Whether you’re trying to keep up with the rising cost of living, whether you’re looking to upgrade your home or expand your family, or whether you simply want to take the first step toward getting away from the 9 to 5, starting a consulting business on the side in addition to your day job is always a smart financial move. Working for yourself, first as a side hobby, then as a part-time and finally as a full-time job is incredibly rewarding, as it shows that you’ve acquired the skills to make it on your own.

While you’ll be able to make significantly more money doing the same sorts of things, there are a number of things you have to keep in mind as the sole owner, proprietor and employee of your consulting business. These business skills have nothing to do with your particular talents and everything to do with organization, networking, marketing and finances. In order to ensure that your consulting business lasts, you have to make sure you start it correctly.

Considerations to Keep in Mind

Before you even begin to start, you need to ask yourself a few questions in order to frame exactly what you want to do and to figure out if you have the resources to do it.

How much free time do I have?

This is a crucial, seldom-asked question that causes consulting businesses to fail every time. The answer should be at least ten to fifteen hours every week. If you’re a new or single parent, if you have to take care of ailing family members, or if there are other extenuating circumstances in your life, be very careful about beginning a side consulting business.

How many people do I know?

Networking will make or break your consulting business. You need to be able to call people up on slow days and ask if they have any work for you, and you need to have a network of people who know your name so they can send you jobs without even asking. Ideally, you should begin your networking contacts rolodex up to a year before you take the plunge, or else you should develop your consulting business as a hobby prior to expecting any money to come of it. Always have business cards and always take numbers at parties or other social events

What do I want to do?

It’s not enough that you have a vague idea of what your services will be. In the business world, this is known as branding. You should be able to know your business so well that you can provide thirty-second answers to questions about what you do and about how you do it. Write up an informal business plan with potential services that you are able to provide, and practice describing them in the mirror.

Actual Preparations

Once you feel good about actually starting your business, you need to get down to the nitty gritty details. These include:

1. Open a business checking account with a dedicated credit card. It makes it much easier to pay taxes at the end of the year if you have a separate account for your business, as you can deduct all of your business expenses from your earnings. While you’re at it, if you’re working from home make sure to set up a separate office space, complete with a dedicated phone line and equipment.

2. Talk to an accountant about how to set up your small business to pay taxes. There are a number of different ways to set up your business under the U.S. tax code and you want to make sure you get the best benefits.

3. Develop a web presence such that when people Google your name, your business comes up instead of any personal pages that might be floating around.

4. Develop a pricing structure. This is crucial and harder than you might think. Some consultants operate by the hour while others operate on a per-job basis. Do research into your field and figure out industry standards for how much you could get paid. You might want to start out on the low end of the spectrum unless you have a lot of prior experience. Charge as much as you feel comfortable charging.

5. Figure out incentives to get people to work with you. You don’t want to sell yourself short, but keep in mind that free initial consultations are fast becoming a standard in every consulting industry, as they allow businesses the chance to see if they can work with you and lay the groundwork for a trust in the consultant-client relationship.

6. Tell everyone you know that you’re starting a consulting business, and some people you don’t know! Start conversations in line with the cashier at the supermarket. Talk to the barista as you’re getting your coffee. You never know who might be listening or need your services.

Final Words

Remember to have fun! You’re doing this because you enjoy a certain type of work so much that you’re willing to sacrifice your spare time to get it done. If you don’t get anything out of your work, you won’t be able to power through the difficult times that your consulting business is sure to have as you juggle it with your 9-5. Starting your own consulting business is further proof that you’ve “made it” as a successful working adult with skills and talents, so milk the experience for all it’s worth.