Going into business for yourself?

Has anyone had an experience unplugging from the matrix and starting a services/consulting/contracting business for themselves ? Providing IT services and all the wonderful things most of us would be tasked with doing on the everyday level for individuals or small businesses?

I was wondering if you guys had some good resources/advice/stories about your experience... as I definitely am interested in providing services without the necessary anchor of it being tied to a specific organization. I have very different moral/ethical/principle feelings when it comes to how Corporations treat people, and would rather start trying to set up my own situation if you know what I mean.

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N2IT

I know what you mean.

A buddy of mine along with some co workers talk about this a lot. We always say if you are going to do this, just do set up/install/integration and move on. When you start getting into the support piece it get's difficult to manage. Especially if you are a one man shop. The good part is if you become a reseller you can mark up the products with higher margins and make some real money.

I agree though most corporations and small businesses are terrible to work for.

I need to grow a pair and do the same thing, sell the product and hire the manufacture to to install the product.

petedude

I understand your sentiment too, Chi.

IT has so many possible entry points with few consistent validators (not as strict as say, the medical profession), so more and more um. . . less-qualified folks are entering which in turn means. . . worse management. I have been getting somewhat disillusioned with the corporate IT scene myself of late.

Problem with opening up solo shop is 1) capital; 2) competition. In a highly populated area, you need to do a SWOT analysis (strengths, weaknesses, opportunities, threats) and come up with at least a minimal business plan before you open your doors.

Chitownjedi

N2IT wrote: »

I know what you mean.

A buddy of mine along with some co workers talk about this a lot. We always say if you are going to do this, just do set up/install/integration and move on. When you start getting into the support piece it get's difficult to manage. Especially if you are a one man shop. The good part is if you become a reseller you can mark up the products with higher margins and make some real money.

I agree though most corporations and small businesses are terrible to work for.

I need to grow a pair and do the same thing, sell the product and hire the manufacture to to install the product.

Yeap, with a new baby on the way I couldn't take the risk before, but now that my lady is able to handle all of the bills, I feel it might just be time to put some of that worry aside (you have to be in the game to win, right) I've had at least 10 other co-workers all telling me I should have been done this because my personality type is to succeed at all cost, so they believe I would make it work, but I've been scared... working for folks is something I've been comfortable with for so long, and I'm relatively young and worry about it being a $$$ sink.

Starting to think I can't afford not to do it any more.

JoJoCal19

I too have thought of the same thing. Some of the smaller, leesser known security shops I've had interviews with or have had communications with, have left a lot to be desired. Once I have a good bit more experience under my belt it is something I will definitely consider.

massontech

I have considered this and even started my setup... (That is creating a website, setting up goals etc) But the little problem is - i do not want to setup an office yet (That is rent a place). Just in case my idea doesnt work out right.

Ok considering the above, how do i do business with individuals/small companies as a one man company with out an office space hmmm so im thinking online. Does it really matter to have an office space.

My services - I would be providing is Installation/support/training - More of Vmware and Microsoft stuffs.

At the back of my mind, (im thinking)- You cant really start ruining your own business if you don't have good contacts and relationships with companies/individuals who might need your services.

Polynomial

All you IT people are forgetting something important- where do you find the customers to sell to? =P

jibbajabba

massontech wrote: »

You cant really start ruining your own business if you don't have good contacts and relationships with companies/individuals who might need your services.

You can't ruin what you don't have

(just pulling your leg, I know what you mean)

MrAgent

The hardest part of going into business for yourself is trying to find the customers. This is the exact reason why I have not done it. If I had a huge customer base waiting to do business with me, I would have totally jumped on that bandwagon.

Danielm7

Polynomial wrote: »

All you IT people are forgetting something important- where do you find the customers to sell to? =P

This is 100% correct. I've run my own small business doing this stuff before, getting customers can be the hardest part for some people. You have to figure what kind of business you want to go after, have to know how to sell your services and sell yourself, what kind of clients you don't want, etc. Getting the wrong client can suck the life out of you, you can always fire them but when you're first starting it's very difficult to turn away someone with money.

