| are nuts and bolts tips for some basics to get your | | | | to working at home or in a small office with no one |
| consulting business up and running fast. | | | | else around. Compared to a traditional job environment, |
| * Form of Business. Depending on the type of | | | | this can be very freeing, or very lonely. Also, pets and |
| consulting business that you want to operate, you may | | | | young children can be noisy at home. You might want |
| wish to run the business as a "sole proprietorship" or | | | | to share an office with other consultants or business |
| as a legal entity such as a corporation, legal partnership | | | | people, or rent an office from one of the many |
| (such as a limited partnership or “LP”), or | | | | "turn-key" temporary office providers. |
| a newer type of entity called a limited liability company | | | | * Business License. Your town, city or county probably |
| (also known as an “LLC”). You should | | | | will require you to obtain a business license for a |
| talk to a lawyer or accountant for advice on choosing | | | | modest fee. You need to decide on the location of |
| the form of your business. There are also online | | | | your office in order to get the license. In addition, if you |
| services that can help you form a corporation, | | | | are in a regulated profession (such as lawyers, |
| partnership or LLC. | | | | doctors, or architects) or industry (such as finance, real |
| * Liability Insurance. You will want to obtain basic | | | | estate or mortgages), you may need additional |
| commercial general liability insurance to cover personal | | | | professional licenses or certifications. |
| injuries or property damage caused by operation of | | | | * Consulting Contract. Using a written consulting |
| your business. This type of policy also may cover loss | | | | contract is essential to protect you and your business |
| or damage to the contents of your office (such as | | | | from liability and misunderstandings, and to help you get |
| loss of a personal computer). You may need a | | | | paid for your work. Most consultants can get by using |
| commercial insurance policy even if you are doing your | | | | form contracts prepared or reviewed by a lawyer. |
| consulting work from home. In addition, certain | | | | They then customize the business terms and project |
| consultants may need to obtain malpractice or errors | | | | description for each specific client. Pricing can be on a |
| and omissions (“E&O”) insurance. | | | | time-and-materials, fixed fee, or even commission or |
| E&O insurance can be more expensive (e.g., | | | | contingent fee basis. It is also important to protect your |
| more than $5,000 per year). Ask a commercial | | | | rights to your work, so that you can reuse it in other |
| insurance agent for advice and quotes for rates. | | | | projects or for other clients as needed. |
| * Health Insurance. Insurance for health issues is often | | | | * Finances. This is another hurdle for new consultants, |
| a hurdle for persons leaving a job to become an | | | | but it shouldn’t be. For a small consulting |
| independent consultant. With some research and | | | | business, there is little capital investment and no |
| planning, this should not be an obstacle. You may need | | | | inventory, so finances are fairly simple. Software or |
| to obtain your own health insurance policy, or rely upon | | | | online services can be real time-savers, and help you |
| the health insurance of your spouse. Consulting firms | | | | delay or avoid adding staff. Some consultants use |
| that have employees generally can purchase group | | | | spreadsheet software, while others will use accounting |
| insurance plans. For details, talk to a local health | | | | software. These permit simple tracking and billing on a |
| insurance broker or search and compare health | | | | time or project basis. If your consulting practice |
| insurers and plans online. | | | | requires detailed tracking of lengthy time sheets or |
| * Office. Your choice of an office will depend on the | | | | numerous fixed fee projects, you may want a more |
| type of clients that you have and what you need to | | | | powerful (but more difficult to learn) time tracking and |
| provide services to them. Many consultants today do | | | | billing program. Other consultants will prefer a traditional |
| not need an expensive office. They just work from | | | | bookkeeper instead of using software. |
| home, because most of their work is done by | | | | Use these tips to help you plan your consulting |
| telephone, by computer, or with on-site visits to clients. | | | | business quickly and get it off to a fast start. |
| However, think carefully about whether you are suited | | | | |