Are you interested in opening a consulting business in the United Stated of America? If yes, then it is important to point out that there are several factors that can determine the actual cost of launching this type of business.
The truth is that some of the factors may not apply to you because the business model and the kind of business a person wants to build would also affect the overall cost of the business. Starting a consulting firm can be cost effective; this is so because on the average, you are not expected to acquire expensive machines and equipment.
Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furniture and equip the office, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications. When it comes to starting a small scale consulting firm, the following expenditure should guide you;
Estimated Cost Breakdown for Opening a Consulting Business
- The Total Fee for incorporating the Business: $750.
- The budget for Liability insurance, permits and license: $2,500
- The Amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive): $40,000.
- The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $2,000
- The Cost of Launching your official Website: $600
- Budget for paying at least two employees for 3 months and utility bills : $10,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $2,500
- Miscellaneous: $1,000
Going by the report from the research and feasibility studies, you will need about ,000 to set up a small scale consulting firm in the united states of America. You will need over a hundred thousand U.S. dollars to successfully set – up a medium scale consulting firm.
If you are considering starting a large scale consulting firm with several professionals under your payroll and offices in key cities in the United States of America and other parts of the world, then you should look towards budgeting from 1 million United States dollars and above.
There are factors usually unique to each individual and this article may not cover such. Having said that, here are some of the factors that will influence the cost of opening a consulting business in the United States of America;
Factors That Determine the Cost of Opening a Consulting Business
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The Type of Consulting Firm
A major factor that will determine the overall cost of opening a consulting firm in the United States of America is the type of consulting firm in question.
There are different types of consulting firms serving different sectors: Architecture and Engineering, Financial services, Healthcare, Hotel and hospitality industry, Human resources, Information technology, Legal, Management and Regulatory compliance.
In addition to the above-mentioned fields, there are consulting firms that serve niche sectors such as advertising/marketing/public relations consulting, environmental consulting, entertainment/media consulting, energy consulting, consulting in politics and the public sector, real estate consulting and recycling consulting.
You will quite agree that the cost implications of starting these different types of consulting firms may vary howbeit slightly.
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The Choice of Location
A major factor that will determine the cost of opening a consulting business in the United States of America is location. In business, location is key part of what determines the success of the business.
There are business consultants cum realtors who are specialized in helping people choose an ideal location for their business; a location that will guarantee them to profitability. So, you will now agree that location can influence the cost of starting a consulting firm.
For example, renting or leasing an office facility in a location that is off the city center or off business hub will be less expensive when compared to renting or leasing an office facility in a business district; a location along a major road with high vehicular and human traffic, a location with the right demographic composition of businesses who have the capacity to hire and pay for the services.
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The Required Licenses and Permits
In the United States of America, you cannot open a consulting business without first applying for the mandatory licenses and permits. You would need building license, zonal permits, and signage permits amongst others. These licenses and permits cost money and it will influence the overall cost of opening a consulting business in the United States of America.
There are several inspections you must pass before you can be issued your licenses and permits and this will also cost you money.
In order to get the overall cost of the licensing and permits associated with opening a new consulting business in the United States, we advise that you reach out to your city government. You also need to consider state and federal requirements.
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The Type of Facility
The type of facility you want to run your consulting business from is also a major factor that will determine the overall cost of opening a consulting business in the United States of America. As regards the facility, you have the options of renting, leasing or constructing your own office facility from the scratch.
With renting and leasing, you might just have to spend extra to modify the facility to fit into what you have in mind, but there is a limit to how far you can go and it will be dependent on what the landlord of the facility wants. Let us assume that you want to construct your office facility from the scratch.
It means that you will buy the land or a property, construct and equip the office facility to fit into what you have in mind. You will agree that you are going to spend way more when compared to people that rent or lease a facility. This indeed will greatly influence the overall cost of opening your consulting business.
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The Number of Offices they Want to Start With
Another very important factor that determines the cost of opening a consulting business in the United States of America is the number of offices they intend starting with. No doubt, there are new businesses that start big with two or more offices in different locations at the same time or within a short interval.
Aside from the cost of renting or leasing the office facilities in such situation, it will also cost you more to furnish the offices and the more the locations, the more the money that you are expected to spend.
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The Cost of Hiring and Paying a Business Consultant and Attorney
If you want to get your business started on the right foundation, it will be a wise decision to hire the services of a competent business consultant and perhaps an attorney. A business consultant will help with drafting a workable business plan document, a marketing plan and strategy, comprehensive SWOT analysis, and other advisory services.
Also, an attorney will help you with registering the business, drafting contract documents and offer you all the legal expertise that will help you start the business on the right foundation. You will agree that these services will cost you money and it will indeed influence the overall cost of opening a consulting business in the United States of America.
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The Cost for Branding, Promotion and Marketing of the Consulting Firm
The cost for branding, promoting and marketing the consulting business is yet another key factor that will determine the overall cost of opening a consulting business in the United States of America. Trust me, if you want to win a fair share of the available market in your city, then you must be willing to pay for effective branding, promotion and marketing.
As a matter of fact, it is not cheap to come by an expert in branding, promotion and marketing that will help you compete with brands that are already determining the market direction of the industry in your city. So, if you add the cost of paying a branding and marketing expert, it will sure increase the cost of opening your consulting business.
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The Cost for Furnishing the Office
Another factor that will determine the cost of opening a consulting business is the cost of furnishing the office facility. You will quite agree that aside from the basic facilities that are expected to be found in an office, an investor may decide to spend more than expected to furnish the office to look unique.
Before you can open a consulting firm, you should buy chairs and tables, projectors, computers, laptops, printers, flat screen TVs, sound system,
DVD players, Satellite dish and decoder, office furniture (table, stools and sofas), telephones, filing cabinets), office equipment (cash register, security and fire alarm and protection gadgets, CCTV, ventilation, signage), software apps and fancy lightening amongst others. All these will cost money and it will influence the overall cost of opening a consulting business.
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The Cost for Insurance
Paying for insurance policy cover is yet another important factor that will determine the overall cost of opening a consulting business in the United States of America. In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from.
Thus, it is imperative to create a budget for insurance policy cover and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your consulting business.
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The Cost for Registering the Business
The cost for registering the consulting business is yet another cost that will influence the overall cost of opening a consulting business in the United States of America. Although the cost of registering a business is affordable, it will no doubt add to the overall cost of opening a consulting business in the United States of America.
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Cost of Recruiting and Training Your Staff
The fact that you are opening your consulting business as a new business means that you are expected to recruit and train your staff.
The training will help you sell the corporate culture of your organization to the new employees. As expected, it will cost you money to hire trainers that will help you bring your new hires up to speed and that will add to the overall cost of opening a consulting business.
In Conclusion,
These are some of the factors that will determine the overall cost of opening a consulting business in the United States of America.
Please note that there are other factors not listed above that will sure influence the overall cost of opening your consulting firm – business which is why we will advise that you work with a result driven business consultant in your city to give you the needed guide and the overall cost of opening your consulting business in the United States of America.