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We've got some good news for anyone thinking about starting an IT consulting business – you are probably going to be in high demand. That's because a lot of small- to medium-sized businesses don't have the resources for an in-house IT department. Instead, they turn to folks like you to solve their tech needs.
But even if you have the technical chops, you may not know exactly how to start an IT consulting business. There's a lot more to it than the ability to restore a database or replace a motherboard.
You can find generic tips on starting a business all over the web. However, starting an IT consulting firm requires some finesse. To help you out, we've gathered tips from IT consultant who've been there before and can offer their hard-won wisdom.
1. You Need to Keep Learning
Learning never stops for IT consultants. New technology is invented every day, and existing technology continuously evolves. Keep up with the latest tech developments and updates to existing systems that may impact your customers.
"An IT consultant will encounter new things every day and only through experience do you figure out how to deal with these unexpected issues regularly," says Brian Anderson, an IT consultant and owner of ADVYON Business Technology. "Schooling alone will not prepare you for an IT consultant job. New ICT consultants need to be pliable, teachable, humble, and fast learners."
Joerg Laves founded his company IT Secure almost a decade ago. He says despite all of his experience, he's still learning.
"One of the nice things is that I never have it figured out," says Laves. "I always learn something new, which makes it really fun."
2. But Don't Just Learn IT – Learn How to Run a Business
It's definitely important to make sure your technical skills are up to speed, but don't lose sight of the fact that you're running an IT business. There's a lot more to it than simply troubleshooting clients' computer woes.
"Many IT consultants, when starting a business, don't understand business," says Anderson. "Balancing a checkbook, having a budget, working with the necessary tools, and creating the proper procedures for success eludes many."
But if you ignore the basics of business, you risk ultimately going under. If you need pointers, there are several books that can teach you the skills you need:
- If you need a primer on running a business: Small Time Operator: How to Start Your Own Business, Keep Your Books, Pay Your Taxes, and Stay Out of Trouble by Bernard Kamoroff.
- If you need help landing clients: Selling Value: Key Principles of Value-Based Sellingby Don Hutson.
- If you need a nudge to network more: The Complete Guide to Professional Networking: The Secrets of Online and Offline Success by Simon Phillips.
3. Get It in Writing
Before you take on any type of client work, spend some time creating standard client contracts that outline terms, such as…
- Project scope.
- Payment terms.
- Deadlines.
Working with a signed contract can alleviate a lot of headaches and may prevent some lawsuits. If you work more in the consultant mode versus strictly taking care of IT problems, invest even more time drawing up contracts if you want to retain intellectual property rights for your work.
4. Be Wary of Kickbacks
There's no shortage of companies eager to establish partnerships with IT consultants. They want to become your company of choice so that when you recommend a software or hardware purchase to a client, it's theirs.
But favoring one company really limits your options and may not be in the best interest of your customers. That's why some of those who've been in the IT trenches recommend not getting too cozy with a particular company.
"Don't accept kickbacks from any one program or hardware supplier," says Ryan Burr,founder of One Stop Tek (@Onestoptekshop). "If you get a little kickback from ordering from Amazon or another marketplace, that's fine, but keep your options open. I still have yet to find a company who can handle the different needs of my clients. By staying free from kickbacks, I don't try to force them into things."
While it's not the end of the world if you get a few perks once in a while from a supplier, don't let that be the deciding factor in what you recommend.
5. Learn How to Communicate with Clients
As an IT consultant, it's your job to solve your clients' problems. However, sometimes they may not be able to clearly articulate what those issues actually are. As Laves points out, a lot of the time when you ask the client what the problem is, they won't have an answer.
"If the customer knows what the issues are, they'd solve them themselves," says Laves.
Other times, you may encounter clients who think they know more than they actually do. Either way, it's up to you to diagnose the real problem, find the solution, and communicate all of that in simple terms to your customers.
"You need to be able to understand what the customer is trying to accomplish and be able to put the technology aspects into clear, non-technical terms," says Townley. "Those that think they know are often harder because you need to help them understand the boundaries of what they actually know."
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