How To Start Your Own Coaching or Consulting Business
Planning Your Consultant Business Requires A Good Business Plan
Build a thorough business plan. It is crucial to have a sound business plan from the very beginning of your consulting endeavor. A good rule of thumb is: If you can plan for it ahead of time, by all means do so.
- Pre-establishing your strategic approach for running the day-to-day aspects of the business. This includes considering items such as: Securing a business credit card, establishing standard hours of operation, deciding whether or not to invest in purchasing certain tools as opposed to renting services or tools (like choosing between buying a laser printer or using a service like Kinkos).
- Marketing your business. Deciding how to market your business in the most cost effective way possible. Will you need business cards? Would it be in your best interest to hire someone to design and develop a website for you? How about radio or television advertisements? Newspaper ads?
- Establishing principal funding. Will you be starting this business from scratch out of your own pocket? Are you interested in acquiring funding from an "angel investor"? Do you have friends or relatives who may be interested in getting in on the ground floor with an initial investment based on your reputation and experience, which could later pay off for them in the form of a return on their money? Perhaps you may want to offset the initial investment by applying for a small business loan at a financial institution. You will also certainly want to investigate grants, tax credits, and loans made available by the federal, state, and municipal government which are often made available to individuals starting a new small business (particularly if you live in the United States, which has many programs available for just this reason).
Decide upon, design, and build your work environment:
This is a crucial part of beginning your consulting business and much care and concern should be taken with this step of the process. What kind of a work environment you will need to do business in will vary wildly depending on many factors including:- Your budget: How much money you have at the onset will be one of the major factors in establishing your work environment. If you are starting this on a very limited budget, you will most likely want to build a home office. If you are going to need a lot of space for equipment you may want to consider clearing out a garage, spare bedroom, basement, or loft space in your home and using that area to build you place of business. Any of these areas will be very useful for a wide variety of consulting business types. If creatively designed you should be able to accomplish nearly any type of clerical, development, artistic, or light manufacturing work in as little as a 10 foot by 10 foot bedroom (or even smaller if all you need is a computer and a desk).
- The type of business you will be running/the type of equipment
that will be necessary: Most consultants will, at least at
the beginning, only need enough room to house the equipment necessary
for running the "office" portion of the enterprise (ie: computer, desk,
phone, filing cabinets, etc.). However, if you going to be participating
in certain types of consulting that will require a more robust workshop
you will want to factor that into the decision making process.
Network engineering consultants, for example, will want to have enough room to set up a mini-NOC (Network Operations Center) laboratory for testing configurations and ideas for clients before rolling them out live. Also, depending on the type of business, the equipment and facilities as well as the space will be important as well. If you are going to be doing any type of computer consulting, you will want to make sure you have a desktop computer, a laptop computer and broadband Internet connection, at the very least.
If you are going to perform in a consultant capacity for studio musicians, you will want to have enough space to house a small-scale music studio. Thanks to modern technology making things not only more powerful, but smaller, you should have no trouble fitting a semi-pro level recording studio in a closet sized area (but more room is ALWAYS better).
Consideration should also be taken for equipment you already have. If you are going to be mixing things you already own with new equipment, take care to ensure interoperability. There is no point in spending $1,000 for an expensive electronic tool if it going to make $2000 of equipment you already own prematurely obsolete in the process do to interoperability issues. You goal here is to achieve a balanced synergy between the space you are using, the equipment you bring to the table, and the new gear you will need to invest in. Think of it as a kind of business oriented feng-shui process.
If it is within your budget after all other elements of your business (such as equipment, certifications, and licenses, etc.) are funded, and you absolutely cannot use any space that you currently have access to for free, you may want to consider renting a small studio or office space. While it is crucial for you to have a separate area that is "for business only", it is also the least efficient usage of funds as far as getting "bang for your buck", as real estate is a very expensive part of the business world and the longer you can put off having recurring bills such as rent and various utilities, the better. Remember, when you rent an office, you not only have to pay rent, deposit and possibly tenancy insurance, but you will also need to pay for separate phone lines, power, water, and Internet connectivity (if necessary). When you are at the onset of establishing any business your financial mantra should be "is this the BEST use of the funds I have?"
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