Reply to: Become an employer?

[minsky1]

GP around 130k last year.

[Spacecadet]

The fun bit is having revenue generated while you take time off.......

sit at home watching trisha and occasionally porking the au pair

[TheFaQQer]

Currently doing this.

300K turnover, 2 full time staff and sub out some work.

The fun bit is having revenue generated while you take time off.......

What's the gross and net margin like?

[minsky1]

Currently doing this.

300K turnover, 2 full time staff and sub out some work.

The fun bit is having revenue generated while you take time off.......

[Spacecadet]

Was scraping by until he employed the sales chap, and now they have almost more work than they can handle.

Thats the key - a real company lives or dies by its sales, customers have a habit of not falling into your lap

[beaker]

Yeah that's the problem with contracting. The gulf between it and permiedom is so big it just keeps on sucking us in. Only a few ever manage to escape into another career path such as starting their own business.

The golden handcuffs

[PAH]

seems like the gist is that most people think it could be a good earner, but is probably too much bother, given that most contractors earn a decent enough living just managing themselves.

Yeah that's the problem with contracting. The gulf between it and permiedom is so big it just keeps on sucking us in. Only a few ever manage to escape into another career path such as starting their own business.

[Cheshire Cat]

seems like the gist is that most people think it could be a good earner, but is probably too much bother, given that most contractors earn a decent enough living just managing themselves.

[PAH]

Simpler option is to buy £1 share in AtW's SKA, sit back and await the public floatation.

Some are waiting for it to float alright. Right down the sewer.

[DimPrawn]

Simpler option is to buy £1 share in AtW's SKA, sit back and await the public floatation.

[realityhack]

A mate of mine has done it - creative director, technical director and full time sales manager in a ltd earning proper money - employing offshore coders in India and SA to do the bulk of the work, for peanuts. Makes a tidy living. Was scraping by until he employed the sales chap, and now they have almost more work than they can handle.

[Cheshire Cat]

The point about ease of access is crucial I think. Why on earth would someone come and work for MyCo for £X/year when they could go to Accenture/KPMG etc, or go contracting directly?
To be successful a product is essential I think, but then that's a different model to the one I was proposing, where you're effectively selling labour. Clearly if you have a (good, marketable, in-demand) product then you're selling the product and support/training etc rather than just bums on seats.

[DimPrawn]

I've seriously thought about it. Done costing models etc

2 difficulties i came across:

1. Getting the work in. Most of the work I get is based on me doing it - that's why i'm contacted. I would need to persuade client that other person is good. Possible but would probably mean doubling up for a while on each project therefore halving income.

2. How long would employee stick around knowing what money they could earn as a contractor. Probably OK to hire grads but expect a high staff turnover.

Employ steady-eddie types with a young family who live locally and they are not interested in IT contracting.

[Bear]

I've seriously thought about it. Done costing models etc

2 difficulties i came across:

1. Getting the work in. Most of the work I get is based on me doing it - that's why i'm contacted. I would need to persuade client that other person is good. Possible but would probably mean doubling up for a while on each project therefore halving income.

2. How long would employee stick around knowing what money they could earn as a contractor. Probably OK to hire grads but expect a high staff turnover.

[DimPrawn]

I think having a niche is the key. If you've got experience and can sell it enough to generate more demand than you can handle then it could work.

He had a niche and a software product too. Sales of the product, plus support and customisation make up the bulk of his profits, but they do bespoke work too.

Secret is to pay your permies a pittance and brain-wash them into thinking they are worthless.