First Time Contracting...require A Little Advice

[jd6969]

I have been working as an IT Manager in the North West. Unfortunately the company I work for has gone bust and I have decided I have had enough of the "permie" world and am going to contract in the new year.

I have read previous posts with regard to getting a good accountant and getting setup. My question for those of you who are experienced contractors is:

Am I better trying to land a contract first, then get my limited company setup, or should I go ahead and get the limited company ready to role now before I obtain my first contract?

I would appreciate any input you can give me.

Cheers

[Lucifer Box]

If you're absolutely set on contracting, there's no harm in getting it all set up now. That way you won't be running around if you do happen to land a gig in the new year. Of course, you won't be getting anything done over the next week or so anyway. If you use an accountant who offers company set up as part of the package, it only takes a couple of days so don't sweat it either way.

[partimer]

the market

Just an observation more than anything else.
The higher up you are in the food chain the fewer the number of contracts. I haven't met any contract IT development managers, for example.

A typical set up is X number of project managers, double X in business analysts, triple X in developers and testers. This means that when the market is flat I aim for the more plentiful lower level contracts. When the good times come back, get a better rate at the higher end.

Just an observation of the ebb and flow of the market.

[malvolio]

Well that's a natural effect of management pyramids, isn't it.

In terms of getting work as a manager, though, it depends on your skill and what you are used to being a manager of. If you have a niche skill like JIT manufacturing or building call centres, you will have no problems finding work, similarly general skills like Project/Programme Management are always in demand. If "IT Manager" means being a jack of all trades running a dozen PCs for a local SME, then you might struggle a bit.

The thing to remember at all times is there is no career progression in contracting, you don't get higher-grade contracts on the back of your last one, you have to sell yourself into them and be able to demonstrate you can deliver what your say you can. If the job is for a junior PM, then that is what you become, no matter what your previous role was.