How does everyone do it??

[pauljpickering8]

I am currently working in Afghan, but looking at coming home soon. So I have been toying with the idea of starting up on my own. but after a few calculations it seems impossible for anyone of a younger age (I am 24) to be able to start up unless you've got contact already lined up. I'm not just talking about start up costs either. I mean yearly fee's

Van insurance - 1500
PLI - 400
Part P - 444-1000 (Depending on which scheme)
Tax - 120 (Approx)

add yearly fuel costs, lunches, no holiday pay etc how does anyone do it!

JIB rate is around the 26k mark, I assume you would be lucky to be anywhere near that in your first year. this is without accounting for start up costs for

Van
Tools
Test Equipment etc

So how is anyone supposed to compete with the cowboys who start up with no PLI, Self Cert scheme etc.

 

[snowhead]

With any business startup you'd expect to make a loss for at least the first year, you need enough capital to survive that long or more.

 

[monkeyelectric]

You should expect to make a loss for a couple of years, its not easy juggling everything but as soon as your name gets out that you do a good job then you'll be well away! ( assuming you do a good job ) PLI seems a bit high, mine is only £80 for the year, the Jib rate doesn't apply to your own business

 

[edrobbo8]

I started up just over 2 years ago, and was lucky in that the van I bought with my own money and had most of the tools myself, the rest of the tools I have acquired are all tax allowable. The start up costs must include yearly van running costs (inc service, mot, tax etc) and that builds up especially the awful state the roads are in!

You also need to factor in to your pricing that you will need to take holiday, and illness. I made very little profit in my first year and that was thanks to my accountant, it costs £600 for him to do all my books but if I had done it myself it would have cost me at least 5 times that in tax etc.

Plus all your stationery, tools and sundries the list goes on!

There are people round here who have started up on their own and are undercutting quotes I have done and I believe it is because they haven't taken into effect the annual costs of running the business!

 

[pauljpickering8]

I understand the start up cost's and expecting make a loss in the first year, just curious how so many people make the jump if they have Houses, Kids to feed etc.

I would love to do it, just dont know if I can justify throwing 10-20k at it over the next year or so considering what Ive had to do to earn that money.

 

[telectrix]

if you are employed at the moment, you might consider doing small jobs at weekends, then as your name gets known and work starts coming in, go full time self-employed.

 

[pauljpickering8]

not got that pleasure unfortunately! unless I pop home from Afghan every friday lol

 

[chrisg1979]

I'm setting up myself now, have a house and kids to feed etc.
Basically just doing jobs on evenings and weekends while I'm still on PAYE through the week. Its just not feasable to go sole trader overnight, you have to get your name out there and gain a (hopefully) good reputation, cant beat word of mouth.
You might be better coming back and getting a job while you sort your own business out and see how it works out from there.
Whichever way you do it, I wish you the best of luck!

 

[pauljpickering8]

Been looking at jobs but doesnt seem much about in my area. Most jobs ask for own tools, transport and are self employed anyway, so that's how I got onto the idea of starting up a company anyway incase any re-wires come up/domestic work in general, the ridiculous self cert scheme would require me to pay my dues to the government to complete work, seen as qualifications dont seem to count for anything anymore.

If only I could of looked into the future when I started my apprenticeship. when I first started my boss was paying subby's 22 quid an hour and had to beg people to come in at weekend at time and a half lol.