The Rise & Rise of the Celebrity Electrician

[Dustydazzler]

So in recent months I see Tom Nagy , Nick Bundy and now Artisan have all upgraded and got proper office space and storage units etc etc

I am pleased (yes genuinly) to see so many fellow traders to be kicking on and building up their business empires

My old boss in London started his business from a sh!tty old unit in Fulham in the late 60s and now runs an electrical contracting business employing about 45 full time staff (about 5 office and 40 sparks last time I spoke with them)

Keep it up lads

 

[Electrics]

I'd expect his vehicles are leased and can't comment on how profitible his business is, but it's clear that he's working to a plan.

Come to think of it; I saw one of his videos a few months back were he talked about using debt in order to expand.

That's what every successful business does.

 

[nicebutdim]

That's what every successful business does.

'Successful' is a relative term. It would certainly be usual for large businesses, if for no reason other than keeping their accountants' blood pressure in check.

 

[mattg4321]

For every business that is successful when using debt to expand there will also be those that end up going bust.

 

[nicebutdim]

For every business that is successful when using debt to expand there will also be those that end up going bust.

Especially when expanding quickly - high risk, with the possibility of high rewards.... or bankruptcy.

 

[UNG]

I'd expect his vehicles are leased and can't comment on how profitible his business is, but it's clear that he's working to a plan.

Come to think of it; I saw one of his videos a few months back were he talked about using debt in order to expand.

When debt is cheap it works but a sudden hike in interest rates and it can all too easily fall apart

The other issue is how over exposed to default the bank or lender feels they are in that situation and they could decide to call in the loan or loans

 

[nicebutdim]

When debt is cheap it works but a sudden hike in interest rates and it can all too easily fall apart

The other issue is how over exposed to default the bank or lender feels they are in that situation and they could decide to call in the loan or loans

I've seen a number of large local, family run businesses bought out and run, by what appear to be, accountants. In short order, old plant that was owned outright is sold off and replaced with leased equipment. Interest rates are less of an issue in such circumstances, but this model is dependant on constant turnover - a few quiet months and there isn't the cashflow to maintain everything. At least when goods are bought and paid for, there's a better chance of weathering periods of financial uncertainty.

 

[Electrics]

For every business that is successful when using debt to expand there will also be those that end up going bust.

Fact is all successful businesses leverage debt. Avoidance of debt is what those with zero business acumen practice.

It's the reason really rich people pay no tax while poor people complain about them paying no tax.

 

[UNG]

Fact is all successful businesses leverage debt. Avoidance of debt is what those with zero business acumen practice.

It's the reason really rich people pay no tax while poor people complain about them paying no tax.

ALL successful businesses don't neccessarily leverage debt. I know of a couple of businesses that operate without any debt because of the niche markets they operate in

 

[LukeD]

ALL successful businesses don't neccessarily leverage debt. I know of a couple of businesses that operate without any debt because of the niche markets they operate in

I follow that thought .I owe no one anything

 

[Electrics]

I follow that thought .I owe no one anything

If you run a business, the business is a legal entity and has nothing to do with 'you' legally speaking. If you run a company and owe tonnes of money your company owes it not you.

Fact is even paying suppliers at the end of the month is a form of debt because you don't pay straight away, you owe it.

 

[mattg4321]

A credit account paid off at the end of each month is stretching the limit of a company being in debt to the extreme.

Plenty of successful businesses don’t use debt, but most very large ones do admittedly. It’s horses for courses though.

 

[Gavin John Hyde]

I'd expect his vehicles are leased and can't comment on how profitible his business is, but it's clear that he's working to a plan.

Come to think of it; I saw one of his videos a few months back were he talked about using debt in order to expand.

Companies house says he has a decent amount of money in the business. that said micro accounts tell you next to nothing in real terms as I have nearly 20k in my company which counts as a liability to myself so reduces the overall picture...

 

[suffolkspark]

David's uploaded a 56 second gem this afternoon if any of you are bored

 

[nicebutdim]

David's uploaded a 56 second gem this afternoon if any of you are bored

@Julie. posted it in another thread - a quality installation.

 

[Electrics]

A credit account paid off at the end of each month is stretching the limit of a company being in debt to the extreme.

Plenty of successful businesses don’t use debt, but most very large ones do admittedly. It’s horses for courses though.

'being in debt' and 'leveraging debt' are not the same things.

Having a credit account and making your payments every month is debt. If you didn't build your company on debt it means you pay for everything outright and upfront which is why i said no successful company avoids debt completely.