Any Guidance for going Self Employed

[davetheglitz]

We started out in October and are holding our own in a recession. We've tried to stand out from the crowd - offer an honest, open service and we are getting repeat work from satisfied customers. The money's not great - but we are making a living (just!) wage which is improving.

My theory is that being self employed your income adjusts to what the economic climate can afford - whereas if you are employed you either have a job or you don't. If that job isn't worth the angst then you haven't got much to lose.

When I left my previous employers I didn't steal their customers - but after making the decision to go alone I let them know I was in business. It's a leap of faith but ethically you can live with yourself!

You need to make your own decision - but you do need to be hungry to start - and maybe a bit lucky to find people who recognize you are giving something worthwhile.

The startup pages are well worth looking at - lots of good ideas.

Before investing in insurance check with your Part P provider - even if you haven't joined yet. . NAPIT could have saved us a lot of money.

Be prepared for a roller coaster. On Sunday we may not have anything booked - but come Friday we are knackered and looking forward to a break!

Make a living - not a killing! On the other hand be prepared to lose quotes to the desperate and those who don't know any better!

Good Luck

Dave

PS - Members of the forum have helped us out with advice - but a big thanks to Binky who has passed jobs on to us when he is overloaded or on holiday. I t really makes the difference - and we look forward to reciprocating! Hopefully someone in your area may help you out!!!

 

[NozSpark]

I just got my PLI from "Trade direct" cost me

 

[Lillpete]

That sounds good I'll google Trade Direct and get a quote

 

[Lillpete]

Just got the call

I have a job to go and look at that would be starting mid September, which suddenly makes it all rather real and scary as I need to resign by the end of this week if I am to be available to do this work.

I think I need a drink

Guiness Drink

 

[sellers]

I wouldnt quit your job for the sake of one job. Do it in your spare time, or take a 'holiday' you need your private work to be filling every bit of your spare time before you make the switch. I work every weekend and usuall one or 2 nights a week and i need more and more work before I even think about the switch.

 

[Lillpete]

Due to a company enforced Christmas break I haven't got any holiday to use and I wouldn't want to miss out on my 18 month old sons development by working every weekend, I'm fortunate in that my outgoings are relatively small and I have enough savings to tide me over for quite a while.

Although this is one job, provided I don't mess it up there should be more to come and on average a decent chunk of my current earnings should be earnable each month plus any other work I can get, so it shouldn't be too bad ( I Hope)

 

[Andy™]

not sure of the legal side of it, but your holidays should be when you want, not you must take at certain time. if your planning to have left your company by then, take your holidays now. if your still havent left by xmas, then youll have to either work or take time unpaid, or just have your 3 bank holidays off

 

[Lillpete]

Spoken with the wife this evening and we have decided to go for it, but do some other work as well as the electrics to keep money coming in. My father in law can put a few bits and bobs my way (cleaning and possibly some sales work)

So now I need to sort out insurance, competant person scheme etc any advice

 

[ktguk]

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

how do you go about the nic stuff when your still mployed, was told you have to be reg self employed

 

[batty]

Spoken with the wife this evening and we have decided to go for it, but do some other work as well as the electrics to keep money coming in. My father in law can put a few bits and bobs my way (cleaning and possibly some sales work) So now I need to sort out insurance, competant person scheme etc any advice

Thats what I did when I first started, did a bit of decorating and anything else to keep the money coming in.

Batty

 

[Andy™]

how do you go about the nic stuff when your still mployed, was told you have to be reg self employed

they dont check on anything like that. i was reg'd with elecsa 2 years before i left previous employer.

 

[londonleccy]

I'm in the same boat Lill Pete.Working for a firm but picking up bits and pieces.I staerted about 3 months ago and now i'm seriously considering going full self employed.As you start doing small jobs ,if you do a decent job,word gets around and work does start coming to you .

Got my NICEIC assessment in2 weeks,I decided to sign up when I had to blow out a couple of jobs for builders who wanted work notified through a scam provider.

I currently work 2-3 evenings and most saturdays,mostly small jobs but hopefully carry on building up work.

