starting a consulting/placement business
Posted on 2003-10-29
Not sure if this is the correct forum, but
If I want to start an IT placement or consulting firm, and I have leads on contracts.... How can I determine if a contract is worth bidding on?
Most local firms have rates higher than mine (about 25% higher).
I would pay about 80%+ to the subcontractor doing the work (I wouldn't mind making 3-10k per contract).
Oversight would be minimal because the sub would be placed in yearly renewable contract.
Do you think this business model is worth it?
Sub contract extremely knowledgable people and pay them most of the money.
What rate should I pay subcontractors should I win contracts?
If this business model is viable, then why aren't more people doing it?
I wouldn't get rich, but I could build a decent business (and build a great reputation based upon 1.expertise 2.low contract rate).
Most firms charge more money (25% more than my rates).
Most firms pay people significantly less.
I would only focus on getting high or extremely high quality people.