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by chrisrohlf 3385 days ago
I built and sold (acquihired) a small successful security consultancy from 2011-2014. My experience is seen through the lens of security consulting. I should really write all this down in a longer form but heres the important take aways in my experience and my answer to some of the questions listed.

1) Your tech skills matter less than you think they do. Customers want good work of course but they also need a reliable partner who will answer the phone and provide guidance beyond just handing over code or a report. Be professional above all else.

2) Don't fool yourself that you're only consulting while you build a product. Its two entirely separate types of businesses. If you try to do both you run the risk of doing them both poorly.

3) Figure out your growth plan before even thinking about a sales person. You probably wont need one for awhile.

4) Yes you want mentors, preferably people who have built something similar to what you're trying to build now. Even better if they failed at it.

5) Don't rush into subcontracting. You will lock yourself out of big contracts that way. Large companies want a varied list of vendors to choose from. Only do this when it makes strategic sense for your longer term plans.

A small consultancy is a great lifestyle business. Be realistic about your goals for it. Scaling up a consultancy is mostly limited by how many experts you can hire. And if you do your job right its only a matter of time before your best people start their own thing.

2 comments

--> Don't fool yourself that you're only consulting while you build a product. Its two entirely separate types of businesses. If you try to do both you run the risk of doing them both poorly.

Can you please comprehend some more on #2 above - esp how/ why/ what you think are difficulties taking this route?

What about using the process, resources, and scheduling expertise that you aquire from building products for others on your own project? Having the know how to complete projects is why people hire you're firm, so hiring yourself could be a great way to build a product on the development / design side in a cost effective manner.
I would love the opportunity to chat with you. Could you spare me an email or two?
Sure. First name dot last name at gmail