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.

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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:

3 Years Proft Forecast - IT Consulting business plan
Franchise Business Planning 
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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.

Startup Cost - IT Consulting business plan
Start-up Expenses 
Research and Development$10,000
Expensed Equipment$26,000
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 Requirements$1,098,600
Start-up Expenses to Fund$207,600
Start-up Assets to Fund$891,000
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 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$48,000
Other Current Liabilities (interest-free)$0
Planned Investment$1,098,600
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$361,400
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.

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    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:

    Marketing Segmentation - IT Consulting business plan

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    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 CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Educational Facilities27%18,00021,60025,92031,10437,32510.00%
    Commerical Stores26%15,00018,00021,60025,92031,10410.00%
    Government Facilities16%12,00014,40017,28020,73624,88311.00%

    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

    Sales Monthly - IT Consulting business plan

    6.4 Sales Yearly

    IT Consulting business plan - Sales Yearly

    6.5 Sales Forecast

    IT Consulting business plan - Unit Sales
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    IT Infrastructure876929984
    Security Consulting674714757
    Risk Assessment453480509
    Disaster Recovery124131139
    TOTAL UNIT SALES2,1272,2552,390
    Unit PricesYear 1Year 2Year 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
    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 CostsYear 1Year 2Year 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 1Year 2Year 3
    IT Executives$142,000$156,200$171,820
    Web Developer$25,000$27,500$30,250
    Sales Executives$25,000$27,500$30,250
    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.


    A financial plan doesn’t only help you in managing your expenses. It also helps to answer fundamental questions like how much does it cost to start a consulting business.

    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 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.12%8.20%8.26%
    Long-term Interest Rate8.40%8.44%8.47%
    Tax Rate24.03%24.21%24.60%

    8.2 Break-even Analysis

    IT Consulting business plan - Break-even Analysis
     Break-Even Analysis 
    Monthly Units Break-even5340
    Monthly Revenue Break-even$132,500
    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 1Year 2Year 3
    Sales$2,811,350 $3,456,836 $4,250,525
    Direct Cost of Sales$2,080,500 $2,425,863 $2,699,986
    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%
    Sales and Marketing and Other Expenses$145,000$148,000$156,000
    Leased Equipment$0$0$0
    Payroll Taxes$24,000$25,000$27,000
    Total Operating Expenses$471,200 $504,650 $547,220
    Profit Before Interest and Taxes$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/Sales7.39%12.18%18.88%
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    8.3.1 Profit Monthly

    IT Consulting business plan - Profit Monthly

    8.3.2 Profit Yearly

    IT Consulting business plan - Profit Yearly

    8.3.3 Gross Margin Monthly

    IT Consulting business plan - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    IT Consulting business plan - Gross Margin Yearly

    8.4 Projected Cash Flow

    IT Consulting business plan - Projected Cash Flow
     Pro Forma Cash Flow   
    Cash ReceivedYear 1Year 2Year 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
    ExpendituresYear 1Year 2Year 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
    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  
    AssetsYear 1Year 2Year 3
    Current Assets   
    Accounts Receivable$24,000$26,880$30,213
    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 CapitalYear 4Year 5Year 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
    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 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth7.25%8.03%8.90%3.00%
    Percent of Total Assets    
    Accounts Receivable9.21%10.20%11.31%9.80%
    Other Current Assets2.11%2.34%2.59%2.40%
    Total Current Assets149.80%151.00%152.00%158.00%
    Long-term Assets11.55%11.60%11.64%12.00%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.90%4.94%4.98%4.34%
    Long-term Liabilities0.00%0.00%0.00%0.00%
    Total Liabilities7.59%7.65%7.72%7.38%
    NET WORTH100.45%101.25%102.19%110.00%
    Percent of Sales    
    Gross Margin94.60%97.15%99.87%99.00%
    Selling, General & Administrative Expenses93.56%96.09%98.78%97.80%
    Advertising Expenses1.52%1.56%1.60%1.40%
    Profit Before Interest and Taxes41.50%42.62%43.81%33.90%
    Main Ratios    
    Total Debt to Total Assets0.18%0.18%0.17%0.40%
    Pre-tax Return on Net Worth74.08%74.89%75.00%75.00%
    Pre-tax Return on Assets96.30%101.12%106.17%111.30%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin33.56%34.60%35.67%N.A.
    Return on Equity55.80%57.53%59.31%N.A.
    Activity Ratios    
    Accounts Receivable Turnover7.77.87.8N.A.
    Collection Days100100100N.A.
    Inventory Turnover32.434.0235N.A.
    Accounts Payable Turnover15.61616.3N.A.
    Payment Days272727N.A.
    Total Asset Turnover2.52.52.6N.A.
    Debt Ratios    
    Debt to Net Worth-0.04-0.03-0.04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$244,000$257,664$272,093N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.850.870.89N.A.
    Current Debt/Total Assets1%0%0%N.A.
    Acid Test2929.1229.16N.A.
    Sales/Net Worth2.12.22.2N.A.
    Dividend Payout000N.A.


    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