IT Consulting Business Plan Template

Do you want to start an IT Consulting business plan?

Do you want to start an IT consulting business? It’s a great idea If you are thinking about it, especially if you want to start a small but profitable business. It requires fundamental knowledge of IT and an understanding of customer dealing. And you can start it on your own or with a small team too.

Even though it is a relatively simple business to start, you should still use a business plan for IT consulting as a guiding tool. It is a significant step when you wonder how to start an IT consulting business. Business plans are always helpful even if you’re reading a sample life coaching business plan.

So, it’s up to you. Either hire business plan writing services or write your own business plan using this document as a guide.

Executive Summary of IT Consulting Firm

2.1 The Business

Hampton’s IT Consulting will be an IT consulting startup owned by Ruby Hampton. The company will provide IT consultation services in and around the Brooklyn area. It will offer a wide variety of services ranging from simple consultations to system development, implementation and management.

2.2 Management of IT Consulting Company

Ever wondered how to start your own IT consulting business? The best start is to read a lot of business plans for IT consulting and then develop one of your own. The best business plan strategy ensures success with adequate human and technical resources planning.

So, if you want to do IT consulting for small business, you need to go through the trouble of writing a business plan like this one.

2.3 Customers of IT Consulting Company

To start a IT consulting business, you need to identify your customers. Our customers will come from all walks of life:

• Small and Large Businesses
• Government Facilities
• Educational Facilities
• Small and Large Stores

2.4 Business Target

Our target is to become the most trusted and demanded consulting company in Brooklyn for customers who need help achieving their business goals through IT.

We want to achieve the below-mentioned financial targets for the first two years of our launch:

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

Company Summary of IT Consulting Firm

3.1 Company Owner

Ruby Hampton will be the owner of Hampton’s IT Consulting. Ruby completed her Master’s in IT about two years back. Afterwards, she worked for an IT consultation company in Manhattan. After that, she left the job to start her own endeavour in the field.

3.2 Why the IT Consulting company is being started

Ruby noticed that many businesses around her Brooklyn hometown were struggling to make adequate use of their IT resources for improving their work. She realized that she could use her knowledge and experience to improve the functions of businesses in Brooklyn. And so, she decided to start her own IT consulting firm.

3.3 How the IT Consulting company will be started

Step1: Plan Everything

The first step in learning how to start a IT consulting business of your own is to develop a business plan for IT consulting firm. To help you figure out how to set up an IT consulting business, we are providing a sample business plan here. Ruby decided to offer consultations services to every business under the sun, so you can use this plan for IT consulting business ideas for any business. You can also hire business plan experts to handle everything for you.

Step2: Define the Brand

You need to develop a brand for your business that can help you stand out. In this phase, you highlight your professional values and policies towards your customers to show your competitive advantage.

Step3: Establish Your Corporate Office

Ruby decided to rent out an office in a Brooklyn commercial building for starting the firm. But, first, she will put together a small team and procure the computing equipment needed.

Step4: Establish a Web Presence

Online advertisement is a huge part of the marketing of any business. Understanding this, Ruby decided to create social media profiles for her business and get a website developed. She expects that it will help her stay connected to her clients.

Step5: Promote and Market

In the final phase, a comprehensive marketing plan needs to be executed to promote the business.

Start-up Expenses
Legal	$122,200
Consultants	$0
Insurance	$13,000
Rent	$33,000
Research and Development	$10,000
Expensed Equipment	$26,000
Signs	$3,400
TOTAL START-UP EXPENSES	$207,600
Start-up Assets	$226,000
Cash Required	$169,000
Start-up Inventory	$39,000
Other Current Assets	$240,000
Long-term Assets	$217,000
TOTAL ASSETS	$891,000
Total Requirements	$1,098,600
START-UP FUNDING
Start-up Expenses to Fund	$207,600
Start-up Assets to Fund	$891,000
TOTAL FUNDING REQUIRED	$1,098,600
Assets
Non-cash Assets from Start-up	$1,156,000
Cash Requirements from Start-up	$285,000
Additional Cash Raised	$50,000
Cash Balance on Starting Date	$35,000
TOTAL ASSETS	$1,526,000
Liabilities and Capital
Liabilities	$18,000
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$48,000
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$66,000
Capital
Planned Investment	$1,098,600
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,098,600
Loss at Start-up (Start-up Expenses)	$361,400
TOTAL CAPITAL	$1,460,000
TOTAL CAPITAL AND LIABILITIES	$1,526,000
Total Funding	$1,098,600

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Services of IT Consulting Firm

Before you start an IT consulting business company, you need to figure out what your services will be. That way, you can plan your business around these services you will provide to the customers.