What will make you different from a small MSP? Do you want to support everything? Can you? What about hours and boundaries? I'm not trying to discourage anyone, but there is a lot more to consider than just being good at your regular corp job and enjoying working with people.

shodown

Some great points already brought up.

As far as equipment its hard to make money on equipment sales anymore. Any company can get on CDW and get a good price from them. The only way to make money on gear is to buy it in BULK. Most of the money is going to be made on services and support which are 2 different pieces. Support is easy in the beginning when you don't have many clients, then it gets harder as you grow and you have to start your own support organization which cost $$$$ to start up.

Getting into business is one of the best things I have done, its challenging, but there are ways to get steady income coming in

CyberfiSecurity

shodown wrote: »

Some great points already brought up.

As far as equipment its hard to make money on equipment sales anymore. Any company can get on CDW and get a good price from them. The only way to make money on gear is to buy it in BULK.

This is true, I attempted to start my own small resale technologies for small and medium businesses. I suspected that the price from Ingram Micro, TechData are not big differences from Amazon.com, and other online Technologies Retailers. However, I have to pay my own shipping. It ends up it is a loss. Unless I have to find customers who have no idea what are technologies, then I can charge them whatever I want to make profit. At the end you are making money for those middlemen (Ingram Micro, TechnData, Synix, and etc).

datacomboss

CyberfiSecurity wrote: »

This is true, I attempted to start my own small resale technologies for small and medium businesses. I suspected that the price from Ingram Micro, TechData are not big differences from Amazon.com, and other online Technologies Retailers. However, I have to pay my own shipping. It ends up it is a loss. Unless I have to find customers who have no idea what are technologies, then I can charge them whatever I want to make profit. At the end you are making money for those middlemen (Ingram Micro, TechnData, Synix, and etc).

My experience with Tech Data has been great. They offer great sales support via product "champions" who are partially paid by the manaufacturers and will let you use their facility in Clearwater to do demos for large deals. For example they have a hospital room to demo healthcare IT and Cisco room with all of their voice technologies. They also have several vendor conferences a year that top VARs get flown to for free, including all travel expenses.

markulous

I kind of assumed that the biggest hurdle here would be networking and developing a customer base and that's what others are saying. It seems like it would just be less of a headache to work for someone else and likely just as lucrative. Although, I'm sure there are plenty of exceptions for people with great networking skills and that are really talented and whatever service they are offering.

CyberfiSecurity

datacomboss wrote: »

My experience with Tech Data has been great. They offer great sales support via product "champions" who are partially paid by the manaufacturers and will let you use their facility in Clearwater to do demos for large deals. For example they have a hospital room to demo healthcare IT and Cisco room with all of their voice technologies. They also have several vendor conferences a year that top VARs get flown to for free, including all travel expenses.

Datacomboss,

Are you on your own or you are working for company/companies? I am currently living Irving, and working in Fort Worth. I plan to go back to start up my own business again, but this time is concentrate into Cyber Security/Information Security only. If you are having your own small business, do you mind if you could help me out with understanding customers in Dallas/Fort Worth?

Tom Servo

At this point, I'd really like to learn how to find vulnerabilities in software, to the point that I could participate in bug bounties, Pwn2Own, and submit them to the ZDI to earn a living. That is my 'long' goal right now.

GoodBishop

The real question is, what's your business plan.

tpatt100

I plan to do it when I get close to retirement but it is going to be a way to bring some part time income in and not a way to support myself. This way it removes all the stress of worrying about gaps in finding customers and I can learn how to network and develop a reputation that helps me find work through referrals.

Of course I am talking about auditing and compliance where I think age discrimination won't be as big an issue compared to the strictly technical side of IT.

N2IT

@ Chi

I am trying to build several revenue streams not just be dependent on one. I'd like to have a 8 - 3 but some other items on the side.

bgold87

Working for a small MSP myself I can tell you the two biggest hurdles.

