The setup provides a fully functional office wherever the consultant travels, he says. Regular disk backups are a must, he says, and he recommends off-site storage. In big companies, losing your data can be distressing, but in a small consulting business, it would be disastrous. Off-site storage of backup tapes can save a business in case of a fire or natural disaster. With an office and hopefully a few clients, the next hurdle for consultants is establishing and negotiating fees.
Different consultants work from different formulas.
Most experts agree that it is nearly impossible for a consultant to earn at their previous salary level during the first year or two of consulting. In fact, some of the biggest pitfalls in consulting work, Borchardt says, result from charging too little or underestimating the time that will be spent on a project. Like everyone else, however, consultants learn from their mistakes. Credit was easy to get while I was in a corporate job, but not so easy after the break. Bankers demand nice long financial track records when they commit money.