What consultants and professionals need before launching a practice

1. Register and set up the basics

In the US, the SBA explains the four ways to register a business name (entity name, trademark, DBA and domain name) and that most LLCs and corporations register with their state. In Canada, you may need to register with your province or territory, or federally if you incorporate federally, before you start operating.

Check sales tax early. In Canada, most businesses must register for GST/HST once their taxable sales pass $30,000 over four consecutive calendar quarters. In the US, the rules depend on the state and the service. A local accountant can confirm what applies to you.

• Business registration and name
• A separate business bank account
• Professional liability insurance, if your field expects it
• Sales tax registration where required
• Any licence or regulatory requirement for your profession

2. Decide who you're for

“Strategic consulting for growing businesses” describes almost every consultant. Buyers choose someone who obviously understands their situation. Pick a customer group you know well and a result you can credibly deliver: “cash-flow forecasting for owner-led manufacturers” is easier to choose, refer and remember.

A narrow focus doesn't stop you taking other work. It makes the first clients easier to win.

3. Turn your expertise into offers

Hourly billing invites price comparison. Define two or three packages with a clear scope, a result and a price, such as a fixed-price diagnostic, a 90-day project and a monthly retainer. A small first offer lowers the risk for a new client and leads to the larger work.

4. Look credible where buyers check

Business buyers look you up before they reply. They expect a clear website that says who you help and how, a complete LinkedIn profile, and, if you meet clients locally, a Google Business Profile. If you don't serve clients at your address, Google's guidelines say to hide your address and set a service area instead.

An announcement of your launch, published on news sites, gives people something to find when they search your name.

5. Plan your first 10 clients

Most first clients come from your existing network: former colleagues, clients from a previous role, and the accountants, lawyers and bankers who advise your ideal clients. Make a list of 100 names before launch, with a short, personal message for each, and a simple tracker so nobody is forgotten.

Questions

Sources

• U.S. Small Business Administration: Register your business
• Government of Canada: Register your business with the government
• Canada Revenue Agency: When to register for and start charging the GST/HST
• Google Business Profile Help: Guidelines for representing your business on Google

General information, not legal, tax or financial advice. Rules differ by location; check with your own adviser.