How Much Does It Cost To Start A Technology Consulting Business? (In 2024)
Looking to start a technology consulting business?
But curious about:
- how much it costs to start a technology consulting business?
- what are the typical technology consulting business startup costs?
- or the actual cost of starting technology consulting businesses?
Well, we have the data to prove it, supported by real technology consulting businesses and how much they actually cost to start.
Let's go over it.
What is the average cost of starting a technology consulting business?
Based on our data reported by actual technology consulting business founders, the average cost of starting a technology consulting business is between $99 and $10,000,000.
Additionally, our data shows that the the median startup costs for a technology consulting business are around $10K.
Remember, though, not all technology consulting businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of technology consulting businesses
Real World Examples: How much does it cost to start a technology consulting business?
We asked real technology consulting business founders and business owners how much it actually cost to get started?
Here is what they said:
David Bishop
Founder of Agile Worx ($40K/month)
"We cracked open our 401k, pooled our money together and got the ball rolling."
David Bishop is the founder of Agile Worx, a business that provides tools, training, and consulting services focused on agile frameworks.
Mukul Verma
Founder of Mokool Apps ($150/month)
"The MVP took just 2 weeks to build and cost only $400. I registered the domain and it cost $12.99. It really didn't cost much."
Mukul Verma is the founder of Mokool Apps, a business that develops apps for the Shopify App Store and has successfully built several six-figure businesses.
Lasse Schuirmann
Founder of FounderBlocks ($60K/month)
"VIPERdev has been entirely bootstrapped and has come as far as today without a single cent of external funding."
Lasse is the founder of VIPERdev, a startup factory providing product development and business model shaping services for digital business ideas since 2017.
Mark Dusseau
Founder of Dusseau and Company ($35K/month)
"Since this was our company's first project, we took a very corporate approach to building the software; this cost us a lot. We hadn't built out our internal processes yet and went with what we knew best. The first phase was the ideation phase, which we charged around $10k for. As for expenses, we had two staffing expenses, me and a UX/UI resource who is now our head of design."
Mark is the founder of Dusseau and Company, a boutique product development business that empowers diverse founders.
Jacob Appel
Founder of Binderr ($10K/month)
"It ultimately took us 4 years to get to market with our client onboarding software, which we operate today, and about €4m of investments, which were mainly self-funded from our Bolt exit."
Jacob [LAST NAME] is the founder of Binderr, a client onboarding software business that helps accountants, lawyers, and financial services efficiently and compliantly bring on new clients.
Hieu Dinh
Founder of CompressX ($2.5K/month)
"The MVP took just 2 weeks to build and cost only $400. I registered the domain and it cost $12.99. It really didn't cost much."
Hieu Dinh is the founder of CompressX, a video and image compression app for macOS that helps users reduce file sizes significantly while maintaining quality.
Daniel Doubrovkine
Founder of Vestris LLC ($245/month)
"I have spent $349 to incorporate Vestris LLC with NewYorkRegisteredAgent.com plus $127.90 for the mandatory incorporation publications."
Daniel Doubrovkine is the founder of Vestris LLC, a company developing various Slack bots, and operates out of New York.
Piyush Singhal
Founder of HIC GLOBAL SOLUTIONS ($10K/month)
"Our initial cost of getting everything up and running was nearly $10K."
Piyush Singhal is the founder of HIC Global Solutions, a Salesforce services business that started in 2015 and now has offices in the US, UK, Canada, and India.
Pat Mack
Founder of PVM IT ($600K/month)
"I started the company without the 'benefit' of any outside funding and bootstrapped it myself."
Pat Mack is the founder of PVM, Inc, a software engineering services business that started in 2010 and provides big data storage and analytics solutions to a diverse range of clients, including the Department of Defense and the Centers for Disease Control and Prevention.
Taime Koe
Founder of Six Atomic ($40K/month)
"My partner and I invested some of our money upfront to get started, and we’ve been bootstrapping ever since, primarily through revenue from enterprise client projects."
Taime Koe is the founder of Six Atomic, a company that builds automation technology for the apparel industry to enable on-demand and personalized clothing production.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful technology consulting businesses that you can learn from.
Starting a technology consulting business - what you should know:
When starting a technology consulting business, understanding the costs involved can help you budget and plan more effectively.
