| Wait, you need to understand your risks. Consulting services has some extremely difficulty challenges unlike most businesses. 1. Cash flow / making payroll will be a constant issue. Even when you win a gig, you won't be paid for 45-60 until after you start. And that will be trailing your work. Do you have enough cash reserves to float 2 months salary. Now think about when you grow your team and now you have 10 employees, do you have enough cash reserves to pay 10 employees for 2 months until you receive your first installment check? 2. Sales cycles can be long and costly Keep in mind you won't win all sales cycles. And sales cycles might take 6-12 months to win. During that time you'll probably have to fly to the customer, pay for travel,etc. No of this pre-sales expenses are reimbursable. It's just a cost of business. Do you have enough cash reserves. 3. What to do when you don't have billable work? For ever day you don't have billable work, you still have to pay your staff. Do you have enough cash reserves to pay your staff for months on end without billable work? TLDR; consulting requires huge cash reverses. Also keep in mind it's hard to get credit lines in consulting businesses because you don't have inventory assets. |