Reply to: Setting up as an agent on a preferred supplier list

[scooby]

Do you have any idea the criteria for becoming a preferred supplier to your client is?

This is always a good question!! I found out a month ago after a catch up call with the head of procurement from an old client that I was already on it. I didnt even know, but apparently it was as simple as doing a good job last time, and keeping relationships in place.

Others, it can be a lot harder!!

[TestMangler]

Why? Just because of the VAT FRS? That doesn't sound right.

If you start a new company then you are going to be hit for a grand or two in running costs over the year. On the other hand, having subcontractors working for the company you use for contracting is going to make you look a lot less like a permietractor from an IR35 point of view too.

If you use the existing company you can use retained cash (like for VAT and CT) to free up your cash flow to pay contractors instead of having to factor invoices. Bad cash flow kills small businesses, that's a fact.

WHS. Setting up another company is pointless.

[Wanderer]

Good point thanks for raising this. I think I will have to set up a seperate company

Why? Just because of the VAT FRS? That doesn't sound right.

If you start a new company then you are going to be hit for a grand or two in running costs over the year. On the other hand, having subcontractors working for the company you use for contracting is going to make you look a lot less like a permietractor from an IR35 point of view too.

If you use the existing company you can use retained cash (like for VAT and CT) to free up your cash flow to pay contractors instead of having to factor invoices. Bad cash flow kills small businesses, that's a fact.

[gamble1234]

Do you have any idea the criteria for becoming a preferred supplier to your client is?

Finding out from HR when I meet them.

Gamble

[northernladuk]

Do you have any idea the criteria for becoming a preferred supplier to your client is?

[gamble1234]

If you are on FRS for VAT, then you will have to withdraw from it if you go over the threshold. You won't be able to get back into FRS for another year.

Good point thanks for raising this. I think I will have to set up a seperate company.

Gamble

[gamble1234]

Go to them with some degree of confidence and enough knowledge to get across that you can supply what they want at the right price. Make it clear that you can provide the same service and level of service that other agencies do. Try to convey that you won't become a burden of questions and difficulties for them.

If you approach them with a 'well i think I can get you some people but i'm not quite sure how to do it' you'll get slaughtered.

Constructive enough ?

That's pretty good mangler, thanks.

I am more concerned with the legal aspects (which I will be speaking to a solicitor) and from an accounting/tax (speaking to accountant) perspective so initial i will be making some investment. Also I am planning on hiring someone to take care of all the admin!

gamble

[TestMangler]

Ok, been doing a quite a bit of reading and only clauses are in my contract but as im nearing 6 weeks to the end i dont think they stack up esp as I withdrew my opt out.

Meeting HR this week to discuss options.

Any other thoughts (constructive) please?

Go to them with some degree of confidence and enough knowledge to get across that you can supply what they want at the right price. Make it clear that you can provide the same service and level of service that other agencies do. Try to convey that you won't become a burden of questions and difficulties for them.

If you approach them with a 'well i think I can get you some people but i'm not quite sure how to do it' you'll get slaughtered.

Constructive enough ?

[TheFaQQer]

Any other thoughts (constructive) please?

If you are on FRS for VAT, then you will have to withdraw from it if you go over the threshold. You won't be able to get back into FRS for another year.

[gamble1234]

Ok, been doing a quite a bit of reading and only clauses are in my contract but as im nearing 6 weeks to the end i dont think they stack up esp as I withdrew my opt out.

Meeting HR this week to discuss options.

Any other thoughts (constructive) please?

[gamble1234]

Absolutely agree with all of that. I would have thought anyone with an idea that they want to take forward would apply AT LEAST a minimal amount of common sense to the problem

Maybe that is why so many fail.

Also, you need a certain amount of selling ability, which, despite what most people think, is a skill in itself. Suggest the OP speaks to Dodgy !!

I was hoping to pick up lessons learnt from others and apply the common sense! plus i do have some selling ability just want to know all the options before i go ahead with my idea!!

[TestMangler]

FTFY



Indeed but he is one in many many contractors who have had the idea to do the same. Good on him for making stick, the other 99.99% wouldn't.

I am sure he didn't come on CONTRACTOR forums asking questions about the basics of how to be an agent as well.

Absolutely agree with all of that. I would have thought anyone with an idea that they want to take forward would apply AT LEAST a minimal amount of common sense to the problem

Maybe that is why so many fail.

Also, you need a certain amount of selling ability, which, despite what most people think, is a skill in itself. Suggest the OP speaks to Dodgy !!

[northernladuk]

Gamble,

I wish I could be more like NLUK but, are you sure you're cut out for this ?

Speak to your client's hiring dept, speak to an accountant, look up .gov websites.

In the immortal words of Boris The Blade's brother, 'Do you want me to hit him for you ?'

FTFY

Upshot was, he was bought by an agent for 2.75 Mill. I made about £500 notes out of it.

Take yer choice about who made the right move.

Indeed but he is one in many many contractors who have had the idea to do the same. Good on him for making stick, the other 99.99% wouldn't.

I am sure he didn't come on CONTRACTOR forums asking questions about the basics of how to be an agent as well.

[TestMangler]

How would i set this up? would i need to be on the companies PSL? I know they take contractors on directly to...so would i provide the contract direct then have a contract between me and the new contractor? Not sure if that makes sense!

Is there any tax implications?

Thanks
Gamble

Gamble,

At the risk of turning into NLUK, are you sure you're cut out for this ?

Speak to your client's hiring dept, speak to an accountant, look up .gov websites.

In the immortal words of Boris The Blade's brother, 'Do you want me to hit him for you ?'

[gamble1234]

I sourced a couple of bodies for a client back in the mid nineties and was basically asked to do this by the client, because I found them better people than agencies could at that point. I took the view that it was going to be a 'pain in the arse' and passed it on to another contractor, and ended up sourcing people for him for cash.

Anyway, over five years or so, he expanded it a bit and got bodies into another client and then another etc etc.

Upshot was, he was bought by an agent for 2.75 Mill. I made about £500 notes out of it.

Take yer choice about who made the right move.

Good story, and im not trying to be a big man, just a few contractors that provide a quality service! Just trying to get my head around the practicalities!