Thinking of starting a small business IT consulting

[Larommi]

Wait. Consultants actually do something these days? Back when I was doing IT and running the small PC shop, consultants did not do shit. If that is the case, and you are actually doing the work as well as consulting, 75 is woefully to cheap. Though, if you are good, you will be busy.

As it is, if I do part time IT and I charge 85 just to get out of my truck.

[slgrieb]

For your area $75 is peanuts. Even my area, which has a lower cost of living than yours, $100-$150 an hour is pretty standard. You should ping slgrieb, he can probably help you out.

Actually, I am at about $75 per hour. But, I'm in a very rural, and frankly pretty low income area. The upside is living costs, particularly taxes and utility rates. Personally, I'd call some of the businesses in your area, and pump them for some info. My hard drive just went dead. Any idea what that will cost me? That sort of thing. That will give you a good baseline for rates.

I wouldn't back off on service rates, but I'd think about tossing new clients a bone in terms of perhaps free diagnostics, a free ADWCleaner scan or some such. Free diagnostics.Chances are once you have the machine in hand, you are likely to get the job. Since about 90% of my customers are about 10 minutes or so away, and often older folks, I offer free pick up and delivery. Here's the scenario; you check a machine on site, need to take it in for further diagnostics, and that usually means you get the work. But of course your situation will vary.

For corporate customers, you will have to have some materials prepared that help establish your credentials, references, certifications, etc. in a nicely printed Word or Publisher document are fine. For credit card processing I just use Square, because for most processors, you're looking at contracts that are almost impossible to decipher, with an incredible amount of hidden charges and fees. Imagine a credit card agreement times 10.

[Webhead]

Keep in mind that as main income this isn't that much unless you get to work full time.
You will pay your own taxes and cover 100% of your own medical insurance that you must buy by law. No 401k or retirement plan.
So the equivalent is probably $50/h salary, but most likely not even close to 40h/wk at the beginning. Don't be surprised with 10-20k in the first year.

Thing is, thankfully my wife has a great job and I can be on her medical benefits plan through her work. But either way, even $50 per/hour is more than I've been making.

[Webhead]

I was going to type what CeeBee said but since he already said, I will just say he is right.

In the mid-90's I worked for a company that offered a variety of technical services to its clients. Our biggest client got technicians for $65/hour. Small clients paid us $125/hour. Project managers got slightly more at each end of that range.

Starting your own business is a big commitment so I think what you said about starting out doing this on the side is a good plan. Do your existing job 8-5. Try to do your own business during off hours. The nice thing about IT is some things work out better during off hours because you are not interrupting people's ability to do their job while you upgrade the server.

I can't remember if I mentioned this or not but my current job is ending. Our company is closing down after 12 years. Our parent company in Japan and our partners are absorbing everything. So I'll be in job search mode soon. Last day here at my current company is 3/31.

[Webhead]

Isn't there a ton of competition in that? In your area?

Unless you can partner up with someone and corner an area I would think an upstart would get buried.

Now, if you are willing to travel outside the city...you might be on to something. Get out into the area where your experience will beat out that kid down the street that fixed his grandma's computer once.

Well, yes and no. There is an insane amount of technologists here but. In other words, every software developer, SysOps, etc. are here and they all seem to be creating software startups. There's not exactly a large IT consulting base here though. I mean, there's enough where it would be competitive for sure. But yeah, I want to test the waters. I already have some gigs lined up through people at work. The former CEO will be introducing me to some of his partners and I'll be contracting for the current CEO for some stuff. Then an engineer is starting his own business so I'll contract for him. And a few other things. Then I'm hoping good work and word of mouth will help spread to more business. But we'll see how it goes. It could all turn out to be nothing. I just have to try though and see.

[Webhead]

For your area $75 is peanuts. Even my area, which has a lower cost of living than yours, $100-$150 an hour is pretty standard. You should ping slgrieb, he can probably help you out.

Yeah. That's what I hear. For me, that's a lot of money. $150 sounds good to me though.

[Larommi]

Well, yes and no. There is an insane amount of technologists here but. In other words, every software developer, SysOps, etc. are here and they all seem to be creating software startups. There's not exactly a large IT consulting base here though. I mean, there's enough where it would be competitive for sure. But yeah, I want to test the waters. I already have some gigs lined up through people at work. The former CEO will be introducing me to some of his partners and I'll be contracting for the current CEO for some stuff. Then an engineer is starting his own business so I'll contract for him. And a few other things. Then I'm hoping good work and word of mouth will help spread to more business. But we'll see how it goes. It could all turn out to be nothing. I just have to try though and see.

Best of luck to you. Starting my own company is something I have never had the sack to try. It sounds like you have given this the research.

[slgrieb]

Yeah. That's what I hear. For me, that's a lot of money. $150 sounds good to me though.

In a lot of areas, the field can be crowded, and even if there are opportunities open due to the shortcomings of your competitors, you won't get established overnight. So, don't ignore anything that will make you money. Even if it is work that's beneath your normal level of expertise.

[Tekboy]

In a lot of areas, the field can be crowded, and even if there are opportunities open due to the shortcomings of your competitors, you won't get established overnight. So, don't ignore anything that will make you money. Even if it is work that's beneath your normal level of expertise.

Absolutely. Conversely, have some common sense. Do NOT let someone talk your rate down because you are new. Just. Don't.

One of the advantages I had in my business in Alaska was the fact that I play well with humans, which is more rare in our business than in most. I have found that most people who spend lots of time with computers tend to lack people skills. Customer service is a must.

1) If you don't take good care of the customer, someone else will.

2) The customer is always right, unless he/she is about to screw themselves, at which time you tactfully inform them of such.

3) Remember attention to detail. If you do a good job, they will tell both of their friends. If you don't do a good job, they will tell everyone until they get tired of talking about it.

4) You are a small business, which means you are broke. Even if your account looks phat for a while, you are broke. However, for this reason, as soon as possible, get liability insurance.

There is more. Make people pay when they insult your intelligence, but make them like it.

[Mobile PC]

Absolutely. Conversely, have some common sense. Do NOT let someone talk your rate down because you are new. Just. Don't.

One of the advantages I had in my business in Alaska was the fact that I play well with humans, which is more rare in our business than in most. I have found that most people who spend lots of time with computers tend to lack people skills. Customer service is a must.

1) If you don't take good care of the customer, someone else will.

2) The customer is always right, unless he/she is about to screw themselves, at which time you tactfully inform them of such.

3) Remember attention to detail. If you do a good job, they will tell both of their friends. If you don't do a good job, they will tell everyone until they get tired of talking about it.

4) You are a small business, which means you are broke. Even if your account looks phat for a while, you are broke. However, for this reason, as soon as possible, get liability insurance.

There is more. Make people pay when they insult your intelligence, but make them like it.

Exactly what he said. I thought I would be spending my time running cable and setting up servers. Installing SAP software. I spend more time removing spyware off Grandpa's computer, and teaching people how to use some software program. To a degree, it's how I marketed my company, but I'm happy with the way it turned out.