How to start an IT services business

Information technology (IT) is a fast-growing industry that touches almost every aspect of our lives. However, because IT can be such a complex skill to master, many businesses choose to hire full-time staff or outsource IT services.

If you’re interested in information technology and have thought about turning it into a career, then you could consider starting up your own IT services business.

What skills, knowledge and requirements are needed to start an IT business?

For starters, you will need to have a real passion for information technology and all things electronic. Being familiar with computers, hardware, software and operating systems will also be important.

IT is a vast and expanding industry, which means you can specialise in one or more different areas such as:

• Software development and installation
• Tech support
• Cloud services
• Cyber security
• Hosting and storage
• IT budgeting and procurement decisions
• IT security strategy
• Artificial intelligence and machine learning
• Network administration and management.

What courses or qualifications am I required to complete?

It’s possible to find work as an IT consultant without formal qualifications. However, undertaking a course or a degree may help you learn the initial skills needed to get into the industry. It also proves to prospective employers that you have obtained a certain level of specialised skills and knowledge.

Many IT professionals hold a bachelor’s degree in a field related to technology, such as software engineering. You can then build on your knowledge by gaining practical experience on the job. You can also learn programming by attending IT bootcamps or by taking short online courses.

Which business structures should I consider before starting an IT remote business?

To comply with Australian law, you will be required to register with the Australian Securities and Investments Commission (ASIC). Choose a name for your business and register to receive an ABN.

Some common business structures for tech companies include:

• Sole trader: As a sole trader, you are the one and only owner of the business and do not have any employees.
• Partnership: Together with one or more business partners, you run your business. You and your partners share the decision-making process and the operation of the company.
• Company: The business is registered as a separate legal entity, which has its own identity and is responsible for its own debts.

What software and equipment are needed to launch an IT company?

The kind of equipment your tech business requires will depend on the type of structure you employ.

For example, if you are a sole trader seeking out contract work with other organisations, then you may need to have your own portable laptop with high specs and reliable performance. You will most likely also need basic office equipment – which could include a desk, home computer, monitors and printer. You will also need to think about investing in remote connection software and a high-speed internet connection if you plan on working remotely.

However, if you are thinking of starting up your own IT services agency, then you may require a commercial space to conduct business and enough equipment to feasibly kit out your employees.  This will also require you to invest in the appropriate software to support your business, as well as high-speed internet and secure Wi-Fi devices.

Do I require legal documents before I launch my IT business?

First, you may be required to create an IT service contract. The agreement should outline the scope of your work, the fees you will charge, the timeline for completion, and how you will resolve disputes.

Other import business documents may include:

• Website terms of use policy
• Disclaimer policy
• Privacy policy
• Intellectual property policy.

What should I charge customers?

You can either charge customers a flat fee per project or charge an hourly rate. According to Seek, the yearly salary for an IT consultant is around $75,000 to $95,000 per year.

Another way to get a better understanding of how much you should charge for your services is to research your competitors and find out what they’re charging. Then, consider your qualifications, experience and business costs to determine an appropriate rate.

Choose BizCover for your business insurance

There are many risks that come with starting your own tech business. That’s why many IT consultants choose to take out insurance to protect their business. Some common types of insurance IT professionals may consider include Professional Indemnity and Cyber Liability insurance.

Compare competitive quotes from leading Aussie insurers online and get covered in just 10 minutes. For on the go cover, call BizCover on 1300 805 821 or visit www.BizCover.com.au.