The Consulting and Independent Contracting Corner

Starting a Business 101

by Elaine Garnet, Consulting and Independent Contracting (CIC) SIG Manager

Dear Entrepreneurial Spirit:

I hear you are tired of the corporate rat race and want to be your own boss. Are you considering the leap into contracting or independent consulting? I often get email from writers who want to know how to get started.

Risk Tolerance

My first response is always, "How much risk are you prepared to take?" If you are addicted to a monthly paycheck, the risk may seem too excessive. If you have a working partner or a good line of credit, the risk is much less. The key is "Do you have the ‘stick-to-it' attitude to make your business successful and are you prepared to rack up some debt?" The first year or two can be financially trying as you strive to build up a clientele.

Services Provided

My second response pertains to your services and the marketplace. "Have you carefully defined your services?" And, "Have you researched the marketplace to determine if your services are required?" From my own experience, the services I started out providing are not the services I provide today. You should expect to be flexible as you encounter the twists and turns of fate. In many cases, synchronicity or blind luck, are big factors.

Training and a Business Plan

If you are in a complete fog, I suggest taking a small business-training course. In the K-W area, there are a number of options. Lutherwood-CODA, in cooperation with HRDC, runs eight-week training courses that cover subjects such as sales, marketing, accounting, financial planning, taxes, legal matters, personality assessment, setting up the home office, insurance, and much more. At the end of the eight-week session, you will have accumulated the wisdom to write a business plan. The business plan is critical in convincing a bank that they should give you a line of credit. If you can do without the credit, the business plan is still a useful tool for reviewing and updating your goals, which you should do on a yearly basis.

Business Name and Image

I also suggest that you develop a professional image by selecting a business name. Search for the name in the provincial registry and, if no one else has picked the name, register it and apply for a GST number. Have a set of business cards professionally printed. The tear-off kind will look amateurish. A web page may be useful if the design looks professional. At some point, you may find it beneficial to hire a designer for both business cards and a Web page. The trick is to develop an image and stick with it. There is nothing more confusing than a business that keeps changing its look!

Finding Clients

Most importantly, you have to find clients. There's no escaping the inevitable. You will have to get used to cold calling. You have to be prepared to step out of your comfort zone and develop a script that will get your foot in the door and give you an opportunity to display your portfolio. I have to confess to having had limited success with cold calling. I didn't start to get assignments until I began to network. You should network as widely as possible and at every opportunity. Since networking is a two-way street, be prepared to help others as you expect them to help you.

Future Editions

In the coming months, I will address all the aspects of starting a small business in more detail. I will try to pass on information that I gathered from my small business training, my personal experience, and the experiences of my colleagues. It's not easy. It's definitely not cheap. But, it is a great deal of fun.

Until the next issue,

Elaine Garnet
CIC-SIG Manager

Editor's Note:
You might also be interested in a free presentation about how to maintain your business once you have it started.