-Finding Customers
-Capital

So say you find a customer, he wants a cloud based email solution, 3 brand new dell servers and wants to replace all his current switches and router(s). Most places will require 30% down, so that leaves you on the hook to get the capital to purchase the equipment. You could be talking about 10's of thousands of dollars out of your pocket until you invoice them at the end.

datacomboss

CyberfiSecurity wrote: »

Datacomboss,

Are you on your own or you are working for company/companies? I am currently living Irving, and working in Fort Worth. I plan to go back to start up my own business again, but this time is concentrate into Cyber Security/Information Security only. If you are having your own small business, do you mind if you could help me out with understanding customers in Dallas/Fort Worth?

I'll send you a PM

spicy ahi

I've thought about this long and hard as well. In fact, I've gotten a few inquiries that I referred away simply because it wasn't something I was thinking of at the time. What's gotten me to consider it (and it was identified above) is that I have a built in referral system through my wife, who has spent the past few years building up her bookkeeping/accounting business. I've done pro bono work for many of her friends and clients and that is where the slow but steady increase of inquiries has come from. Maybe find a small business group in your area and do free work for the folks there to start generating referrals that you can handle in your spare time. That's my game plan going forward. What I'm doing right now is trying to limit myself to only a manageable set of things to offer (still not sure what)

A good book to read for inspiration is this one, for those who are thinking of doing it but don't want to jump in feet first. It's not high on technical details but it got my creative juices flowing. Maybe it'll do the same for my TE friends who are thinking of making the leap!

Jon_Cisco

I know a number of people that talk about this type of thing all the time.

I think you need to consider your personality. A lot of IT people are simply not business people. They like their tech toys and know how to do the job. But owning a company goes way beyond that. If you want to do this because you think you could give better customer service I suggest you take it very slowly. Use caution because this usually backfires on businesses. If you want to do it to make all the money for yourself then I say good luck you might succeed.

I am not cynical I actually think it's a great idea to try but competition is going to be fierce and as we see often enough greed is a great motivator.
I would attempt to join a local business group. It could be great for referrals and give you some resources to go to for advice.

Good Luck!

NightShade03

Oh this is a good one...where shall I start?

VAR - First you have the traditional reseller business model (VAR). This is one I would caution everyone away from because as already mentioned, it is very difficult to compete with the ePlus and CDWs of the world. They are making 3% - 5% margin on deals because of their insane purchasing power. Now beyond that you will never come close to the deal registrations and discounts available to larger VARs because you don't have XX millions in revenue just starting out or certifications for certain vendors. You can try and build up a local shop to give that "local" charm that some businesses have tried, but you will run into a capital issue really really quick. Most of these products (as someone already mentioned) require a ton of money down and if you have $1 million in capital to keep you afloat you probably don't need to start a business like this in the first place.

MSP - Managed service provides. This niche is taking off like whoa. MSPs are popping up everywhere and at the end of the day they are all the same. You have Dell SecureWorks, Symantec, IBM, and Verizon as some of the biggest players in this space. Not only will their data centers and staff blow you away in terms of sheer volume, but the capital required to build out a 24x7 operation is even crazier then VAR. Working for an MSP definitely helps you build up a diverse skill set and teaches you the art of customer service, but again this option is usually out of reach for most people.

True Consulting - so what I mean by this is those that are going to provide services only. This might be pen testing, network engineering, etc. There is little to no overhead involved with this path. You don't need an office, just a phone number and a website (business cards are helpful too). I've seen many people go down this route and be semi-successful. The problem that everyone seems to run into here is that when you say "consultant" to people they just assume you know EVERYTHING. Seriously they think you can design the next super computer, reinstall Windows XP, and configure that no name switch they bought instead of Cisco. Many people try to "fake it" which eventually causes outages or legal action when they really f*** something up. The most successful people in this type of work are those that find a niche or specific type of consulting that they have experience with an run with that and only that. It limits the client base (something to consider before hand), but ensures some form of success if you can keep the pipeline strong. Since no capital is required, $100 for web hosting and some and ends + $500 for incorporation paperwork (did I mention you need to incorporate to give yourself a liability shield) should bring your total start up costs to around $1000 or less.

Break fix (like grandma's computer) + support - we won't even discuss this area since it's super crowded and pays very little.