A strong IT consulting business model contains detailed information about the services of an IT business consulting group.

Since Ruby decided to offer a wide variety of services, this IT consulting services business plan can be used as a reference for any business plan. Even a  private counseling practice business plan.

So if you want to start your own IT consulting business, you can take help from this document. Here, we are describing all the services offered by Hampton’s IT consulting briefly:

IT Infrastructure Planning

We will provide a basic infrastructure consultation service. In this service, we will analyze the client’s business requirements and provide them with a comprehensive plan to develop their infrastructure resources around their business.

Security Consulting

We will also offer security IT security consultation, which will include:

• Security Planning against future attacks
• Security reinforcements
• Development and Implementation of a Security System if required

Risk Assessment Analysis

Our firm will also provide analysis and risk assessment of the IT infrastructure of the business. The client can then avail of our resources further to alleviate the concerns uncovered by the analysis.

Disaster Recovery Planning

IT systems are prone to disasters. Our firm will ensure a system that can recover from any unexpected disaster at a quick pace so that our customers don’t have to face any troubles.

Marketing Analysis of IT Consulting Firm

When you want to start an IT consulting business or any other business, you should have a good idea of who your customer base and competition will be. This information is usually added as a part of IT consulting firm business plan for an IT firm or a business plan for business consulting.

You can gain insights about your customers and competition through a marketing analysis. Any expert will tell you that marketing analysis is a crucial part of a business plan, let it be a sample IT consulting business plan or a mortgage business plan template.

In case you don’t know how to conduct marketing analysis, you can reach out to some IT business consulting experts. You can also use this document as a learning point for developing a business plan for IT consulting business software. Below, we have presented a detailed marketing analysis of Hampton’s IT Consulting Firm.

5.1 Market Trends

According to IBISWorld, the IT Consultation business in the US has a bold market share of $525.3 Billion. And as of 2021, it continues to grow at a rate of 2.4% every year. Taking a general view, the involvement of digital devices and systems is increasing day by day in every industry. As a result, businesses are looking for ways to shift their old infrastructures to the digital realm. It means that the demand for IT consultation services is not about to go down any time soon.

5.2 Marketing Segmentation

The expected customer base of Hampton’s IT Consulting is divided into the following groups:

Business Plan for Investors

5.2.1 Government Facilities

The primary area of the shift to digital services is the government facilities. These facilities require a lot of assistance to shift their systems online or improve existing systems without affecting their operations too much. So they are expected to be our long time customers.

5.2.2 Small/ Large Businesses

Our second biggest customers will be the businesses that want to stay up-to-date with the newest technology. They are expected to utilize our services regularly as well.

5.2.3 Educational Facilities

Educational facilities also require developments in their IT systems quite regularly. So, they are also expected to use our services from time to time.

5.2.4 Commercial Stores of Every Scale

Last but not least, most retail stores are going online and need robust systems for that purpose. We expect to provide our services to these clients as well.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Businesses	31%	21,000	25,200	30,240	36,288	43,546	10.00%
Educational Facilities	27%	18,000	21,600	25,920	31,104	37,325	10.00%
Commerical Stores	26%	15,000	18,000	21,600	25,920	31,104	10.00%
Government Facilities	16%	12,000	14,400	17,280	20,736	24,883	11.00%
Total	100%	66,000	79,200	95,040	114,048	136,858	10%

5.3 Business Target

• To become the most trusted IT consultation firm in all of Manhattan
• To increase the scale and reach of the business over the next five years
• To achieve a profit margin of $100k per month by the end of the second year
• To maintain customer satisfaction above 95%

5.4 Product Pricing

Our prices will be dependent on the range of services required by the customers. They will be along the same lines as the market standard. But we will maintain continuous communication with the clients to ensure satisfaction till the end.

Marketing Strategy of IT Consulting Firm

To start own IT consulting business, you need a solid marketing plan to stand out in the industry. To gain this prominence, and for marketing IT consulting business, you need to find promising areas of your businesses that will help customers recognize you as a better option.

Like a freelance business plan, you need to showcase your distinctions. In this IT consulting startup business plan, we are detailing a marketing plan for Hampton’s IT Consulting:

6.1 Competitive Analysis

• We have excellent customer care and support services. We will ensure to take feedback from our customers to improve our performance regularly.
• Our clients can reach us at any time through our contact, website or social media, and we will get back to them at the earliest possible time.
• We will not only implement systems but also guide our customers in how to use them. We will also offer standing support to help the clients whenever they need it.

