Live data from Hacker News

Ask HN: How do I start my own consulting firm?

news.ycombinator.com

11–20 of 121 posts

Re: Ask HN: How do I start my own consulting firm?

#11

Might I suggest Step 0? 0.1 Start marketing. Something as prosaic as a blog, if necessary. Demonstrate your capability. (Capability does not mean technical skill. It means your empathy with another human to understand his/her pain, and show him/her that you care. You demonstrate caring by talking simply and clearly. If someone understands you, they feel good about themselves. If you are talking simply and clearly, th…

Don't work for cheap unless you have to. Word of mouth matters and cheaper customers are in a totally different market segment. It is very tempting, and easy to do as a one man shop, but it dramatically undervalues what you produce and you can end up trapped in that lower tier of work and pricing model and have a hard time escaping. (opportunity cost, etc) patio11 has written openly about his efforts here and I think…

Mandatory reading: win without pitching manifesto

I was skeptical for too long about this kind of advice and I've paid my fair share in lost opportunities. It really, really works.

http://www.winwithoutpitching.com/the-manifesto/

Re: Ask HN: How do I start my own consulting firm?

#13

Sales, sales, sales. * Your are a developer, so everything else, you can figure out on your own.

So what you're saying is that to engineer a system where clients pay me to do work for them, all I need to do is engineer a system where clients pay me to do work for them?

Re: Ask HN: How do I start my own consulting firm?

#14
> Willing to find projects for a small team (2-4 members) of developers/designers should I look for larger projects in a different way?

Selling yourself as a team is to ultimate goal, but initially you may need to focus on leveraging your experience as a freelancer. Sell the same way you sold as a freelancer, but twice as much and contracted through your company, and expect your partner to do the same. As you gain relationships with customers, look for opportunities to pivot into larger projects or staffing two freelance positions with the same client. This base of work will keep you afloat while you figure out how to sell larger projects or build up a software portfolio. Ideally you'd find an anchor customer willing to commit to an extended contract to take some of the pressure off.

> How do I identify that a company might be in need of a team like ours? I don’t want to spam everybody trying to catch a project.

Same as above, this is something you'll need to learn from experience. Start with the skills you know from freelancing and the connections you've gained. Don't worry too much about "spamming" people, your hardest job now is marketing and selling yourselves. You may be surprised how willing some people are to help out a fledgling company.

> Should I prioritize our online sales channels over local ones?

Sell any way you can and keep what works, ditch what doesn't.

> Should I partner up with firms like ours? Contact them and show our offer so that they could be interested in subcontracting with us?

If you have opportunities to partner with a larger established consultancy, then yes this is a good way to grow while letting the bigger guys do the selling for you. This works especially when you have relationships in the industry you can leverage and/or specialized skill sets that other consultancies need to backfill. Otherwise, consultancies generally try to avoid subcontracting so it may be a difficult nut to crack.

> Should we have mentors/coaches?

Absolutely.

> Should I hire a salesperson to look for projects?

If you and your partner can't sell yourselves then your company won't survive. You shouldn't worry about dedicated sales people until your quite a bit bigger. That will be you and your partners job for the time being.

Re: Ask HN: How do I start my own consulting firm?

#15
I started this journey 3 years ago. Information security consulting, but the challenges are largely the same.

I could write a book about this. You can find me pretty easily (search my hn handle in Google, find my company, mail info@, and we can exchange other contact info), and I will happily talk with you via voice chat, my time is limited to get this out.

3. is hard, if you are primarily a technology person do not assume that because you are good at tech you can just figure all this business stuff (you can, but ... it is non-trivial)

4. This is a beautiful idea, but much harder than it sounds. I have seen it done successfully and can tell you how I have been a part of a team that made this happen

5. See 4.

Sales: Another book-worthy topic. Basically, you need to talk to people and be at every event vaguely related to technology to network with people. Go to mainframe user groups. Go to toastmasters. Network. Also if you are good at what you do you might be surprised at when and how work will magically end up in your lap once the world knows you are for hire (don't expect this to get you started, but it is neat to see in effect).

Partnering with other firms never worked for us.

Mentors/coaches... heavens yes. Find /good/ business consultants. People that can help you crystallize the outcomes you want and help you keep your eye on the ball. If you want to do more than just a one man shop, this is really helpful.

Hire a sales person? Technical sales of development and infosec consulting services is /hard/. The good ones are really expensive. Part time sales and referral type relationships rarely work (though they can some of the time, it has rarely worked for us).

That is all I have time for, will chat more later if you track me down.

edit: welcome to the big show. I can't ever imagine going back to working for anyone other than myself and my employees. It is a weird inversion to finally truly get how special and important running a business is. I do it for me, but I also do it for my employees and our freedom to live in a world with minimal red tape.

Re: Ask HN: How do I start my own consulting firm?

#18
I'd rather go entirely opposite.

1. Get clients and start working for them. If you don't have more than one clear customer who already wants you, you're not ready for anything further in this list.

2. Incorporate and handle the core legal and financial stuff (only when #1 is solidly working!)

3. Setup the business processes and workflow;

4. Start aggressively looking for more projects - not online, though. The projects available there are not the projects you want.

