Starting new business, few questions if you don't mind?

[Guy]

Hello all, i'm new to the forum.

Recently decided to go it alone as i have now been out of work for awhile. So just a a few questions.

1. What are the standard call out fees? I'm looking to charge around £35 to be competitive compared to some in the area that are charging over £50.
2. Is it a good idea to work 24h/7 whilst starting up?
3.What are the quietest periods?
4.How many calls are you likely to get a day?
5.Do you get a lot more maintenance work than installations?
6.Am i likely to be acheiving over £1,500 a month?

Thanks for replies

 

[dontknowitall]

Hmm - to be brutally honest ...

1. Sounds fine (I charge £40, sometimes £20, occasionally £0)
2. Yes
3. Quiet times are from about 8am to 8pm then about 8pm to about 8am, Sunday to Sunday
4. 0 - maybe 1 per week
5. I'd guess it's around 50/50
6. No - more like £1,500 in first year and that's if you're lucky.

Very negative answers I appreciate and if only the world would be more rosey than this. The construction industry has been going through tough times in the last year or so and there it not much positive news either. You only need to look at various share prices and results on the large companies.

I've been in the game for a good two years - first year £2k loss, next year £2k profit. Have now paid for my course, van, stock, tools, etc and various qualifications. First year turnover was around £31k and last year's around £15k but it's the profit at the end that is what counts.

Since last Oct to March this year I was out most days and had three good sized jobs amongst that work so will have a better profit this year. But for whatever reason the last 4-5 weeks has been quiet as a mouse - one or two calls a week and those are fixing taps/loos. I'm not complaining and I don't advertise which is a big reason why I'm quiet at the moment. Most of my jobs are recommendations and I have a website for the remaining work.

I'm not saying you'll do better or worse than me but what I do know is I'm not the only person who would suggest your figures are too hopeful.

Give it a bash - it's hard work. It's an exasperating job.

But get it right and it's an important, highly rewarding and satisfying job (although the pay could be better of course!!)

 

[Guy]

That does sound rather scary!
I have a loan from the princes trust with only 3% interest over 3 years for all my start up costs. Buying a van in cash, doing all my marketing, getting unifrom printed, tools, first couple of months insurance all for just under £4,000. I have 4 jobs lined up at the moment 3 salons who require sink relocations and another person with a bathroom installation.
I hope that with my marketing i should be able to make more jobs come my way.
I appreciate your answers it's good to be honest. One call a week jeez that's terrifying when you have kids to support. I'm on JSA at the moment and figure i may aswell go it alone as i have the qualifications but i'm just sitting here applying for work and not getting it.

 

[dontknowitall]

If it's any comfort there are loads of people in your situation. But there aren't many like you who are making an effort to do something about it.

Well done to having some jobs lined up. Hopefully plenty more when you've finished them.

I also hope others will post rather more positively than I've done!!

 

[hiretools]

I'm in the same boat as you Guy, I'm just starting out it's the luck of the draw mate, it's who you know and where you advertise, I know 3 people who already have work lined up and its all through people they know to give them a start. Sounds to me like you have a start so advertise on a small basis and see what comes. Also try Letting Agents if you can offer a low or no call out charge, that might work for you or just local to you with leaflets etc, any way hope all goes well, good luck. Hiretools.

 

[Guy]

Thanks for the replies guys, I am taking my time and saving start up costs wherever I possible can.

Regards to marketing i'm going to be doing business card fridge magnets so people can stick them up on the fridge so they're less easy to lose. I'm getting my van signwrited plus my wifes car. We are both having uniforms done so when my wife takes the kids out shopping people will be able to see our business.
I have a friend whos been in the tiling business for nigh on 30 years and he said he will be able to pass me a fair bit of work sub-contracted. I also have a friend who runs a chain of chippies and he says i can put my leaflets in his windows at no cost. Then there's leaflet drops. I'm trying to maximise the potential reach of the business i want people to see it everywhere.

I will also be approaching estate agents and other start up businesses and i'm registering with aphc.

 

[wnjswozo]

good luck,try and build up a reserve fund,work out a daily rate,this must include
PLI,van ins,tax,acc fees,desiel,hol pay,profit,
it will be hard ,dont give up,try to make as many contacts as poss
its feast or famine in this game,if you have never been s/e it takes some getting used to.stay on top of paper work,invoices,reciepts etc

 

[Guy]

Thanks for the advice.

 

[andekoch]

good on you to make a go of it. the first 2 years are the hardest but dont give up it will be worth it in the end. you have the righ tidea with the advertising re signwrighting on van and car plus clothing, flyers, magnets etc. The more you can get your name out there the more likely you are to get something.

 

[Bernie2]

One way to look at local markets I suppose is to see how many Plumbers are out of work locally and how many jobs for Plumbers are advertised.

Seems logical, if there are loads of Plumbers out of work and nobody hiring, then there is possibly not much work around. As the governments cuts come in it will probably get worse.

I do feel for those guys who have spent thousands on training, in the hopes of getting off the dole, to find companies will not employ them without experience and so find they have to go self employed to get any work.

That is a situation that should never have happened.

Who ever said you could make a fortune doing Plumbing?