Setting up a consultancy

**MarillionFan** · 27 September 2005, 15:16

Old Man Pete

R U a SQL Dba by any chance Pete?

**Old Man Pete** · 27 September 2005, 15:29

No, I'm not a SQL DBA.

It just seems to me that the next logical step up from contracting is the consulting route. Potentially it is more lucrative. However, I suspect that utilisation is a big issue, as is the effort that needs to be made in the sales and marketing department.

There must be a few contractors out there who have thought about this, and perhaps even looked into it in a bit more detail.

I'm just trying to weigh up the pros and cons.

Anyone willing to share their thoughts on this?

**MarillionFan** · 27 September 2005, 15:54

Its a good idea

But what most people tend to miss is that you need contacts and a kick arse salesman to get us techies in.

We may be able to do the job whereby the salesman cannot, but thats the idea of them pitching ideas, consultancy etc.

**Chico** · 27 September 2005, 16:48

I have thought about it and I imagine Chico Ltd could go a long way with two or three good people on board with me. I think the issue is trust. Do I know 2 or 3 people with good skills,right attitute etc whoI can trust. Nope - hence Chico Ltd will continue to stutter on..

**thunderlizard** · 27 September 2005, 17:34

Well they all had to start somewhere. But MF's right, you'll do better with 3 salesmen and no boffins than 3 boffins and no salesmen.

**n5gooner** · 28 September 2005, 06:50

Yes thought of this and yo do need to get the sales in, if you can "poach" a sales man from a different firm then they tend to be able to bring "new" business with them. Have been down part of this road before, but you need a lot of capital to be able to pay you're sales men etc. building costs etc. need not be to high. But the key is in getting the business.

**boredsenseless** · 28 September 2005, 07:55

...and even when you manage to pull it off the whinging and 'people-management' you have to perform for your trusted few means your ability to earn fees is seriously scuppered.

If you can't get above about 7 people in a short space of time you'll most likely find that the increase in stress isn't worth the increase in profit.

Unless all these trusted guys are co-owners and each have an equal share then it might work until one of you works out they are always working and someone else isn't and starts to ask for more cake.

You think about splitting the cake based on utilisation and then realise you are into the murky depths of composite companies. Even if you only pay bonuses based on utilisation what happens to thge poor s@d who has to go out and support the sales effort?

Minefield ... and then some...

If you haven't run a consultancy for someone else before it's not something you want to learn with your own cash... Nip into permieworld for a year or two as a managing consultant and then charge back to contractorland armed with new management skills and a gaggle of decent permies you can poach.

**rootsnall** · 28 September 2005, 08:13

I know quite a few people who have done it and the ones who have had some success had already got fairly high up in the consultancy game ( ie. were good at selling, clued up on the model needed and had a good few contacts in the bag ). The biggest success managed to float the company and make his millions ( on the back of the SAP wave ), a couple of others work like dogs and probably make a bit more than they would in the stress free world of solo contracting, others are back contracting when they realised it was hard work. I don't think techie contracting is particularly good training for whats needed.

**Underscore2** · 28 September 2005, 08:45

I've got this new invention called Fire. Do you think anyone would want to buy it?

Sorry but you are ten years too late with your idea.

Setting up a consultancy