How to become an IT consultant and start a business

There are over 33 million small businesses in the United States. With many relying on computers and the internet to run their businesses, opportunities for IT professionals are growing.

An IT consultant helps businesses repair, manage, maintain, and protect their computer systems. If you’re looking for a way to launch your information technology career, becoming a consultant might be the way to go. Here’s some tips to get started.

What are the benefits of being an IT consultant?

Consultants enjoy great work and career freedom. You are your own boss and can select the clients you want to work with. You also set your own hours, allowing you to create a work-life balance that suits your lifestyle.

IT consultants also earn high salaries in the United States. Indeed reports an annual IT Consultant salary range that sits at around $89,000. Those just starting out in the industry or with limited experience may expect to earn a lower income; while those with extensive skills and knowledge may be able to earn a higher wage.

Starting an IT consulting business

There are many steps to establish a business in the United States. The exact requirements you must meet may vary from state to state, but generally you will need to:

1. Write a business plan – This is a document that helps you plan your operations, set goals, and guide your decision making.

2. Choose a business structure – Many independent consultants choose sole proprietor, but other structures may better suit your business.

3. Get a business license and permits – You may need a general business license to work in your state. Other state or local permits may also be required.

4. Establish business finances – You may need separate bank accounts for your business and an Employer Identification Number from the IRS. Outside funding, such as a small business loan or investment, may also be part of your financial plan.

5. Market your business – Advertising your business to gain a steady stream of clients can help you maintain cash flow and grow your IT consultancy.

Protecting your business

IT consultants face many challenges in the day-to-day operation of their businesses. That’s why many consider different types of IT consultant insurance to help protect their finances against unexpected events.

As an IT security consultant, you might consider coverage such as:

• Professional Liability – Also known as Errors and Omissions (E&O) insurance, this type of policy protects your business against claims of negligence, misrepresentations, or mistakes. Businesses rely on you for IT advice based on your expertise. If a client feels that your recommendations cost them money, they could file a lawsuit against you. Professional Liability can help you cover your legal costs, whether you are at fault or not.
• General Liability – Also referred to as Commercial General Liability (CGL) or “slip and fall coverage”, this insurance can protect your business against bodily injury or property damage lawsuits from outside parties.IT consultants often work onsite, visiting clients in their place of business to deliver their services. This creates opportunities for accidents to happen. General Liability can help you if your business activities cause an injury or damage to a client’s property.
• Business Owner’s Policy – A Business Owner’s Policy (BOP) is a combination of policies, combining covers such as General Liability insurance and business personal property coverage, to help protect small businesses from costly interruptions to service. A BOP can be a convenient and affordable way to protect several parts of your consultancy business with a single policy.

Building and protecting your IT consultancy

Starting an IT consulting business could be a great way to take control of your career. As you put in the work to build a successful business, you should consider protecting it with IT consultant insurance.

BizInsure can help you find coverage that fits your needs and budget. Compare quotes from top-rated insurers and save in minutes — get started today!