So, what is project management? Simply put, this is a process of leading a team to achieve a project or goal within given constraints. If you are planning to start a project management business, you need to know the responsibilities and work that a project manager does, the required skills and knowledge, and the steps to start your business.
Project Management Responsibilities
Before starting a business project management, you need to know what a project manager’s responsibilities are. Otherwise, how could you give services to other people? Remember that project management and business analysis are different. You can check project management vs business analysis.
Suppose a client comes to you and asks for the necessary services. You will not be able to communicate with them if you don’t know about the roles and responsibilities. And the most important part, you need to elaborate on the services that you will provide. Here are the roles and responsibilities of a project manager.
- Plan, develop and manage project idea
- Create a team to complete a project
- Manage and lead the team
- Solve any issues during a project
- Monitor the progress of the project
- They also need to manage their finances
- Evaluate project performance
- And finally, make sure that the project is completed
Project Management Business Experienced And Qualification
Maybe this will not hamper your career so much. But most clients will check both of these before they give you the contract. Before you start handling client projects, you have to have the necessary experience and qualifications.
Education/Qualification
First of all, your educational qualification is important because it will increase credibility. If you are still a student, start with a bachelor’s degree in project management. But if you have a degree in Business Management, there’s no need. Working professionals can also enroll for a Project Management degree from distant study centers.
There are some specific qualifications, such as PRINCE2 or Agile Project Management. In addition, you can get a Project Management Professional Certificate.
A project manager’s job requires them to handle projects of different types. However, there are field-specific projects that require expertise in that field. In those cases, it helps to have some niche expertise. To do so, you have to choose your specialization in project management. Here are some common fields to choose your specialization from –
- Energy
- Marketing
- Electrical
- System
- IT
- Health Care
Experience
To start a project management business, you need relevant experience in the field. For that, you have to have experience managing projects.
It’s the second most important thing you need to start your project management business. So, how do you gain experience? By working on projects.
You can volunteer for projects at your workplace, take online courses, and gain experience by working on real-time projects. People who have already worked as project managers at any workplace should have experience managing a project.
If it’s your long-term goal to start a project management business, start by taking entry-level jobs.
Also, I recommend that you make an online portfolio so that your clients can see what projects you have worked on. Your portfolio must consist of everything that your client must know.
How To Prepare Yourself?
If you already have an experience of more than five years, then you already know what and how to do. But, if you are a fresher who has proper qualifications but has not worked on an actual project, then these things will make you the best project management business. Also, you must learn project management software for small businesses, so that it will be easy for you.
So, if you want to be the best one, then ask these questions to yourself.
- The first step is to ask yourself hard questions. And then see if you are able to answer those.
- The second thing is to treat yourself as a product. And then try to sell yourself to your clients. So what are your strengths and weaknesses?
- Are you a born leader? Are you sure that you will be able to manage a team and finish the project within the given time?
- You must learn small business project management software. This is one of the key points.
Project Management Business Pros And Cons
We are almost there. Before starting how to start a business, let’s know the pros and cons of starting a project management business. When it comes to money, then this is sure that if your business runs properly, then you will make a lot of money. But there are a couple of downsides to a project management business. One of them is that there is high pressure and expectation from corporate clients. You will have to work long hours.
Steps To Follow To Start Project Management Business
So, we are finally here. How to start a project management business? Here are the steps to follow.
Here’s a startup cost breakdown for a solopreneur venturing into the project management business –
Project Management Business Startup Cost
| Commercial Lease for Office Space | $2,000-$10,000 |
| Software Licenses for PM Platform | $1,000-$15,000 |
| Marketing | $2000 |
| Accounting Software | $500 |
| Certification | $1000 – $5000 |
| Computer & Equipments | $2000 – $8000 |
| Supplies and Furniture | $500 – $3000 |
Business Planning
The first step is to plan your business and define these things in your business planning. Write down your business plan in detail and explain every detail that’s necessary to start and operate your project management business. Here are some
- Initial Cost
- Business Location
- Target Market
- Competitors
- How much will you charge your clients?
- Name of your business
- Profit Analysis
- Pricing Strategy
Before you start your business, it’s important to plan. Draft your target audience, market analysis, business name, and current and projected financial state in your marketing plan.
Form Your Business as a Legal Entity
Your business has to be a legal entity to operate under the federal and state government regulations. It’s important to incorporate your business as a legal foundation. To establish a strong foundation for your business, ensure that you are forming it as a legal entity. You can incorporate your business under an LLC, Sole Proprietorship, or other structures.
- Limited Liability Company (LLC)
- Sole Proprietorship
- Partnership
- Corporation
Every different business incorporation method has different pros and cons. Consider what works for your project management business and what doesn’t. Choose a structure based on what works for your business requirements.
Business Account
You need to make sure that your business property and your personal property are separated. This way, you can secure your personal assets from any kind of business loan or anything. Also, take a credit card for your business.
Licenses And Permits
Before starting your business, just make sure that you have proper licenses and permits for the business. There are different local and state licensing.
Insurance
Nobody knows when and how an accident occurs. So, do not forget to get insurance for your business and save it from any kind of accident.
Business Website
How to spread your words? First, you will need a website. And from that, clients will get to know about your business. This way, you can make a credible platform.
Frequently Asked Questions (FAQs):-
Here are some interesting questions and answers.
Ans: If you are an analytical thinker, problem solver, organized planner, and creative hub, then project management is a great business idea. And the most interesting part is that the cost to start this project is minimal. All you need is experience and project management training.
Ans: Though there are different project management methodologies, these three are at the top.
⦿ The Lean and Six Sigma Methodologies
⦿ The Waterfall Methodology
⦿ The Scrum Methodology.
Ans: Though I have no experience in managing projects. But there are a couple of employee reviews websites that I have looked for. If someone has one to three years of experience, then they can make up to $80,000, and someone with more than ten years of experience can earn more than $100,000. (The data is collected from Glassdoor).
Final Words
Now that you are ready with all the resources and ideas to start your project management business. It is time to do great marketing. The more you are successful in making an impression on the clients, the more you will get successful in your business. If there are any more queries, feel free to ask us in the comment section below.
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