You may be reading this because you are considering a career in interim management in the UK Food and Drink sector and you are wondering ‘is it for me?’ And what do I need to think about if I am to consider a career in interim management?
You have probably been attracted by the allure of interim management and all the great stuff that comes with it, like being your own boss, lucrative daily rates and working on projects where you can hit the ground running and make an immediate impact on each assignment without getting drawn into the daily grind of politics. However, make sure you think about the other aspects that come with an interim career too – a lot of time away from home; managing the financial side of your business; securing your pipeline; networking; having to walk away from projects you have initiated and not seeing them through to completion.
Once you have decided to take the plunge, you then need to think about the following:-
It is worth speaking to a good accountant who can help you set up and register your company. It’s not as onerous as it sounds, whether you become a sole trader to start with, or a limited company, this process only take a few days. They can also advise and support you on the legal HMRC requirements, invoicing, insurance and IR35 requirements.
Networking and Marketing your Interim Business
How are you going to market and promote your business? Do you require a Website? How best can you use social media, particularly LinkedIn which is effective at raising your profile online in the industry and networking with former colleagues, to build your network and consequently your pipeline.
Interim Daily Rates
Daily rates you can command can vary depending on a range of factors - the level of expertise you have on offer; market rates/supply and demand; the duration of the assignment; the location of the assignment, etc. You must also take into account the hidden costs – the costs that you need to build in, which your employer typically used to cover, such as:-
- Company car / travel expenses
- Pension contributions
- Life assurance contributions
- Private Health contributions
- Employers National Insurance premium
- HMRC obligations, such as PAYE, Income tax and Employees NI - Business fees, such as accountancy fees and - professional indemnity insurance
Remember - No holiday pay and no sick pay !!
On top of your daily rate, you can charge expenses directly to the Client also. These are typically to cover your petrol expenses and accommodation costs.