When you’re first starting an IT business, consider how you’re going to get the kind of IT consulting rates that will make your firm profitable. To do this, you need to think about how small businesses work.
Companies to Skip
If a company has anything fewer than five computers, they likely don’t have a separate IT budget—and there won’t be much money in it for you.
It may be tempting to start with friends or acquaintances in this category, but don’t stay here for long. There are exceptions, but if it’s apparent they don’t have the money to make any IT investments, start hunting for bigger fish.
The micro-small business is somewhat established, with maybe fewer than 10 computers.
The key that puts them in this category is that they don’t have a dedicated server. The problem with this level of company is there’s bound to be lots of competition willing to work for very low IT consulting rates.
You may get some regular customers here that will give you valuable experience and some great testimonials—then use the experience and testimonials to move up to the biggest fish in the small business pond.
Sweet Spot Small Businesses
This is the type of small business client that will bring your firm lucrative hourly work.
This client will have one or more dedicated servers and IT is now of strategic importance to the company. Sweet spot clients need professional, highly-qualified help—they can’t get by anymore with the low-budget bidders. They might have 10-50 computers, with 10-100 employees.
To increase your IT consulting rates, do your homework and start identifying sweet spot small businesses to target. If you’ve had success in finding projects that pay higher fees, share them in the comments section below.
And to follow through on the ideas introduced in this short post, especially if you also consult on SaaS or IaaS, be sure to enroll now in our free 7-day eCourse: Go-to-Market Strategy 101 for B2B SaaS Startups and Scaleups.
Topics:- Computer Consulting Business