Good luck with your business

 

[WarrenG]

The reality is that business will always be a rocky road who ever you are and you will find that it requires a hell of alot more hours than your normal job. You will be the electrician, accountant, buyer, tea boy etc, etc.

Having said that, if you don't have ago then it will eat away at you.

There is a true saying - 'theres no time like the present' and if you are serious about your own business then you will make it work.

My advice to you would be to look very carefully into what you want to achieve and make sure you complete a business plan, even if you are not seeking any financial support.

A business plan will help you to achieve your goals and work as a map for your business and the future. You will be surprised by the things a plan will make you think about your business.

Don't be fooled by companies that ring you up very soon after you start up in business seeking only one electrician in the area or only one electrical contracting company in the area to advertise in their broucher, calander et,etc do some research first before parting with any money.

The best business will always be word of mouth and based on your own work. The best representative for your business is you, but you will only be as good as your last job, so do it right and professional. Choose the right scheme provider that will support your business.

Rome wasn't built in a day but if you make it happen it can be built very quickly.

A quick tip is (and might appear obvious but when people have never been in business before, they can be a little too keen) send all your customer invoices by 1st class post and your suppliers invoices cheques (after 30-45 days) by 2nd class post.

I also insure my company with Trade direct (Zurich) and have Public Liability, Employers Liability, Professional Indemnity, tool insurances etc.

And for what its worth, I am personally choc-a-bloc with work at the moment and haven't had a day off for about 2 months including the weekends. My wife still thinks that we are going away for a long weekend next month but I now have worked booked in - thats business!

Good look with your venture!

WarrenG

 

[SPECIAL LOCATION]

Been reading through this thread and there is a lot of very good advice.

but I thought I would add these few bits cuz I think they haven't been mentioned so far.

1/ If you are employed the cost to your employer are far higher than the actual wage they are currently paying you. (they have various legal obligations and associated cost to incur due to their duty of care to you as an employer)

2/ If you are sub-contracting, the responsibilities & costs incurred by the main contractor alter..... so you existing employer may be interested in using you as a sub-contractor rather than an employee, still on rate that is reasonable to you.

3/ When going self employed you MUST have some financial reserves to call upon in the event of quiet or dead times. as an absolute minimum you should be able to cover 2 or 3 months of your regular outgoings without any new work or money coming in!

4/ Most small businesses that fail, do fail within the fist 5 years of trading!.. FACT! so be prepared for some hard graft working and building up a customer base for at least 4 or 5 years before you can ease off on the gas pedal!

5/ If you are looking at domestic work, 90%+ of domestic selection of contractors comes from word of mouth or past experience recommendations.

Most people don't like asking strangers into their home to work!

6/ Even if you have a go but fail.. you will know that you at least gave it your best shot!

7/ If you never have a go or leave it too long, you me be regretting for many years.. I wish I had tried that earlier!

8/ NO job is secure.. employed or self employed!

 

[Lillpete]

I have been lookiing at the options for Part P, is there a reason why I shouldn't apply to the NIC?? as they are the best known and appear to be similarily priced to the others, is there something I'm missing??

 

[Zeespark]

They are generally tosspots who have turned the industry upside down in My view.

AndyGuiness Drink

 

[Evans Electric]

They are generally tosspots who have turned the industry upside down in My view.AndyGuiness Drink

:^OApplaud SmileyApplaud SmileyApplaud SmileyApplaud Smiley

 

[Lillpete]

ROTFWL

 

[WarrenG]

Best known, doesn't mean its the best for your business.

Its your business, you should make a decision based on that.

 

[SPECIAL LOCATION]

I have been lookiing at the options for Part P, is there a reason why I shouldn't apply to the NIC?? as they are the best known and appear to be similarily priced to the others, is there something I'm missing??

Personally I am with the NIC.....

I have NO complaints and I am happy with the financial return I get from my investment with my membership costs......

Others have different experiences... It is an INDIVIDUAL choice!

But that said....

Unless you have been a member of EVERY scheme...

it is impossible to fully assess the Advantaged -vs- Disadvantages of

A to b to c etc.....!

:|