Any Guidance for going Self Employed

[Lillpete]

I am in the process of sorting myself out to go self employed and am looking for guidance.

I know that the current climate is not the best to be launching a new business into however I am currently earning such a low wage I feel I haven't got much to lose.

I have been an electrician for around three years after retraining (yes it was a fast track course but I have been an a steep learning curve ever since). I have now been offered semi regular work from a couple of familly members which, although nowhere near enough to live on by itself has spurred me on to give it a go.

I've been looking into various scheme providers (notably BSi and NIC) and know I will need public liability insurance but was wondering where people tend to get the best rates for this and if there is any other insurances I should look at??

Are there any guys on here who have gone self employed only to not get enough work and end up going back on the books??

Any guidance and advice would be gratefully recieved.

Cheers

 

[The Godfather]

Pete, consider the following:

1 Your personal monthly outgoings.

2 Your business monthly commitments.

3 Your Net income from self trading.

If the latter (3) is higher than 1 + 2, then you should be comfortable.

Hopes this helps.

The Boys

 

[Lillpete]

Pete, consider the following:1 Your personal monthly outgoings.

2 Your business monthly commitments.

3 Your Net income from self trading.

If the latter (3) is higher than 1 + 2, then you should be comfortable.

Hopes this helps.

The Boys

I know exactly what 1, is, have a fairly good idea of what 2, will be but no idea of what 3, will be which is where it gets a bit scary

 

[The Godfather]

From a previous career as a financial advisor I know exactly what 1, is, a fairly good idea of what 2, will be but no idea of what 3, will be which is where it gets a bit scary

What you expect/anticipate to earn realistically.

The Godfather

 

[a2]

Have you read the buisness page we have on here?

http://www.electricianforum.co.uk/soletrader.htm

 

[andyjw]

I know a couple of guys who have seen their work dry up and had to take a job, ask yourself where you see the rest of your work coming from. If you have an answer then go for it, if not then try and get an answer.

 

[Lillpete]

Have you read the buisness page we have on here?http://www.electricianforum.co.uk/soletrader.htm

Thanks I just had a quick scan, that looks really useful Applaud Smiley I'll check it out in more detail later.

As for where the work would come from I've been looking into advertising in the local Parish Magazines and will cost up one of the local free papers. But obviously I don't know what sort of responce I'm likely to get? other than this and contacting local lettings/estate agents it would be friends/word of mouth.

 

[Apache]

Thanks I just had a quick scan, that looks really useful Applaud Smiley I'll check it out in more detail later.As for where the work would come from I've been looking into advertising in the local Parish Magazines and will cost up one of the local free papers. But obviously I don't know what sort of responce I'm likely to get? other than this and contacting local lettings/estate agents it would be friends/word of mouth.

Do you think you could continue working and build your customer base up a little more? I would be very worried about dumping a job at this time. It has been said on here before when your job is getting in the way of your work that's the time to go it alone! Not too prematurely. You don't want to go bust.

 

[betty swollocks]

think its all been said before in other posts but in my experience you should try to build your customer base, be as varied as possible,

share your bread and butter(regular work) around a few builders, not the best payers and yet expect you to be there yesterday, but its experience, regular work and if you choose wisely you get paid and make a potential customer from the property your working on, you'l be surprised how often they give your number out to relatives and friends,

perhaps try a few letting agents, again, not great money but it could be a regular job every week, try conservatory installers, very easy jobs which time wise could be done t-time(when people are home from work) and only take a few hours, try to get on with everyone you meet, joiners, plumbers, brickies, kitchen fitters, be nice, go that extra bit further and you potentially have several other trades who will be asked during 'their' work if they know a decent spark, i know im always asked if i know trustworthy plumbers/tilers/joiners/builders and that alone could get you a job a week,

eventually by doin this you will (like i did) reach a point when you have no time to do your 'employed job' .... and thats the moment you go,

present climate i would go for this approach for that extra security and peace of mind

eventually you will get a regular workload and you will then be in a position to then seek out more lucrative work/jobs and knock back not so well paid jobs or 'nightmare jobs'

dont forget doing it this way over time and you spread the cost of tools, insurance and other set up costs, rather than all in one big expense.

as for what you will earn? well in my view you need to be sure you can double at the very very least your weekly employed wage because you will be doing far more hours, either in the van, on the tools or at the desk...

but the theres no better feeling than viewing a job and thinking to yourself..

' hmmm i dont really wanna do this one' and moving on to the next

but be aware that there will be time when you absolutely dont want a job for whatever reason so you price it high to make sure you dont get it only for them to give you it anyway... headbang

bad job/good money?!?!? ohh thats a bit like looking at yer wifes younger sisters bottom and thinking 'i shouldnt, its just plain wrong' but also feeling the rewards far outway the consequences...Blushing

 

[Lillpete]

Although I completely agree with what you are saying, the issue I have is that I work for a very small local company (there's me and my boss, thats the whole company) he's been good to me but just can't pay me bigger wages. I just wouldn't feel right actively seeking private work whilst working for him as it would be right on his patch and would be in competition, also one of my contacts is a kitchen fitter so all the work would be registerable and just simple things like being available for assesments to join the NIC would be very difficult to organise.

What I am hoping is that I will be able to still work for him as a contractor on day rates, when required, but this is by no means gauranteed as I do not know how well he will take my setting up just down the road.

 

[Evans Electric]

I was about to answer with great pearls of wisdom but the thought of Betty's wife's younger sister's bottom has thrown me for the minute. :| ; \

 

[batty]

Although I completely agree with what you are saying, the issue I have is that I work for a very small local company (there's me and my boss, thats the whole company) he's been good to me but just can't pay me bigger wages. I just wouldn't feel right actively seeking private work whilst working for him as it would be right on his patch and would be in competition, also one of my contacts is a kitchen fitter so all the work would be registerable and just simple things like being available for assesments to join the NIC would be very difficult to organise.What I am hoping is that I will be able to still work for him as a contractor on day rates, when required, but this is by no means gauranteed as I do not know how well he will take my setting up just down the road.

Ask him you may be suprised.

 

[sellers]

whats the best way to get in with builders??

 

[Evans Electric]

Right where were we ? Liability insurance, try Gladiator on 0870 040 3310. I have a

 

[sellers]

Go for 2 mil public liabiliy as thats what the part p schemes want to see.

Mines 10quid a month, hardly noticeable

 

[Andy™]

scam providers want

 

[Lillpete]

I think I got a quote from gladiator about 6 months ago when I contacted them for van insurance, I'll dig out the paperwork Applaud Smiley

Pretty much all self employed people I speak to say they wish they'd gone for it years earlier, and currently my savings are going down rather up so waiting doesn't seem as financialy appealing as a regular pay packet should :|

I calculated that depending on what I charge per hour/day I need to average around 2-2.5 days work to earn what I currently do taking into account my anticipated business expenses.

 

[Evans Electric]

I come under the " Wish I had done it years ago" brigade although I've been self employed for 17years now, I should have done it when I was younger and fitter instead of older and knackered with electrician's knees ( A word to the wise, always wear kneepads when kneeling) The firm going bust gave me the push I needed, nothing to lose back then.

Deke

 

[boltonsparky]

I do not know how well he will take my setting up just down the road.

If he can't afford to pay you more he can't expect you to hang around with him forever, I'd say that was pretty obvious to any boss!

 

[Lillpete]

I think I got a quote from gladiator about 6 months ago when I contacted them for van insurance, I'll dig out the paperwork Applaud Smiley

just dug out that quote and it was dated Nov 2008 :| can't beleve I've been consideriing doing this for so long