How do you decide whether or not to buy an IT consulting franchise? Your decision depends upon weighing the pros and cons!
The Pros of an IT Consulting Franchise
1. You get the convenience of being part of a larger company.
2. You have an immediate peer support network as part of the company.
3. Your franchise comes with pre-set tools and resources.
4. You have people set up to help with problems.
The Cons of an IT Consulting Franchise
The biggest problem with entrepreneurs when it comes to a franchise is that there is a lot of money required for startup. On top of this amount, you need to pay a percentage of your revenue (a royalty) every month to your franchiser. And you will have some restrictions when it comes to the direction and scope of your business.
IT Consulting: A Business of More Time than Money
Starting a regular IT consulting business will typically be a low overhead investment … but it will require a lot of time and effort! You may take up to six months (or more) to get enough contacts, prospects and projects in your sales funnel to get to a 50 or 60% utilization rate (20-24 billable hours weekly).
When Will You Get IT Consulting Revenue?
Even when you put forth substantial effort with marketing, three to six months is a good guess of how long it will take you to get some cash flow to sustain you. If you decide to have staff members with good technical expertise, you might need years.
You need capital to start an IT consulting business so you can pay your expenses. Keeping a low overhead can eliminate a lot of stress, which is why you should think long and hard about whether or not a franchise is right for you!
Added By: Joshua Feinberg