Tips for Starting a Software Consulting Firm?

An Anonymous pre-Consultant asks: "I'm considering starting my own software consulting firm and was wondering if people would be interested in sharing their own experiences in trying such a thing. I've wanted to do this since 1995, and have read numerous books (Bernard Kamoroff's _Small Time Operator_, etc.). I'm fairly young, in my 20's, but have a good track record, and strong oral and written communications skills. I feel like I can make it happen but am a bit lost as to whether or not there are any specific resources for those who wish to consult as software engineers, and what strategies should be used to construct a client base. I'm not sure that my contacts are as diverse as they should be."

"My key selling points include the ability to construct complex systems relatively quickly, an iterative approach to creating the end product by means of continuous interaction with the client as milestones are reached, since I realize clients don't always know what they want until some test code has been constructed. Honesty, fixed bids, and ability to create more than just software (graphics, documentation, hardware, etc.) are also characteristics I feel makes me unique.

I have done some 'web programming' consulting as a moonlighter, but I don't really want to do just web projects. I'm not interested in trying to get rich quick, just interested in making enough to live comfortably on, without the politics and problems of the corporate America workplace. Thanks for any advice or tips!"

Comments

Learn an industry.

[JMZero]

We've made a business of working almost exclusively with insurance companies. Because we know the industry we talk to them about things they actually want. We understand what they ask for. We deliver quickly.

Also, nobody is going to beat down any bushes to find you. And your business better look like a real business, not "some guy". Get stationary. Have a real office. Ignore this advice at your absolute peril.

And you want fairly large projects. Little projects take almost as much work, and don't pay anything.

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Tips

[Ratbert42]

• Don't try to undercut the competition. Don't compete on price. Compete on quality.
• Realize that a lot of potential clients have no idea what they want or need. Or worse, what it will cost.
• Don't grow too big or too fast. Every person you hire is a huge expense that is hard to cut.
• Network like crazy. Use competitors and people in unrelated areas. If someone calls you to sell your company insurance, send them a pile of cards and offer them a comission on sales.
• Give everyone 2 or more business cards so they have spares to give away.
• Build a good collection of samples. Nothing's more impressive than to be able to see actual work product.
• When times are lean or you're just starting, it's easy to find free and low-paying work to pad a portfolio. Call a church, school, or even small companies.

Get a client!

[kanne]

One thing that you should absolutely do is focus on finding a couple of decent clients before you really get started, even if it means cutting your rates and doing it virtually for free. Actually having a couple of decent clients that will provide you with a reference - combined with having an office location, stationary, decent marketing material, etc. - will make you look like a real company as opposed to yet another freelance guy. In terms of marketing material and the like, Adobe PDF's work fine, but if you don't already know how, you better learn to sell, quick.