In an early post on this blog, I established a 5-year plan for taking my computer consulting business from a wistful idea to a part-time side-business and finally into a full time career.  After those 5 years, I could leave the workforce with enough experience and financial cushion to be confident with a successful transition to small business ownership.  I admit this was a leisurely time frame, but there was no rush.  I had a stable, well-paying job that I could leverage to make my dreams a reality.

Fast forward to today, and things aren’t so certain.  With the economy  in recovery mode, most companies are still laying off, and my employer has recently tossed around the idea of outsourcing a good majority of the in-house IT staff.  With the possibility of unemployment looming, I decided to buckle down and realistically figure out what kind of business traffic I would need if I do happen to get kicked to the curb before I’m ready.  How many billable hours will I need to log in order continue the lifestyle I currently enjoy, and pay my bills? How does that translate into actual customers?

(more…)

I was inspired by a recent article over at Small Business Trends about small business bootstrapping. In the article, the author tells the story of how he has successfully grown his business into a multimillion dollar enterprise with no debt and using no outside investors.

This is the approach I’m taking with my business and it’s great to hear about success stories of others who have gone this route.

One thing I realized after reading that post is that computer consulting fits perfectly into the bootstrapping philosphy.  In fact, other than online businesses, I can’t think of a more frugal business to start than that of computer consulting.

As I’ve been working to establish my business, I’ve learned some things about how to keep expenses low and avoid the burden of credit.  Although tailored for computer consultants, these strategies can apply to most any business start-up.

(more…)

I’m at the point in my business planning where I need to start thinking about setting the prices I charge for my services.  It’s been a struggle for me to decide how much I feel my services should be worth.  Reading books, blogs, and forums on the subject, the general consensus seems to be that there is a happy medium between undercutting the major competition without shooting so low that people wont take you seriously.

I’ll take you through the process I used in order to come up with my prices.  Although this process is specifically for my business as a computer consultant, I’ve tried to make the ideas broad enough that they can apply to almost any business in the service industry.

(more…)

In one of my first posts here on Y.F.N.C.G., I outlined the first first few things I plan on doing to get my computer business up and running.  Up to this week I had completed four of them:

Have a business plan
Come up with a name
Register the business name
Start finding ways to make money

And now, this week, I have reached another important milestone in the preparation of my business, opening a bank account for my business.  If you’re wondering why I think establishing a business bank account is necessary so early in the planning process, I’ve listed some of my reasons.
(more…)

“With time and patience the mulberry leaf becomes a silk gown.” -Chinese Proverb

I’ve recently decided that I am going to take my time with this whole starting-a-business thing.  My overall timeline is going to be simple.  The initial goal for my business is to be a part-time extra-income generator for me starting sometime before the end of this year. This blog, and the filing of my DBA paperwork, have already set the gears in motion for that. Then, in about 5 years, I’ll decide if I will make the leap to running this thing full-time. This is slightly contrary to the more aggressive timeline I originally had, and I’ve changed my “About” page to reflect this accordingly.

Five years is a long time. Why am I setting this goal so far ahead? (more…)