| 1. It is hard enough to find bad clients. As a new shop, that’s mostly who will reach out to you. Mostly who will consider you for projects. Good clients already have consultants they hire, that’s part of what makes them good clients. Don’t expect to encounter them if you are asking these questions. 2. $0. If you start without any paying work, don’t spend money. 3. They charge nickels and dimes. Consulting is saying “yes will do it, it will cost a fourteen thousand dimes and one hundred and three nickels to get started.” 4. Three to six months is rare, after three months figure you won’t be paid for your cash flow planning purposes. Good clients pay quickly, that’s part of what makes them good clients. Bad clients (see above) don’t pay. That’s part of what makes them bad clients. 5. Starting a consultancy is not an obvious next step in any profession. It is an obvious next step when potential clients keep asking you to do it. Otherwise assume the market is efficient and there is an equilibrium between the number of projects clients are willing to pay for at a rate that sustains a consulting firm and the number of consultants doing that work. To put it another way, assume nobody cares when you hang out your shingle except people who have burned a string of previous consultants. It usually takes years to develop a roster of regular clients. And then continuous attention to keep them. Good luck. |