Training - This is often an overlooked area of IT, and one that is 3rd for in demand benefits from organizations. Good/solid training for those in the IT world is often hard to come by. Want to learn pen testing from SANS...that'll be $4000 + 5 days of your life please. Oh and did I mention the $800 exam costs? This is just an example, but many of the available training courses and materials are like this. This is an area that is ripe for disruption! Just look at the companies like CodeSchool or Codecademy. Umdemy is also another great example. The have built a platform for providing hands on training to teach coding for $25 / month. A steal at twice the price if you ask me

Now obviously you can't go out build a platform, create professional training materials, and work a day job (trust me I've tried). However there are some in this space that are working on smaller training solutions like courses or ebooks for a more reasonable price. I've personally done this route with two books so far. They aren't going to make you rich overnight, but build a following, provide good customer service, and the client base will build itself. My favorite case study is a person who wrote an ebook around how to design using photoshop for beginners. The ebook is $39. The "package" is the ebook, plus resource files, plus interviews for $199. There is also a middle package for $99. He built a landing page, started a mailing list, 3 months later (while doing his day job the whole time) he released his "product". First week sales totaled $45k. Since then he's repeated this process 2 -3 times and made over $150k in a year. Now I don't need to tell you all that once books are written you just need updates every few years so the investment is all up front. Also word of mouth is an awesome advertiser and people will try to hire you for...wait for it...consulting as well

Obviously before going into business you need to consider things like:

Need for capital
Business plan
Co-workers (if you go in with someone else)
Balancing work / life / your new business
Incorporation (highly recommended)
Business operations
Financial aspects of the business
You get the idea...

Sorry for the long winded post, but this is a subject near and dear to my heart

If anyone wants to comment/chat further I'm all ears

Kinet1c

Been there, never again... unless I was super specialised in what I do and would be subbed in to VARs/MSPs as a consultant.... so maybe in 10+ years. I went in originally at break/fix and then did some small MSP services. It's a race to the bottom and the customer always wants more for less. I'm happy out now working for someone where I just deal with the tech side of things - no marketing/financials etc.

If you're seriously considering then Computer Technician into a Computer Business Owner - Technibble would be worth a look as it tends to have good articles. It also has a solid community.

N2IT

I agree completely it's all about the niche. People who stick to a tight (scoped in) model succeed from what I can tell.

I thought a firewall consultant or "network security" consultant would be a great niche. Use a device that is easy to configure that has a huge margin on install and sale and set it up and leave. It can work with 95% of all networks including small soho's.

Just a thought.

Danielm7

The only issue you hit with things like firewall consultant is that the sohos are usually using soho equipment, which are really easy to setup. If they have a "computer savvy" person there they'll do it themselves or they won't call a niche specialist to do it. If you're very good then you could maybe make a niche business out of consulting to medium sized businesses that have IT staff but don't want to be responsible for the security stuff but still recognize that it is important. The issue there too is that they might also think it is your fault when one of their people gets a virus because the "security pro" set it up. Always pays to try to look at the pros and cons of each side.

datacomboss

NightShade03 wrote: »

Oh this is a good one...where shall I start?

VAR - First you have the traditional reseller business model (VAR). This is one I would caution everyone away from because as already mentioned, it is very difficult to compete with the ePlus and CDWs of the world. They are making 3% - 5% margin on deals because of their insane purchasing power. Now beyond that you will never come close to the deal registrations and discounts available to larger VARs because you don't have XX millions in revenue just starting out or certifications for certain vendors. You can try and build up a local shop to give that "local" charm that some businesses have tried, but you will run into a capital issue really really quick. Most of these products (as someone already mentioned) require a ton of money down and if you have $1 million in capital to keep you afloat you probably don't need to start a business like this in the first place.

MSP - Managed service provides. This niche is taking off like whoa. MSPs are popping up everywhere and at the end of the day they are all the same. You have Dell SecureWorks, Symantec, IBM, and Verizon as some of the biggest players in this space. Not only will their data centers and staff blow you away in terms of sheer volume, but the capital required to build out a 24x7 operation is even crazier then VAR. Working for an MSP definitely helps you build up a diverse skill set and teaches you the art of customer service, but again this option is usually out of reach for most people.

