How to structure and run a new consultancy?

[SueEllen]

I would have thought that the primary role of the sales manager is to go and source the work opportunities ? And off the back of these opportunities flooding in, the consultancy the build up the resource pool to match, which may or may not involve the sales manager in doing so.

I've worked for a few small consultancies/companies and this is how they worked as they didn't have sufficient staff to separate roles. So a person who did PM work also did the admin and another did interviewing of contractors. Both these people also had to do sales as they were the "owners". Though having worked for small businesses on and off through my life - it's everyone in the business' job is to be involved in sales where necessary unless you don't want a job.

[SueEllen]

The extra person is an admin staff. It's not about getting more work, it's about someone (sometimes a spouse of one of the contractors) who controls the money in an agreed manner.

And this is where arguments over money stem from.

Everyone's partner has to be involved or no-ones.

Edited to say there is no right way to do this - but if you are going to be working with no related individuals and want to remain civil to them you have to think very hard about the company structure and assignment of roles due to the money involved. If none of you are any good at sales and admin then you have a massive handicap from the start.

[LondonManc]

And this is where arguments over money stem from.

Everyone's partner has to be involved or no-ones.

Edited to say there is no right way to do this - but if you are going to be working with no related individuals and want to remain civil to them you have to think very hard about the company structure and assignment of roles due to the money involved. If none of you are any good at sales and admin then you have a massive handicap from the start.

Funny you say that but I've worked for a similar company where there were three partners/directors/founding contracts - call them what you want. The wife of one of them did all the admin; I was engaged as an associated/B2B supplier to help increase capacity. As long as there's trust there, whoever's spouse is most suited to the role can do it (i.e., she's probably a housewife or has a part-time job).

[LondonManc]

So you decide to ask some anonymous idiots on the internet for advice?

Some of us might have experienced such situations. How about that?

[Eirikur]

Some of us might have experienced such situations. How about that?

The choices the OP has (which I suspect will never return to this forum, like most of these type of OPs)
1. paying a firm who is experienced in setting up these type of companies and making sure you're doing it the right way.
2. ask people you don't know of which a few may have the right experience, but some may lie to you or tell you what they assume is the truth and risk all your money/savings

[SueEllen]

The choices the OP has (which I suspect will never return to this forum, like most of these type of OPs)
1. paying a firm who is experienced in setting up these type of companies and making sure you're doing it the right way.
2. ask people you don't know of which a few may have the right experience, but some may lie to you or tell you what they assume is the truth and risk all your money/savings

3. Ask people you do actually know including those from other industries about partnerships/joint enterprises. The reason for other industries is they will mention things you haven't thought of which may be applicable to you.

[LondonManc]

The choices the OP has (which I suspect will never return to this forum, like most of these type of OPs)
1. paying a firm who is experienced in setting up these type of companies and making sure you're doing it the right way.
2. ask people you don't know of which a few may have the right experience, but some may lie to you or tell you what they assume is the truth and risk all your money/savings

Indeed. The caveat in my first statement was to ask an accountant; that still stands. I was simply advising the OP based on what I have seen happen so that they know it can happen. I wasn't privy to the full details because I wasn't a director.

[kaiser78]

However and despite all these interesting posts, there are a number of small consultancy type operations out there, some PM consultancies, others more technical. They seem to have got the model right to be surviving and I have often wondered how...

[ruasonid]

a spouse of one of the contractors

That will go down well, with one of the contractors at least.

[LondonManc]

That will go down well, with one of the contractors at least.

It worked well when I was working for them - they're still going now, so I presume it's still working well for them.