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

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

#101
cosmorocket,

i owe you something i can't explain:

the mass of answers here are all brilliant in their ways,

but they are touching my memory of a very long time ago, in my twenties, when i first was throwing my all into business, my own startup, which i was indescribably lucky to keep from trashing..

i had the benefit of insane experience around me. By accident of a very long story, i had 200 years of multi national board level experience advising me, and i started silly young.

And i sounded nothing as good as, but really like pretty much all of the above.

Now, is many many years later.

Please nobody take this in any way meaning anything down on the true effusion of positive comment, above,

but for me it is a nostalgia trip,

i just got reconnected with a barely twenty something me

the outpouring here is amazing

i so wish there was anything like such a community, anyplace, the poles i'd relocate..

.. the energies i read above, are what i yearned for, when starting out

and yet despite i had the most amazing advice, counsel, business partners even, i only now realize to the extent at which they nurtured me, were patient with me, and how- long after each of those great guys retired or we parted ways - only now do i actually sound a little like they did, and it is so unlike the brilliance here, so much tempered, so much becalmed by blows and booms i never could have imagined, so much moderated by - not really cynicism, but by simply the experience of years distilling everything to the shortest short hand I could... Now i know how hard it was for my mentors to expand arguments they had reduced to great simplicity. I seem to have come full circle.

Oh, this isn't coming across how I wanted. But i mean without the slightest ill comment, to say how reading this discussion reminds me of me, what i wanted for colleagues, when young, but now i find, decades later, i think entirely differently, and feel so distant from the first energies I tried to let run in the world, and i rather have become what i once thought was cynicism in my elders. I hope i've not appeared cynical. But I really really want to say to cosmorocket, whose life may be changed by this, that a great deal of the replies here are exactly what my mentors railed against, were aghast against, when i expressed myself similarly. That does not invalidate any replies, but without addressing any individually, i really see the critical elements as missing in the debate entirely, which i note in my above comment. And my company survived because I was babysat by guys retired form boards of multinationals (fluke, fluke times a million, very difficult to believe, my story, really) who somehow tolerated me. But I was wrong, and i sounded like - rather I wanted to sound like but also be as confident, as what seems to majority here. And it took me all this time to learn why that ain't the full ticket, by some long way.

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

#102
I recently started a remote development team with a friend(http://whiteboarddynamics.co/). We use 2 lead generation services as well as the monthly HN threads for freelancing and hiring. I find that spending time every day working on the business and searching for clients is key. I think that it is important to be able to market yourself, in relation to hiring salespeople. You know your business best so you won't over or under sell it.

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

#103
post #42

- Short intro: Spent 2 years as freelance and 4.5 years building a 20 people consulting company (1). During this time met dozens of CEOs of various size consulting companies to share knowledge and learn. - The why: Think hard and long before you get into this field. 1. Turning into a product company statistically never happens. 2. You will become profitable only after a year+ (most consulting companies get stuck at 3…

People mention this a lot. 'You need to learn to communicate better, and it's more important than tech skills'. I see that 500tech offers high skill services (courses and solutions). Are these services outsourced then?

I would say that is exactly the opposite of running a good consultancy.

There are a few places that are basically business people subcontracting others. Their game is usually "We are cheap" with sub-par quality and endless chasing after (non returning) clients.

The most successful outfits usually are founded by strong tech people who also do the sales. (As in our case, everything is in house)

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

#105
post #69

Did this before (Matasano). Doing it now (Latacora). Answers: - The two most important words in your business plan are "segmentation" and "qualification". While being open to lots of different kinds of projects, try to pick 1 or 2 kinds of projects that you can standardize and package. It's easier to succeed selling a couple things well than it is to succeed selling everything just adequately. - Pick a kind of custom…

"the way in which you turn your team into a product should communicate something interesting about your worldview"

This is an interesting way to say it, but its good advice. Insisting on doing things your way because you think its right can pay off in the long run. Have character, be honest.

