Business loan to start up?

[slocm3105]

Hey guys looking for a bit of advice. I'm really fed up of working for people who overprice jobs for people and expect hrs overpocednjobs to be done cheaply and quickly and not always to the regs. I refuse to break the regs so always do the job proper and let the company take the hit. Try can't argue as I do it right everytime.

Because of this I want to go it alone. I'm wondering if getting a business loan to help start up is a good idea and starting the company up whilst still employed until work picks up or I get caught out and sacked!

Any advice would be appreciated. I have all hand tools and an sds drill, drill bits etc but no van or other power tools.

Cheers

 

[Dunc]

If you can scrape together a couple of grand i would say that would get you most of the extra gear you need to go it alone. Bank loans are not a good idea in my opinion unless you can guarantee getting enough work in to cover it. I thought long and hard before taking out a loan last year for a new van despite being relatively safe in the knowledge that i had plenty of work in the pipeline. I wouldn't bother with a van initially if you've got a car you can use. I spent one Christmas using a Golf to do jobs as i didn't dare take my van out on the icy roads with all the weight i usually carry. I would suggest you need the following though:

Multifunction tester, cordless drill, steps, some push rods and maybe a circular saw or Fein Multimaster. These are the bits that i use most. Set yourself up a trade account and if you're proactive with your paperwork you should be able to get the money in from your customers before you have to give it to your suppliers.

 

[IQ Electrical]

List your costs and be accurate ie:

Test meter (s)
Scheme membership
Website
Vehicle (lease if cash is tight)
Signwriting
Advertising
Working Capital

There will be a few that I've missed but you get the idea.

See what funds you can lay your hands on and calculate what the shortfall is.

Normally an overdraft is a far more flexible way of starting and you may find that you never need to use it whereas you've already paid the dreaded 'arrangement fee' on any agreed loans.

 

[SirKit Breaker]

If you go down the loan route, you will need business plans, and all the other crap that goes with it, and there is loads. Some good advice from Dunc and IQ. There is nothing to stop you doing a bit yourself whilst still employed. Remember, they only employ you, they don't own you. What you do when you are not at work is none of their business unless it affects them.

Cheers.......Howard

 

[the pict]

Well banks despite what the "we are for britain" tories would have you believe banks are a complete waste of your time and effort my best advice is talk to your local credit union, you may have to save with them for a while, but hey it's still your cash at the end of the day. I stated out with not much more that my leaving pay,but if your serious start talking now to prospective clients but and it's big but do not poach work let it be known you are starting up, down the pub, corner shop where you get your morning paper, where your wife gets her hair do the list is endless, as to tools well you know what you need and there is always ebay. dont go made spending money and it will get tough but then again if it was easy etc etc. and vista print do a couple of hundred cards for free postage only
Pict

 

[slocm3105]

Cheers guys, basically urbaaying try pay for it myself? I shoal be able to fund a lot of my equipment from private jobs whilst employed. And what's vista print?

 

[Dunc]

Cheers guys, basically urbaaying try pay for it myself? I shoal be able to fund a lot of my equipment from private jobs whilst employed. And what's vista print?

Cheap business card people. Find them online here.

 

[slocm3105]

The free ones look ok, plain one should be sound

 

[Jazza]

another way to get funding is through a credit card, better if you still working as less risk of not meeting the payments. get interest free on all purchases 12 month one that will be a way to get some tools. and dont go for brand new tools, just tools that can get the job done. cheapies, dont need the latest of everything.

 

[slocm3105]

Think I'll have a mosey on eBay for some stuff

 

[ASHCOLE]

If you are under 30 you can get a grant from the princess trust. I got £2000. Didnt go far though after joining napit and buying my test equipment etc, but it helps.

 

[ASHCOLE]

And be carefull buying power tools off ebay, i'd only buy new tools now. Bought a 28v milwaukee sds, mint condition but the lithium bstterys run down so fast even though they light up fully. They are knackered and cost more than the drill to replace , just be careful buying 2nd hand.

 

[slocm3105]

I'm only 23 so princes trust sounds good to me . How do I apply for grant?

 

[slocm3105]

The problem I have is I'm working full time, have two kids and a mrs to support and because unworkable full time no grants are available, what a load of rubbish!!

 

[micman]

hi mate im doing the same as you at the moment work as a full time sparks but the best way to get started in my opinion is to get your self certs in place with your insurances which cost me £30 a month, start adverising under a name your company wont contect you to and work as many weekends as possible to build a client base and profit, which will give you all the cash you need for new tools,van ect then when you know your have enough work then set out on your own but beware competition is though, I sticking with my full time job until the work picks up good luck