Reply to: Successfully setting up your own Consultancy/Software House/Agency

[Tarquin Farquhar]

It is the clients that you need to look after not the contractors ( i am not saying that I dont look after them, because I do-better than most). Contractors are happy as long as they get a job and get paid. They are also very unlikely to jump ship to another agency mid contract.

Where I do think agencies are missing a trick at the moment though is that right now there are a lot of senior freelancers out there being treated pretty indifferently by agencies. These freelancers will one day be back in work and hiring so now is a good time for agencies to ingratiate themselves with people who would normally not give them the time of day.

I have to agree with that. After a long and dire period on the bench, I am now in a contract on the lowest rate I have had in over 10 years. You won't find me badmouthing the agency for that: I've got a contract at all, and the mortgage paid at least, because they kept me in mind. I'll keep them in mind too.

[DodgyAgent]

Also don't p!ss of the contractors on your books otherwise you'll lose them to other agencies.

You need to see who you are up against in the market and how you can get yourself in before they do and making sure that the people you've got on board impress enough that you get repeat business.

It is the clients that you need to look after not the contractors ( i am not saying that I dont look after them, because I do-better than most). Contractors are happy as long as they get a job and get paid. They are also very unlikely to jump ship to another agency mid contract.

Where I do think agencies are missing a trick at the moment though is that right now there are a lot of senior freelancers out there being treated pretty indifferently by agencies. These freelancers will one day be back in work and hiring so now is a good time for agencies to ingratiate themselves with people who would normally not give them the time of day.

[DodgyAgent]

The last agency I was with, was started up by an ex contractor but he seems to be stuck with getting gigs at his ex client and he is going to find it difficult if he doesn't get someone with sales nounce on his books.

Not sure they are coining it in as they have 5 contractors on their books on a 15% cut.

They are up against the bigger players and will lose out to them as these guys have got the sales pitch.

[norrahe]

And the reasons are rarely in the delivery of service but are more to do with how to find business and managing cash flow.

Also don't p!ss of the contractors on your books otherwise you'll lose them to other agencies.

You need to see who you are up against in the market and how you can get yourself in before they do and making sure that the people you've got on board impress enough that you get repeat business.

[AtW]

That's over a 10 year period.

Next time you'll get life mate

[MarillionFan]

... and if they annoy you, punch 'em in the face!

Come on I think thats enough of this 'MF gives people a whack' nonsense.

Twice. I've done it twice. No tell a lie, three times, no four times.

Four times. Thats it. That's over a 10 year period. It's hardly something I do all the time is it!

[DodgyAgent]

I know several groups of people who have. In every case but one the end result was bankrupcy.

And the reasons are rarely in the delivery of service but are more to do with how to find business and managing cash flow.

[norrahe]

The last agency I was with, was started up by an ex contractor but he seems to be stuck with getting gigs at his ex client and he is going to find it difficult if he doesn't get someone with sales nounce on his books.

Not sure they are coining it in as they have 5 contractors on their books on a 15% cut.

They are up against the bigger players and will lose out to them as these guys have got the sales pitch.

[Xenophon]

This is how grownups look at the world.

... and if they annoy you, punch 'em in the face!

[DodgyAgent]

How many contractors on your books Dodgy? Always been interested on how much cash you need to be a one man band Recon.

I assume 8-12 weeks per contractor?

We have about 150 contractors out there working.

Things you should cost for are

1. Most importantly - what you need to earn day to day
2. Telephone
3. PC
4. Business development (should be you)
5. Cash flow- i.e paying your contractors. Be very careful about who you deal with. Big companies are secure but they can take ages to pay and you will need to unravel their payment processes if they prove to be slow.

You can work from home so basically the cost of entry is very low. Do not be tempted to employ a salesman until you have done it yourself and have developed enough business to make hiring one a necessity born of growth.
If you do the business development yourself then you will be fully prepared on how and who to hire and how to manage them.

This sort of business, unless you have backing and proper management, will HAVE to be led from the front by you.

[MarillionFan]

If you are getting all these job offers and interviews, why bother with such trivia?

Well you want to look at other opporunities don't you? The offer has come up a few times from other peers that we should look to set up a consultancy/software house.

When you reach a certain point in your career these opportunities will present themselves. I've been running development teams in the US and Bangalore. Arranged for an outsourcing contract and used the resulting teams to deliver same major ROI projects.

Now for the meantime, I am continuing on my career drive towards a directors role. To cover that I have applied for technical roles in case my chosen route doesnt play out in the short term. The logical next step is to look at using time, cash reserves and contacts in either a consultancy setup or Recon.

This is how grownups look at the world.

[doodab]

Who on here has made that further move from individual contributor(contractor) into a Consultancy/Software House or Recon Agency.

I know several groups of people who have. In every case but one the end result was bankrupcy.

[AtW]

If you are getting all these job offers and interviews, why bother with such trivia?

He's always been like this: ex-Retail analyst apparently, with delusions of being able to run his own business...

[BolshieBastard]

Who on here has made that further move from individual contributor(contractor) into a Consultancy/Software House or Recon Agency.

Alternatively you may be pitching in with colleagues as a Solution provider.

Just interested, who has made that additional jump from one man band to real employer?

Do we have anyone on here?

If you are getting all these job offers and interviews, why bother with such trivia?

[AtW]

Stick to tat shops MF.