How much $ would you need to start your own small consulting firm? Father in law is suggesting I do it and offering to fund it. Pros and cons of owning your own firm? I’m 36 yo currently at the Principal/Director/MD level depending on the firm.

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I don't think you can attribute a specific dollar amount without putting in the time to do the research. Determine what your needs and wants are - how many people do you need to hire, what are their specialties, what are their salary requirements, how much are their benefits? Do you want an office to work out of or are you going to go remote? How much and what kinds of infrastructure do you need? Do you have a good attorney that specializes in what you need? How much does that cost? What kind of advertising do you need? These are all important questions to ask and can help you ballpark a dollar amount - chart out absolutely everything that you need. The kicker here is that you want to calculate the annual cost of all of these and chart that for at least 5 years. Everything from as small as office supplies and monthly utility costs to salaries (including your own). After you come to that number for 5 years - that's what you need to start out. Most businesses fail within the first 5 years with a large chunk of those in the first 2 years.

Alternatively, if you're looking on striking out on your own as a solo practitioner/consultant - good for you! This can help you save a lot of money on upstart, but you still have to consider what your living costs are for five years, how strong your client connections are (will clients leave your current employer for you? If so, do you have a non-compete clause?), what the RFP market looks like, advertising costs, market cost for similar services, insurance costs, attorney fees, possible licensing fees, etc.

There are also non-dollar related costs. Starting your own firm generally takes a whole lot of time. That's time away from your family, time away from your friends, time away from things you may like to do in your spare time. This could also contribute to a more stressful work life - what are the social costs of that added stress? Factor this element in as well.

There's a lot of factors that have to go into that decision and, with as many variables as there are in play, trying to ballpark a number and, if people give you numbers on here - that isn't going to do you any good. Some people can start a one-man consulting firm with only a couple thousand depending on the resources and connections they have to start, others get started on ~1 million and up for standing up a legitimate small firm. You have to put the work in and do a cost/benefit analysis to determine if that's right for you and right for your family. This also helps to determine where you can trim things down - what's important to you and your ideals in a firm (e.g. - will clients be coming to an office? If so, you may want to get nicer officer furniture. If not, you might can outfit your office with used mis-matching furniture and go with a more hip aesthetic. Thousands of dollars difference between those two choices).

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How big an outfit you aim for, what specific area of consulting, what is your plan for an exit (if you ever want to exit) and do you want to be tied to your father in law this way. Otherwise yes and try to bootstrap as much as you can starting off till you see and evaluate your costs.

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