Market research

[Bob Harper]

Research

Originally Posted by MarrilionFan - As opposed to asking questions which I believe are slightly disingenuous why not outline in detail what you are proposing if of course you are not of the top drawer ilk.

Before I propose anything I thought I'd do some research.

@Malvolio - seems like the agencies really control the market.

Bob

[malvolio]

Without wanting to sound derogatory, a very large proportion of freelancers/contractors are "bums on seats" within the large employers - they are "employees" in reality, but are deemed "self employed" for tax/employment legislation purposes. Likewise their accountancy needs are different.
.

Sorry, can't let that go unchallenged...

While there are a lot of "contractors" filling seats on a temporary basis, that's because that's what the client wants to have; permies are expensive and have to be fed and wartered when the work dries up, contractors don't.

Also, I'm not the only one out there with pehaps 30 years expereince in the whole spectrum of my profession who can add serious value to an organsiation but who either doesn't want to be subject to the ministrations of corporate minnows (most of my supposed managers are way less experienced than I am) and Human Remains teams, or who are deemed too old and frail to even be considered for permanent emplyement. I work as a freelance because I choose to: I may look like a BoS pretend permie to the inexpert eye, but I'm a hell of a long way away from being one.

As for the rest, I agree: you can be a freelance one man band with no asprirations to be another Branson - and that's not a bad thing.

[MarillionFan]

Sorry, can't let that go unchallenged...

While there are a lot of "contractors" filling seats on a temporary basis, that's because that's what the client wants to have; permies are expensive and have to be fed and wartered when the work dries up, contractors don't.

Also, I'm not the only one out there with pehaps 30 years expereince in the whole spectrum of my profession who can add serious value to an organsiation but who either doesn't want to be subject to the ministrations of corporate minnows (most of my supposed managers are way less experienced than I am) and Human Remains teams, or who are deemed too old and frail to even be considered for permanent emplyement. I work as a freelance because I choose to: I may look like a BoS pretend permie to the inexpert eye, but I'm a hell of a long way away from being one.

As for the rest, I agree: you can be a freelance one man band with no asprirations to be another Branson - and that's not a bad thing.

Why did you challenge that? You agreed with him.

Regardless of your 'opinion' of yourself you are still a cog in the corporate wheel.

It would be interesting to know of those who 'contract' who have ever gone any further than just employing themselves or spouses.

[malvolio]

Before I propose anything I thought I'd do some research.

@Malvolio - seems like the agencies really control the market.

Bob

Ignoring MF's interjections, yes they do. Most clients have been sold the idea that the agencies have these stockpiles of skilled individuals available for work at any one time*, that managing myriad invoices is expensive and time-consuming (it isn't and most companies manage it with their other small suppliers anyway...), that the only way to take on temporary staff is via HR - but making sure you don't accidentally give them any employee rights (not that they want them in the first place) - and that the agencies manage the contractors on your behalf. Noe of which is actually true

The agency business model is strcitly commercial and built on best ROI, so the quicker you get your candidates in the better, the more you can block your competitors the better and less cost you incur doing so the better. Hence using inexperienced knuckleheads and word-search algorithms to vet CVs, selling one-size-fits-all contracts in convenient three month chunks and using double-glazing sales techniques on what are usually very uniquely skilled people.

Agencies control well over 80% of the jobs market, making it very difficult for a one-man contractor to market their skills effectively; there are many tales on this board about people getting direct work and being routed through an agency for no obvious commercial reason other than HR don't want the hassle (not that there is any). And that makes it very hard for someone like me to find work and build a business in a niche that will almost certainly dry up in a year or two, since I can't compete with the offshore bodyshops who are taking up more and more of the steady state grunt work. Hence it's just as profitable for me to stay small and efficient. I mainly work for the big consultancies who charge me on at at anything up to 300% markups: the clients would save a huge amount by taking me directly, but they don't, they're frightened off by the agency FUD on taxation liablilites and employement rights.


*The reality being, of couse, than almost all jobs get Broadbeaned across the jobs board and the ifrst three CVs that match the reuiqment are it.

[Bob Harper]

Joint marketing/education

@Malvolio - is there any value in contractors setting up a Website, explaining this and helping businesses get direct access to talent?

Bob

[SueEllen]

@Malvolio - is there any value in contractors setting up a Website, explaining this and helping businesses get direct access to talent?

Bob

Lots of contractors have websites. However most of the websites aren't visited.

Also there are people around who offer free social media training to other freelancers/small businesses even though this isn't their main area of work. I haven't met an accountant who offered it though.

You have to go and physically talk to people to get work which if you do something that only big businesses use is a problem. (I don't by the way.)

[cojak]

WSES, I've had a website for years and the only mail I get from it is spam.

And don't forget, you're talking to IT contractors who (generally) know how to use the web and get advice for nothing (although it doesn't seem like it when reading some of the 1st post questions on these boards ).

However if you can offer something not easily found this way - go for it...

[Alan @ BroomeAffinity]

@BobHarper: I've run accounting firms in both "traditional" and contractor markets. What I can tell you with certainty is that the Adding Value model which is en vogue in the traditional markets will not work with contractors. Generally (and I accept there are exceptions) all the contractor is interested is in getting the compliance done and keeping the tax bills low. Business development, IT, coaching etc are the traditional sell-ups that accountants provide and they are irrelevant or obsolete to the contractor market. IMO. If you are in doubt, ask Simon Dolan or anyone from Nixon Williams.

Compliance is the bread and butter of an accountant in this sector and if you can get the systems right you can do very nicely thank you without diversifying. I estimate that each client returns c£700 per year profit on compliance alone so it doesn't take many clients to make a very nice living. But if you want to augment that further then pairing up with an IFA can also be fruitful.

It looks to me like you are trying to bring something to the market that the market doesn't want.