A Guide to Starting IT Service Business

This is the era of technology and entrepreneurs, where IT professionals and IT-based services are in high demand across the industry. As a budding entrepreneur, if you are looking for options to capitalize on your earnings and profit, you must consider establishing the best IT company in Pakistan.

IT businesses are boosted given that it is an ever-thriving industry driven by competition and IT professionals that help generate profit. According to the statistics, global IT spending will increase by 6.2% in the future.

If you are an IT entrepreneur, you need a guide to learn the ropes of starting your own IT business and making it the leading IT company in Pakistan. So, here we have a few guidelines that can help you with starting your own IT-based startup.

1. Choose your Services

When you decide to start your own IT company, you must do some thorough homework beforehand including the research about the services your IT company will offer. Your services are your selling points as they attract your potential clients. Therefore, you must have a good understanding of your company’s offerings.

You have the leading IT companies in Pakistan to learn what your target market wants which will help you decide your offerings better. Some of the services you can offer are tech support, IT budgeting, risk assessments, network design and installation, cyber security, mobile app development, remote admin management, game development, and the list goes on.

2. What’s Your Business Structure?

Business structure is one of the integral parts of starting your business especially when you are developing an IT service-based company. Most of the time, small IT companies start from a sole proprietorship, a limited liability company (LLC), or a partnership. You have to plan your business structure beforehand because it will impact your taxes, liabilities, and the paperwork your business requires.

In the case of single-person companies, a sole proprietorship is the right choice. However, forming an LLC can be a little expensive and your state could take some time to get the paperwork started. You may also take help from a professional accountant to assist you in understanding the sense of your current state and the future of your business.

3. Sufficient Fundings

What is more important than starting a business? It is to get the grounds of your business secure with certain costs that may come unexpectedly to you. Your business has to be secure with the funding for which you can raise money from venture capital firms. In that case, you will need a venture firm or leading investors that are specifically dedicated to IT service businesses.

A venture capitalist requires a pitch that explains why your business needs investment and what you return to offer them. You can also research business grants funded by third-party companies. Other funding sources may also include low-interest credit cards.

4. Do You Have a Business Plan?

To establish the best IT company in Pakistan, you must have a business plan. A business plan consists of the company’s current state and the pathway for its future growth. It is fine to not have a business plan initially but if you want to acquire business funding, you need to create one that supports your ideas and roadmap for your future.

For beginners, professional templates for business templates are easily available. Old-school and traditional business plans don’t work anymore, you need the one that becomes an attractive pitch to the investors.

Typically, a business plan consists of the following:

Funding sources
Budget
Company summary
Hiring strategy
Market analysis
Your Unique Selling Points
Business structure

5. Basic Business Budget

In order to start any business, you must have at least some amount of money to invest. Similarly, your IT-based company also requires a basic budget. For this, you need to do a lot of homework on the upfront costs that help your IT business save money and time. So, before you set your business’s grounds, develop a small and a simple budget, to begin with.

How can you do it?

You must calculate the cost of every expense your business may have inclusive of loans, rent, licenses, host websites, applications, and more.
Make an estimated amount of what you expect as revenue. If you have already started earning something out of it, you can use that amount as a base to predict future revenue.
Earning profit takes time, but as an IT company in Pakistan, you must monitor your profit margin which allows you to see if you are charging enough for your services.

6. Business License

You can’t run a business if you do not have a business license. How can you get it? Well, you have to formally apply for this. To apply for a business license, you must submit the basic documents of your business including the number of business owners, business names, business owner name, contact information, employer identification number (EIN), business type, business address, and more.

The fees for a business license depend on the country your business is located in. Some states charge the filing or processing fee. Once you receive your business license you must check its validity date because in some countries, business owners have to reapply after every few years.

7. Get a Workplace

The best and the most convenient part about having your own IT based company is choosing where you work from. You can opt for a traditional office but if you are tight on budget, you can start from a home office. Initially, every company starts from home.

With respect to the budget of your office location, you can decide the working style, plans, recruitment, and client meetings. If you rent out an office space, you will need property insurance to have protection against damage or theft.

The Bottom Line

Starting the best IT company in Pakistan of your own is a profitable business decision. You must be ready to take risks because it is a long road with pitfalls. Startups flourish and grow big if they have the right action plan; only then can they turn into successful, money-making enterprises.