Thinking of becoming an Interim Manager?
Taking the step away from permanent paid employment can be daunting and is not for everyone. Many people prefer the security of working within a corporate environment. However, working as an Interim Manager can be seen as a full time profession and has many benefits such as choosing where and when you work and having direct control of your earnings
Before you take the step into Interim Management here are a few things for you to consider:
- Flexibility of working for yourself – be your own boss!
- New challenges – a new assignment brings new people, organisations, issues and solutions.
- Not an employee – you can distance yourself from office politics.
- Core strengths – you focus on your core capabilities, basically doing what you do best.
- Getting the job done – generally you go in to perform a specific task or project. As an Interim Manager you have the ability to go in, make recommendations and then fulfill.
- Daily rates compensate for not working full time.
- A constant flow of assignments is not guaranteed therefore you need to be prepared for gaps in both activity and income flow.
- No benefits – as you are not an employee you need to make arrangements to cover yourself for sick pay or holiday pay.
You will also have to decide what type of relationship you wish to have with Hamilton Rich. This can be either:
Hamilton Rich Employee: Hamilton Rich employs you on a casual basis for the duration of an assignment and pays you a salary plus superannuation guarantee contributions to your nominated superannuation fund.
Hamilton Rich Contractor: You establish and operate as a business that is registered with ASIC, ATO and are engaged by Hamilton Rich for a daily fee plus GST.
We recommend that you seek professional advice from people such as your financial advisor, accountant or other business advisor before making your decision.
Hamilton Rich Contractor
If you choose to follow the Contractor path, your first step is setting yourself up as a business. There are several types of business structures:
- Partnership / Limited Partnership
- Pty Ltd company
- Incorporated association
Generally Interim Managers are either Sole Traders or Pty Ltd companies however when making the decision of what type of business structure is best for you, you need to consider several things:
- Your tax position;
- establishment fees and maintenance costs;
- asset protection;
- type of business.
As your business changes or grows you will be able to change the type of business structure.
Setting up a business is relatively quick, easy and inexpensive however before deciding we strongly recommended you seek advice from your Accountant or Financial Advisor.
Once you have set up your business structure you will need to organise insurance. There are a number of insurances you should consider according to your business structure and the risks involved. They include:
- Workers Compensation Insurance: This is required by law to cover all employees including yourself.
- Public Liability Insurance: This protects you from damages claims such as physical injury or property damage that may result from your business activities. It is generally a requirement of most contracts.
- Professional Indemnity Insurance: This is usually a risk based insurance to protect you from claims by a client that their business has been hurt by bad advice or negligence in delivery of services.
- Business Continuity Insurance: This type of insurance is usually only required where your business activity is disrupted as a result of some event such as a fire in a production facility or collapse of a computer system.
- Income Protection Insurance: This is a personal insurance that protects the insured from loss of income as a result of illness or injury that prevents them from working.
We recommend that all Interim Managers seek professional advise on their insurance needs either through their financial advisor, accountant or an insurance broker. A great place to start is on the web – try a Google search.
Having your own company brings the responsibility of organising invoices, collecting payment and paying bills. Make sure you keep proper records, comply with regulations and make the necessary returns. Once again, there is nothing to beat professional advice such as that of your Accountant. The Australian Tax Office website (www.ato.gov.au) has some very helpful advice and tools to help small business also.
If you would like to find out more about becoming an Interim Manager please telephone us on 02 9233 4665. Alternatively if you wish to register as an Interim Manager please refer to our contact page.