Startup cost
$500–$5k
TRUiC Business Ideas
How to Start a Cloud Consulting Business
Decision Snapshot
Cloud Consulting
Idea Score
69
Profit margin
41%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Low
Time commitment
Flexible
Part 1 - How to start a Cloud Consulting business - Background
A cloud consultant provides advice, services, and instructions to businesses who want to move their data to the cloud. They may hold formal classes to bring people up to speed on the new protocol for organization, security, and storage.
Our guide is in 3 parts:
- Part 1 - How to start a Cloud Consulting business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a cloud consulting business?
Individual cloud consultants likely won’t need to spend very much on equipment, unless they’re planning on running major conversions themselves. They may only need their own computer and Wifi to take care of common problems that arise. The largest costs will likely be advertising and networking to build up a client base.
What are the ongoing expenses for a cloud consulting business?
Ongoing expenses include equipment replacement and maintenance and the cost of advertising. You’ll also need to factor in additional classes you may need to take to keep up on your specialty, as well as commercial insurance in case you make a mistake while on the job.
Who is the target market?
The target market can be any business, though small businesses will likely be your biggest demographic. Most larger businesses will already have a team of consultants to keep up with their troves of data. You may also be able to market your services to individuals. People are increasingly putting sensitive information online and looking for the most effective ways to protect that information from being lost or compromised.
How does a cloud consulting business make money?
Cloud consultants charge for their time and expertise. They may have different packages for their clients, depending on the size of their business and the services they require.
How much can you charge customers?
A cloud consultant makes an average of $80,000 a year, which translates to a consulting fee of $40 – $50 an hour.
How much profit can a cloud consulting business make?
The vast majority of the money you charge will be profit, meaning you can make up to $70,000 a year or more (assuming a full workload).
How can you make your business more profitable?
Cloud consultants can consider branching out into web development, DevOps, or general IT services beyond cloud consulting. This can also be a good start for those looking to get more experience in project management.
Day-to-Day and Growth
What happens during a typical day at a cloud consulting business?
Cloud consultants answer questions, provide training, and update their clients on how they can make smarter decisions when it comes to their infrastructure. They may do the actual conversion of data and/or perform updates to the software as needed.
What are some skills and experiences that will help you build a successful cloud consulting business?
Owners should have a general IT background and ideally already be familiar with at least one of the major cloud providers. Typically, cloud consultants will specialize in one over the other, so they can better brand their services. Amazon, Google, and Microsoft are the three biggest heavyweights, so it makes sense to start with one of them. You may also want to get an official certification as a cloud expert to boost your credentials.
What is the growth potential for a cloud consulting business?
General adoption of the cloud has been extremely popular. More and more people are discovering that storing data on individual servers is as wasteful as it is inefficient. All cloud providers have seen growth in this past year, providing a tremendous opportunity for cloud consultants to jump into an exploding field.
What are some insider tips for jump starting a cloud consulting business?
Cloud consultants need to be willing to do their research when it comes to their specific cloud provider. You don’t necessarily need to be the most knowledgeable tech person in the world, but you do need to have a solid sense of how the platform works, what the options are, and how each package can benefit different businesses.
It’s the consultant’s job to give potential clients a realistic idea as to the vulnerabilities they may be facing by hosting their own data. Without scaring potential client with doom-and-gloom scenarios, you can convince people to accept your services once they know the true value that lies behind your advice. This not only helps boost business for you, but it can save your clients from an expensive hack or a website crash down the line.
Businesses that currently have their own servers may not understand how much energy they’re wasting for no reason. They may be confused or frustrated when their network malfunctions or their systems are inconsistent. A cloud provider makes efficient use of their client’s data while maximizing their security. Once the client is convinced, the cloud consultant can step in and take care of all the details.
Ideally, you should have a good idea of the code, equipment, and technology that makes each cloud provider unique, even though it’s not strictly necessary. It’s more important that you can provide accurate answers that even the most tech-illiterate person can understand. You should be able to map out smarter processes that help everyone do more.
Cloud consultants may want to offer a variety of packages to different clients. For example, a basic service may include five hours of consulting a week plus update reminders so clients never miss a new release. Larger clients may opt for additional consulting hours, plus instructional classes so that everyone can learn the new system. This helps clients feel as though they can customize their services, which can further cement your professionalism in their minds. If you’re just starting out, you may be able to offer fully customizable services to your very first customers.
How and when to build a team
Cloud consultants will likely want to stay on their own for a while as they build up their client base. If you do want to expand your services or even just hire an assistant, you’ll need to hire people who are as knowledgeable and courteous as you.
Part 2 - Is a Cloud Consulting business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Cloud Consulting business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Cloud Consulting Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Cloud Consulting business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.