How to start an IT consultancy

Starting as an IT consultant can bring with it real advantages.

It puts you in control of your own career development, enabling you to benefit from a better work/life balance, and provides the freedom to pick and choose fixed-term contracts from a variety of recruitment companies.

Knowing how to start an IT consulting company to ensure you’re equipped for future success is vital.

With that in mind, let’s explore further.

How to start an IT consulting business

IT consultancy contractors help businesses tackle technological challenges, fix potential problems – all while acting as a valuable source of expertise.

As a service, it’s particularly important to those small to medium-sized businesses (SMEs) that do not possess the resources to run their own IT department.

Want to know how to start an IT consulting company? The following steps might help:

Identify your niche

If you have a background in a particular area of IT, whether that’s cloud computing, cybersecurity, or IT support, then it can pay to specialise.

Write a business plan

A solid business plan, outlining your target market, goals, and earnings should all be included.

Choose your operating model

The type of business structure you choose, whether that’s to work as a sole trader, establish your own limited company, or seek employment with an umbrella company, will have consequences for the way you pay tax.

Many IT contractors wanting temporary or fixed-term arrangements want to avoid the stress and hassle of drawing up invoices and spending more time than necessary on financial management.

For that reason, the most suitable payroll solution is to be employed by an umbrella company.

Build a strong online presence

If you decide to go it alone, then having a professional website – as well as active social media profiles, particularly on professional networking platform LinkedIn – is essential for IT consultants.

Network

Attend industry networking events, either in person or online, to talk about what you do and meet new contacts. Your existing network, be they former employers, colleagues, or even friends and family, should also be leveraged. Let them know what you’re doing, and tell them about the services you provide.

Provide outstanding service

Referrals are among the most powerful marketing tools available. By providing an outstanding service, you’re more likely to be referred to others. Through nurturing relationships, retaining existing clients, and adding new ones, your consultancy business can develop strong foundations on which to build long-term success.

How an umbrella company can help your IT consultancy work

Using an umbrella company can still provide you with the flexibility to pick and choose fixed-term contracts from a variety of recruitment companies.

If you’re unsure whether you should pursue self-employment or use an umbrella company, then it’s well worth exploring the greater benefits of the latter.

This includes the fact that your payroll will be dealt with professionally, relieving you of the administrative burden involved in bookkeeping, deducting your income tax and national insurance contribution (NIC), and managing your own business.

At Umbrella Tracker, we offer a comprehensive comparison service that can help you to choose the most suitable umbrella company for you and take back control of your payroll.

Having handpicked a selection of approved and fully vetted umbrella companies for our customers to explore (vetted via research, client testimonials, and Preferred Supplier Lists (PSLs) from recruitment companies), we ensure you have plenty of options as an IT contractor.

Want to start a search for an umbrella company that suits the way you wish to work?

Call one of our knowledgeable advisors today by dialling 0203 026 3303.