How to set up a consulting business

According to Caron Beesley, blogger for the SBA, here are the essential steps to getting started in consulting as a second career:

• You can begin with very little financial investment, but you can’t ignore the planning process. Developing a business plan helps you focus, and doubles your chance of success.
• Many consultants form a limited liability company (LLC) because it protects them from personal liability but the liability protection is limited. Over 70 percent of small businesses operate as sole proprietorships — the simplest way to start a business.
• Get business insurance, as clients often require it before entering into an agreement.
• Consider the cost of doing business before you start generating sustainable income — business insurance, utilities, incorporation fees, setting up a home office, etc. Don’t dip into your retirement funds. Start your consulting business while still employed or check out other ways to finance your new venture.
• Obtain the right licenses and permits and register with the Arizona Corporation Commission (http://tinyurl.com/ok5jjxf). Take care of quarterly estimated tax payments to both the IRS and the Arizona Department of Revenue (www.azdor.gov).
• It is easy to undervalue your worth when setting pricing because it’s awkward to talk about money or underestimate how long things take, or, worst of all, want the gig so bad that you underprice it.
• Your current pool of business and personal relationships will be the source of your first clients. Sometimes it is your last employer. Network out into relationships with former colleagues and industry peers. Referrals are a huge source of business for consultants.
• Develop a marketing plan to include establishing a website. Communicate what you do, for whom, and why you’re different from the competition. Other tactics that can help build your online profile are blogs, social media accounts, etc.
• Get more details at tinyurl.com/o4ujrr3