How to Start a Health and Safety Consulting Business

Start a health and safety consulting business by following these 10 steps:

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

We have put together this simple guide to starting your health and safety consulting business. 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 health and safety consulting business?

Application and examination fees for the CSP certification add up to about $500. You'll have to obtain office equipment and testing gear. For instance, a sound-level meter can detect excessively loud environments. High-quality units fetch at least $50 and especially precise models cost over $250. You probably need a vehicle, but you could use taxis and public transit to reach businesses in an urban area. Don't forget to consider your own safety; purchase items like goggles and N95 masks to wear while you conduct inspections. You can acquire both products for less than $20.

What are the ongoing expenses for a health and safety consulting business?

Consultants benefit from relatively low expenditures. Monthly phone, internet, and electric bills must be paid. They might total $60 to $110 per month. You'll probably spend some cash on fuel or transit fares as well. Other expenses include ongoing education and marketing.

Don't ignore the risk that an overlooked workplace hazard could trigger a lawsuit. Be sure to purchase professional liability insurance with errors and omissions coverage. Small firms with no employees normally pay around $550 to $1,050 each year for professional liability insurance.

Who is the target market?

Businesses with potentially hazardous workplaces hire these experts. Possible clients include manufacturers, construction companies, trucking firms, and warehouses. Large facilities tend to need more services and have the ability to pay higher amounts. Try to find clients who show genuine interest in improving safety throughout their organizations. It's best if you have specialized knowledge or work experience pertaining to their industry.

How does a health and safety consulting business make money?

Different firms charge hourly, daily, or flat fees. A client can pay for one-time services or sign a contract that specifies a certain number of hours per month. Consultants may earn more when the government tightens regulations and/or promotes domestic manufacturing.

How much can you charge customers?

It's not uncommon for businesses to pay $100/hour or $900 to $1,250 per day. When serving as expert witnesses, consultants receive around $175 per hour on average. These rates may or may not include travel expenses. Some entrepreneurs provide discounts when clients hire them for multiple days.

How much profit can a health and safety consulting business make?

In general, successful consultants achieve profit margins of at least 80%. There's little data on the profits earned by independent health and safety professionals, but their fees and expenses resemble those of other business consultants.

How can you make your business more profitable?

Consider offering more services. For instance, you could write safety manuals, serve as an expert witness, or provide first-aid training. Try to work remotely when possible. If you use books and magazines to learn about health and safety, you can probably deduct their cost on your tax return. Keep the receipts and invoices you need to document these potential deductions:

• A portion of certain utility bills
• Website setup, hosting, and advertising
• Equipment like safety gear and meters
• Some types of training and education

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 health and safety consulting business 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?

You might thrive in this profession if you care about keeping people safe and want to make a positive impact on society. Consultants should excel at understanding and memorizing complicated regulations. This line of work requires you to pay close attention to a wide range of details. You must be assertive and willing to deliver "bad news" when necessary.

What happens during a typical day at a health and safety consulting business?

Consultants regularly visit facilities to perform inspections. You'll examine buildings, equipment, and vehicles. It's also crucial to listen to employees and evaluate their work practices. Clients may expect you to prepare detailed reports. They will discuss safety problems with you and let you recommend the best solutions. If a person suffers injuries in the workplace, you might study the incident and suggest precautions that could prevent it from happening again. Some consultants provide safety-oriented training as well.

What are some skills and experiences that will help you build a successful health and safety consulting business?

Some prosperous entrepreneurs have worked for regulatory agencies or served as safety directors at businesses in the past. Either way, it's vital to communicate well. You ought to understand the jargon but know how to explain concepts in a way that anyone can comprehend. Writing abilities also prove valuable. Consider earning a relevant college degree before you enter this field. Although optional, a Certified Safety ProfessionalⓇ credential is helpful as well – it requires a bachelor's degree and four years of relevant experience.

What is the growth potential for a health and safety consulting business?

Demand for this service has increased as more companies choose to outsource safety-related tasks. Experts forecast growth of around 6% in the years ahead. Some profitable consultancies expand by establishing several offices. For example, Antea Group provides expert advice on health, safety, and environmental issues. It has 25 locations in major cities across the United States.