NEW BUSINESS, DO I OR DON'T I?

[DMW87]

Hi guys, bit of advice needed.

I currently work in an electrical engineering factory building high voltage switchgear. I am a qualified electrician but have been out of contracting for 6/7 years now.

I have been given an opportunity to set up an electrical arm to a building company. Keen as I am, I am nervous about getting back into contracting. I have 17th edition regs but have seen I will need 18th soon. My JIB gold card has ran out also. How hard is it to get the 2391 T & I qualification? I would then need accreditation with someone, who is best and most helpful to go with?

Any help would be greatly appreciated.

Thanks
DMW

 

[PEG]

Hi bud,in reply to your title question,i would say no.
To succeed in a venture such as described,you will need to know for sure,that you are 100% committed. You would not need confirmation from us eejits,on a forum

If the building company is expecting you to get involved with their planning issues,staff and design,it will be a bus ride away from contracting.

You may do it all in your stride...what do i know...i spent the morning trying to get a machine control board voice interface,to not swap to German,when things get sticky...

 

[ipf]

You know the ins and outs in this case......depends how much of a gamble you're taking...but I wouldn't trust many in the building trade when it comes to the electrical side of things.

 

[Dillb]

Sounds like I am in the minority here, but I would say go for it as long as you can afford it (meaning having plenty of money to cove your outgoings for a fee months). You only get one chance and you may regret it in the future. If it goes wrong there will be opportunities in the future for full time work.

 

[polo1]

As has been said, only you can make the decision. I'd want to have a clear understanding of the building firm - how long trading, type of core works, how are they perceived by their core existing & potential clients, type of client base etc.
All about assessing risk v reward!

 

[Deleted account]

I feel it would be very unwise to set up a business off the back of a building company. You would be taking all the risks and responsibility.
If you want to go it alone, do it. Contract yourself out to this business at a decent rate (£250 day rate) with invoices paid within 5 days.
Also don't tie yourself to one company. Put yourself out there, get a large customer base.

 

[DMW87]

Thanks for the advice, little risk on my part as he is prepared to fund set up costs, van, tools, accreditation etc. and put in enough for a decent salary for the first year. He has prices waiting for acceptance for some big jobs lasting 18 month to a year so if he lands 1 or 2 then it seems like it could be enough time to get other work lined up. It does seem too good to be true, but he said hes going to do it anyway its up to me if i want to be on board.

 

[Deleted account]

It does seem too good to be true, and it may turn out good for both you and him.

However I think I would cover my own set up costs van, registration, tools etc.... Then go ahead with his proposal. This way you can walk away at any time if it's not what you expected.

A better way would be for the builder to set up the company and employ you as the qualified supervisor for the company. Obviously you would be salaried at the appropriate JIB rate. Not 100% sure what that rate is.

Do not under value yourself or the industry as a qualified supervisor by accepting less than your worth. People forget about the responsibility you hold and should be compensated for it accordingly.

Personally as employed qualified supervisor starting salary minimum £35,000 rising to £40,000 when established.

 

[123]

So @DMW87 is this a job offer or a business proposition? It looks to me like it's a job offer. If it's not, what shares in the new business will you have as builder seems to be putting in all the investment?

 

[DMW87]

50/50 split on profits once he has had his investment back. But guaranteed salary of 30k

 

[Phil Thompson]

Are you getting this deal all in writing? And have you any guys lined up to work with you as jobs that take those lengths of time aren’t 1 man band jobs.

Basically it sounds like he’s making you the MD of his Electrical division, and on a 50% profit based commission based salary with a £30k basic.

As opposed to being a co owner of anything

 

[Phil Thompson]

Also if it’s the type of thing I’m thinking above, you could find you’re never on the tools and just doing paperwork and estimates and pricing round suppliers or is he going to give you all that and secretary etc too, and you’ll go on site and be foreman?

Or what do you expect to be doing everyday?

 

[DMW87]

I Would be 50% shareholder. But he has guaranteed me a salary also as i am in full time enployment now. We have a couple of gangs lined up for work when it comes in. But yeah il be basically running the electrical side of it.

 

[DMW87]

Also if it’s the type of thing I’m thinking above, you could find you’re never on the tools and just doing paperwork and estimates and pricing round suppliers or is he going to give you all that and secretary etc too, and you’ll go on site and be foreman?

Or what do you expect to be doing everyday?

Yeh dont expect to be on the tools much really. He wants to pur me on smsts course also.

 

[Jjc]

I feel it would be very unwise to set up a business off the back of a building company. You would be taking all the risks and responsibility.
If you want to go it alone, do it. Contract yourself out to this business at a decent rate (£250 day rate) with invoices paid within 5 days.
Also don't tie yourself to one company. Put yourself out there, get a large customer base.