6.2 Sales Strategy

• We will offer free maintenance and support to our recurring customers over two years.
• We will advertise our services through Google ads, word of mouth and social media.
• We will also offer discounts to our new customers.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
IT Infrastructure	876	929	984
Security Consulting	674	714	757
Risk Assessment	453	480	509
Disaster Recovery	124	131	139
TOTAL UNIT SALES	2,127	2,255	2,390
Unit Prices	Year 1	Year 2	Year 3
IT Infrastructure	$1,250.00	$1,450.00	$1,682.00
Security Consulting	$1,250.00	$1,450.00	$1,682.00
Risk Assessment	$1,450.00	$1,682.00	$1,951.12
Disaster Recovery	$1,750.00	$2,030.00	$2,354.80
Sales
IT Infrastructure	$1,095,000.00	$1,346,412.00	$1,655,548.20
Security Consulting	$842,500.00	$1,035,938.00	$1,273,789.36
Risk Assessment	$656,850.00	$807,662.76	$993,102.13
Disaster Recovery	$217,000.00	$266,823.20	$328,085.81
TOTAL SALES	$2,811,350.00	$3,456,835.96	$4,250,525.50
Direct Unit Costs	Year 1	Year 2	Year 3
IT Infrastructure	$950.00	$1,045.00	$1,097.25
Security Consulting	$950.00	$1,045.00	$1,097.25
Risk Assessment	$1,000.00	$1,100.00	$1,155.00
Disaster Recovery	$1,250.00	$1,375.00	$1,443.75
Direct Cost of Sales
IT Infrastructure	$832,200.00	$970,345.20	$1,079,994.21
Security Consulting	$640,300.00	$746,589.80	$830,954.45
Risk Assessment	$453,000.00	$528,198.00	$587,884.37
Disaster Recovery	$155,000.00	$180,730.00	$201,152.49
Subtotal Direct Cost of Sales	$2,080,500.00	$2,425,863.00	$2,699,985.52

Personnel plan of IT Consulting Firm

An IT consulting business proposal contains information about business personnel as well. This is because the success of a business is highly dependent on the workforce, especially for big IT consulting business names. Wanting to uphold these standards and to become a part of IT consulting business slogans, Ruby detailed the team requirements and selection criterion in the business plan:

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7.1 Company Staff

• 1 Co Manager
• 6 IT Executives combined in 3 teams to handle client systems developments
• 1 Technician to upkeep the machinery
• 1 Web Developer/ Mobile App Developer to manage online sites
• 1 Sales Executive to organize and promote contracts
• 1 Accountant
• 1 Receptionist

7.2 Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
Manager	$40,000	$44,000	$48,400
IT Executives	$142,000	$156,200	$171,820
Technician	$15,000	$16,500	$18,150
Web Developer	$25,000	$27,500	$30,250
Sales Executives	$25,000	$27,500	$30,250
Accountant	$15,000	$16,500	$18,150
Receptionist	$30,000	$33,000	$36,300
Total Salaries	$292,000	$321,200	$353,320

Financial Plan of IT Consulting Firm

The success of a business isn’t just ensured by sales. Every business needs a financial plan to make sure that the business is working on the correct route and providing a profit. A financial plan is as important to It consulting definition business as it is to a business plan for recruitment firm.

Here we’re providing the detailed financial plan of Hampton’s IT Consulting. You can get an idea of the business finances through this plan.

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.12%	8.20%	8.26%
Long-term Interest Rate	8.40%	8.44%	8.47%
Tax Rate	24.03%	24.21%	24.60%
Other	0	0	0

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5340
Monthly Revenue Break-even	$132,500
Assumptions:
Average Per-Unit Revenue	$231.00
Average Per-Unit Variable Cost	$0.62
Estimated Monthly Fixed Cost	$163,800

