Looking at leaving and going self employed.

[MC_Bob]

Hi and thanks for having me.

Im 24, been doing 'this' since I left school..

Im Gas safe, oftec, part p, biomass boilers with hetas, unvented, solid fuel flue systems. I think thats it..!

Ive been with a company for 5 years from when I started which has been good but theyve moved into a real slump of jobs and the quality of work has deteriorated into a 'get in and out' attitude. The job to 'call back' ratio is awful and its always me to do the repairs on the jobs so im not actually making my own money anymore..

So..! ive made the decision to leave and have come up with a figure of 7 thousand to get me a van and set up. I have all the tools and equipment already as I do a fair amount of my own work after 'work'.

Im a bit worried about lining up work when I start up, luckily I live at home and dont have a mortgage etc to keep payments up with. Ive done quite a bit of reading up but im still confused by book keeping. Id like to do it all myself but its an awful lot to read and digest from reading the gov website.

All help/advice appreciated.
Nathan

 

[kris]

Hi there Nathan , and welcome along to the forum, theres one thing that on this forum youl get as much advice and help as you need , in all aspects from work to bookkeeping , I work on my own and dont get me wrong i couldnt go back to working for a company as i love working for myself and i do all my own bookwork but id defo advise when you start to get busier then get some help as i struggle sometimes to find the time to keep up to date with everything and could really be done with a secretary, You obviously are knowledgeable with all the gassafe , oftec, biomass hetas etc, but to renew all that once on your own can be costly when the time comes, but for a start its simple you just need a van , a business name with your own unique tax ref ( if gonna subby) and register your business with the appropriate bodies ie gassafe where youl pay £455 just to register your company for the first ytear which drops to £175 each year after that , once youve registered then youl need business insurance or public liability , just public liability will do for a start which covers you if you damage someones house etc, i think my liability is 2million cover for £200 a year which isnt alot and the minimum cover you can have is 1million , once youve done that your ready to take on the world lol, build a business base , advertise to what suits you , local papers , facebook , google etc Every business starts off slow so dont be put off if you have quite spells to start with as it always picks up, and the best thing you can do is treat all your customers with the greatest of respect and always be really nice to them as if you leave a good job and good impression theyl always call u back, so good luck , any querries just ask,

 

[solutions]

Hi there Nathan , and welcome along to the forum, theres one thing that on this forum youl get as much advice and help as you need , in all aspects from work to bookkeeping , I work on my own and dont get me wrong i couldnt go back to working for a company as i love working for myself and i do all my own bookwork but id defo advise when you start to get busier then get some help as i struggle sometimes to find the time to keep up to date with everything and could really be done with a secretary, You obviously are knowledgeable with all the gassafe , oftec, biomass hetas etc, but to renew all that once on your own can be costly when the time comes, but for a start its simple you just need a van , a business name with your own unique tax ref ( if gonna subby) and register your business with the appropriate bodies ie gassafe where youl pay £455 just to register your company for the first ytear which drops to £175 each year after that , once youve registered then youl need business insurance or public liability , just public liability will do for a start which covers you if you damage someones house etc, i think my liability is 2million cover for £200 a year which isnt alot and the minimum cover you can have is 1million , once youve done that your ready to take on the world lol, build a business base , advertise to what suits you , local papers , facebook , google etc Every business starts off slow so dont be put off if you have quite spells to start with as it always picks up, and the best thing you can do is treat all your customers with the greatest of respect and always be really nice to them as if you leave a good job and good impression theyl always call u back, so good luck , any querries just ask,

Good thorough post kris. Nice work.

 

[kay-jay]

Biggest mistake is doing ones own bookkeeping.
Most start-ups think oooh I'll do my books and save £300 a year.

The reality is that unless you have a very in depth knowledge of such matters, a decent accountant will shave much more off your tax bill than the cost of his service.

 

[Radioman]

This advice comes from someone at the other end of the SE timetable and I agree with all of the above comments. I am 62 and looking to finish ASAP. I would not have changed much over the years but some things could have been done better. Try and answer these questions for yourself: why is your current company finding it hard to get work? Why would that be different for you?

1st tip Work out your daily operating cost by adding together all of your expenses including provisions for vehicle repairs RFL vehicle ins sick days (we all have them) tax liability nat ins fuel tool replacement bank account charges advertising mobile phone bill pension fund etc etc etc. get this total then divide it by the number of months a year you want to work. Then divide that figure by 20 then if you want by 8. That will give you an hourly operating rate that you will need to charge more than to make a profit. This is the basis of a business plan. Many many SE people don't do this which is why they charge stupidly low rates for jobs thereby undercutting others and operating at a loss and going bust owing money. One of the main reasons I want out now is the low prices charged down here by skilled trades from outside the uk. No ins working out of a 20 year old lhd escort!
2cnd tip. Be accurate with your estimating and invoices. Get and use a word processing package and decent printer. Don't rely on a scrap of paper hand written.
Tip 3 get an accountant that knows the trade. Expect to pay between £250 and £500 for tax returns if you keep accurate bought and sold ledgers and keep receipts in monthly order.

I wish you all the luck in the world it's hard work but fun as well.

 

[MC_Bob]

Wow, some solid info right here. Many many many thanks for all the replies!! really appreciate your time..

Im in two minds about the bookkeeping thing. I fully understand what you mean, im getting lost as it is. But my father did his own books till about 15-20 years ago and my sisters a registered accountant. Ill also be meeting up with another self employed fella and going through his books with him, might pick something up with a bit of luck..

When my qualifications expire, I dont think theres any point in my Part P anymore as the laws changed unless I want to carry on doing CU replacements.
Oftec I dont get enough work from, and if im not mistaken to carry on servicing I dont need to be registered. Ive never ever shown anyone my card either!
Unvented and Gas safe ill definately keep on..
The others I doubt ill get any work on.

My current company is weird. Boss spends 4-6 months in america on different investments. Theres more office staff than engineers. Approx 10 office and 7 engineers. I take pride in my work, some of the work the company does is questionable. Ive phoned in that installs need to be shut down unless I pull some of them apart its worrying. All engineers are qualified too...

Really apprecaite the info about working out my costings, will get on it right away

Are you guys using phone based diaries and job keeping methods? im quite used to 'job logic' and when it does work, its great..

Thanks!!!

 

[prestigepete]

Sounds a great opportunity to go out on your own but scary too..so many responsibilities to mange.
I work with a company that works with experienced plumbers (who wish to become their own boss) to help start ups covering all aspects of a new business with on going support. Give me a shout if you would like to find out more.

 

[townfanjon]

MC bob is in the house LOL

I cant offer any more advise than the lads above have (spot on)

You will never finish at 5 oclock, you might be sat down watching neighbours LOL, but believe you me your head will be working until you go to sleep, it will start working the minute you awake.

Just bloody good luck pal, you are in for the ride of your life.

 

[prestigepete]

Hi Nathan,

How's the decision going.....I can offer some help with the jump from employed to self employed....I specialise in new business start ups especially in the plumbing and heating industry.
Give me a shout if you would like some more information.