What might you do in this situation...?

You want my clients ;)

[madcat]

I've been working as contractor for a buddy's company for a couple of years. It turns out that his company is going to merge with another company and they are going to drop the Web design aspect from their list of services.

The owner of the company would be happy to let me have all of the sites and do whatever I want with them.

As the contractor, I'm not fully prepared to take on the responsibility of maintaining and looking after these sites on my own. I'm not a company. I'm concerned about no longer having any of the protections the company provided.

I'm not sure where to start exactly. What are some options I have in the situation? How do you break up with a client?

Any suggestions or ideas would be great! Thanks~

[Shane]

You may be missing out on a great opportunity.

As the contractor, I'm not fully prepared to take on the responsibility of maintaining and looking after these sites on my own. I'm not a company. I'm concerned about no longer having any of the protections the company provided.

You can form a company.

You can get the protection of having a company.

You can get the revenue!

I would need more information, like what sort of revenue is being produced and why they are leaving that area of the business.

You might be able to lower the expenses by lowering the overhead and so make more money. I would go to at least two accountants and have discussisons with them on the opportunity.

It sounds like a potentially great opportunity but again, have someone with good sound business sense take a look.

Let us know how it turns out.

..... Shane

[madcat]

I would need more information, like what sort of revenue is being produced and why they are leaving that area of the business.

Not enough revenue I'd imagine. I think it's a move to 'trim the fat'. Not much effort was exerted (financially or physically) for the Web design dept...so, there it go.

I've been knocking the idea of doing my own thing for some time now. I just got a job though, 5 days a week. How many projects can one guy take on with a full-time job. I suppose a few of you are running around out there with a job and business though...no?

[Shane]

Congratulations on getting a job!

How much can one person take on? It depends on what lifestyle you want to lead. Does the money tempt you to work more? Also, do you have a family or a relationship which puts demands on your time. (I have three children that I spend lots of time with, that is why only a small part-time business. I value the time with my children.)

In any set of clients there are the very profitable ones and the ones which make some money. Could you cull the very profitable ones and do 50% of the work for 80% of the money (no guys, pareto does not apply here :( ).

What ever you decide, keep us informed of your successes.

Cheers,
Shane

Owner edit, what a difference a letter here and there makes.

[madcat]

Right away, I don't think work will be too steady.

Do you think it would be worth it to form a company without consistent projects? Or would being set up as a contractor be the best bet- until more of a steady flow is happening (more risky projects)?

Are there any benefits in starting a company that I don't see right now? It seems I might pay more than I make at first.

[Shane]

The benefits of setting up a company in most countries, and I don't recall which one you are in, are lowering taxes and for minimizing risk through creating a separate legal entity.

If you expect little risk and the revenue is low, why set up a firm? But as always, you should speak with an accountant who is fluent in your countries laws.

Regards,
Shane