Thinking of going out on my own ...

WITracy

I have been in HR for 10 years and currently work for two separate companies, each employing just under 30 employees. (I do 2 days a week in each office - Friday's OFF!). I have been approached by a 3rd company (about 20 employees) to handle their part-time HR needs.

I have been encouraged for the last couple of years to go out on my own & do exactly this. I'm thinking this may be the time to do it but have no idea how to get started.

The need I see with the companies I'm currently with, is for someone who has set office hours on at least a weekly basis. To handle paperwork, meet with employees, etc. And that is why they have hired me instead of going through a consultant. There are so many small businesses that are in the same boat, I think this may be a good niche.

I need some feedback - does anyone currently do this? What do you see as the advantages of doing it on my own vs. being a regular employee? What disadvantages do you see? How do you calculate pricing? How do you get started?

Thanks.

POPEYE

To quote another poster recently, "WHAT HAVE YOU BEEN SMOKING?"

I'm sure you have not looked into all of the legal ramifications not to mention the Governmental red-tape to get a business started nor the fact that each of these clients will be wanting more and more of your time and then you will have to hire an assistant so you will have to start paying UI and WC and.........then when you really think you are going good, company A decides you have helped them so much and they have picked up all the processes necessary to perform the tasks that they no longer need your services and you spend weeks and weeks looking for another client so you can make that house payment and have beans and taters on the table... and...I could go on for hours.

That is probably the longest sentence ever written and if you really want to know how I feel about your question, ask me!!!!!

EAT MORE SPINACH

mwild31

Our CEO belongs to a round table - when members have HR questions - he refers them to me & I help direct them. (All of the businesses have 120 employees or fewer.) I've thought about doing some work on my own, but what always stops me (and maybe I just need to do more research) are the liability issues & the marketing expense. Good luck if you decide to step out. x:-)

marc

I have hung up a shingle a couple of times between jobs. Going out on your own is a whole nuther type of committment. From the little I could gather from your post, your third client puts you in at least a 5 day a week job. You are now fully employed. Even though you did not come right out and say it, I gather you are an employee of the the first two companies. They are carrying your workers comp, paying 1/2 of your FICA and Medi taxes, giving you a fully paid for work station, etc, etc. Do you get group health through one of them?

Now think about what you would change about this scenario. If you wanted the first two companies to break even - your hourly charge rate could only be higher by the amount of payroll taxes, workers comp, and other EE benefits you currently receive. If you charge them more, you are in danger of them going out to get an employee at a cheaper rate.

If you really want to grow your business, you can see that your availability is already maxed out, so growth means hiring and managing employees that you can charge out at a higher rate than you pay them. Then convining existing clients to let them do the work you are currently doing. So now you are training and managing an EE, with all the costs and administrative burden which you know so well from your current work.

Now it is time to get some more clients and perhaps more employees so you must begin to market yourself. How will you do that? Chamber of commerce, SHRM meetings, advertising in the paper and other local publications, perhaps an internet site. Are you working out of your home? How about a business computer and software, an internet connection and at least a cell phone - oh yeah, letterhead and all the office accoutrements.

Who will answer the phone when you are meeting with client EEs? Ok, so voice mail will probably work for that.

Looks to me like you will spend a portion of each week administering and marketing your company. Expect to work at your clients and managing your EEs during the day and marketing your company at breakfast meetings in the morning and rubber chicken dinners at night. Oh yeah, and that is when you will do your bookkeeping, tax reporting and correspondence.

It can be a great idea, but think about what you really want to achieve. Sure, you can start to write of your car, because now your commuting expenses will be deductable business expenses and you can write off your health insurance.

Lots of headaches with this, but it can be fun and rewarding if you are ready to work at it.