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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?

#51

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 projec…

Here's a question—if you have

> more than one clear customer who already wants you

...but they only want you as a full-time contractor (i.e. an employee-in-all-but-name), is there a good way to convince them to pay for your expertise on a consulting-as-needed basis instead?

It's easy to "become a consultant" if what you really mean is signing on for fixed-length engagements to produce low-level piece-work (as e.g. an artist, or a programmer, or a content writer), but how do I break into consulting as, say, a distributed-systems scaling expert? I'm offered many opportunities by large firms to just work for them on a full-time basis as a systems architect—but I'd much rather be coming into businesses and increasing the competency of their own staff to do such jobs, so that they (eventually) don't need me.

In my experience, large businesses are interested in such engagements, but only want to hire other large businesses—consulting firms—to do it. And small businesses or startups are iffy on the concept of hiring consultants at all, preferring instead to bring all manner of expertise for one-off tasks in-house (though this myopia never seems to extend to thinking they need to employ their own accountant or lawyer, oddly enough.)

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

#53

There are a lot of things that you need to do to start your own consulting firm. One of those things to do needs to be: * Watch this video: https://www.youtube.com/watch?v=6h3RJhoqgK8

This talk is actually pretty good. Contracts in consulting are critically important to have in place as they establish expectations. Without a contract, you'll be surprised how many companies will no-pay or try to wiggle out of financial obligations.

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

#54
post #44

I've been doing digital consultancy for about a year now in my own firm. Me and my co-founder started with a client from connections we made when we were salaried consultants, and took it from there. Here's what I've learned since I started that I haven't seen others mention. - Paid networks are great. We pay about 2-4k USD / year for gold memberships. The companies there only send their executive branches or other p…

Could you say some more about paid networks? Which networks are you a member of, why and how did you join them?

Chamber of Commerce is an international organization. Networks for local science and technology.

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

#55

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…

That's why my suggestion to these guys is to save every penny at their current job so they can skip to a product business.

Forget the sales, soft skills, and making products for other people that will never truly appreciate the craftsmanship that went into it. Just stick to your guns and create the situation where you can just work on your own product.

If you guys are kicking ass at your current firm, you should be being paid for it, i.e. making enough to save some some money. There's your ticket. Be patient and wait it out while saving money. Plan out your upcoming product, and do all the preparation that doesn't require deep immersion, so from day one after quitting you can deeply immerse yourself.

ps. how's 7 years as a remote freelancer so different from a consulting firm? It's not. Just more developers, bigger projects. You already know what that life is all about. Do you really want to go back to that, now with the burden of supporting more engineers? Keep it simple. If you have the skills and confidence, your product idea will work out. Just create the space and time to do it.

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

#56

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…

That's why my suggestion to these guys is to save every penny at their current job so they can skip to a product business. Forget the sales, soft skills, and making products for other people that will never truly appreciate the craftsmanship that went into it. Just stick to your guns and create the situation where you can just work on your own product. If you guys are kicking ass at your current firm, you should be b…

This is bad advice, imo.

If they start a consulting business there's a much more stable path to revenue from day 0, if they follow your advice they'll spend all their savings and possibly be in the reeds for ages. All the while they'll still need the sales/bd talent.

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

#57
I started a consulting business about 10 years ago. We're >80 people now and only do full team projects that include design, product management and engineering.

As others have said in this thread it's all about relationships and sales. Technical ability will help you retain clients and build bigger things over longer timescales, but won't help you get clients in the first place. Also, technical ability rarely leads to happy clients - they don't review your code - but a focus on helping the client achieve their mission is the key to success.

You need to start by getting 1 client. Then 2, and so on. You don't need a website, or even the name of a company to do this. I didn't know the name of my consultancy until about 6 months into it after we were 5 full time people.

Subcontracting with other firms when you start is possible, but is mostly based on relationships, not capability. When I started I had a relationship with a design agency and they subcontracted us their heavy engineering work. In reverse, I saw this as outsourcing sales and account management to them.

