Reply to: Moving business from single postings to operating a consultancy w multiple customers

[northernladuk]

sorry my reply is within your response. Still working out how the quotes work.

You need to put [ quote] to open and [ /quote] to close. Then type what you want and then put the next paragraph between them and so on. No spaces in them though.

To be fair it looks like you might have the beginnings of something interesting there. How you progress is pretty dependant on the solution so can't really help much more.

[MeMeMe1966]

Well it appears to me that you aren't selling a service. They have a need, your need services that. It appears to be consultancy, of which would be supplier by you as a single bod so you'd be on a day rate surely?

I was thinking that I can be the brains and not do the stuff other people can replicate (analyst, project manager, accountant, etc.). 10% of what I do is that strategic expert specialist knowledge stuff and 90% is implementing it. The implementing doesn't need me. So theoretically I could expand by ten fold if I had more clients and some staff.

Or are you trying to just get fixed work thinking you can get them to pay more than the going date rate? Not 100% sure that's going to fly. PS depts are looking for savings, not spending more on the same thing. How would you sell this to a brand new PS client that doesn't know you or what you do? Why would the client want your services and why couldn't he get it from getting a contractor in?

Not many contractors could deliver what i could. In fact none. I know that sounds arrogant but this is the feedback I've received. Maybe I will be humbled and its not true but I kind of think it is.

You see what I'm getting at.The commercial/sales/marketing bit which you probably won't be able to do being a techie at the coal face.

YES, this is exactly my problem. Potentially great product but zero commercial sales marketing experience. This is my biggest concern.

Would it not be better to go find a supplier that's already supplying to the PS in a similar area and offer your solution to them and they can sell on as a value add. You are a partner rather than trying to go on your own.

Trouble is I don't reckon Deloitte, KPMG, PwC are looking for partners but only young graduates they can rent at markup?

sorry my reply is within your response. Still working out how the quotes work.

[northernladuk]

I do agree with you around the product offerings being very clear and I am currently working on that and won't really try to fly until that part is finalised. It will be something like:

Product A: Given organisation size and current revenue stream can get you between £a and £b additional funding. This has been proven previously in this listing of organisations. These are contacts at those organisations who can confirm. This is roughly how it works. 2 days diagnostics to determine where you fall between £a & £b - not sure yet whether to charge for this. Price £z for upfront work moving to £x on-going fee (if applicable - not all products have on-going costs)

Product B: Same spiel but different mechanism and area of funding to get extra dosh

Product C .....

The bloody frameworks are such a nightmare and I've seen how CFOs and CEOs can get around things when they want to - I'm not inclined to go there if I can at all help it. I do appreciate however that if I get bigger I probably won't have a choice.

Well it appears to me that you aren't selling a service. They have a need, your need services that. It appears to be consultancy, of which would be supplier by you as a single bod so you'd be on a day rate surely?

Or are you trying to just get fixed work thinking you can get them to pay more than the going date rate? Not 100% sure that's going to fly. PS depts are looking for savings, not spending more on the same thing. How would you sell this to a brand new PS client that doesn't know you or what you do? Why would the client want your services and why couldn't he get it from getting a contractor in?

You see what I'm getting at. The commercial/sales/marketing bit which you probably won't be able to do being a techie at the coal face.

Would it not be better to go find a supplier that's already supplying to the PS in a similar area and offer your solution to them and they can sell on as a value add. You are a partner rather than trying to go on your own.

[MeMeMe1966]

IMO you are coming at it all wrong. Trying to get around frameworks, looking at your skills etc..

I think you are completely missing the mark by not having a clear product that you can sell. Not just you and your skills. That's a contractor. You need to have a service offering that they want that will bring them tangible benefits and then when you've got to that sell it to them using whatever framework they throw at you.

Trying to steal a bit of adhoc work under the radar is not really the way to start a consultancy, particularly in the PS.

I do agree with you around the product offerings being very clear and I am currently working on that and won't really try to fly until that part is finalised. It will be something like:

Product A: Given organisation size and current revenue stream can get you between £a and £b additional funding. This has been proven previously in this listing of organisations. These are contacts at those organisations who can confirm. This is roughly how it works. 2 days diagnostics to determine where you fall between £a & £b - not sure yet whether to charge for this. Price £z for upfront work moving to £x on-going fee (if applicable - not all products have on-going costs)

Product B: Same spiel but different mechanism and area of funding to get extra dosh

Product C .....

