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Consultant Facts SheetNature of the businessConsultants usually identify problems and develop solutions. The business is usually operated from a home office and reports are sent to the customer. Some work may be required at the customer’s facility. When you work and where you work are usually at the discretion of the nurse. The consultant must be a registered nurse. Certification in the field is optional. Startup costs and legal structureThe startup cost for an RN consulting service is relatively low. You can use a home office and equipment (computer, printer, etc.) that you already have. As an RN, you are licensed to practice as a nurse; therefore, you are not required to start a sole proprietorship, limited liability company (LLC), or a corporation. Although it is not required, the NNBA recommends that you incorporate your business to protect your personal assets and take advantage of many tax deductions only available to small businesses. The book, Self-Employed RN: Choices, Business Aspects, and Marketing Strategies, contains a complete outline of startup costs. Click here for book details and/or to purchase the book. Industry futureThe future for this industry is good based on the shortage of nurses and the continuing search for solutions to the high cost of healthcare. Nurse consultants have proven their worth in the industry. EarningsEarnings are limited by the number of physical hours a nurse can work. Typical earnings for a consultant working full time are in the range of $125,000 a year. Hourly rates range from $100 to $250 per hour. EducationNo nursing educational requirements exist. You do not need a BSN, MSN, or any other formal nursing degree. Business education is needed for nurses to understand the business aspects of being self-employed or a small business owner. The association provides this education customized for nurses. College and community business courses do not understand the nursing community. Advanced nursing courses do not teach self-employment and small business ventures. The NNBA provides this education in various ways to make it convenient and affordable for you.
MarketingMost clients resist hard-sell tactics. The decision to hire a consultant originates when clients have a problem they cannot solve. The decision of which consultant to hire comes from the client's research and not from the consultant's solicitations. Clients no longer hire consultants based on the firm's name, promotional materials, direct mail, advertisements, or direct solicitations, such as cold calls. Instead they turn to their network of colleagues and the Internet. To be considered, the consultant must be known to the client (or their colleagues) and readily available when a problem develops. Business terminologySpecialty consulting means providing a service to customers in your area of expertise, such as oncology, emergency, orthopedics, etc. A nurse may have a new idea for consulting that has never been done before. If no certifications or requirements are in place to define an expert, the nurse must proclaim him/herself an expert. The business that provides the service is called a consultancy. The contract used is typically an independent contractor’s contract. Business legal structureThe legal structure for a consulting service can be a sole proprietorship, limited liability company (LLC), or a corporation of one or more. Sole proprietors, LLCs, and S corporations are considered self-employment by the IRS. The regular corporation is an independent legal entity separate from its owners and provides the greatest tax deductions and protection of personal assets. The Self-Employed RN: Choices, Business Aspects, and Marketing Strategies book contains an outline of a business plan. Click here for book details and/or to purchase the book. Little known factsSelf-employment may cause difficulties when applying for loans and mortgages. A consultant's business plan only needs a three month financial projection. If you have questions about starting a consultancy, contact Pat Bemis, RN CEN, president NNBA. Contact by email. Phone (321) 633-4610.
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