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View Full Version : Blue sky thinking - should we be looking at Plan B alternatives to "PSCs"



SimonMac
23rd August 2017, 13:13
OK, complete blue sky thinking, but given the doom and gloom around should we be at least thinking about possible alternatives to PSCs as these seem to be the target for hector while the likes of the big consultancies who are effectively doing something similar escape the rectal probe.

A guy on site here say's he want's to start a consultancy, where a handful of senior partners band together, kick 10% of what ever they earn into a central pot for any speculative work/admin costs etc and then as with the usual LLP practice each member takes home what they will, I assume this is how it works in legal chambers etc.

I am sure there is a valid reason why it can't be done, but should we at least be looking at alternatives to the PSC rather than just sit waiting for the end of the world?

northernladuk
23rd August 2017, 13:21
I'd be willing to bet every half decent contractor has had exactly the same thought. Everything from being a pseudo agency for the client undercutting the existing one or come back as a multi-body micro consultancy. Funny thing is, in 10 years of contracting I've not seen either. Odd that innit.

I am sure it could be done but it's going to be be bloody difficult to get the right people together that are as dedicated and aren't going to bail once it's a little tough and the right client to kick this off at. Remember even with one client you are a one trick pony. I've seen enough established small consultancies fail due to their one client situation. I'm sure there are a whole host of other negatives I've not thought of yet. They will be listed in the other threads started about this idea.

Would an idea not to be find a micro-small consultancy that already exists and use your inside knowledge of our client to get them in or add extra value to their offering and shoehorn yourself in as a partner. Over time work your way in to the inner circle and run it that way rather than trying to start from nothing?

I do think there are enough differences between a PSC and a small consultancy offering a solution and that the markets are different enough to co-exist for the time being... or am I being too optimistic?

Is this focused at your current situation or across the board?

malvolio
23rd August 2017, 13:23
Not a new idea by any means, and it's been tried. The usual problems are working out a way to pay people according to their income and finding the work for them to do. And persuading clients to use a risky small co when then can use a safe big one (I know...)

But have a look at the Project Pool (https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwia1JrXue3VAhWKa1AKHWVUCm4QFggqMAA&url=https%3A%2F%2Fuk.linkedin.com%2Fcompany%2Fthe-project-pool&usg=AFQjCNHA8RrOoUX9lWZnixORPofWDnTMYQ)for one approach.

northernladuk
23rd August 2017, 13:25
Couple of threads on similar lines as this around like..

http://forums.contractoruk.com/business-contracts/119249-how-structure-run-new-consultancy.html

http://forums.contractoruk.com/business-contracts/122645-setting-up-small-consultancy.html

bobspud
7th October 2017, 20:01
I have set a new partnership up this year it’s currently doing nothing because every ones too busy to feed it work. If you are going to do it you need to pay a sales man to sell and open doors other than that. It’s a pipe dream.

tazdevil
1st November 2017, 13:36
I have set a new partnership up this year it’s currently doing nothing because every ones too busy to feed it work. If you are going to do it you need to pay a sales man to sell and open doors other than that. It’s a pipe dream.

Correct but more you need a salesman who's going to cost you at least 25% of the income and a product for them to sell. You yourself may be a super dooper high value consultant but there's a lot of salesmen for those, they're called pimps:wink

The Project Pool using peer networking is one approach and others will come along with a similar structure but getting people genuinely interested in alternative ways of working is hard.