Last week, I wrote about making the decision to be a consultant, including the choices to be made about interim and sideline gigs and the types of services you might offer. This week, I’m following up with a brief discussion about next steps.
Set your rates
For most people, the financial question is paramount, so you’ve undoubtedly done some thinking about the rates you might charge. Talking with your accountant will also help, but here’s one way to estimate some numbers.
First, work backward by noting your monthly, quarterly or annual earnings goal, divided by the number of hours you want to work during the same time period. Assume that only one-third of your business hours will be billable initially (you’ll use the other hours for business building), so multiply your number by three to approximate your hourly rate. Once you have a base number, check it against the market rate for similar services in your area and adjust accordingly.
Build marketing tools
You need some kind of marketing tools to communicate your services and make the business credible to others. Among the best options for a new consulting startup would be business cards, a services brochure, customer testimonials, work samples, and a template sales letter. Not as important? Your resume. Clients care about what you can do for them, not about past jobs you’ve held. Making it easy to find you is smart, so launch a simple website and get on LinkedIn as soon as you can.
Prepare for paperwork
This is a complex topic, but the simplest thing to know is this: You need a contract for each project, and you need to invoice promptly if you expect to be paid. You’ll find scads of websites and books offering templates to get you started.
Get your first clients
I’m in favor of doing a project before actually launching, but others prefer to outline all their services before going on the hunt. In either case, you’ll find that there’s nothing like a client to make your venture feel real. Start by contacting past colleagues, bosses and customers to ask for overflow work. Craigslist and similar sites can also be good sources, but beware: Sorting out the hucksters can take the wind out of the sails for a fledgling contractor.
Next steps
Whether you’re considering an international consulting operation or a modest freelance gig, you’ll benefit from following a process of steps. While the items noted below won’t fit everyone exactly, you can modify the checklist for your own circumstances. When that’s done, plot them on a calendar for the first quarter of 2014 to ensure a timely launch for your new business.
1. Choose a service to offer.
2. Decide if this is an interim gig between jobs, your primary source of income, or some other work pattern.
3. Identify potential clients by name.
4. Create marketing materials.
5. Tell everyone about your new services, including friends, social media outlets and colleagues.
6. Create a separate financial structure, including business checking and federal tax number (go to irs.gov and choose EIN from the menu).
7. Obtain needed equipment, such as software or the appropriate cellphone.
8. Find an attorney and an accountant.
9. Get your first client and keep your eyes open for the next one.
10. Deliver high-quality services to pave the way to word-of-mouth referrals and more contracts.
As a final resource, consider reading a new book by Kimberly Palmer, called “The Economy of You: Discover Your Inner Entrepreneur and Recession-proof Your Life” (AMACOM, 2014, $21.95). The book is just being shipped to stores, so I’ve only read the press release and can’t yet recommend it wholeheartedly. But the topics and outline sound good; this or similar books might give you the encouragement you need to make this exciting leap.