True Consulting - so what I mean by this is those that are going to provide services only. This might be pen testing, network engineering, etc. There is little to no overhead involved with this path. You don't need an office, just a phone number and a website (business cards are helpful too). I've seen many people go down this route and be semi-successful. The problem that everyone seems to run into here is that when you say "consultant" to people they just assume you know EVERYTHING. Seriously they think you can design the next super computer, reinstall Windows XP, and configure that no name switch they bought instead of Cisco. Many people try to "fake it" which eventually causes outages or legal action when they really f*** something up. The most successful people in this type of work are those that find a niche or specific type of consulting that they have experience with an run with that and only that. It limits the client base (something to consider before hand), but ensures some form of success if you can keep the pipeline strong. Since no capital is required, $100 for web hosting and some and ends + $500 for incorporation paperwork (did I mention you need to incorporate to give yourself a liability shield) should bring your total start up costs to around $1000 or less.

Break fix (like grandma's computer) + support - we won't even discuss this area since it's super crowded and pays very little.

Training - This is often an overlooked area of IT, and one that is 3rd for in demand benefits from organizations. Good/solid training for those in the IT world is often hard to come by. Want to learn pen testing from SANS...that'll be $4000 + 5 days of your life please. Oh and did I mention the $800 exam costs? This is just an example, but many of the available training courses and materials are like this. This is an area that is ripe for disruption! Just look at the companies like CodeSchool or Codecademy. Umdemy is also another great example. The have built a platform for providing hands on training to teach coding for $25 / month. A steal at twice the price if you ask me Now obviously you can't go out build a platform, create professional training materials, and work a day job (trust me I've tried). However there are some in this space that are working on smaller training solutions like courses or ebooks for a more reasonable price. I've personally done this route with two books so far. They aren't going to make you rich overnight, but build a following, provide good customer service, and the client base will build itself. My favorite case study is a person who wrote an ebook around how to design using photoshop for beginners. The ebook is $39. The "package" is the ebook, plus resource files, plus interviews for $199. There is also a middle package for $99. He built a landing page, started a mailing list, 3 months later (while doing his day job the whole time) he released his "product". First week sales totaled $45k. Since then he's repeated this process 2 -3 times and made over $150k in a year. Now I don't need to tell you all that once books are written you just need updates every few years so the investment is all up front. Also word of mouth is an awesome advertiser and people will try to hire you for...wait for it...consulting as well

Obviously before going into business you need to consider things like:
Need for capital

Business plan

Co-workers (if you go in with someone else)

Balancing work / life / your new business

Incorporation (highly recommended)

Business operations

Financial aspects of the business

You get the idea...

Sorry for the long winded post, but this is a subject near and dear to my heart If anyone wants to comment/chat further I'm all ears

You can be successful at all of the above. The key IMO is to specialize in a particular industry.

CyberfiSecurity

For marketing, sending out the emails advertisements to prospect customer illegal? For example, if I scout around the Google map in my area, and search for business with email addresses. Then send out marketing email would that be illegal?

instant000

CyberfiSecurity wrote: »

For marketing, sending out the emails advertisements to prospect customer illegal? For example, if I scout around the Google map in my area, and search for business with email addresses. Then send out marketing email would that be illegal?

I'd rely on more than just reading a Wikipedia article, but my 30 seconds of non-legally sound advice says that you might be OK, as long as you don't annoy people. (I remember this guy "Phil Rosenberg" was quite an annoyance a few years back, but he kept pushing it, and it seems to be working for him right now.)

I don't know how the market is in Dallas, but in San Antonio, you have to Bar-B-Q with people in order to drum up business. It's not quite "good ol'boy club" you just have to "join the club". (That is, people around here have a VERY STRONG tendency to do business with people they know. Going to the networking events where your prospective customers are present would be a good idea, for example.)

NightShade03

CyberfiSecurity wrote: »

For marketing, sending out the emails advertisements to prospect customer illegal? For example, if I scout around the Google map in my area, and search for business with email addresses. Then send out marketing email would that be illegal?

It's not illegal, but just be careful.

If you use an automated tool like MailChimp you are required by law to have a way for people to "unsubscribe". If you do it with a personal email address you run the risk of being labeled as SPAM indefinitely. Not a bad tactic just make sure you do it right