Start A Technology Consulting Business - Business Ideas
Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.
Technology is critical to helping drive corporate strategy and ensuring its success. Not all startup owners are from an IT background, so keeping up with current technology trends can be challenging. Such entrepreneurs rely on technology consultants to help them harness technology.
Technology consultants connect businesses with experienced technology innovation advisors to solve critical enterprise challenges. Technology consulting is essential to helping organizations use technology to drive innovation and growth.
You may consider starting your technology consulting business if you have IT skills and some experience in the technology sector.
Starting a technology consulting business requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell technology consulting, or selling technology consulting online, you can use this page as a guide for everything you'll need to know.
Want to learn more? You can check out our full guide on how to start a technology consulting business ➜
Key Stats
Startup Costs
| Min Startup Costs | Max Startup Costs | |
|---|---|---|
|
Office Space Expenses |
$0 |
$7,000 |
|
Employee & Freelancer Expenses |
$151 |
$352 |
|
Website Costs |
$223 |
$7,215 |
|
Business Formation Fees |
$5,600 |
$20,400 |
|
Software Expenses |
$162 |
$3,094 |
|
Advertising & Marketing Costs |
$75 |
$5,286 |
|
Training & Education Expenses |
$0 |
$1,000 |
|
Total Startup Costs |
$6,211 |
$44,347 |
Case Studies
•
$40K/mo
•
$10K/mo
•
$100K/mo
•
$600K/mo
Successful Businesses
| Business | URL | Rank | |
|---|---|---|---|
|
|
Wipro |
wipro.com |
10,385 |
|
|
SMART Technologies |
smarttech.com |
28,739 |
|
|
Technology Advice |
technologyadvice.com |
29,949 |
|
|
BairesDev |
bairesdev.com/ |
36,602 |
|
|
Catalant |
gocatalant.com |
67,870 |
|
|
Bambee: Get A Dedicated HR Manager For $99/month. |
bambee.com |
88,197 |
|
|
HIC GLOBAL SOLUTIONS |
hicglobalsolutions.com |
139,539 |
|
|
brillio |
brillio.com |
180,274 |
|
|
Business & technology consulting firm |
westmonroepartners.com |
206,460 |
|
|
Dallas SEO |
datatechnologyllc.com |
250,226 |
|
|
Devoteam Group |
devoteam.com |
278,144 |
Pros & Cons
| Pros | Description |
|---|---|
|
Flexibility |
You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own. |
|
Ability to start your business from home |
It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning! |
|
Meaningful business connections |
You never know who you will meet as a technology consulting business. This could be the start of an incredible business opportunity! |
|
High customer retention rates |
Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer. |
|
Pick & choose the clients you work with |
Technology Consulting Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients! |
|
Unlimited income potential |
With starting a technology consulting business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make. |
| Cons | Description |
|---|---|
|
Motivation of employees |
If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees. |
|
Low margins |
The gross margins for your technology consulting business are typically around 30%, which can make it more challenging to incur new expenses and maintain profitability. |
|
Taxes |
As a technology consulting business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it. |
|
Niche Market |
A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience. |
|
Churn |
In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible. |
|
Time commitment |
With starting a technology consulting business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business. |
Marketing Ideas
-
1
Affiliate Program
Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.
Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.
The affiliate typically gets a unique link where clicks and conversions can be tracked.
-
2
Direct Sales
Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.
For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.
-
3
Word of mouth
Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
