The Zintro blog has an excellent infographic on the economics associated with being an independent consultant. Lots of interesting data including:
1. The startup costs for an independent business consulting businss range from $100 to $20,000 according to the infographic. While we agree, our research indicates the majority of new independent consultants spend between $3,000 and $10,000 to get started.
2. Not surprisingly, marketing is one of the largest independent consulting expenses. According to the infographic, the average independent consultant spends about $7,500 per year on marketing.
It's a bit unclear from the infographic if this is both hard and soft costs, but I think it's only hard costs (meaning cash outlays).
Our research indicates soft cost marketing expenses (meaning non-cash costs which are mostly time) tend to be quite high for most independent consultants. These include sales time, marketing presentations, time spent networking and on social media, etc. These often add up to 20%-40% (or more) of an independent consultant's time.
Anyone considering becoming an independent consultant should definitely include these soft costs in their business plan.
The infographic has lots of other interesting information. Click here to see it.