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Thursday, June 01, 2006

IT Consultants: Don’t Give Away the Farm

Many consultants lower their rates and make it difficult for them to go out on their own and succeed quickly in their new profession. Here are a few tips to help you get started as soon as possible.

Prove you are a Professional

You will need to charge similar hourly billing rates as your competitors. If you charge extremely low market billing rates, you’ll never have enough steady consulting revenue to go full time. When contracts come up for renewal, you'll find it difficult to raise your rates.

The full time IT consultants you compete with have already figured out the hourly billing rates they need to cover their overhead. Ensure that, at this stage of the game, you aren’t overlooking this aspect. Also consider other costs including taxes, training expenses, insurance, marketing and promotion, research and administration.

Don’t Sell Yourself Short

If you’re thinking you can go out there and be the Crazy Eddie of IT consultants in your marketing, or go out there for $25, $35, $45 an hour and ultimately, you’re going to make it up on volume - you’re wrong. You can't work constantly and succeed. Steady, solid work will allow you to become a full time IT consultant.

Added by Computer Consulting Kit