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**Solidec** · 25 February 2009, 16:46

I think you will find most people here will say "good luck to you, but its not for me"

**The Agents View** · 25 February 2009, 17:36

others will likely say that this sounds suspiciously like an umbrella company.

Without being negative, I would say the pitfalls of this are:

- Trust - do you really trust the other partners not to stiff you?
- If you get a gig through an agent, what do you do? I don't care how much you think you can, you will not be able to generate business all by yourself, and fulfill it all - especially not in this climate.
- If one person screws up, who picks up the pieces? How does that affect the reputation of the other partners?
- If you're on the bench, why would anyone else let you work on their projects?

To name but a few. Good luck with it - I really hope it works out for you - but I think we're unlikely to see swathes of BA's disappear into your business personally.

All of the above is just my opinion as an outsider looking in - I really mean it when I say I hope it works out for you.

**McBainCo** · 25 February 2009, 17:54

Thanks for your view.

1. Ref lead generations. A group of 10 BAs would have collectively an impressive network. My own contact within the Insurance industry are very comprehensive. I can tell you who is recruiting, what major projects are on, who to approach, what coming next ( e.g Resolution possibly bidding to acquire Prudential and or Clerical and Medical), what the issues are, etc. I am happy that I can cover the Insurance arena quite well without going through agencies.
2. I do agree that there will be a problem of trust but I anticipate that after we meet this can be addressed.
3. The psychological make up of contractors is wide ranging. From the Free spirit who like an eagle would always fly on his own to the entrepreneur who would wish to build something big whilst minimising risk ( by beeing part of a bigger group)
4. Is this an umbrella company? That was not my intention as all the earning are given back to the earner ( less Corporation tax deduction). The contractor will receive his earnings as a basic salary and dividends. All his/her expenses will be used as part of the running of the company.
5. I am not on the bench

Many thanks for your wishes

**MPwannadecentincome** · 25 February 2009, 22:38

Sounds like it could be a Managed Servcies Company?

Also payment with deduction of corporation tax can only be made as dividends - which MUST be paid equally to ALL shareholders of the same type/class of shareholding.

Talk to an accountant!

**tim123** · 25 February 2009, 23:41

Originally posted by McBainCo View Post

Thanks for your view.

4. Is this an umbrella company? That was not my intention as all the earning are given back to the earner ( less Corporation tax deduction). The contractor will receive his earnings as a basic salary and dividends. All his/her expenses will be used as part of the running of the company.

You cannot pay individuals back exactly their own fee income as dividend payments. Any "bonus" above the minimum payment that everybody gets as dividend to make up the exact amount must be paid PAYE. Of course, this minimum payment should be the amount generated by the lowest fee earner, which could be zero.

If (in order to get the other benefits) you set this up as a marketing group without everyone being shareholders in the same company, you won't be outside IR35 (though obviously each individual contract might be)

On balance, I would go with this latter route. You have more chance of getting people interested.

tim

**McBainCo** · 26 February 2009, 08:30

Many thanks for your advice guys.

Tim, I note your suggestion and I think I shall favour that approach.

Any BA(s) out there interested. I am happy to fund all initial costs, including marketing.

**NickNick** · 26 February 2009, 11:27

A friend of SWMBO has done pretty much exaclty what you are talking about.
http://www.ninefeettall.com/
And she has had a fair amount of success out of it. Of course I'm not sure of the ins and outs of her business model and it may have changed over the years from what you outlined to something else, but the idea was the same.

**MPwannadecentincome** · 26 February 2009, 11:47

Originally posted by NickNick View Post

A friend of SWMBO has done pretty much exaclty what you are talking about.
http://www.ninefeettall.com/
And she has had a fair amount of success out of it. Of course I'm not sure of the ins and outs of her business model and it may have changed over the years from what you outlined to something else, but the idea was the same.

Nice web-site and it looks like a business - maybe it is.

Businesses have to start somehow!

**Denno** · 26 February 2009, 12:12

I'd be interested in this.

I've had some experience of freelancing through a network of contacts, carrying out consultancy and development work as needed, direct to the client. The hardest bit was generating new business - IT contractors are not natural salesmen / marketing people IMO!

However, as you say we'd all have contacts (mine are mainly in media / publishing and a few in a big pharma), so could well work.

Agree there may be concerns over trust, but this shouldn't stop something like this getting started.

I don't think it's anything like an Umbrella company in my experience + also think that there's a gap for a specialist BA company.

So, I'm in - is it best if I PM you McBain?

New Business Analysts Venture