How-to to run a software consulting business

Finance

Setup a rainy day fund for your business

by shabda on October 9, 2011

Shit happens. Your clients can go out of business or get a new vendor. Your best employees can leave. Your technology can get out of vogue. None of these are catastrophic failures. They can be overcome with retraining, marketing, getting new clients. Each of these take time. (And money). Thats why you need to have [...]

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Two common answers are It depends 6 month into your monthly burn rate Lets dig deeper. 4 months from starting is a reasonable time to assume that you are making a monthly profit. So you need to keep 4 months recurring plus the fixed expenses to start. Fixed costs: Cost of incorporating a legal entity: [...]

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Turning customers to repeat customers

The best way to get business is by getting more work from an existing customer. New customers cost money to acquire. They need to be nurtured before they will get trust with you to let you work on the most... »

Turning customers to repeat customers

Moving up the value chain

  If you want to grow the business without growing headcount the only way is the provide higher end services or to sell products. Do you sell services which can be productized? Do you have technology which can be sold... »

Moving up the value chain

Keeping costs low

As you start to scale the business, the overhead costs start increasing. Eg. When you are self employed you maybe doing billable work 90% of the time. As your business grows, you will have to add admin staff, accountants and... »

Keeping costs low

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