Closing down ..........

[Murdoch]

So I've pondering when to retire for a while and as I'm SE / Sole trader I'm wondering how best to go about it?

My main issue is that I have a large customer base ........... so how to tell them etc, then there's the big asset - my VW T6

Any thoughts or suggestions or real life experiences would be helpful

 

[Geoff1946]

Any other genuine traders in your area who may buy your customer list?

 

[Murdoch]

Any other genuine traders in your area who may buy your customer list?

Interesting question - there are loads around here but very few I'd trust in my house

 

[monkey5]

Interesting question - there are loads around here but very few I'd trust in my house

Any young lads about who are a coupe of years into SE, who could take a few of them on, I was approached by a retiring electrician about 10 years ago to take on a few of his good customers, I was recommended by the local wholesalers to him, he sort of gave me an interview. Still have his customers now!

 

[johnb2713]

So I've pondering when to retire for a while and as I'm SE / Sole trader I'm wondering how best to go about it?

My main issue is that I have a large customer base ........... so how to tell them etc, then there's the big asset - my VW T6

Any thoughts or suggestions or real life experiences would be helpful

I sold my business (CAA Commercial Drone Training and Examining etc) 2 years ago. I found a guy to take on as a partner, and then sold it all to him. It was a good way IMHO, no sudden stop, he gradually took over and I got paid for the name, goodwill etc.

 

[SPECIAL LOCATION]

Any other genuine traders in your area who may buy your customer list?

Would there be any GDPR legal conflicts if you were selling your customer contacts list without the consent of all persons on that list?

i.e. As compared to a company acquiring or merging with another business and taking on all their assets, contracts, staff, debts and other liabilities as well as the customer database?

A quick google brought up this, and similar type articles..
https://www.farleys.com/gdpr-dpa-2018-selling-business-database/

Which to me suggest there could be some complications to be aware of if you did sell your customer list?

 

[SPECIAL LOCATION]

So I've pondering when to retire for a while and as I'm SE / Sole trader I'm wondering how best to go about it?

My main issue is that I have a large customer base ........... so how to tell them etc, then there's the big asset - my VW T6

Any thoughts or suggestions or real life experiences would be helpful

If your customers are aware that you are a SE Sole-trader, and have a rough idea of your age, I would have thought they would understand that you could be shutting up shop and retiring within a few years.

So they should not be surprised when you do say, "sorry no", I have stopped trading.

If you have contracts to provide some customers with specific regular 'work, maintenance, call-out response', etc..
then it does need some planning and implementation to ensure you are not in breach of any contracts..

But if your work has been just an ad-hoc, call and respond when mutually convenient, to each job as and when they come in, then it's not really your problem.

I think you may be 'over-worrying' or 'concerning-yourself' about a problem that is not yours.

Any businesses or tradesperson's who provide goods or services to me, has no obligation to continue providing those goods or services to me.

We had the same builder construct two extensions onto our house, (1990 and 1997), later on when we wanted some more work done, we found out he had retired, (partially due to health issues). But it was Not his problem that we needed to find a new builder.

A local garage that supplied and maintained our previous car.. And offered a discount on servicing & MOT costs to customers who had purchased cars from them, went Bump quite a few years ago.. So all the discounts they offered disappeared overnight... It was Not their problem that we needed to find a new garage to service the car etc..

We have been using the same family run campsite in Cornwall to take our caravan, (+ occasional tents), for the past 23 years.. When we left site this year the owners told us they were closing up and retiring at the end of this season. And as no-one wanted to buy their site off them, as of 2023 season it will just be closed. (They did try putting the site up for sale a few years ago with no buyers!). This is basically a small business with husband & wife owners, who have no obligations to find any alternative campsites for any of their regular customer like myself who have been using them for years. I have NO disrespect to them as they are both early 60's, and have new grandchildren they want to have freedom to spend more time with..

Many years ago I had a "Blackberry" mobile phone that I was happy with.. But then some App's I was using regularly started issuing messages stating they would no longer be supported on the Blackberry O/S.. And will only work with Android & Apple IOs.. So I could either stay with Blackberry, and lose a few Apps.. Or change handset & keep the Apps! Again, NOT Blackberries problem that some customers are losing a few services!!

If you have grafted hard to support your family and loved ones, then providing your contractual obligations have been fully executed I wouldn't lose any sleep over problems that are not yours!

