set up agency to 'poach' contractors? advice/comments please

[DirtyDog]

The only thing the contractors would have to do is send their timesheets to a different agency, and theyll get an extra £160/month.

Not worth the risk.

And I sincerely doubt that you can deliver a saving once you actually look at your costs.

[DirtyDog]

to start with i was just thinking of it for the client who i currently work for. Lets say there are 5 contractors.

As far as i know, all i would be doing is sending 5 invoices and 5 payments every week. Yes, assume I have the money to cover the 5 contractors invoices for a couple of weeks or however long the clients payment schedule is.

No - you'd be paying five payments a week and sending one invoice a month. Then you'd be waiting up to 90 days for that invoice to get paid. The fact that you've got that wrong wouldn't fill me with confidence about you making this thing work.

The only thing the contractors would have to do is send their timesheets to a different agency, pray that they have the money to pay them and don't go bust leaving them in the lurch and theyll get an extra £160/month.

FTFY.

[stek]

Wouldn't the OP have to register as an agency and more than likely not be able to avail himself of the FRS and thereby have more work to do/more to pay his Accountant?

[NorthWestPerm2Contr]

Wow. You are really not cut out for agent work are you?

A) Handcuff clauses will not allow you to do this
B) Do you have the time to manage all these contractors
C) Do you have the funds to not get caught out if the client pays late
D) Do you think the contractors want to go with you? What is in it for them?
E) Are you on the clients PSL?
F) Do you not think the client is likely to finish you if you encourage all their contractors to hand their notices in?
G) With no processes in place is that margin really enough for you to spend time sourcing contractors, interviewing them and then managing them going forward.
H) Have you considered the start up costs of getting contracts drawn up and legally checked as well as some form of admin tools, insurances and the like.
I thru to Z) which I am sure there are.

Very very poorly thought out idea. Stick to contracting.

oh come on. Let the guy have a go.

[jmo21]

Obviousely there are many factors to consider including the contractors and client beaing happy to do this but for the sake of argument presume that everyone is happy to do this.

I am just wondering -

a. is this feasable?
b. is it legal?
c. any thing else to think about?

I think everyone has covered it already, but
a: no it is not feasable, neither is it feasible.
b. Everyone's contracts will likely prevent this happening.
c. Your cash flow would be the main thing.

Regardless, why on earth you think all the other 'tractors would just say, yeah, I'll come over to your Agency Co, and the client would agree as well, I will never know, so really it is a pointless even suggesting it.

[phillcooper]

Wow. You are really not cut out for agent work are you?never said I was, as I said in the first post, it's just an idea that I'd like some feedback on.

A) Handcuff clauses will not allow you to do thisI personally don't have a handcuff clause and a couple of the other contractors don't, would have to check with the others.
B) Do you have the time to manage all these contractors from personal experience, there is no managing involved, I havnt spoken to my agent in nearly a year.
C) Do you have the funds to not get caught out if the client pays late yes.
D) Do you think the contractors want to go with you? What is in it for them? more money.
E) Are you on the clients PSL?what is psl?
F) Do you not think the client is likely to finish you if you encourage all their contractors to hand their notices in?not if they know what is going on, I wouldn't keep anyone in the dark.
G) With no processes in place is that margin really enough for you to spend time sourcing contractors, interviewing them and then managing them going forward. I wouldn't source any new contractors, just take over the current ones. If the client needs more, then that's a different issue that would need looking into.
H) Have you considered the start up costs of getting contracts drawn up and legally checked as well as some form of admin tools, insurances and the like.
I thru to Z) which I am sure there are.no, any idea on rough costs?

Very very poorly thought out idea. Stick to contracting. maybe, maybe not.

Thank you for the help

[stek]

Perhaps it's a loss leader so the OP can find what out everyone's rate is...

[DirtyDog]

Wouldn't the OP have to register as an agency and more than likely not be able to avail himself of the FRS and thereby have more work to do/more to pay his Accountant?

Yes. But why let facts get in the way of an obviously brilliant idea

[DirtyDog]

Thank you for the help

Go for it - let us know how you get on.

[northernladuk]

oh come on. Let the guy have a go.

You are even meaner than me