How to Start a Business Travel Consultancy

Start a business travel consultancy by following these 10 steps:

1. Plan your Business Travel Consultancy
2. Form your Business Travel Consultancy into a Legal Entity
3. Register your Business Travel Consultancy for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Business Travel Consultancy
6. Get the Necessary Permits & Licenses for your Business Travel Consultancy
7. Get Business Travel Consultancy Insurance
8. Define your Business Travel Consultancy Brand
9. Create your Business Travel Consultancy Website
10. Set up your Business Phone System

We have put together this simple guide to starting your business travel consultancy. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a business travel consultancy?

You can work at home, so startup expenses largely depend on whether or not you already have a home office. Consultants spend many hours using computers and phones; an ergonomic chair and desk are essential. Quality new furniture will probably cost at least $300. You ought to have the equipment necessary to print, copy, and fax documents. Some travel-oriented decorations might help inspire you. Think about adorning the walls with scenic photos, maps, or clocks that show the current times in different cities.

What are the ongoing expenses for a business travel consultancy?

You'll need to pay for office supplies, promotional campaigns, and electricity. Dependable internet and phone service also hold importance. It's helpful to stay informed about the hospitality industry; consider buying a Lonely Planet membership or subscribing to a magazine like Travel + Leisure. This costs around $30 to $40 per year. You can obtain travel management software for less than $10 a month.

There's always a chance that a mistake could lead to serious problems and trigger losses for a business. To minimize the financial risks, obtain professional liability insurance with errors and omissions coverage. The premiums add up to about $400 annually.

Who is the target market?

You'll serve organizations with staff members who attend conferences, exhibitions, grand openings, and other events. Executives may want to visit properties before buying or renting them. Relatively high-end clients can afford consultants.

How does a business travel consultancy make money?

Clients pay fees to compensate you for the expertise and effort involved in arranging trips. Business travel occurs throughout the year but peaks in the autumn.

How much can you charge customers?

Fees differ based upon the complexity of a trip. You could charge $30 just to book a room that the client will reach by car. On the other hand, a traveler might pay you $200 to plan a long journey involving multiple flights, hotels, and vehicle rentals. Keep in mind that remote business travel consultants generally earn $34,000 to $122,000 per year, according to ZipRecruiter.

How much profit can a business travel consultancy make?

Compared to other entrepreneurs, these professionals have comparatively low expenses but find it somewhat hard to gain clients. Customers have many options, such as in-house travel planners, agencies, and self-serve bookings. This limits how much you can charge. Business-oriented agencies attain profit margins of around 7%. The greater personalization offered by consultants may yield somewhat higher margins.

How can you make your business more profitable?

You'll probably qualify for home office tax deductions as long as you don't become an employee. Reevaluate your phone service; consider switching providers or calling plans in an effort to minimize the per-minute cost of international and out-of-state calls.

• Prioritize referrals rather than costly media or search engine advertising.
  
  
• Reduce your printing costs by using a monochrome laser printer for most purposes.
  
  
• Selling travel insurance is often quite lucrative and adds valuable protection.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your business travel consultancy is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

This occupation may suit someone who pays close attention to details and has a knack for finding low prices without compromising quality. In-depth knowledge about the hospitality and transportation industries will prove useful. Hotels and other businesses might reward you with free or discounted services, so this business appeals to people who enjoy traveling. You should communicate in an efficient, clear, and friendly manner. Consultants have flexible schedules but may need to work irregular hours.

What happens during a typical day at a business travel consultancy?

You can expect to spend many hours conducting research, communicating with clients, and setting up itineraries. Customers want you to choose and purchase services for them. Among other things, you'll have to select flights and book rooms. Keep work-related needs in mind; pick hotels with business centers and suitable internet access. Clients may ask for assistance during their trips if problems arise. You can negotiate with service providers to find fair solutions.

What are some skills and experiences that will help you build a successful business travel consultancy?

Ideally, consultants are excellent researchers who have traveled to faraway destinations. It helps if you can speak a major foreign language like French, Portuguese, Spanish, or Chinese. This profession doesn't require any specific credentials, but you'll find it easier to attract clients with a two-year tourism or travel degree. Computer expertise holds considerable value as well.

What is the growth potential for a business travel consultancy?

While the COVID-19 pandemic recently forced many companies to cancel trips, Statista reports that global spending on commercial travel increased by over 200% between 2000 and 2019. If you decide to expand a profitable firm, you could create an agency with multiple consultants. Another option is to develop a franchise. For example, a UK company known as Travel Counsellors offers a franchising opportunity that includes training, support, bonding, and supplies.