Initial setup costs
Setting up your technology consulting business involves several initial expenses. These typically range between $5,000 to $25,000. For example, essential components like business registration and licensing can cost anywhere from $200 to $800. Office leasing varies significantly depending on location; expect to pay between $500 to $1,500 per month for a small office space in a non-prime area. Additionally, basic office equipment—computers, ergonomic chairs, and desks—could set you back another $3,000 to $10,000 depending on the number of employees and quality of equipment chosen.
Technology and software costs
You'll also need to invest in essential software and tools. Basic project management and CRM tools range from $50 to $300 per month. If you're providing specialized services, such as cybersecurity or data analytics, you may need advanced software that could cost between $1,000 to $5,000 per year. Remember, subscriptions and licenses are recurring expenses, so budget for these regularly.
Marketing and client acquisition costs
Attracting clients requires a dedicated marketing budget. A professional website may cost between $2,500 and $10,000 to develop. Digital marketing, including SEO, social media, and Google Ads, may range from $500 to $5,000 per month depending on your goals and the level of competition in your market. Networking events and industry conferences also come with costs—usually between $100 and $1,000 per event.
Operational and staffing costs
Your biggest ongoing expense is likely to be salaries if you plan to hire employees. Salaries for tech consultants vary widely, with entry-level positions starting around $60,000 per year, scaling up to $150,000 or more for experienced consultants. Health benefits, taxes, and other overheads typically add an extra 20-30% to the base salary cost. Freelancers and part-time hires can be a more flexible and sometimes more affordable option, typically costing between $30 and $100 per hour based on experience and specialization.
Being aware of these specifics will help you make informed decisions and keep your budget in check as you start your technology consulting business.
Potential Costs of Starting a Technology Consulting Business
Starting a technology consulting business comes with various costs ranging from essential tools to monthly operational expenses. Here is a detailed breakdown of the potential costs involved:
| Cost Category | Item/Description | Estimated Cost Range | Notes |
|---|---|---|---|
| Initial Costs | |||
| Legal Fees | Business registration, licenses, permits | $500 - $2,000 | Varies by location |
| Insurance | General liability, professional liability insurance | $400 - $2,000/year | Essential for financial protection |
| Accounting & Legal | Initial consultation and setup | $500 - $1,500 | Can reduce legal and financial risks |
| Office Space | Lease or coworking space | $0 - $2,500/month | Home office may have $0 cost; varies based on location |
| Software/Tools | |||
| Computer Hardware | Laptops, desktops, monitors, accessories | $1,000 - $3,000/person | Essential for daily operations |
| Software Licenses | IDEs, Office Suite, Project Management tools | $50 - $200/month/person | Includes Microsoft Office, Jira, etc. |
| Cloud Hosting | AWS, Azure, Google Cloud | $100 - $500/month | Varies based on usage |
| Cybersecurity Tools | Antivirus, Firewall, encryption tools | $100 - $500/year | Essential for protecting client data |
| Website Development | Domain, hosting, web design, CMS | $200 - $2,000 | Initial setup cost |
| Marketing & Sales | |||
| Branding | Logo, business cards, marketing materials | $200 - $1,000 | One-time cost |
| Digital Marketing | SEO, PPC campaigns, social media ads | $500 - $2,000/month | Continuous investment for client acquisitions |
| CRM Software | Customer Relationship Management tools | $20 - $100/month | Helps in managing client interactions |
| Labor Costs | |||
| Employee Salaries | Consultants, developers, support staff | $60,000 - $120,000/year/person | Range based on experience and location |
| Training | Workshops, certifications | $500 - $2,000/year/person | Keeping up with industry trends |
| Operational Costs | |||
| Utilities | Internet, electricity, water | $100 - $300/month | Required if operating outside a home office |
| Office Supplies | Stationery, printers, software subscriptions | $50 - $200/month | Basic operational needs |
| Travel Expenses | Client meetings, conferences | $100 - $1,000/month | Varies depending on client locations |
| Contingency Fund | |||
| Emergency Savings | Unplanned expenses | $5,000 - $10,000 | Crucial for business stability |
This table outlines the initial setup and ongoing operational costs you may encounter. Keep in mind that these costs can vary based on factors such as your business location, scale of operations, and the specific services you offer.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
