The New Consultant's Quick Start Guide

3Dollars and Sense

In this chapter you will

• Establish a start-up budget
• Establish your pricing structure
• Calculate the revenues you will require
• Complete financial forms such as revenue projections, cash flow sheets, and expense records

Establish a Start-Up Budget

Identify everything you will need to start your consulting practice. Think in terms of furniture, equipment, supplies, occupancy costs, and setup expenses.

You may wish to go to your local office supply store and place an order for everything you think you will need. However, before you do that, consider how you could acquire the same items with a smaller outlay of cash. Look around your house. Do you have a table or chairs or bookshelves that you could borrow temporarily? Look around your neighborhood. Could you watch the ads for garage sales that might have desks or shelves? This is a good way to get the rest of your family involved in helping you. We found a fabulous solid oak desk for our receptionist that was advertised in an employee’s church bulletin for $45. Watch for offices that are moving or going out of business. You will find fabulous bargains and things you never knew you needed!

Calculate how much you will need to start your business. Starting a business is an iterative process (even though it may sometimes feel as if everything has to be completed at once). Therefore, you may not be able to fill in all the blanks yet. For example, you will not explore your insurance requirements until the next ...