To jump or not to just, that is the question.

[lmdawson]

Hi Everyone,
I am a qualified timeserved electrician who has served hes apprenticeship doing domestic and commercial, I have been out of my time for 3 years now and I am wanting to go self employed and go back to my roots as I am working in the industrial sector at the minute(always away from home). I have a mortgage and a few other bills but I will be saving about £20,000 as a cushion as I know things are slow at the minute.

I am wanting any advice on what are the pitfalls and what are the benefits of going self employed? The main reason for me wanting to make the jump is I now have a 8 month old baby at home and I never see him, Also I am wandering currently how much should I expect to earn in the teesside northeast area in this current climate?

Any advice will be greatly appreciated
cheers Leigh.

 

[londonlec]

Id probably hold fire tbh. Not much happening at the moment, even down here in London, its impossible to work for the prices they offer.

 

[telectrix]

agree. it's rough at the moment getting work in. always some pratt will undercut you. you expect fair competition , but when you put in what you believe is a fair price for a job ( say £150 labour for a full day ) then get a phone call saying don't bother, had a quote for £60.

 

[lmdawson]

How are these cowboys even able to quote so cheap? no testing obviously and stealing work stock for the guvvy jobs.
Its not fair is it...I have heard about poeple fitting boards for £180 how the hell are they making a living from that?

 

[lmdawson]

So how much on average over the month can I expect per week? profits? about £400 quite week and £800 busy week? cheers leigh

 

[IQ Electrical]

So how much on average over the month can I expect per week? profits? about £400 quite week and £800 busy week? cheers leigh

Are you serious? How can anyone here estimate your profit/turnover? There are infinite variables, including your own desire to build the business and actively seek new business in the early days.

If you can finance yourself completely for a few months then go for it, if not then stick with what you're doing.

Also remember to factor in a good few thousand for setup costs.

 

[lmdawson]

I just realised what I said lol, I was just wandering roughly how much you guys with the small electrical businesses where taking in per week gross in this current climate? I am still in the early stages at the minute with setting up a website and gonna start advertising soon but saving up now to fund the first few months..

 

[Octopus]

It would be a brave move to leave a saleried job at the moment and go self employed!

You say you are prepared to save up to ensure you have money for your start up - whilst you are saving I would recommend that you work out a business budget and get a handle on all the fixed costs, variable costs, etc - once you have these you'll know how much you'll need each year simply to cover your costs and don't forget advertising costs - at least £100 per month.

Once you're making a profit you'll need to save for 8% NI plus 20% tax

 

[lmdawson]

I am working in the industrial sector and its on a contract type basis so its no safer than being self employed really,I could be there for another 3 month to 7 month? nobody knows. I am planning on holding down a part time maintenence job for the first year or until things pick up, But one thing is for sure I will work hard to make the business work.

So what are the most cost effective ways of advertising dropping leaflets,website, local rag? are yellow pages and thompson local a waste of money??,Also do you think my age will go against me when i am out pricing and chatting to customers? I am 25 yr old.

Cheers Leigh

 

[IQ Electrical]

I take it that your age as 15 is a typing mistake?

 

[lmdawson]

I take it that your age as 15 is a typing mistake?

yes I am 25, I realised as soon as I hit the post button lol.

 

[IQ Electrical]

Ha, that's better!

If you're confident and knowledgeable then your age will make no difference.

Clients are paying for your expertise as well as your labour.

 

[lmdawson]

lol, Yeah I am pretty confident I practically ran my old bosses company with a first year apprentice while my boss was out pricing for nearly two years until I was fully qualified.Then I realised I was being exploited lol £7 ph when I was qualified..I was doing the full lot apart from pricing ect ect.

I was thinking about joining NAPIT as I was registered with them under my bosses company, I haven't got the C&G 2391 T&I Qualification yet but hope to do that in the near future, Am i right in remembering under NAPIT you can test and certify all your work except full Test & Inspections unless you have the 2391 qual?

Cheeers Leigh