Exeter Electricians Wages

[accordfire]

Good thanks. Been very busy for about the last 10 months so OK.

The way we all want it Glad you're busy

It's very much a case of chasing up everything you can at the moment I think.

 

[Alasdair82]

and that is exactly what I do not want my company to represent. Time-served sparks only on Job sites. I respect the trades and what people have to do to get their qualifications.

 

[Tesla1980]

And also some sparks like doing domestic and just want to work for themselves god knows why

 

[accordfire]

Hi Murdoch,

Yes I have budgeted for wages to employees, employers NI, pension contributions, holiday pay, 10 sick days a year and in the first year to only be productive 75% of the week to make sure that we will still break even.

You are right in the fact that it is a competitive market, that is why I am aiming to get as much information as possible. The aim is that the company can provide me with a good income after 5-7 years and that I can stop going offshore.

And contingencies for things like vans getting smashed up or stolen, employees leaving for no good reason half way through a job?

It's beyond competitive to be honest - especially in the residential market (which I presume is what you're going for in the main) - you're also fighting a willingness on the part of very many to have sub-standard work, and an attitude of "don't care - it works doesn't it?" - for us, enough not to want to touch residential at all.

You don't mention training costs, approvals and so forth. Specialist tools? All considerations - I'm sure you've made plans for it all, just that budget start up costs have a habit of ending up being about 50% of the reality of a first year.

£10-20k of advertising won't go very far either - unless your geography is very limited - 1/4 - 1/2 of that could easily go on SEO for a website alone. Advertising is probably something you should be commissioning now - not when you start. You can't get a website running too soon if you're going to rely on it at all, and want it "found" in Google.

I'm beginning to wonder - are you planning on launching with your partner only, or with guys too?

 

[worzol99]

at start-up I will not take any wages from the company for at least 2 years. I have a time served partner who is a minority shareholder at 30% who currently runs his own business so there is a small customer base already. The model is base don making a profit, but as long as the company breaks even to build a customer base this is not a problem. There will also be 10-20K going into advertising to bring in new customers.

Why would a minority shareholder give up his own customers for a smaller profit?

 

[accordfire]

It not all about the money. I have spent 12 years of my life with 60% of it away earning loads of cash. I enjoy building and construction work.I grew up in the trades with my father who was a building contractor and it must be something that is in the blood as my family are mostly all in the trades and doing well.

The business will off course aim towards commercial works but will need at least 3-5 years history and financial records to be able to tender for the better paying jobs. The Domestic market is where we will start and use as a basis to form a foundation before expanding.

Very different mentality and set up - it's perfectly possible to start off and stick to commercial work only - if that's your aim. You will, ultimately, end up with two divisions whether you really mean to or not, as many commercial guys won't touch residential for anything, and vice versa.

 

[Steve_P]

Sensible answers would be appreciated. At £35 an hour I would not even sub contract to you

It's about the going rate for a decent spark in the south west. I'll stick working for me then.

 

[Alasdair82]

Hi Bill,

plenty of tools etc accounted for in start up. Advertising will be my own money not the business. Web site is under construction now. Starting up will only be my business partner "jobbing" until the work load starts to come in. Once the work increases we will employ to meet the needs and demands. Plus he will only be paid for hours worked as opposed to all the time, unlike the employees once they are taken on. It will be the end of year 1 in quarter 3 or 4 before 2-3 full time sparks will be employed.

When you said beyond competitive did you mean over priced?

Steve-P comments on 35 and hour as the going rate will not be for an employee on PAYE. That would mean sparks earning $68,250 on payroll. I think eveyone would be out of business then!

 

[Stuuk1]

There are some very negative answers here. For someone who is attempting to set up a new company and provide jobs in the local community during a recession you are all making this unnecessarily hard..

If you have no advice to give then why are you commenting and making him justify his life choices?! Give the guy a break.

Take the pointless, cocky comments elsewhere and leave room for people to comment who actually have something productive to say.

Unfortunately I cannot help but I wish you all the luck in your venture.