To grow the business I started a meetup.com group back when meetup was just starting. There were no other groups at the time and I was able to make a good name for myself in the community which lead to word of mouth business. Once a month I would have a different big name company in town host an event where I would bring 50-80 engineer types and do some tech talks for about an hour. It took about 5 hours to organize per month and barely any out of pocket costs since companies were happy to open their spaces to technical types and provide food.

You need to figure out what you're willing to sell. Staff augmentation? Time & Materials? Contracts based on scope? They're all very different in sales process and delivery.

You need to think about account management as a real thing. Developing the empathy and focus around happy customers over "best code" or "ideal features" is critical.

Developing your sales beyond word of mouth is the hardest thing to do. Hiring a sales person alone won't do it. There are way too many small consultancies reaching out to potential customers everyday and you can't distinguish yourself from the noise. If you have a clearly differentiated product offering or services approach that a sales person can leverage to make a clear pitch that's not just "we can do your projects!" then it can work.

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

#58
Consulting will murder you. You'll never build a product while consulting.

Read your employment contract and talk to a lawyer. Don't put anything on paper before you leave. I'm not a lawyer but you have 3 problems:

-- if you design products while employed, your contract may assign ownership of those 'thoughts, ideas and inventions whether reduced to practice or not' to your boss

-- you're planning to recruit your coworkers to come with you? may violate your non-solicitation clause.

-- if you're a senior employee and your new company is in the same area as the old company, your old company may be able to stop you from working (period) under your noncompete.

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

#59

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…

That's why my suggestion to these guys is to save every penny at their current job so they can skip to a product business. Forget the sales, soft skills, and making products for other people that will never truly appreciate the craftsmanship that went into it. Just stick to your guns and create the situation where you can just work on your own product. If you guys are kicking ass at your current firm, you should be b…

[deleted]

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

#60

Earlier quoted context omitted.

That's why my suggestion to these guys is to save every penny at their current job so they can skip to a product business. Forget the sales, soft skills, and making products for other people that will never truly appreciate the craftsmanship that went into it. Just stick to your guns and create the situation where you can just work on your own product. If you guys are kicking ass at your current firm, you should be b…

This is bad advice, imo. If they start a consulting business there's a much more stable path to revenue from day 0, if they follow your advice they'll spend all their savings and possibly be in the reeds for ages. All the while they'll still need the sales/bd talent.

Ultimately it depends on the individual's scenario. Both sides are extremely challenging. Without more info, it's up to them to decide which best suits their situation. They're already thinking of going the consulting route, so I'm providing an argument for a different way so they can fully weigh as many possibilities as possible

So, the downside of consulting for one is that he's just going back to freelancing, just now with his buddy. But more importantly, the downside is simply that projects are always under-estimated, you'll grow your business ponzi-scheme style (new projects paying for old), eventually have more engineers, and be responsible for them, etc. Typical scene. They will have severely complicated their lives, whereas what a startup/product needs is simplicity and space to focus (i.e. not a plethora of projects distracting you and occupying more time than hoped). So it may very well be a long while before they truly create the space to do their own product whole-heartedly. I'm not saying it can't be done. They need to weigh whether they want to go through all that.

VERSUS:

a year from now (presumably after demanding a raise) taking 6-12 months off to work on their own product, and if it fails, simply going and getting another job (they'll be better engineers, and it will therefore be easier to get jobs).

At the end of the day, the biggest--and perhaps hidden--factor is whether you have kids. If you don't have kids (or people other than yourself to take care of), and you can't create this environment for yourself, you have other problems. But more than likely while at this stage of your life, you have options. So the trick is not to get yourself into trouble with large under-estimated projects for other people, and to do whatever it takes to create time for yourself and your own projects. That's the name of the game. That's what it's all about. I.e. keeping it simple. Don't get yourself into trouble with too many projects, projects that are too big, working for too much potential that doesn't pan out. Get short low responsibility projects, and make your #1 focus creating time for your own projects.

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