8.3 Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$2,811,350	$3,456,836	$4,250,525
Direct Cost of Sales	$2,080,500	$2,425,863	$2,699,986
Other	$0	$0	$0
TOTAL COST OF SALES	$2,080,500	$2,425,863	$2,699,986
Gross Margin	$730,850	$1,030,973	$1,550,540
Gross Margin %	26.00%	29.82%	36.48%
Expenses
Payroll	$292,000	$321,200	$353,320
Sales and Marketing and Other Expenses	$145,000	$148,000	$156,000
Depreciation	$2,300	$2,350	$2,500
Leased Equipment	$0	$0	$0
Utilities	$2,900	$3,000	$3,100
Insurance	$2,100	$2,100	$2,100
Rent	$2,900	$3,000	$3,200
Payroll Taxes	$24,000	$25,000	$27,000
Other	$0	$0	$0
Total Operating Expenses	$471,200	$504,650	$547,220
Profit Before Interest and Taxes	$259,650	$526,323	$1,003,320
EBITDA	$259,650	$526,323	$1,003,320
Interest Expense	$0	$0	$0
Taxes Incurred	$51,930	$105,265	$200,664
Net Profit	$207,720	$421,058	$802,656
Net Profit/Sales	7.39%	12.18%	18.88%

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8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 3
Cash from Operations
Cash Sales	$51,000	$55,080	$59,486
Cash from Receivables	$22,000	$23,760	$25,661
SUBTOTAL CASH FROM OPERATIONS	$73,000	$79,570	$85,936
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
SUBTOTAL CASH RECEIVED	$74,000	$79,000	$85,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$42,000	$42,000	$45,000
Bill Payments	$27,000	$28,000	$31,000
SUBTOTAL SPENT ON OPERATIONS	$69,000	$70,000	$76,000
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT	$69,000	$74,520	$80,482
Net Cash Flow	$21,000	$23,000	$25,000
Cash Balance	$27,000	$30,000	$33,000

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$275,000	$308,000	$338,800
Accounts Receivable	$24,000	$26,880	$30,213
Inventory	$4,300	$4,816	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$282,000	$315,840	$355,004
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$19,400	$21,728	$24,444
TOTAL LONG-TERM ASSETS	$24,400	$27,328	$30,744
TOTAL ASSETS	$294,000	$329,280	$370,440
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$18,700	$20,944	$23,541
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$19,000	$21,280	$23,919
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$15,000	$16,800	$18,883
Paid-in Capital	$30,000	$30,000	$31,000
Retained Earnings	$53,000	$57,770	$63,547
Earnings	$193,400	$210,806	$231,887
TOTAL CAPITAL	$285,000	$310,650	$341,715
TOTAL LIABILITIES AND CAPITAL	$300,000	$329,280	$370,440
Net Worth	$293,400	$319,806	$351,787

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.25%	8.03%	8.90%	3.00%
Percent of Total Assets
Accounts Receivable	9.21%	10.20%	11.31%	9.80%
Inventory	5.39%	5.97%	6.62%	9.90%
Other Current Assets	2.11%	2.34%	2.59%	2.40%
Total Current Assets	149.80%	151.00%	152.00%	158.00%
Long-term Assets	11.55%	11.60%	11.64%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.90%	4.94%	4.98%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.59%	7.65%	7.72%	7.38%
NET WORTH	100.45%	101.25%	102.19%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.60%	97.15%	99.87%	99.00%
Selling, General & Administrative Expenses	93.56%	96.09%	98.78%	97.80%
Advertising Expenses	1.52%	1.56%	1.60%	1.40%
Profit Before Interest and Taxes	41.50%	42.62%	43.81%	33.90%
Main Ratios
Current	34	35	36	32
Quick	33	33.8	34.645	33
Total Debt to Total Assets	0.18%	0.18%	0.17%	0.40%
Pre-tax Return on Net Worth	74.08%	74.89%	75.00%	75.00%
Pre-tax Return on Assets	96.30%	101.12%	106.17%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	33.56%	34.60%	35.67%	N.A.
Return on Equity	55.80%	57.53%	59.31%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.4	34.02	35	N.A.
Accounts Payable Turnover	15.6	16	16.3	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.5	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.04	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$244,000	$257,664	$272,093	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.85	0.87	0.89	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	29	29.12	29.16	N.A.
Sales/Net Worth	2.1	2.2	2.2	N.A.
Dividend Payout	0	0	0	N.A.

FAQ

How do I write a business plan for a consulting business?

A business plan is critical if you are wondering how do I start a consulting business. You can take help from this document for writing a consulting business plan.

What does an IT business consultant do?

An IT consultant has many job roles such as system development and implementation, maintenance, security and analysis of systems.

How much does it cost to start a IT consulting business?

The costs of starting an IT business depends on the scale of the business and requirements. But if you want to know how much does it cost to do a business plan, it generally ranges between $5k to $10k.

How do I start a computer consulting business?

If you want to start a computer consulting, you will need a computer consulting business plan. You can refer to this document for help in that matter.

Download IT Consulting Business Plan Sample in pdf