In 2019, the IT consulting industry in the United States will generate $484 billion. This figure has been increasing by 4.2% annually since 2014.
Clearly, this industry is on steady growth, which means now is the best time to open up an IT consulting company.
However, just because the industry is growing and generates billions of dollars every year doesn’t mean you’re primed for success. Competition for clients is fierce, with a few big companies dominating the space.
This is why you need to take the right steps when starting an IT consulting business. Continue reading for a quick guide.
Pick a Niche
It’s understandable that you might be looking into starting a company that offers a wide range of IT consulting service. After all, the wider you cast your net, the more clients you’ll attract, right?
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Well, in some industries that’s true, but in a competitive industry like this one, offering a broad range of IT consulting services means directly competing with the large companies. You won’t easily beat them.
A smarter move is to do extensive market research and find a less competitive but profitable niche. For instance, you might want to focus on cybersecurity consulting or cloud consulting. A good number of small businesses across the country are just starting to take measures to protect their IT systems, meaning you can capitalize on this uptake.
Draw a Detailed Business Plan
A mistake newbie entrepreneurs make is starting up a business without a detailed business plan. They probably assume opening a small company doesn’t require a lot of planning. Don’t make this mistake.
An IT consulting company, however small, has many moving parts. Drawing a business plan before opening up is the best way to know these parts and know whether you have what it takes to succeed. Your plan should flesh out the following details:
- Executive summary
- Business overview (legal structure, ownership info, location)
- Operational strategy (online, offline, or both)
- Market analysis
- IT consulting services to be offered
- Sales and marketing strategy
- Financial plan (startup costs, ongoing business expenses, income projections).
After creating the plan, you will know the amount of money you’ll need to start up and keep it going until you reach sustainable profitability. If you’re self-funding the company, ensure you have the entire amount. If not, you can take out a business loan or borrow from friends and family.
Register the Company
With the capital secured, you’re ready to start your company. Head over to the relevant department in your state or local authority and register your business name, location, and contact details.
Next, set up an office in your chosen location, purchase office furniture and equipment, and set up a professional company website. Finally, implement your marketing strategy and wait for your first client to call.
Starting an IT Consulting Business Made Easy!
Starting an IT consulting business is definitely a smart decision. Now your task is to put your plan into action. This should be easy, as we’ve fleshed out the key steps you need to follow.
Keep reading our blog for more business tips and insights!