will just cost you money, setup, end of year and then there's all the red tape that goes with it e.g. once your a Director you'll suddenly be on Self Assessment Tax unless your not already.
Setup a partnership agreement and give yourselfs ways out without detriment to anybody who wishes to continue with the business. Unless your very lucky there WILL be a falling out at some point, be prepared!
A pain in the arse but get VAT registered, no VAT number immediately tells somebody how big your business is, unless your going to concentrate on on home PC support type stuff of course.
Be very wary of any form of advertising, everybody knows somebodies brothers, sisters, uncles best mate who is an IT Wiz and will do the job for £50 and a pie and pint, so analyse any advertising media carefully before you spend your dosh.
If your a consultancy make very sure that you have a reasonable understanding of basic project management and systems development lifecycles e.g. waterfall, prototyping etc. There will always be somebody in that presales meeting who has been to Harvard for 25 years and you don't want to look a cock!
Image, Image, Image unfortunately whether you like it or not your in market place where presentation is king, your logo, stationery, yourself all needs to breath professionalism so make sure it does.
Get some money behind you agree to put say £1,000 in each that way it gains commitment from each member, open a bank account, make it so 2 signaturies are needed to write cheques.
Write a business plan, it doesn't need to be long and drawn out just put in the basics so you know where you want to be in say 6 months, 12 months and 2 years.
Andy
Agree with Neil's sentiments above it is a VERY VERY VERY competitive market and you'll find yourself in a catch 22 scenario you need the bigger clients to make any decent money, but you can't get into the bigger clients because you're not big enough to do it etc etc etc etc!!!
I wouldn't bother with the limited company route unless you're deadly serious about it because that will just cost you money, setup, end of year and then there's all the red tape that goes with it e.g. once your a Director you'll suddenly be on Self Assessment Tax unless your not already.
Setup a partnership agreement and give yourselfs ways out without detriment to anybody who wishes to continue with the business. Unless your very lucky there WILL be a falling out at some point, be prepared!
A pain in the arse but get VAT registered, no VAT number immediately tells somebody how big your business is, unless your going to concentrate on on home PC support type stuff of course.
Be very wary of any form of advertising, everybody knows somebodies brothers, sisters, uncles best mate who is an IT Wiz and will do the job for £50 and a pie and pint, so analyse any advertising media carefully before you spend your dosh.
If your a consultancy make very sure that you have a reasonable understanding of basic project management and systems development lifecycles e.g. waterfall, prototyping etc. There will always be somebody in that presales meeting who has been to Harvard for 25 years and you don't want to look a cock!
Image, Image, Image unfortunately whether you like it or not your in market place where presentation is king, your logo, stationery, yourself all needs to breath professionalism so make sure it does.
Get some money behind you agree to put say £1,000 in each that way it gains commitment from each member, open a bank account, make it so 2 signaturies are needed to write cheques.
Write a business plan, it doesn't need to be long and drawn out just put in the basics so you know where you want to be in say 6 months, 12 months and 2 years.
Andy
23-02-2006, 09:10 AM
#5
Echo all of the above. I started in 1993 and "went it alone" in 2000.
If you are any good, as with most things in life, you will make a decent living - despite the market being overrun with "IT Consultants" - many of who wouldn't know which end of a screwdriver was the sharp end
Also agree with Neilm, join the FSB and your local Chambers of Commerce - there will be one local somewhere
If there is a market in your area for it, then go for it!
It takes time to build up a decent customer list - and, as above, word of mouth is one of the best ways.
If you are any good, as with most things in life, you will make a decent living - despite the market being overrun with "IT Consultants" - many of who wouldn't know which end of a screwdriver was the sharp end
Also agree with Neilm, join the FSB and your local Chambers of Commerce - there will be one local somewhere
If there is a market in your area for it, then go for it!
It takes time to build up a decent customer list - and, as above, word of mouth is one of the best ways.
23-02-2006, 09:10 AM
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I have my own IT business and work full time for someone as an IT Manager. I am lucky in that I can run mine during my current job as I supply them parts at cost so we have a good arrangement.
I also work in the evenings more for favors than cash (oi oi!) e.g beer, wine, free feeds etc.
I studied the different lifecyles that AndyBrew mentions at uni with my degree and also project management, both of which are immensly useful now.
I wrote my own business plan based on what I learnt at college and uni which the bank loved so I could get a financial start. Hopefully finish my site off in the coming weeks as I have been deciding the best way forward for CC transactions as unlike the UK we get poor coverage on cards here due to the neighbouring high risk fraud countries.
Plenty of business plan templates online if you want one. Definately decide on target market (I aim more corporate rather than dealing with hundreds of $20 sales and I have a business background which I may as well utilise). Good advice already on this thread though.
I also work in the evenings more for favors than cash (oi oi!) e.g beer, wine, free feeds etc.
I studied the different lifecyles that AndyBrew mentions at uni with my degree and also project management, both of which are immensly useful now.
I wrote my own business plan based on what I learnt at college and uni which the bank loved so I could get a financial start. Hopefully finish my site off in the coming weeks as I have been deciding the best way forward for CC transactions as unlike the UK we get poor coverage on cards here due to the neighbouring high risk fraud countries.
Plenty of business plan templates online if you want one. Definately decide on target market (I aim more corporate rather than dealing with hundreds of $20 sales and I have a business background which I may as well utilise). Good advice already on this thread though.
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23-02-2006, 10:52 AM
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Spot on Mr Brew
Which is why I went VAT registered from the start, I also had seperate fax and phone lines put in, in addition to my home number, also always use a proper domain name for mail and website etc
Nothing smells more pooooohy than a phone/fax number and gra@tesco.net
I would slightly disagree with Andy on the point of Limited Companies, alot of businesses are very reluctant to employ the services of a consultant / contractor if they arent a limited company because if the consultant did a runner the customer would be deemed to be that persons 'employer' and therefore be liable for the unpaid tax.
PS as this is consultancy, where do I send the bill
Which is why I went VAT registered from the start, I also had seperate fax and phone lines put in, in addition to my home number, also always use a proper domain name for mail and website etc
Nothing smells more pooooohy than a phone/fax number and gra@tesco.net
I would slightly disagree with Andy on the point of Limited Companies, alot of businesses are very reluctant to employ the services of a consultant / contractor if they arent a limited company because if the consultant did a runner the customer would be deemed to be that persons 'employer' and therefore be liable for the unpaid tax.
PS as this is consultancy, where do I send the bill
23-02-2006, 01:00 PM
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"alot of businesses are very reluctant to employ the services of a consultant / contractor if they arent a limited company"
yes, sorry didn't think that through fully when I started my company I got a 12 month contract where part of the stipulation was I needed to be limited to get the contract
however, I would still say if your generally f@#king about in the evenings don't bother LOL!!!
yes, sorry didn't think that through fully when I started my company I got a 12 month contract where part of the stipulation was I needed to be limited to get the contract
however, I would still say if your generally f@#king about in the evenings don't bother LOL!!!
23-02-2006, 01:19 PM
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I can currently only "work" part time, due to Uni comitments. I currently work part time as a Business IT specialist. I configure networks, advise on new installs, software, hardware etc. I think i'm pretty good too. It's not what i want from a long term career though. I've had a few companies asking to do "foreigners" but have so far refused. I'm thinking really that i may as well. I only work 14 hrs per week, and if i could make 100 or so quid a week as a little bit of extra income, i'd be happy. U don't expect to do much for companies personally, but maybe home stuff would be viable.
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