Reply to: There has to be a better way

[MrMarkyMark]

I'm taxed as a director ... so there's pretty much no advantage in that compared to an inside IR35 contractor now :-(

Which is another downside to the current set of tax changes.

No longer will someone be able to have a contract in order to get the funding together to build their own start-up.



Payment milestones are the key. I ask for between 50 & 100% up front!

Early doors, but product looks good..........its a slow, but steady, burner for us.

Have suggested hopefully (!) I can be a kept man in a few years

[tomtomagain]

You should still be taxed as a worker its only fair

You have your own product, so I completely understand.

I'm taxed as a director ... so there's pretty much no advantage in that compared to an inside IR35 contractor now :-(

Which is another downside to the current set of tax changes.

No longer will someone be able to have a contract in order to get the funding together to build their own start-up.

My Mrs. is working on something similar, I can see how you could wait a year for payment if you are delivering a major, possibly tailored to requirements type solution.
Hopefully, you can negotiate milestone payments to ease the pain.

Payment milestones are the key. I ask for between 50 & 100% up front!

[MrMarkyMark]

A year might be a bit on the long side but it's not implausible.

You contact the client and have some discussions. With a a bit of to-ing and fro-ing a month can easily pass.

Write up and submit a proposal. It gets reviewed. Clarified. Reworked. Another month.

Wait for "managment approval", this can chew up several months.

Win the bid. Wait for "Procurement" to issue the Purchase Order.

Start the work and then depending on your agreed "payment milestones" begin invoicing.

The first invoice often takes the longest ( get set up in the clients systems etc ) and then it's not uncommon to find clients with 60 - 90 days payment "terms".

I won a dozen fixed-price bespoke enhancements for one of my products last year from different clients. Some of them drag on forever to get the work started. Very few start within a month of first-contact.

You should still be taxed as a worker its only fair

You have your own product, so I completely understand.

My Mrs. is working on something similar, I can see how you could wait a year for payment if you are delivering a major, possibly tailored to requirements type solution.
Hopefully, you can negotiate milestone payments to ease the pain.

[tomtomagain]

Those would be R&D enhancements I assume?

You assume wrong sonny! They are for my existing product and not the one I claimed R&D for.

When I issue a statement of work for a fixed-price enhancement I make it clear that I continue to own the IP and I won't accept any enhancement that would not be generally useful to all my potential customers ..... in other words I get my customers to pay for the R&D.

[northernladuk]

Those would be R&D enhancements I assume?

[tomtomagain]

A year?!
I went 4 months, once, that was more than enough

A year might be a bit on the long side but it's not implausible.

You contact the client and have some discussions. With a a bit of to-ing and fro-ing a month can easily pass.

Write up and submit a proposal. It gets reviewed. Clarified. Reworked. Another month.

Wait for "managment approval", this can chew up several months.

Win the bid. Wait for "Procurement" to issue the Purchase Order.

Start the work and then depending on your agreed "payment milestones" begin invoicing.

The first invoice often takes the longest ( get set up in the clients systems etc ) and then it's not uncommon to find clients with 60 - 90 days payment "terms".

I won a dozen fixed-price bespoke enhancements for one of my products last year from different clients. Some of them drag on forever to get the work started. Very few start within a month of first-contact.

[vetran]

A new client can take me up to a year before the first invoice comes through.

They paying when you finally deliver the goods?



seriously I had 90 payment days with one client and nearly took them to court, it was a one day job as well.

Barstewards.

The regulars wanted me back so were shoving cash into my hands.

Always try previous clients & managers. My current WFH job was via a previous sales manager I worked with.

[MrMarkyMark]

Close to 50% of my work is repeat business. I spend a lot less energy procuring work from a past client than I do a new one.

A new client can take me up to a year before the first invoice comes through.

A year?!
I went 4 months, once, that was more than enough

[northernladyuk]

That sounds harder work than going through the emails

Point taken, I got my last contract based on one I'd done before. I've got a couple of Conferences coming up so I'll book into the recommended hotels and mingle. I should drag myself to the local usergroups and maybe present as well. I've not had any significant bench time in the past once I got my first contract but it looks like I need to up my game. I'm more winding down than building up though so I don't want to go over the top.

My plan B has failed completely. I'm sure the idea is sound but selling it is proving impossible.

That's how the old man gets most of his work.

[NigelJK]

And if you have to use an Agency cultivate one or two senior 'consultants' over years. Cattle markets are for cattle.

[SueEllen]

The thing with networking is you need to start doing it before you need to.That way you are use to doing it and you know people.

[quackhandle]

OP: I'd at least start with tarting up your LinkedIn Profile.

qh

[SlipTheJab]

Cut out the middle man. When benched, I book out four hours a day for looking for other contracts by whatever means are appropriate - old clients, LinkedIn, etc.

+1 I last used an agent to get a role in June 2012, ever since then its been via my network of contractors I've worked with and previous clients.

[quackhandle]

That sounds harder work than going through the emails

...
...
My plan B has failed completely. I'm sure the idea is sound but selling it is proving impossible.

Yes, it is hard work, I wasn't being glib. It isn't easy either, you turn up to events and your the one standing in the corner alone whilst everyone is networking! Take a deep breath and dive on in there, it does get easier. I like to think for every direct gig your flicking two fingers to the pimps and acting like a proper business should.

I had six months on the bench last year with 3/4 networking events each month, God it was a slog at times. By May I'd almost ran out of ideas with the warchest seriously dwindled. Did two quotes/POCs never heard anything back, but it's good experience ultimately, I've learned which events will be better for me, not just turn up to ones where no one has a clue what I do.

Good luck (seriously).


qh

[scooterscot]

Close to 50% of my work is repeat business. I spend a lot less energy procuring work from a past client than I do a new one.

A new client can take me up to a year before the first invoice comes through.