I have a project from Client to implement ERP software(starting project of worth 450K$, and may get similar 2 or 3 more projects), I do not have any company for now and is doing a regular software job(earning ok but steady). Now following are the options I am thinking of -
Which of it you think sounds more feasible to you ?
Thanks in advance!
Getting Started Business Model Business
It depends on what you want to do long term.
If your not that interested in starting your own business then just do 3 but negotiate your fee before introduction and not afterwards.
If you want to start a business and build it up over the next 5-10 years then I would start with option 2 but modify it slightly.
You can be the brand name that subcontracts most of the work to a few local companies. Your brands job would be to find new work (marketing and sales) and possibly charge for project management and account management functions, being the middle man that can smooth issues over with both parties.
You don't need to hide the subcontractors if you get their agreement and your contracts sorted out, you just become the brand clients come to in order to ensure the job gets done. We have this style of arrangement with various companies from time to time and it usually works out pretty well.
Over time as you find experts you could look at taking on option 1 but if your good at what I've said above then your risk may be lower if you just stick to option 2 because you have no staff to worry about and if you get the contracts right you can offset your risk between the client and the implementation crew.
In my opinion #3 would be the best choice.
Option 1 is too dangerous, you don't have such knowledge. There is less chance of project success. And you may risk the loss or claim if project fails.
Option 2 is not so possible. ERP need heavy involves with client. You can hardly hide it, and you risk losing trust if client found it.
Option 3 would be the best. Honest. Little risk. Still earning right cut. More trust and more friends.
@Robin: Sorry I messed with my logins so posting here,
Thanks, I am convinced that your suggestion makes more sense, given lack of my expertise and capacity, also it keeps things more transparent and lesser work for me( though lesser cut too),
My understanding and few questions are :
Am I missing any steps, Do I need to know anything more ? Is there anything more to my role, also I am planning to add one more partner to help me execute this. Does our role here requires us to quit our current jobs and completely monitor this from start to end
Thanks once again for your helpful comments.