"Portage salarial or umbrella companies": risk free entrepreneurship*

The next session I attended at the "Salon de la Micro-Entreprise" in Paris on October 9th was sponsored by Freelance.com, a portage company which basically offers to employ people who aspire to create their own business, but are not quite ready to do it on their own.

Main services provided by "Portage companies":

• Employee status, with public and private health insurance and means of contributing to a pension scheme.


• Compensation is based on business contracts that the employee-entrepreneur lands, which corresponds to a net pay of about 50% of contract money (after deduction of the portage company charges (10%) and the health insurance and pension deduction (40%). Please note that the net pay is before tax, as in France, tax are due one year after income was earned.
• Professional insurance and judiciary protection
• Invoicing and accounting services
• Network of entrepreneurs and potential clients
• Portage seems to be an appealing proposition to intellectual workers who would like to start a business of their own, test a new idea, product or service, while minimizing risks. They are still considered as employees, which in France, ensures maximum protection in case their business is not as successuf as anticipated.

From what I've seen the main domains of application are strategy, human resources, training and information services.

What's in it for potential clients?

Well, companies looking to offer them one-off missions that require specific skills, can do so with the assurance that they will get a highly qualified consultant, backed by the portage companies' reputation, at a very competitive cost.

Alternatives for them would be to 1) hire a person either temporarilly or permanently with all the overhead of the recruiting process or 2) call upon a temp company (of the like of Manpower) at a high cost.

Who are these "umbrella companies" in France?

There were a number of portage companies present at the "salon", in addition to Freelance .com (formerly portage.com and Valor Consultants). Others present were:

• Access Etoile
• Acefas
• Adequalliance
• Altorem Group
• Calleo (200 consultants)
• Executive Euro Management (Belgium, France, Germany, Luxembourg, United Kingdom)
• Groupe AVS (3000 consultants)
• ITG (2600 consultants)
• Jam (1000 consultants)
• Links Conseil (1000 consultants)

Public services (part of Départments' Chambers of Commerce and Industry) also offer structures to host and help would be consultants. It's very well worth checking with your local administration, if you live in France.

What personal insights did I gain from this presentation?

The formula looks vey appealing to rapidly gain knowledge about how consultants operate and to help get a network of people (competitors and potential client). It seems like a good way to validate a project and speed up getting to a profitable situation. So my plan is to investigate further by contacting several of these companies, probably towards beginning of next year.

* I could not find a suitable translation for the French expression "portage salarial". I'd appreciate any clue... Update: thanks for the tip. I'll adopt "umbrella company" as a translation.

"Salon de la Micro-Entreprise" Paris - Oct 9th - Day 1

The "salon" was pack full of company stands and featured a good number of conferences that were to the point and very stimulating.

The day started with a talk by Catherine Pompei on "Consulting: how to develop a successful business", based on the book she co-wrote "Consultants: how to land your first contracts". According to Catherine, there are 3 type of consulting missions:

• Expertise
• Those requiring a specific domain know how
• Outsourced resource, which independent consultant rarely take

I found this classification useful as it made me realise that I aspire to be an expert consultant. My expertise is in social network analysis and business analysis to help companies fully leverage the potential of the tacit knowlede they don't know they have.

The other re-inforcing thought that I got from her talk was that success lies in how a consultant nurtures their network and particularly their clients. A successful consultant gives first with no propect of immediate return. It is a great way to establish a genuine atmosphere of cooperation and trust. In fact, it is a way of life. You cannot fake it. You have to feel the imperative of acting in such a way for your own well being.

Finally, Catherine had a nice image to emphasize two essential qualities of a successful consultant: a consultant has to embrace the strategy of the elephant's toe allied with the agility of the kangooroo. The meaning of this is that it's best to establish commercial relationships with a client in measured steps, so that the commitment does not seems too important upfront that it would trigger a negative response. At the same time, flexibility and adaptability are paramount to ensure that the consultant's contribution will fullfill the client's expectations in the best way.

I bought Ms Pompei's book so I could get a deeper understanding of the steps that I need to take to land my first contract.

I attended a couple more conferences that day that I will describe later.