Job Offer - what's your opinion?

[Michelle Widell]

I did network consulting work for a company where I had been for the past 6 years. They decided to downsize, and I lost my job yesterday.



I have quite a few clients who are upset by this, and received calls from several looking to give me "afterhours work". One of my former clients made me a business offer, as they said that the only reason they stayed with my employer was because of me. (Hey, that makes me feel good, despite the circumstances..)



They are a small business, about 10 people who use computers, so they don't need a full-time IT person. The owner offered that they pay me a modest salary, provide me an office, cover all the overhead, and I can support their network, as well as do consulting work. He'd setup a seperate company and share in the profit, of course. We had a very brief discussion about this. I'm going to meet with him again soon.



In this situation, I'd be my own salesperson - selling my services, as well as be the tech. I'm a little hesitant about the "own salesperson" thing - but I have friends that tell me that I am not having faith in myself.



Anyone ever had experience with a situation like this?



Thanks,

Michelle

unemployed computer bum

 

[Wes Davis]

Take the chance and go for it. It sounds like you may already have a small client base that likes and trust you. The only thing to watch out for is the deal (share in the profit) with this guy who is setting you up. Just be cautious and consider everything very carefully.

 

[TomT]

Sounds like a great opportunity to me. Seems like most large companies are contracting out their IT work these days. I know several IT people that have lost their jobs like you did and are now contracting out their services. Plenty of work out there for people in your profession. Just no full time jobs. The only downside is they don't receive any benefits.

 

[Deleted deleted]

Like mentioned above, carefully review his contract for his 'share' of the profits. You are the 'brains' of the operation, and are in the bargaining seat to command the lionshare of the profits.

 

[John Mastrocco]

I would think the person paying the bills is actually in a better bargaining position. In this case, though, the guy sounds like he's trying to get the same service at a cut rate price. AND he gets to double dip, so to speak, by having his company pay for services from another company in which he owns a percentage.



Personally I think the deal sounds like a better one for him than for you.



You might make a counter offer to continue servicing his account for a set fee. Check your area for the going rates for computer networking consultant and see if it would be a better deal for you charging him 75-80% of the lowest rate he could get elsewhere. All your costs really need to be is for a second phone line, possibly a fax line and some legal fees to set yourself up as an LLC (Limited Liability Corporation.)

 

[23Ballistic randyvanaken]

Do it.. Set up with a few customers who need the same, build some cliental. Only show them the necessities.. that way your always needed..

 

[Thomas Rogers]

I wouldn't do it. Sounds like indentured servitude, and having multiple masters/bosses. If I understand it correctly, your friend is going to start the company, pay you a salary for PT work, allow you to work through his company to service other clients, etc.



I ask, "what do you need him for?"



Why not setup your own company and just have him as a client. That way there are a lot less strings attached, you are your own boss, and you don't have an issue with if things sour with this guy down the road, as its your company and he is just a client.



Hopefully you can present it to him that his offer is great, but you have always been thinking of starting your own company and now is the time, and you would appreciate him as a valued, core client.



I too was laid off (first/last time) in 2002, and at that time I incorporated, opened my own IT Consulting business, and worked at that FT for all of 2002 and PT ever since. I could actually make more, this year, in that business PT as I do in my 40hr/wk FT salaried job.



Oh, and as far as rates...make sure to charge a premium AND be worth it. There is nothing but hurt trying to be the low-cost guy (or gal).



TJR

 

[ReggieMRegalOne05 Legaspi]

Michelle,

With your proven skills, your best move should be visit the nearest Small Business Administration Office and establish your own outfit for consulring and contracting IT services. Your clientele is out there already. With todays technology, you are never far away from your office, which for now , could be your garage, den, or the dining table. Wishing you GOOD LUCK! and praying for your success.

 

[Rodger Tellefson]

I tend to agree with Scott. Since you have the talent, and somewhat of the client base start a business out of your home. Ask your existing clients for referrals, and I bet you'll be surprised that you'll have more than enought work.

 

[Michelle Widell]

Thanks for all the GREAT responses... gives me alot to think about. The company I worked for charged between $85-$130/hr. The more hours you bought up-front, the lower the rate you received.



I appreciate everyone's input! I am going to meet with the client who offered me the opportunity and talk more about that. That way I can have a better idea of what I should do.

 

[Gavin Allan]

Don't sign any non-compete contracts that strangle your later employment prospects!



Good luck!

 

[Alan Peters]

i was in your shoes last year. I'm a network consultant in the health care and telemarketing here. I lost my job but received atleast 7 job offers from previous companies. I opened a small firm on my own. Is hard and depressing work. But once your feet are wet and establish a client base, It just like working for the little man but your the biggest now.

 

[Robert Barker]

TOTALLY agree with Roger!!!



Trac N Tennessee

 

[Gerald Pierce]

I think I would continue to provide him service..... from your home/cell phone. If they start providing all the facilities, like others said, they may think they own ya, and it may be hard to leave. Work from home and you kill the overhead, list your cell as the contact number and go into business for yourself, with them as your prime income untill you get better estabilished.



Good Luck! We have faith in ya......

 

[Robert Cuenca]

Michelle,



from what i understood, they want to setup a business with you, in essence making themselves a partner.



i wouldnt go that route. if anything offer work as a 1099 subcontractor and bill them on an hourly basis for their work, just like you did at your former job in exchange for using their office as a base to run your business.



im not too comfortable with starting and running a business for somone where i am just a salaried employee...

 

[Kevin Palmer]

My 2 cents.



It is clear you have the skills. What you need to decide is how hard you want, or need, to work....



If you work for him your going to get a paycheck. With that paycheck you will cover your normal bills just like you do (did) now.



