Expanding company - need advice on first/next steps.

[funkyContractorITUK]

Hi

My limited company has been running now for almost 4 years building software for various clients and engaged in outside IR35 contracts. I've been thinking about possibly expanding the business but I'm not 100% sure what my next steps should be and how to do it. I would like to have more people in the business but in the same sense, it then introduces new issues like HR etc.

Do I bring in other contractors, hire permanent staff? Whats the first/next steps?

[SueEllen]

If you asking on here then you don't know how to do it and shouldn't do it.

[Lance]

If you asking on here then you don't know how to do it and shouldn't do it.

This ^^^^^^^^

there's loads of threads on here where people have tried to become a mini-consultancy.
I've travelled this road. It's really hard.
It's not just more people. It's a totally different business. So forget "expansion", and think "new business idea" and take it from there.

A new thought I have is, write a business plan and take it to a bank. If they'll lend you money then you have a business to get started on.

[northernladuk]

If you asking on here then you don't know how to do it and shouldn't do it.

Definitely this. Not one mention of your customers, your products, your USP nothing. Trying to think about the business but totally missing what the business will be doing.

The fact you want more people in the business but not talking about increasing the work the business provides is a massive flaw in your thinking.

[PerfectStorm]

Having worked for a few small agencies (and companies before that), I'm really, really glad I'm not responsible for anyone else's income.

[dsc]

Well I'd start with: why do you want more people in the business?

[Paralytic]

Hi

My limited company has been running now for almost 4 years building software for various clients and engaged in outside IR35 contracts. I've been thinking about possibly expanding the business but I'm not 100% sure what my next steps should be and how to do it. I would like to have more people in the business but in the same sense, it then introduces new issues like HR etc.

Do I bring in other contractors, hire permanent staff? Whats the first/next steps?

Before asking any of those questions, ask yourself one big question:

Do your clients see you as a supplier or merely as staff augmentation?

If you can truly say the former, and the service you provide can be scaled without you being a bottleneck, then that is the basis for growing what you have into a true supplier model where you can support multiple clients.

Most IT contractors are viewed as the latter by clients, despite what they try to convince themselves. Even those outside IR35.

I did this successfully (some years ago now) but we had a first mover advantage in a new market and were seen as the go-to team for the technology. We were subsequently bought by the technology provider to become part of their professional services arm.

[northernladuk]

To add some context the OP did ask this in April last year as well

https://forums.contractoruk.com/busi...of-income.html

[PerfectStorm]

Many of us have been in situations where there are two agencies between you and client - you endeavour to find the people, take a bit for yourself and... well, supply those who will do the job for what money was left. In fact those types of scenarios seem increasingly common, to me at least (and one of many reasons I think The Peoples (or customers) money could be better spent)

Don't need to be providing an all-out managed service for that to happen, and indeed many do just that. Would seem to be a good place to start then scale up your overall company's involvement in the services from there.

[funkyContractorITUK]

Thanks northernladuk As you can see I didn't really get much of a response on the forum. It has been on my mind on/off over the last year and just keep coming back to the idea of extending out.


Paralytic to answer your question "Do your clients see you as a supplier or merely as staff augmentation?" I would say the former in that I control what is being built and how it is built and do not participate in staff events (to ensure don't fall foul of any IR regs)


dsc "why do you want more people in the business?" I was thinking it would help me bring in more contracts/streams of income without me taking on more work directly but the thing that counter-argue is like what PerfectStorm says, I know when more people are brought in they do come with baggage, and it's then having to handle HR issues and complications, etc. and confirmed by @Lance

I was wondering if bringing in contractors would be easier as a first step to try to avoid some of these complications.


Thanks for the food for thought everyone on the post, very much appreciated