Starting a Consulting Business

Do you know a lot about starting and operating a home business? Think you could you turn your knowledge into a viable small business? Read on to find out what is involved in starting a consulting business.

Typical Services

Most Home Business Consultants need to be experts on virtually every aspect of starting and operating a small home business.

Topics that you will find yourself consulting with your clients on can range from how to set up a computer system for their business, or how to choose an appropriate business structure or dealing with the legalities of opening a business.

Your clients might need assistance to design a marketing program for their business, develop a business plan or to set up their business processes.

Basically it will be your job to help your clients solve any and all problems that they might have with their small home business!

Qualifications?

At the very least, to start a business as a Home Business Consultant, you will need a solid track record as a successful small at home business owner.

Ideally though you will also have a business degree!

Equipment?

To run this type of business, you will need some basic office equipment, including a decent computer and office software (including email).

You will also need a good quality printer, my preference is for a colour laser which are more affordable these days. Either a physical fax machine or fax software is also a good idea, and a cell phone is a must. The easier you make it for your clients to contact you the better.

You should also add business cards, letterhead, envelopes and other basic office supplies to your shopping list.

Setup Costs?

Depending on the equipment and software you select, you can expect to spend between $4,000 to $5,000 setting up your home office.

It is advisable to set up your office in an area of your home that can be shut off from the rest of the house. You will also need to invest in some office furniture, at the very least a desk, filing cabinet and an office chair. Setting up your office furniture will cost between $500 to $1,000.

Apart from your equipment costs, you should invest in insurance.

At the very least, you will need professional indemnity insurance. Public Liability Insurance if clients are going to visit your office, Business Continuity Insurance, Income Insurance, Equipment Insurance etc. etc.

Depending on your business needs, your nsurance costs can range anywhere between $500 to $2,000 per year.

Potential Income?

Typical fees for a Home Business Consultant are between $40 to $50 per hour.

Bear in mind though, that as a business owner it is unlikely that you will be able to charge for every hour that you work in your business. You will need to set aside some time for actually running the business, which will include basic administration tasks, and marketing your services to potential customers.

Initially you should expect to charge out less than half of your working hours.

Typical earnings for this type of business range between $30,000 to $45,000 per year.

Additional Resources

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