How hard is it to become fully self employed, working your own company?

[Micky89]

I was wondering how hard it is and how risky it would be to try to start your own electrical company, whether alone or with a partner. Is it a matter of getting the van and the gear and finding jobs? how hard is it to maintain a constant string of jobs? is it work 24/7 to keep making enough money to get you by?

any information or personal experience of doing this type of thing would be great.

also, is it actually true that you get the full price of a work van back on rebate?

 

[Octopus]

Invest in some business software and use an accountant, sure these things cost but they are necessary overheads of running a business in the 21st Century!

 

[TPES]

I find I never have any more than 2 weeks work booked in advance, no customer can ever wait longer than that, every call I get they wanted you there yesterday!

If you do a good job, then work will follow, all my work comes from recommendation.

As soon as you lower your prices to compete with the cowboys it will show in the end result to the customer.. Then you'll forever be advertising and chasing work and ultimately not be in business long..

 

[Octopus]

I find I never have any more than 2 weeks work booked in advance, no customer can ever wait longer than that, every call I get they wanted you there yesterday!

If you do a good job, then work will follow, all my work comes from recommendation.

As soon as you lower your prices to compete with the cowboys it will show in the end result to the customer.. Then you'll forever be advertising and chasing work and ultimately not be in business long..

Agree, but sometimes clients aren't in a rush so I do book them further out in my diary so as to keep flexibility in the days to come

 

[Knobhead]

An accountant is a necessary evil. I was married to a tax inspector so got to know the tricks.

Depreciation is one hell of a minefield to calculate cumulatively year on year. Some items have progressive rates others fixed time rates.
Company computers are a fixed rate @ 25% per year, the software is 12.5% progressive!
Tools of your trade are progressive depreciation, until you get to test equipment.
One to watch out for is the company vehicle, Oh dear what a minefield if it could be classified as being used for private use.

And as I’ve said before, the 70” flat screen isn’t going to pass as a computer monitor no matter how bad your eyesight is.

If the tax office get their claws in to you there’s no escape!
If you successful enough to get to VAT status then god help you if you fall foul of them!