Tips for Starting a Home-Based Consulting Business
Consulting businesses are set up by experts who want to assist consumers or fellow small-business owners with everything from helping families to working with local business owners to promote their ventures online. Consultants are opting to run their consulting firms from home to save money and make use of extra space in their homes.
Other People Are Reading
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Select an Industry
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Take inventory of your knowledge, skills and interests to select an industry and niche for your home-based consulting business. By selecting an industry based on your expertise, you appear more credible to potential clients. Entrepreneur magazine lists accounting, advertising, auditing, business startup, business writing, career counseling, communication, computers, editorial and executive search firm as popular consulting ventures to pursue.
Meeting Clients
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Consultants don't have to meet their clients in person to help them on projects, although some clients prefer visiting consultants' offices, or having them come into their offices for initial meetings and status meetings. Decide in advance how you plan to meet with your clients. Your options include setting up a distraction-free home office, holding Web-based meetings with clients through chat or Web conferencing, offering consulting via email or over the phone.
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Set Up an Office
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Regardless of how you plan to meet with your consulting clients, it's important to set up a work area in your home that's specifically dedicated to your home-based consulting business. At minimum, equip your office with a desk, comfortable chair, telephone, computer with Internet access, a printer, scanner and storage solutions.
Tax Benefits
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Many consultants operate from their homes to save money on renting or leasing office space. If you opt to run your firm from home, work with your accountant to determine whether you qualify for a home office tax credit.
Check Your Coverage
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Running a consulting business from home is a convenient way to begin your practice. Even though you're offering your services out of the comfort of your home, protect your business by ensuring that your insurance coverage is adequate. Check with your home insurance agent to determine whether starting a home business is covered under your current policy; if not, get it added. If you have a homeowner's association, check with them to ensure that you're not breaking any rules by running your business from your home. You need general liability insurance to protect yourself and your work. Many consultants also purchase errors and omissions insurance for further protection.
Marketing
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As a home-based consultant, there are many organizations and tools at your disposal to help you market your business to your target clients. Contact your local Chamber of Commerce and identify the professional and networking organizations in your area. Join these groups to begin networking with other business professionals. They can provide referrals, and some may also fall into your target market. Go to events armed with business cards and a 30-second elevator pitch about your business.
Contact local media, introduce yourself and let them know you're available to provide quotes, or get interviewed on the topics for which you provide your consulting services. Search for online and offline publications your target market reads and pitch stories that provide tips and advice or serve as a guest blogger.
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