5. "Prepare the basement in form of a site with portfolio, our focus, expertise and articles." - this is fluff that can wait, it's a bit useful for marketing but not strictly necessary. You won't get clients from cold sales or random advertising anyway, you'll get them by personal contacts and word of mouth where this won't matter much; and if you won't get clients from personal contacts and word of mouth, then you'll fail anyway and this won't help you. The connections and reputation to get offline clients is your primary competency as a consulting team, so work hard on that. The technical skills of your team are important but clearly in the second place, they're necessary but not sufficient for success; there's a good reason why successful consulting businesses usually are started only after a decade or two in the industry as that's one of the few ways how a new company can get the required reputation to get started on decent contracts.

6. Hire a salesperson to look for projects when your existing projects can cover multiple full-time developers, i.e. when your business is working and you've decided that you want to scale to a larger volume. Before that, you'll have to do the sales yourself, as your own personal reputation and expertise will be the main reason why others hire your company; you'll have to convince customers that you/your company has expert skills and that you can do things that they can't do in-house and a salesperson can't really do that until you have a solid reputation and lots of prior clients.

Re: Ask HN: How do I start my own consulting firm?

#19
Do you want to create your own product or do you want to consult?

My customers are sick of consultants who are really just pitch men for products, products they probably do not need. When i consult i openly say that i am not tied to any product, that while i do suggest and evaluate products i never accept comissions. That's pure consulting. The client comes first.

The other type of consulting is to offer consulting services as a way of getting your foot in the door. These are the people that bid low (or free) with the goal of selling product later. I dislike this approach. I find it dishonest and so do my clients.

Re: Ask HN: How do I start my own consulting firm?

#20
Full time freelance consultant here, specializing in product strategy and early customer acquisition. This should apply to your situation as well. What other people have said in this thread is mostly accurate: consulting is 100% about client development, and 70% of client development is doing good work for the clients you do have, because almost all your clients will be word of mouth.

But, that doesn't answer the question of how you get your first clients. Here's what I suggest:

- Start networking. Set up meetings. Lots of meetings. With everyone you've ever met, at all levels. Depending on who you are talking to, float the possibility of leaving your current job to 'see what opportunities are out there'. In some cases you can be more specific ("I want to go freelance"). In other cases you can be more declarative ("I am freelance now.") The purpose of these meetings is connecting with people, most of whom you probably haven't talked to in a while. The purpose of networking is making friends. You want to catch up with people and slip into the conversation that you're going freelance now or already are. You don't have to ask them for work; work will find you. It's important to realize that networking is ultimately about increasing the number of nodes in your network so when one of your nodes has a friend who is looking for work, your name is top-of-mind for a referral. The best sales come from INCOMING connections, not outgoing ones. Engage in your networking activities to maximize your incoming referrals.

- How do you start networking? I'm sure you have friends at work who won't go blabbing to management about your desire to leave your job. Ask them to connect you with people because you're looking for new opportunities. You don't even have to mention consulting--saying something like "I've been working here for a while, and I'd like to see what else is out there. Do you know any people I can talk to who are doing something interesting?" will work. This will be your initial word-of-mouth funnel that will lead to clients.

- Use meetings as a way to get to more meetings. It will come up naturally in the conversation. "Oh, the work that Acme Inc is doing with data warehousing is really interesting. I would love to find out more about that!" Make the goal of every meeting to get a new meeting.

- Go to networking events. Not coding meetups, where you'll only meet other engineers, but boring industry-related networking events where you'll meet real companies who can hire you. If you work in a real estate tech company, go to a real estate industry event. Go to tech industry events like Techweek. When you're there, meet people. Make friends. Make sure they know what you do, and you know what they do. Get their business cards. Follow up with people you like. Set up more meetings. Etc, etc.

- One thing that could work for you: there's nothing wrong with taking job interviews, especially at small companies that can't necessarily afford to pay for a full time person. If you establish yourself as a freelancer and do a good job, it's easier to get freelance work at higher levels. Many companies who bring you in for an interview will be responsive to something like "I can't really take on something full time right now but all you need to do is deploy a new framework for your site, so I can do that in two months for $X,000. How does that sound?" Boom, your first fixed bid contract.

- In summary: you should spend 100% of your time outside your job networking. I promise you will get clients quickly.

Those are some DOs. Here are some DO NOTs:

- Do NOT try to sell to anyone in your network. This seems counterintuitive, but you will almost NEVER hard sell consulting services to someone you already know. Networking is not about sales; networking is about making friends, and you will LOSE friends if you try to sell freelance services to your friends. Instead, like I wrote above, maximize incoming connections. I guarantee you will meet with someone and halfway through the conversation they'll say, "hey, I have this friend who's building an X, can you help with that?" Boom, instant sale, and the best part is, their friend is referring you so your reputation will start warm rather than cold.

- Do NOT hire a salesperson. You are not a company, even if you have a logo. Your company is YOU. Clients will hire you because they trust and like YOU. Until you have 10+ clients full time, you will be indistinguishable from your firm. There's a reason why even major consulting firms (McKinsey, Bain, LEK) are named after their founding people, decades later. Oh, and by the way, those firms don't have salespeople either.

- Do NOT waste time on marketing, research, positioning in a market, etc. Your market will be determined by your unique skillset and your referrals. Treat this like a MVP startup: let the customer guide you to a product-market fit. You can spend 2 months building a website that no one will visit, or you can spend 2 months building a network of thousands of people. Choose the latter.

- Depending on your cash situation, I wouldn't quit your job yet. Until you have a client or clients willing to pay you at least half of what you're making now, pretend your current job is your current client. Use it as an opportunity to get new clients.

=====

TL;DR: Spend all your time networking until you have clients. When you have clients, do amazing work and they will introduce you to more clients. Never try to make a sale. Sales will find you. Good luck!

Post reply on HN