Are you considering starting an IT business? Sometimes it's about taking the first leap to entrepreneurship – but you also need to have a solid business plan, be willing to work hard and of course have some technical knowledge.
Although a tech company starts taking some risks, you have the best chances of success by doing the following steps:
1. Deciding on a Business Structure
The first step you need to consider when learning how to start an IT consulting company is choosing a business structure. Whether you decide on a one-man business, partnership or LLC, the type of legal structure you choose for your business will affect taxes, the amount of paperwork you need to do, and personal responsibility.
Be careful considering which corporate structure best meets your needs and think about how your business may need to evolve. Consult with a tax secretary to determine the company's unique needs and benefits and disadvantages of each type of legal structure.
2nd Think about your place
Decide if there is a sufficiently large customer base in your city to support your new IT business. Some cities are more difficult to start a business than others, based on customer base, competition and costs. Do a thorough analysis of the city you decide to do business to make sure it is a viable alternative. Read more with Insureon's guide to the top seven cities to start an IT consulting company.
3rd Register your business unit
When you decide on a business structure, you want to register the business. The process of registering a business varies depending on your state laws, so review them first. If you want the business name to be something other than a personal name, you will probably enter a "business as" name.
4th Opening a Bank Account
Opening a bank account makes it easier for you to keep your personal and business accounts separate. Most banks offer competitive small business accounts and can help you review your banking needs. You may also want to consider talking to your accountant about bank options.
5th Build a corporate identity
Make sure you create a brand image and consistently show it across all aspects of your business, from your logo to the letterhead that you put on your invoices. Research that your core customers will be, how you will appeal to them, and how you will be able to distinguish yourself from the competition. Then create a clear and unique identity that is professional but will not break the bank.
6th Creating a Professional Website
If you want to be competitive and reach more potential customers, you need a professional website. Find a web designer who can create one for you, or save money by designing yourself with online tools. Squarespace and Wix are both relatively easy to use with professional templates that can be manipulated to suit your needs.
7th Configuring Business Software
The right tool can make your tasks and responsibilities as business owners extremely easier. The tools vary depending on the area you choose to specialize in, but almost every business owner should start with accounting software to record costs and sales, project management software to keep track of data, and a billing system. Be sure to securely store sensitive information, such as legal documents and customer data, to keep it safe from hackers or unauthorized viewers.
8th Get IT Business Insurance
While you can see insurance as an extra cost, it is one of the most important investments you should make for your business. Having the right coverage protects both you and your company from third party liability.
If you work from a home office, your homeowner's insurance is unlikely to offer liability insurance for business and equipment. At the very least, you want a general liability insurance for technicians to protect you from financial losses if someone is injured on your property if you damage the customer's equipment.
Commercial property insurance may cover losses related to your business equipment and property. This is sometimes consolidated with general responsibility in a business owner's policy. You may also want to consider having a liability insurance (sometimes called error and negligent insurance in the IT industry), which can cover trials received by unhappy customers.
Read more about which policies are best for your IT business and compare multiple operator quotes with a free online program with Insureon.
ninth Start marketing your business
Once you've created the framework for your business, it's time to start marketing yourself. Think of local advertising options that expose your business to potential customers. Online advertising options like Google AdWords, Facebook, and LinkedIn can also be valuable tools for expanding your reach nationally or even globally.
The hardest part of starting an IT business is finding new customers – but this is the most important step in ensuring that your company has long-term success. Start with your existing networks by reaching out to both current and former colleagues. Once you have reached as many contacts as possible, you can recruit and meet new potential customers by attending conferences and other corporate networking events.