Currently, I'm an independent contractor that provides consulting services to third-party companies and help them manage projects with large budgets. I am looking to transition into a full-service consulting business where my company will internally take on the large project budgets as those that I consult for, essentially growing from an individual salary to processing the entire project budget overnight. How should I prepare to navigate the gap to set up my company team/finances to properly handle the accounting and cash flow of these projects when most end-clients deal on net 30 or 60 terms. The lifespan of the project is 8-10 months and cannot float the millions required in the interim. I want to tell my client I can take on the entire project, but not sure how to plan for this.
I'd likely start by doing competitive analysis + finding your competitors.
Then pitch your competitors to partner with them.
BTW, Net 30-60 is crazy, to me. In fact, Net anything is crazy.
Our agency starts with a $1000 retainer + then we bill weekly. If any client slow pays, they go on 100% retainer basis.
Anyone how has to pay on Net... geez... I won't take. There are just to many people who fast pay.
If you go long Net terms + company dies or sells or loses interest in paying, your out your money.
I just won't even consider a client who required long Net pays.
Net on Monday for last 7 days work is how I go.
Most people pay monthly or weekly base cost + overages which add hours outside their plans.
Answered 6 years ago
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