The Scary Step Up from One-Man-Band

[David Braziel]

Im an IT consultant and Ive been self employed now for over a year. In that year Ive had no problem getting work - ive done no advertising, no marketting and Im pretty much up to my ears.

But I feel like Im now hitting some sort of ceiling. I cant work many more hours (there arent many more hours!) and I dont feel I can put my rates up by much. Im spending more time than I would like to on stuff that someone a lot more junior could be doing but Im nervous about taking on employees.

It feels like Ive reached one of those decision points and I'd be grateful for any advice or suggestions from other small businesses who have been there themselves or are at the same point right now.

I feel like Im on that tipping point between being a freelance worker and running a business.

What do you all think?

David.

[David Braziel]

Thanks for the tip James - I hadn't come across people4business before but it looks like a really useful site. I might just register myself as a Buyer and a Seller.

Right now I think I need more than a freelancer but it could be very useful down the line a bit.

[Richard Boyd]

Hi David

This is posted probably too late but. I can recommend the sub contracting route. I used to employ staff (15) years ago but after the initial getting to know you period they always disappointed and became time consuming...

Anyway that was in a different field of business flash forward 15 years, subbies are great you need to vet well but treat them well and they perform because if they don't they don't get paid, you can hire and fire on the same day. It also means that you can get at a reasonable rate a specialist for those one off tasks that would be financially crippling to employee a full/part time member of staff for.

Anyway good luck.

[David Braziel]

Thanks Richard

One of my current problems opportunities is that a customer wants someone virtually full time for a period and is also pressing me to provide a backup / contingency in the event that I meet the proverbial red bus. In fact they've said 'what happens if you get hit by a red bus' so many times now I'm almost afraid to cross the road.

I dont feel like a subby can provide that sort of reliable long-term backup. I need someone who gets to know the customer and can step in if Im unavailable. (or even better that I only have to step in when he/she is unavailable) Maybe Im wrong but that seems harder to organise with a subby.

I've also found in IT that a lot of the contractors will be getting short or medium term contracts with the banks or corporates which mean they are not always available. So you need a decent sized pool to be sure you can get what you need when you need it. In fact I interviewed a good candidate recently who could have been very suitable but had just taken a three month contract elsewhere. Sadly I needed someone almost immediately.

So its a bit of a minefield - currently Im standing somewhere near the middle wondering where to step next.

David.

[Madelaine Kirke]

I really HATE that there are no problems only opportunities managementspeak - it doesn't help when you have a problem, does it, David?

I do hope you can find the right person. You've obviously tried the networking route to find them? Someone's wife who used to do computing stuff and would like to get back or similar?

On a frivolous note, perhaps you should move to somewhere where the buses are blue?

[David Braziel]

Do blue busses hurt less when they hit you do you think?

I agree about the management speak but sometimes it does help to remember to look at things from a different angle. If you consider that my 'problem' is that I have too many customers who want to pay me to work for them - it puts it into some sort of context.

At the end of the day its still a problem though!

[Richard Boyd]

Yes you are right in assuming a good pool of people are needed, thankfully in my field there are numerous companies/individuals I can call upon and nothing is mission critical, except the plants hire aspect, where I often have to take care of deliveries due to being let down by drivers.

Perhaps another option you could look at pursuing is an apprentice from a local training centre?

[James Moss]

Why do you feel you cant increase your rates?

I read somewhere one of the most obvious measures to see if your charging enough is whether you have too much work.

Is the issue as much about what you feel you are worth?

[David Braziel]

Oh God no - I know full well Im worth a lot more than anyone will ever pay for me! :)

Its a nerve racking thing though increasing rates - if you get it wrong you can suddenly go from too much work to none at all.

But I think you are right - I shall have to review my rates and introduce some steady increases. It would be a lot better to increase by smaller amounts now than to suddenly have to hike them up by big jump in a year or so.

How does anyone out there in a consultancy type role work out their daily rate? I'd be interested to know if anyone has a more scientific approach.

David.

[Alex Bellinger]

When I was doing freelance PR I charged the going rate for someone of my experience. Quite an easy calculation since the trade mag used to carry regular pay surveys which give you a good idea of day rates.

I'm sure similar trade publications have similar surveys.

[Kelvin Jones]

This American Site has a nice breakdown of things to consider when working out the cost of your service.

[Peter Draper]

How good is your relationship with your customers? As the "Value" of your services is what your customers believe it is worth a friendly customer may be a usefull insight.

I am using subcontractors in my business and this works well as most of my work is project based. I am relatively lucky that I have lots and lots of contacts in my filed and my area that I can use. There is definately a hole in the market though. We have made a decision to be a channel focused organisation getting our work from equipment manufacturers, distributors and resellers. They appear to have a need for services to help them deliver projects but do not want to invest in a large team of engineers they then MUST sell to break even.

Where are your customers? We may be able to help with some of the partnerships we are building.

[David Braziel]

Hi Peter.

My customers are mainly in Northern Ireland although I have some in the south of England. One of the problems is that skilled IT staff seem to e in short supply here - which is good for me as a service provider but a pain in the neck as a recruiter.

Id be interested to talk to you about your model and whether there are any possible areas for collaboration etc.

David.