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Starting a Small Consulting Business - How to Start Your Business Plan

Jun 16, 2008
Starting a small consulting business for yourself includes many challenges you need to overcome. It is imperative that you have a business plan to start the business. There are many approaches to business plan. Some are very elaborate and fancy and have a lot of words them. However, they can take forever to build and you do not want paralysis by analysis. Your plan should include what your business does and how you are going to generate revenue. Here are a few suggestions to start a simple business plan.

First and foremost, if you haven't decided which niche you're going to attack, then you need to take a step back and figure that out. Once you decide who you're going to serve, you're ready to write a mission statement for your business. Again, the mission statement doesn't to be very elaborate and dramatic. You just need to communicate in a couple of sentences what you business offers.

The next thing your business plan should include is how your business is going to make money. When it comes to a new consulting business, an hourly rate is the best way to go, because it's simple and easy. Basically, your business gets paid based on the amount of man hours to client project. Also an hourly rate is easier when negotiating with prospective clients. It's very easy to understand, and a common way for a consulting company to get compensated. Another benefit of this is it's very easy to invoice your client with this business model.

Your plan should also include a list of documents you need to support your business. In this case, you need a base contract for services available to you and you need an invoice template. They were the documents may be as well such as proof of business insurance. Depending on the state that you live in and if your budget allows it, you may want include in the plan to have a lawyer consultation of your contracts and state requirements.

Now that you documented what your business does and how your business makes money, you need to know how to get clients. Your business plan should include a couple of strategies on how to get leads of prospective clients and business. For example, are you going to go through the phone book for leads? You have a list of contacts to call? Do you need to buy leads from a service? Your business plan should detail how you're going to contact these leads, and also how you're going to track these leads for follow-up and any feedback you get.

Remember when it comes to starting a small consulting business, the most important thing in the world is to know what you're going to offer and how you're going to make money. You need a plan to do that. Hopefully the tips above will help you generate a plan in order for you to be successful in starting your consulting business. Good luck in your new venture.
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