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

#106

I built and sold (acquihired) a small successful security consultancy from 2011-2014. My experience is seen through the lens of security consulting. I should really write all this down in a longer form but heres the important take aways in my experience and my answer to some of the questions listed. 1) Your tech skills matter less than you think they do. Customers want good work of course but they also need a reliabl…

--> Don't fool yourself that you're only consulting while you build a product. Its two entirely separate types of businesses. If you try to do both you run the risk of doing them both poorly.

Can you please comprehend some more on #2 above - esp how/ why/ what you think are difficulties taking this route?

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

#107

I just founded Elastic Byte (shameless plug https://elasticbyte.net ) which is a DevOps-as-a-service and infrastructure consulting startup. The biggest challenge in starting a consulting business is indeed building relationships and selling. It is very different than running my other company a traditional web SaaS. I'm spending lots of time in CRM (managing inbound leads), communication with leads, and setting up pho…

I have a TINY consultancy. I have a gig based set up. I am in NYC and there is a LOT of work here. I can't promise anything but maybe we should talk. I have maybe 3-4 clients who are growing and keep asking me about moving to AWS / DO manage infrastructure , etc...

Typically do these gigs require one to be physically present onsite ? I ask because I too am on the fence to try AWS consulting, but don't want to on-site type consulting [i.e you need to be at their site from start-to-finish]

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

#108
post #76

Here are some things to consider about consulting: Sales/Selling is the last thing on your list and salesperson is only a maybe. Reverse all of your priorities because selling and relationships are the most difficult things to master for a consulting company and you will die without those skills. In consulting, tech talent To give you an example of this I once worked with a consultant who was a technical rock star, a…

> [•••] selling and relationships are the most difficult things to master for a consulting company and you will die without those skills. How about outsourcing the sales part?

The short answer is it turns out to be a hard thing to do.

Right off the bat your choices are limited because many sales roles benefit from being close to customers. You may be limited to local and have no option to leverage hundreds of millions of people outside the country like tech can.

Secondly, they're expensive. The stars can make double what a top architect makes. You might think, no problem it's just x% on what they sell and we all benefit. Then the problem becomes why should they join your company now if you don't already have a lucrative pipeline to maintain and expand? To get around this some companies will pay fixed cash rate until commissions ramp up, but often that's hard to do for a startup.

Also salespeople tend to care less about how cool the technology is. It does matter somewhat, it's better to be selling software than cigarettes. However it would be common for a tech star to turn down a cobol job even for a 30% raise, whereas I estimate that's less true on the sales side.

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

#109
post #76

Here are some things to consider about consulting: Sales/Selling is the last thing on your list and salesperson is only a maybe. Reverse all of your priorities because selling and relationships are the most difficult things to master for a consulting company and you will die without those skills. In consulting, tech talent To give you an example of this I once worked with a consultant who was a technical rock star, a…

> [•••] selling and relationships are the most difficult things to master for a consulting company and you will die without those skills. How about outsourcing the sales part?

Consulting = Selling. If you outsource the selling and you work on the tech, then you're the one being outsourced. It sounds like OP just wants to work on interesting technology, but not for someone else. Turns out it's pretty hard to do that without being proficient in running a business.

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

#110

Here are some things to consider about consulting: Sales/Selling is the last thing on your list and salesperson is only a maybe. Reverse all of your priorities because selling and relationships are the most difficult things to master for a consulting company and you will die without those skills. In consulting, tech talent To give you an example of this I once worked with a consultant who was a technical rock star, a…

Further, think about: * The length of your expected average contract (days, weeks, months) * The revenue in that contract * How many of those contracts you'll need to sustain the team per year * What percentage of your prospects will sign a contract So for example, if you need 10 contracts per year to survive, and only 20% of your prospects sign, that means you need at least 50 sales conversations per year. Marketing…

It's compounded by needing so much outbound sales when you have no reputation and such small capacity. I work at a mid-size consulting shop where we are maybe 50/50 outbound and inbound. Inbound sales are like gift-wrapped christmas presents but they require so much effort to get to. Outbound sales is extremely costly.
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