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Cutting out the middle man
yanSi
I've worked in situations where I have to be incorporated and get my contract through a recruiting firm to work for the end client.
client -> recruiter's corporation -> my own corporation -> myself
My own corporation was really not doing much more than to show that I'm not an employee of the recruiting firm or the client. So I'm wondering what it would take to allow my own corporation to respond to RFPs directly and cut out the middle man. Do clients in the private sector typically require that the firms they deal with carry certain types of insurance and have a certain number of employees?
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Comments
nipper
Depends on the client. Some I have worked with have been happy to deal directly with me. However the terms are purely up to the company you work for and you have to sign their paper. Many body shops pay in a week or 2, while a typical corporation pays net 60 or net 90. So cash flow can be an issue.
Insurance will be required, typically $5M.
Also, at some corporations, no matter what, you may have to go through their approved vendors.
yanSi
I noticed a lot of body shops are just simple one man shows so let me go over what I know so far that is required to start you own recruiting firm:
1. Resourcing-in the simpliest case, you're representing yourself, no problems here.
2. Sales-you definitely need contacts for the private sector companies, but if you're starting out, it's probably better to focus on government contracts since they have to be competitive and advertised to the public.
3. Proposal Response-just fill in a matrix matching your skills to the requriements
4. insurance-get some business insurance from StateFarm
5. accountant-get an accountant at $500 to $1500 per year
Have I missed anything here? Are any of you aware of any recruiting societies that you have to pay duties to? Would anyone recommend any books on this subject?