The Bare Minimum to start a Tech Consultancy: Part 3

Last week we began a series of blogs describing how to start your own tech support business. Here are the links to Part 1 and Part 2.

Let us continue!

You have a business plan that you are sure is going to work. You're sure because you've done research. You've found vendors that will help you. You've found business resources that will support you.

This would be a good point for you to figure out what your monthly expenses are. Try to guess how much gasoline you're going to burn, driving to customers, joining the chamber. Call up an insurance agent and ask how much liability insurance is. I'm not talking about insurance to protect you if someone trips on the sidewalk in front of your business. I'm talking about the policy that will protect you when you accidentally burn down a company's server. (I'm sure it won't be your fault!)

Don't forget money for all those meetings at coffee shops and restaurants!

Or, skip all that depressing stuff. Either this bird is going to fly or it won't. Let's get to the fun stuff!

It's time to pick out a name for your business.

Don't do it lightly. This is the first step in building your brand. Try to come up with a name that won't cause your future customers to doubt your competence. You know who you want for customers because you've done your research. Do you think a law firm is going to want to hire a tech company called "Monkey Business"? (another disclaimer, I don't know of any tech business named Monkey Business, this is just an example)

Some things to consider:

1) Names starting with "A" tend to be in the front of the phone book. Not a big deal, but something to remember.
2) You're going to need to get a domain name that matches your business name. Is it available? Go to Network Solutions or some other registry and do some searches.
3) I don't recommend too long of a name or use words that are hard to spell. The best brands tend to have no more than three words.

Got your name figured out? Sweet! It's time to register your business with the state. Check with your secretary of state's office to see if your business name is taken.

Read some books, talk to business acquaintances, accountants or tax preparers and get a consensus about the best way to set up your business. Your choices are sole proprietor (your business is you and runs on your social security number) or LLC (limited liability corporation). There are a couple of other ways to incorporate but they'll end up being more expensive. Do your research and make your choice.

Go to the secretary of state and register your business. Give them your home address and phone number for now. Plop down some money (usually around $100) and take a deep breath. Do you know what just happened? A business has been born. Amazing!

Now you need to get an EIN number. It's the Employer Identification Number that you'll get from the IRS. Here's the link to the online application.

Pick a bank or a credit union and open up a checking account. You'll need your EIN and paperwork from the state when you go in. You'll also need money, probably about $150 to open the checking and attached savings accounts.

Here are a few things to think about when you are shopping for a financial institution:

1) Credit unions are a great place to get your basic business banking done. My experience is that credit unions tend to educate the new business a little better than bigger institutions.
2) Credit Unions have more rules. This isn't usually a big deal, but it can be a pain.
3) Not all banks are alike. Ask your business acquaintances who they recommend.
4) There are banks geared for small and medium business needs. These are great but you have to know what your needs are before jumping into one of them.
5) Whatever choice you make, you can always move. There are too many good choices out there to stick with something that isn't working for you.
6) Location matters. If you find several good institutions, pick one that has a branch near you. You don't want to drive 10 miles out of your way just to make a $69 deposit.

Now go home and start thinking about a website layout!

Please contact us with your questions--by commenting here or contacting us at www.acmetechworks.com!