Business costs

[Ponty Massive]

The bank balance is looking a bit low (especially after Chritmas) so this week I decided to work out what my business running costs are. After taking into account, scam membership, PL insurance, van finance tax insurance and servicing, meter calibration, diesel, publications, certification and not even bothering with stuff like new tools, stationary, workware etc.. I couldn't believe how expensive it was.

I've worked out it cost me somewhere in the region of £680 a MONTH just to trade.

I'm just a one man band and actually run my electrical business as a second employment.

Have any of you sat down and worked out your running costs and if so, are my figures way off the mark??

 

[netblindpaul]

Probably half of what mine are.

 

[Ponty Massive]

Probably half of what mine are.

I don't feel so bad now......

 

[topquark]

Your costs are what they are Ponty. The only thing you can do is shop around for those fixed costs that can be found cheaper (insurances, fuel, accountancy charges). The variable ones (fuel etc) will depend on the amount of work you do. So as long as you're setting your rates accordingly it should work out. Worth having a free session with a couple of accountants and see what you can get those costs down to.

 

[Ponty Massive]

At the moment I've been doing all book keeping and returns myself. I don't seem to earn anywhere near enough to justify an accountant.

 

[netblindpaul]

My unit is half of your overheads Ponty, on top of that van, insurances, etc. etc.
Plus I have to have insurances that perhaps many "normal" sparks don't because I do stuff that "normal" sparks don't!

 

[topquark]

My unit is half of your overheads Ponty, on top of that van, insurances, etc. etc.
Plus I have to have insurances that perhaps many "normal" sparks don't because I do stuff that "normal" sparks don't!

You joining the abnormal members Paul?

 

[netblindpaul]

top,
I'm definitely ABNORMAL!

 

[Ponty Massive]

My unit is half of your overheads Ponty, on top of that van, insurances, etc. etc.
Plus I have to have insurances that perhaps many "normal" sparks don't because I do stuff that "normal" sparks don't!

But I'm also guessing there your not a sole trader??

 

[topquark]

top,
I'm definitely ABNORMAL!

Glad to hear it, I wouldn't be any other way

 

[topquark]

The running costs aren't much more for Ltd, versus Partnership or Sole Trader.

 

[Ponty Massive]

I used to have a LTD company, many moons ago and employed quite a few sparks. My costs then where a lot higher but obviously so due to overheads and size of turn over.

It's just annoying that by being honest and above board costs so much. The local cowboy with no scam or insurance etc who will put a few extra sockets in, don't worry about your bonding or protection love, cash will do nicely, seem to get away with things when your honest traders are loosing out.


Went to price a job a few days back, guy wanted power to a garage at the bottom of his garden. House had old 3036 board with no bonding or RCD etc, I gave a price to do the lot. Got a call a few days later saying not to worry, his mate was doing it for him who new a bit about electrics!!!

Anyway, thats a rant for a different thread...........

 

[netblindpaul]

Ponty,
No I'm not a sole trader I have a Ltd Co. with 1 employee, me.


Top,
I get up to all sorts of stuff that most sparks walk away from.
I have a conveyor belt to fit as soon as possible in the New Year, but it means taking the conveyor out of the machine, stripping the mechanical drive at one end, and the pneumatic edge following system the other.
I also have some stripped threads to sort in the slide of a machine tool.
I have a PIR on an industrial complex with a 1600A ACB as the main switch/DNO "fuse".
2 industrial installs to complete.
An LEV system to replace the starter on.
An LEV COSHH test (hopefully).
4 machines to undertake PUWER98 assessments & reports on.
5 machines to undertake PUWER98 upgrades to on my advice.
A Local Authority Workshop to do a H&S audit and report on for PUWER98 compliance, then quote & hopefully do.
Another Public Sector workshop to quote PUWER98 machine upgrades to, the PO will follow I have already been told.
I also have an LEV job at another Public Sector workshop.
A have a mobile crane to look at with a bus control system, client has an issue that they have had 6 people in to find and have failed.
Oh, and 5 domestic wiring jobs as well.
Probably more odd ball stuff I can't think of too.
However, I did get my clients pollution control system up and running before Xmas after fixing the control card, so they have had a stress free break!
So as you can see not normal sparkying!!!

 

[Ponty Massive]

......now I understand the need for your unit !!!!!!

Top man.

 

[topquark]

Absolutely no chance of getting bored with the job though Paul

It's good to have a variety of types of work.