 

[Alasdair82]

the partner would initially make more money than me for the first 3 years. He would be on £22 an hour for any work he does and after 6 months he should be filling a 37.5 hour week at that rate. Any other profits at the year he would be entitled to 30% of that. So there is an incentive to move from being a sole trader to being part of something bigger

 

[accordfire]

Hi Bill,

plenty of tools etc accounted for in start up. Advertising will be my own money not the business. Web site is under construction now. Starting up will only be my business partner "jobbing" until the work load starts to come in. Once the work increases we will employ to meet the needs and demands. Plus he will only be paid for hours worked as opposed to all the time, unlike the employees once they are taken on. It will be the end of year 1 in quarter 3 or 4 before 2-3 full time sparks will be employed.

When you said beyond competitive did you mean over priced?

Steve-P comments on 35 and hour as the going rate will not be for an employee on PAYE. That would mean sparks earning $68,250 on payroll. I think eveyone would be out of business then!

No, not over-priced, just that the domestic market will happily quibble over a few quid. The forum is full of similar things - losing out to work because the next guy along is willing to short cut several items. It's a cheapest wins market - irrespective of quality in many cases.

I have to say though, am also finding it hard to figure out where your partner - by what you've said, the guy with the skills and the contacts so far, is only getting paid for work done, and only getting 30% of the business.... what's in it for him ultimately? Really, I mean why's he not doing all this on his own, given he already has a position to start from? I'm thinking this is some kind of investment deal you're giving him as much as anything?

Hmm. at a ball park £15 an hour, each electrician is going to cost you a broad £44k a year. That's some consistent workload to need... and I suspect hard to find out of a domestic market only in Exeter....

 

[accordfire]

There are some very negative answers here. For someone who is attempting to set up a new company and provide jobs in the local community during a recession you are all making this unnecessarily hard..

If you have no advice to give then why are you commenting and making him justify his life choices?! Give the guy a break.

Take the pointless, cocky comments elsewhere and leave room for people to comment who actually have something productive to say.

Unfortunately I cannot help but I wish you all the luck in your venture.

Huh? What's negative?

You think starting a business is easy? Let's put it this way.... justifying his life choices (if that's what it was) at this point is a LOT cheaper than doing it a year after he's sunk tens of thousands into something that isn't flying.

Apart from that, if you read the entire thread, there was a perception of someone coming in and expecting all the answers for no return. Many of us are business guys in our own right - that concept does not exist.

The guy - Alisdair - IS getting a break - as again, you'd see from reading the thread - for you, though, the irony seems to be that you didn't have much to say either, yet commented.....

 

[Guest55]

Tesla was right in his earlier post , domestic is awash with cheap 1 man bands , you'll never make a profit from employing JIB time served guys at top rates for work that , quite brutally , is just house bashing.
if your partner is time served why not hire some experienced mates , 2nd /3rd year trainees etc. which he can lead as a team.
makes more sense business wise.

 

[Octopus]

There are some very negative answers here. For someone who is attempting to set up a new company and provide jobs in the local community during a recession you are all making this unnecessarily hard..

If you have no advice to give then why are you commenting and making him justify his life choices?! Give the guy a break.

Take the pointless, cocky comments elsewhere and leave room for people to comment who actually have something productive to say.

Unfortunately I cannot help but I wish you all the luck in your venture.

Isnt it about time you left permenantly for DIY not where DIYers should be?

 

[Alasdair82]

it is not only exter we are looking at . The aim is to expand across Devon and then look at other cities and nearby counties. We are aiming high and my partner will only take a wage when the business can take it. He does not have the money to go larger than being a sole trader and cannot spend so much on tools and advertising etc. The Idea is that I put up all the money, do all the advertising getting out meeting clients etc etc and spend hours on the business development. The reason he gets 30% is that I may well end up putting 30-50K into the business. I do not think he is getting a bad deal at all and he will still get paid more than he makes currently.

I do understand that the domestic market is very cut throat, but the work is out there. The commercial works will be more rewarding, but if any of you have looking at pre-qualifying tender check lists, you can't even bid without 3-5 years credit worthiness and a good float of cash in the bank to show you are big enough to handle the contract. That is why the domestic market is being targeted to perform some steady income - although profit margins are not great and then get a higher margin of the commercial work that is won.