setting up on my own

[leep82]

As the title suggests this is something im looking at doing. Growing increasingly frustrated with the company i work for and people i work with, and feel that this is a step i may need to make sooner rather than later. Im fully qualified have my 17th edition and 2391. It would be a step into the unknown for me and its a little daunting

Has anybody recently done anything similar or can anybody point me in the right direction in terms of things i should consider?

 

[trev]

I think most of us have mate. A few things to consider-
Target market
How you're going to get them.
Transport
Insurance
Cash flow
HMRC registration
VAT/Non VAT
More customers
Cash flow
Customers

 

[leep82]

It might sound daft but that list frightens the life out of me, hence why ive always worked cards in and relatively stress free

 

[trev]

Start off by putting a business plan together mate, when you think about the things on that list (and a whole host of others) and how you're going to tackle them they become a lot less scary.

 

[amlu]

save some money, quit current job or go part time, print some business card, give to neighbours friends and family, post an ad in local paper. do not expect anything like your old salary on the books...

 

[trev]

Nobody reads papers any more. Well, not many.

 

[GMES]

Leep there are a lot of positives to being your own boss, also a lot negatives.
I set up in 2012 and have never looked back, I also Have a lad full time now on the books. So it can work if you are determined enough.
But in life some people have what it takes to go for it and some just can't handle the stress.
Take my lad for example, brilliant electrician and has everything needed to be a success on his own but he doesn't want the uncertainty of running a business.

 

[GMES]

Leep how old are you and what is your family set up, not being nosy or anything it's just if you are married with kids etc, then thereis a lot more risk being self employed financially and long days also waiting on money + much more.

 

[Octopus]

If you are planning on doing domestic, don't forget scheme membership.

A rule of thumb is allow £25.00 per day for overheads..... others may suggest less but going it alone will involve advertising, websites, logo'ed clothes so take you time to get a grip on all the costs and then build up a buffer of money in your bank so when times are lean you can pay the bills.

Also unless you are subbing all the time, don't expect to work 48 weeks of the year, 40 hours per week. Visiting clients, doing quotes and admin takes time so allow 44 weeks per year and 30 hours per week.

Remember, do you calcs and under charge could leave you as a very busy, POOR fool.

Where are you in the UK, location matters when it comes to setting an hourly rate, as does the number of local "competitors"

If you do go SE, you will need to pay class 2 NI weekly then class 4 on your profits, and saving for tax is essential too.

Hope this helps

 

[leep82]

Im 31, married, one little lad with another on the way. The security of my cards in job is currently the only thing that stops me jacking it in tomorrow. I know times are hard but i havnt had a rise in 5 years we are still being paid JIB 2008 rates which is very frustrating as prices for anything and everything seem to be going up.

We are constantly reminded that other contractors in and around out area dont pay anymore than what were on, grass isnt always greener and all that! Yet i have friends in the trade who sub contract and never seem to do to badly for themselves. Maybe thats the route i should take initially?

 

[GMES]

Possibly subby work would be a good stepping stone for you as you said.
This would give you time to build in confidence and bung some money away as Murdoch said is crucial.

 

[Octopus]

Im 31, married, one little lad with another on the way. The security of my cards in job is currently the only thing that stops me jacking it in tomorrow. I know times are hard but i havnt had a rise in 5 years we are still being paid JIB 2008 rates which is very frustrating as prices for anything and everything seem to be going up.

We are constantly reminded that other contractors in and around out area dont pay anymore than what were on, grass isnt always greener and all that! Yet i have friends in the trade who sub contract and never seem to do to badly for themselves. Maybe thats the route i should take initially?

and where in the UK are you?

 

[leep82]

Stoke on trent

 

[PEG]

Hi leep,Nothing would make me happier than to find out you set up on your own,and hit the big-time. The older i get,the happier i am ,when someone does good from hard graft...BUT,if i could give you any advice,not knowing yourself,or your situation,it would be,if your not ABSOLUTELY sure,then hang-fire. Maybe subby for a bit,or attempt to build up contacts,kit and options,whilst you still have regular work. When you are ready,you will NOT have to ask anyone,least of all lunatics such as myself,if it is a good idea,you will just do it...I have been doing paid work,sole-trader stylee,since i was 9! My first kitchen rewire,i completed on my own,at age 15...BUT,if i had to say,what has helped me the most in the last 40 years,it would not be new kit,a business plan,contacts or even hard work...it would be the ability to read people and understand human nature. If you are going on your own,ask yourself if you have ever been "taken",by a friend,associate,girlfriend,even a stranger. If you have succumbed easily in the past,do not advertise,the public will tear you a new one! Please do not think i am putting you off,i just think some lads assume self employment possesses all the benefits of a cards in job,but with all the money,and more freedom. The shock can be lasting...Good luck pal,in what you choose.:stooge_curly:

 

[ash_s3]

I've recently made the move Lee, same as you I've done my apprenticeship, 17th, 2394/2395 etc.. Got hacked off with my old firm, went LTD and started subbying for a large Automation firm working on car production lines. I've only been at it a month but got work till spring next year and am taking home 3x what I earnt on the cards.
I don't want to sub forever but I'm saving so I can have some coin in the bank for when I set up locally.

All the best mate