The bloody frameworks are such a nightmare and I've seen how CFOs and CEOs can get around things when they want to - I'm not inclined to go there if I can at all help it. I do appreciate however that if I get bigger I probably won't have a choice.

[northernladyuk]

IMO you are coming at it all wrong. Trying to get around frameworks, looking at your skills etc..

I think you are completely missing the mark by not having a clear product that you can sell. Not just you and your skills. That's a contractor. You need to have a service offering that they want that will bring them tangible benefits and then when you've got to that sell it to them using whatever framework they throw at you.

Trying to steal a bit of adhoc work under the radar is not really the way to start a consultancy, particularly in the PS.

Yes it is.

[northernladuk]

IMO you are coming at it all wrong. Trying to get around frameworks, looking at your skills etc..

I think you are completely missing the mark by not having a clear product that you can sell. Not just you and your skills. That's a contractor. You need to have a service offering that they want that will bring them tangible benefits and then when you've got to that sell it to them using whatever framework they throw at you.

Trying to steal a bit of adhoc work under the radar is not really the way to start a consultancy, particularly in the PS.

[northernladyuk]

Yes I had thought about that and it is a problem. If i can keep the spend per organisation to under 100K than I can avoid OJEU. I need to look at the framework rules again as I'm sure the client I'm at contracted a non-framework service somehow but i'm not sure how they managed it. The NHS £50K consultancy rule might trip me up.

You can avoid OJEU but it still ain't simple. Have to say I've lost track of this a bit, as am not in UK anymore. Just make sure you understand the rules (do invitations to quote need to be published, do they need 3 or 5 quotes).

I have seen small suppliers get on a catalogue such as http://www.softcat.com/news/softcat-...rcial-service/ and the prime supplier will take a 3 or 4% cut. Again, it may have all changed so DYOR.

[MeMeMe1966]

So your additional problem is how you contract. OJEU plus additional UK governement / departmental rules make it difficult to sell directly. You may need a framework partner which is not ideal

Yes I had thought about that and it is a problem. If i can keep the spend per organisation to under 100K than I can avoid OJEU. I need to look at the framework rules again as I'm sure the client I'm at contracted a non-framework service somehow but i'm not sure how they managed it. The NHS £50K consultancy rule might trip me up.

[northernladyuk]

Unfortunately this is my area of expertise and the knowledge isn't transferable

So your additional problem is how you contract. OJEU plus additional UK governement / departmental rules make it difficult to sell directly. You may need a framework partner which is not ideal

[MeMeMe1966]

I know a guy who was doing exactly that, very specialist area, multiple customers and he did have a wide network from his previous career which was in pre sales. Still he found it very hard to get enough clients to work on a call off basis, fixed amount of hours or days per month for and had to change to working full time on contracts for 1 client at the time, which now provides him with a much better turnover.

The trouble with that model is that I'll soon hit the ceiling on my day rate for public sector and then I will be limited forever. This is why I wanted to move to consultancy but it sounds like your friend was in a similar situation and found it difficult. Do you know if he had a one-off offering so that once he used up a client they were finished and he had to find new ones or did he struggle to get them onto on-going contracts?

[MeMeMe1966]

If you have to ask on here - in other words you don't have a network of people to find this information out from in real life - then it's a non-starter.

I am asking everyone I can plus listening to Ted talks on marketing start-ups plus reading articles. This forum is just another resource.

[MeMeMe1966]

Dare I ask how old you are OP?

51. I did my time as a permie over 25 years and was well known and extremely respected within my field before jumping ship and going contracting.

[MeMeMe1966]

Total dreamer/fantasist. 2.5 years in contract, you're having a laugh. I know people in London, total top of the tree, got off the ground doing this but the competition is intense. They form in small groups of elite specialists and they've been struggling to find the talent to satisfy the client requirement. Right now they are advertising contract developer roles at £ 750 a day. Is this something you feel you could muster? I very much doubt it. Just enjoy contracting for the next couple of years until the government kill it in this country would be my advice.

You are probably right. But I can make them money and not a lot of people can do this. Not wooly softy business advice tulip but real concrete proven extra money. It is sort of a compelling argument.

[MeMeMe1966]

I remember giving a few pointers, i.e moving to consultancy set up, from my experiences, when you asked the question.

CBA to do the same again.

ok. cheers.

[MeMeMe1966]

Are you selling to public sector? World of pain if so.

Unfortunately this is my area of expertise and the knowledge isn't transferable