I've been SE sole trader since Feb 1999.. not yet retied, But thinking along the lines of just ramp up your charges a bit to reduce the number of customers, (so less customer but more money per customer), then increment this until you have no more customer calling you, or you just say, Sod-Off I am retired!!!!

 

[Murdoch]

Tbh I’m not interested in trying to sell a customer list.

I really want to let the business slow down to a point when I can stop.

i don’t advertise and get all my work from existing clients or word of mouth recommendations AND I keep telling new people I’m busy

 

[johnb2713]

Tbh I’m not interested in trying to sell a customer list.

I really want to let the business slow down to a point when I can stop.

i don’t advertise and get all my work from existing clients or word of mouth recommendations AND I keep telling new people I’m busy

It just seems a shame that youve built a business up over time and are not reaping a reward you could have by having someone take it over. For me, it was an easy and painless transition and put a good few thousand in the bank when it was done, the transition period was over about 6 months, during that time my hours reduced and the new guy took on more and more.
One reality that hit home fairly quickly once i'd gone from it was that there was no other source of income other than my pensions, if I need new tyres on the car etc, I needed to save up for 2 months of pension payments, the opportunity to do a couple of extra training sessions wasnt there anymore.

 

[Sharpend]

But in fairness John it sounds as though you had a rather niche employ, comparatively there are thousands of sparks so finding someone willing to pay thousands for a customer list might be wishing thinking unless there are some major blue chip companies that Murdo is looking after. ?

 

[johnb2713]

But in fairness John it sounds as though you had a rather niche employ, comparatively there are thousands of sparks so finding someone willing to pay thousands for a customer list might be wishing thinking unless there are some major blue chip companies that Murdo is looking after. ?

In his position, I’d be looking for a newly qualified apprentice type guy that’s wanting to go it alone. Sign him up teach him my ways of doing things and gradually step back from the business whilst still taking a good salary by way of payment. Eventually the new start would have it all.
Nice that he could cherry pick work he wants to do whilst winding down.

 

[Sharpend]

Whilst I applaud your idea John, the rates that are charged are likely to be a day rate for one, so to pay a newly qualified and himself may be difficult to balance?

 

[johnb2713]

Whilst I applaud your idea John, the rates that are charged are likely to be a day rate for one, so to pay a newly qualified and himself may be difficult to balance?

Maybe, I dont know what you guys charge. I have seen a few contract spakies driving round in Tesla's and pretty smart vans so I'd assumed you werent on minimum wage.

 

[Sharpend]

Maybe, I dont know what you guys charge. I have seen a few contract spakies driving round in Tesla's and pretty smart vans so I'd assumed you werent on minimum wage.

PCP and contract lease hire are a wonderful disguise!

 

[Murdoch]

Maybe, I dont know what you guys charge. I have seen a few contract spakies driving round in Tesla's and pretty smart vans so I'd assumed you werent on minimum wage.

is it wrong to drive a smart van ?

 

[johnb2713]

is it wrong to drive a smart van ?

I never said that did I?

I’m suggesting if you have a shiny new van it indicates you’re not just scraping by.

 

[Murdoch]

I never said that did I?

I’m suggesting if you have a shiny new van it indicates you’re not just scraping by.

The way you've answered me suggests you do have a problem with it and why should a successful person not have a reasonable van? We spend enough time in them.

When I wanted a "new" van I couldn't afford the loan over 4 years and the lease prices were scary, so I upped our mortgage to spread it over 10 years @ 2% and paid it off over 3 years. I've had it 4.5 years and it'll see out my career

 

[johnb2713]

The way you've answered me suggests you do have a problem with it and why should a successful person not have a reasonable van? We spend enough time in them.

When I wanted a "new" van I couldn't afford the loan over 4 years and the lease prices were scary, so I upped our mortgage to spread it over 10 years @ 2% and paid it off over 3 years. I've had it 4.5 years and it'll see out my career

It really doesn't, it suggests YOU have a problem LOL. I was explaining my perception of what rates must be like for contract sparkies, I don't care if you're getting £250 per hour (unless you're doing a job for me), good luck to you.

I agree you shouldn't have to spend time in a heap of a van, my IT business (lincit.com) used to run 4 x sprinters all new and 3 x smart cars for engineers. I know it's difficult to fund and image can mean a lot. You can also see opposite ends of the scales, two local joiners, one has an immaculate Sprinter, all the flash tools and absolutely no idea, the other has a very old rusty Transit, very old tools but OMG can he do good work.