Launching your home-based consultancy? Keep these points in mind

A career in consultancy allows you to explore a creative area of work where the sky is the limit as far as your earning potential is concerned. A successful consultant never has a dearth of clients, nor is there a risk of tedium setting in with this field because you can explore so many different areas. There is plenty of opportunity to learn and grow as well, and all of this makes it a great idea to set up your own consultancy right away. You can start small, right at home, and enjoy the perfect work-life balance too. Here are a few points to help you get started.

Identify your niche

The very first step to take, this involves an assessment of your own strengths/ skillsets and also of what the market needs right now. Identify an area where there is relatively less competition and a great demand for consultants. Get the credentials, the training you need to excel in this niche before you get started. And then, promote your expertise with meticulous attention. You WANT your clients to know that you are the BEST person to deal with the specific problem they have.

Figure out your pricing

The obvious starting point would be to do some research about what similar consultants charge per hour. Keep in mind that rates vary with your experience, qualifications, the niche you are in and you also need to factor in your project sizes and their complexity. If you are moving out of a 9 to 5 job as a consultant and launching your own home business, you can derive a baseline figure by simply converting your salary into an hourly rate. However, keep in mind that you CAN charge more if you add more value to your services than you were allowed to offer as an employee. Make sure you are not pricing your service far higher than your competitors. That’s the first thing your clients may see, and a huge gap could put them off before they even try to find out why you are so expensive.

Safeguard your business

Insure your business in the right way to protect it. Apart from your general insurance, you should also consider professional liability insurance or Errors and Omissions insurance to truly safeguard your new firm. This insurance comes into play when a client files a lawsuit against you for non- fulfilment of your contractual obligations, delay in service, negligence, or any other claim saying that you have caused them damages in some form.

Legal fees, court proceedings, damages- these can result in a huge outgo of cash that can cripple your business financially. With the right kind of professional liability insurance, all of these potential costs are covered, and you can take on legal battles without worry. Check this website for more information on what professional liability coverage is and why you should opt for it when you launch your home business.