Computer Consulting

In small business computer consulting, it can be quite easy to get yourself into money trouble really fast. Thats why, it is of utmost significance to conserve your precious capital by avoiding some of the common mistakes when marketing your small business computer consulting firm.

Perform Tests

According to experts, whenever youre doing any marketing with your small business computer consulting firm, think about being able to run smaller, measured tests before making big marketing bets. As a matter of fact it can be something as simple as direct mail. In theory, dont mail five or ten thousand pieces your first time out of the gate. In addition, dont put $2,500 or $5,000 or more on the line.

Start Small and Focus on Your Target Market

If experts are to be believed, it is advisable to try a $500 test and see how your small business computer-consulting firm does. On the other hand, if youre thinking that you absolutely must put an ad in the yellow pages or the newspaper, reconsider. There are number of ways than broadcasting to an audience where 95% of the people arent interested.

Small Bets are Less Risky

In theory, if you are set on marketing your small business computer consulting firm in the yellow pages or newspaper, start smaller and test the waters with something on a smaller scale before you ramp up. It is worth mentioning in this regard that whenever youre making decisions on marketing and business development, think about small, measured bets before making big marketing bets so you can test things out, analyze all the results, track the number of inquiries and learn what happens to those inquiries.

It is worth noting that in small business computer consulting, $100 an hour can be a reasonable and livable rate. The question now arises: Why can setting your rates at $100 an hour make all the difference in the world Take the $100 an hour and multiply it by 1,500 hours a year. This clearly emphasizes a 75% utilization rate; or 75% of a typical forty-hour work week as billable time. Now youre at $150,000 a year gross.

Salary and Affordability

According to experts, as a small business computer-consulting firm, you will want to take a third of the gross and plow it into sales and marketing. Thats why, you can afford a $40,000 base salary for your sales account executive. So, of that one third of your gross small business computer consulting income, $40,000 can go to the base salary and $10,000 can go to related marketing expenses.

In addition, one third will take care of taxes, insurance and overhead items for the most part, and you have a third of it or $50,000 left to pay a technical staff salary.

Surpassing $100 an Hour

It is worth pointing that you may be considering exceeding a rate of $100 an hour for your small business computer consulting firm. At that point of time, you can hit what we call the not-so-imaginary-hourly-billing-rate ceiling.

Needless to say, if your small business computer consulting clients are paying $110 to $125 an hour, it gets even easier to be able to afford really bright, motivated, highly qualified sales and technical staff.

Higher Rates Equal Bigger Businesses

On the other hand, if you want to charge above $100 an hour in your small business computer consulting firm, youll almost always need to move above and beyond sweet spot small business clients into really large small businesses, medium size businesses and enterprise-sized accounts that require a different business model and technical skill set. Once you follow this mechanism, youre going to be operating under a completely different type of business model. And you will require even more polished and seasoned salespeople to be able to handle those accounts.

According to experts, as a new small business computer-consulting firm, you might ask what level of technical staff you could put on payroll. It is worth pointing that you don't get too excited yet; you have to be realistic about this.

Of course, it varies by job market, but all things being equal, what kind of technical person will your small business computer-consulting firm be able to find It is of utmost importance that can you find someone that has the wide variety of intermediate to high end technical skills that are needed for larger small business clients if your technical salary budget is only $37,500 a year

The Need for Qualified Help

According to experts, your small business computer-consulting clients that have ten to fifty PCs are going to start to have much more sophisticated needs. As a matter of fact, you cant send someone in whos a glorified screwdriver technician. It doesnt work in long run. Thats why, your small business computer consulting firm needs fairly high level people.

Know What You Have to Offer

But keeping these things aside, on the flip side, on the demand generation side, what kind of polished B to B salesperson are you going to be able to find for your small business computer consulting firm if you can only offer a base salary of $27,500 a year In theory, that extra $10,000 will need to be allocated to things like direct mail, having that person go to organization and networking meetings, sponsoring events, doing seminars and things along those lines.

The Bottom Line about Small Business Computer Consulting

It is worth noting that finding staff with skills for such low salaries is like Fantasy Island for most new small business computer consulting firms. As a matter of fact according to experts its very unlikely to happen. In theory, you, as the owner, are the only person, aside from maybe your spouse or another family member, whos going to be willing to work like a dog at way below market wages while the business is built up.