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Contractor book forecast.Where is your book heading?
Enter your contractors on assignment, what they make you each week, and how assignments run. See your weekly gross profit over the next year, and the new starts it takes to keep the book growing.
Your book today
How assignments run
Each extension runs as long again
From £5,000 today, with about 16.5 contractors on assignment by then.
Your book shrinks. It takes 2 new starts a month to hold it at 20 contractors; at your current rate it settles around 15.
| Gross profit over 52 weeks | £232,201 |
|---|---|
| Annual run rate today | £260,000 |
| Average time on assignment | 43.3 weeks |
How the forecast is worked out.
The average contractor stays on assignment for assignment length ÷ (1 − extension rate) weeks. With 26-week assignments and 40% extended, that’s about 43 weeks.
Each week, one in that many of the contractors on assignment finishes, and new starts join at your monthly rate spread across the weeks. Weekly gross profit is the number on assignment × gross profit per contractor.
Starts to hold the book is how many new starts a month replace the contractors finishing.Settles around is the size the book heads towards over time at your current rate of starts.
The forecast assumes average behaviour across the book. A few large assignments ending together will make the real line lumpier.
What is a contractor book?
It’s the contractors and temps you currently have on assignment, and the gross profit they make you each week. Because assignments end, the book shrinks unless new starts and extensions replace them, so the starts you need each month are one of the most important numbers on a contract desk.
How are assignment ends and extensions modelled?
Each assignment runs for the average length and is extended for the same length again with the probability you set, so the average contractor stays on assignment for length ÷ (1 − extension rate). Ends are spread evenly across the book rather than bunched on particular dates.
What is the annual run rate?
Today’s weekly gross profit × 52: what the book would make in a year if it stayed exactly as it is. It’s a quick way to compare desks, but the forecast is a better guide because it allows for contractors finishing.
How can I grow a contract book faster?
Raise extensions by talking to clients well before assignments end, line up each contractor’s next assignment before the current one finishes, and keep enough new starts coming in. The calculator shows the starts a month needed just to stand still, so you can set targets above it.
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