If you are not comfortable with the chance of not getting money for a little bit while you get your feet planted then you need to work for someone else until such time you have enough trust in your self to make the move to go it alone.



Alone, there will be a very specific amount of either clients or cash coming in for you to be safe or comfortable paying bills and going on with day to day life.



With the partner, as I read it, you will get a paycheck that will not change every week. It is a number you have agreed upon. You "may"???? also bring in additional income for the both of you...



I think alone is the better long term answer. It is just a matter of how you feel about your self and how soon you will need money.



What I know of you, you are pretty confident. That is a big part of what you need to make the move to go it alone.



Best of luck to you.

 

[Richard L]

Michelle,

As a former self-employed consultant I can tell you that working alone has many benefits and many negatives.



The big problem is that it's a "Feast or Famine" existance. At times you will beg for work, and then you will be swampped with work that you could not possibly do alone. Occasionally you can convince them to wait until your calendar is clear, and other times you can't.

Keep in mind that I am retired military and get a monthly pension which helps me level out the peaks and valleys.



Travel can also be a big problem. When I worked for a consulting firm, they billed the customers for all travel expenses but I did not get paid while traveling. I only got paid for billable hours. On one trip to Washington state I left home on Sunday morning and returned on Saturday night. I put in about 42 hours of work on-site, however I spend about 20 hours traveling where I was not paid. All of this was before 9/11/2001 so now you have to arrive at the airport even earlier! The great salary did not seem so great when you spent half your time behind the wheel of a car, or sitting in an airplane, or an airport!



Travel is not a problem with local clients however if you live in a smaller town you are limiting your clients. When times are tuff, you will negotiate lower rates for the client to get the work, or to get your foot in the door so they can see how good really are.



I eventually went to work for one of my local clients but it was on a full time basis, with full salary and benefits.



...Rich

 

[Gene Zenk]

Sounds like a lot of IT geeks here (myself included).... I would go for it alone unless you can assure yourself that you retain most (if not all) of the money generated from your work.



Our clients prepay hours from $90-$130 per hour. The low rate is for prepaying 20+ hours and the high rate is for 'on-demand' time. However there is talk of bumping that up a bit.



Our department is a staff of 3 and we also have a client with probably 100 employees and 60-70 workstations, servers, etc. They pay us a yearly retainer fee somewhere around $35,000 which includes basically unlimited phone support. If we have to make an onsite trip (which seems to happen at least once or twice a week), they are billed mileage, travel time, and around $80 per hour of onsite time. Any new projects (ie: new servers, services, etc) are billed in addition to the retainer. I believe the contract specifies that after-hours time is billed at a higher rate as well - this allows us to provide 24x7 support but since the after-hours rate is higher and not covered by the retainer, it prevents calls at midnight about 'Weatherbug not working' yet still gives them an option if something urgent/important arises.



So, don't limit yourself to just an hourly rate either. There are options that if they do the math is still cheaper than hiring a full time IT person. In this case, they are basically getting 3 IT people so they are not hung out to dry if something happens while the IT guy is on vacation, sick, etc.



You can also 'partner yourself' with some third party companies like First Backup (www.firstbackup.com), Managed Work Place (www.levelplatforms.com) to provide additional services for fairly low cost. Things like this helps add value to the services that you provide as well as gets your services more ingrained into their environment. Products and services like these do all the work - you just need to get them installed (with an upfront fee) and then maintain the recurring billing. They don't want to deal directly with the client and you have a very low investment in providing services like this.



If a potential client already has an IT person or staff, you can also market yourself as Tier 2 or Tier 3 support. Then you would be augmenting the existing IT staff which would reduce the feeling that you are taking over their job.



It would be difficult for me to retain the same client base as we have non-compete agreements that are in effect for 2 years after employment ends. So you might need to check and see if there is a non-compete agreement that applies to you from your previous employer.



From my experience, IT consultants don't need to know how to actually do much, they just need to know where to look when they need help or find info. But it sounds like you do have quite a bit of experience and knowledge so you should do well.



I wish you the best. The worst part is taking that first step.....

 

[Michelle Widell]

Thanks everyone for their input - I think I don't want to continue the consulting route -at all-. I've done it for the past 6 years (I worked for a consulting firm - I wasn't a contracted employee), and I'm a bit burned out. I've considered looking for work at the other consulting businesses in town, but I think it's time to focus myself at a single employer - have my own desk, a place to call "home", and a place where I can deal with the same dumb computer users all day long - hahah. If I wasn't a single mom who just bought a house, and was married and felt more secure with another dependable income in the house, I may take the chance. But, I have responsibilities and need the dependable cash flow.



I've made alot of business connections, and several have offered themselves as a reference. The client who offered me office space wants me to continue supporting their network remotely and after hours. I'll do that.. heck why not? They're right down the street from where I live, and I have a key to the place.



I'm going to focus on finding a full-time network engineer position. I just feel like now I've overqualified myself with everything I have done through my previous employer over the past 6 years. I've setup what seems like a hundred servers, routers, firewalls, and tooooo many desktops. I want to become the master of something and not just the jack of all trades. The aggravating thing is it seems there are alot of companies who want entry-level people who only have a couple years experience - cheap labor...

 

[Richard L]

Michelle,

I understand you postion completely! I to got laid off a few months ago and find the job hunting difficult. Like you said, I find employers are wanting to hire entry level people with 3-5 years experience. Is it just me, but I thought "Entry Level" meant "school trained but no experience"??



The problem appears to be the fact that most IT people only stay at one employer for average of 3 years or less. I think employers prefer that. If they hire someone on the far side of 40 they feel that person will want to stay and retire, and heaven forbid, will collect a pension! It's better to hire fresh yougsters every 3 years or so, and if they look like they may want to stay longer and might want a pay raise, they lay them off and hire more fresh youngsters.



...Rich