self employed ... hard work!

[danny7299]

Hi all

I have been self employed for about 6 months now, and although things are going well... i dont seem to have much money. i know that in your first year your spending a lot on tools advertisment etc... but i just wanted to make myself feel better by coming on here. i feels like i am working my arse off but not getting very far very fast!

i charge

 

[Lee321]

your doing well i say for your first 6 moths and current climate

drink less you alky ROTFWL

 

[danny7299]

the thing is ... i wish i did ... i dont smoke , drink or go out, the only hobby i got is shooting, and i guess the rest of the cash goes to the mrs and the baby! he he

 

[Evans Electric]

Danny, your 22k turnover is healthy for six months . Your hourly rate is the same as mine. Self employed pivots on cash flow , so domestic jobs should be paying on completion , commercial/industrial you have to accept 30 days and 60 days as normal.

When you say " try to put a bit on materials when you can" you should always be putting a mark-up on mats anything from 15% --20 or 25% .

If you find you are subsidising a builder for instance, waiting forever for your money , don't stand for it , he will using your money and keeping you on a string, waiting.

Unfortunately this is now an expensive country to live in ,as I'm sure you know. You are supporting a wife and child, presume a mortgage, two cars you say !!

Over the last 18 years of self employment I have earned more than I ever would working for someone else, when things pick up you should earn a better living than working for a firm.

A word of warning though, whatever you do make sure you are putting aside your Income Tax , open a savings account for it . I 'll be writing them a cheque at the end of this month which came as a shock after the last year was so poor but its for the year before !!!

How long have your invoices been outstanding Danny ??

Deke

 

[batty]

I have been self employed for probably more than 16 years mostly as an electrician. Cash flow is always a problem. I am always overdrawn at bank and don't tend to have more than a weeks holiday each year. I charge

 

[a12jpm]

Started out on my own March last year also so know exactly where your at. For what it's worth I think your hourly rate could be a little higher. Believe it or not I found I was getting busier when I started to push my rate up. Now working flat out 8-6 most days.

I try to mix it up customer wise. About 75% builder/25% domestic. One big customer pays on 50 days every time, other pay within 7 days. Only give the ones I can trust any real credit or it's cash on completion. Don't be shy asking for your money at the end of a job and pester them daily till you get it.

To be honest

 

[gselectrical]

Hi Danny. Ive not long started. (Oct 2009) and im feeling the same way you are. Im debating whether or not self employment was the right decision, on the other hand though I havent even been trading 4 months yet. I am currently charging

 

[mcgaw81]

Have you ever thought about trying to get in with a council or big contractor.

I did that in Dec 08, and havent looked back, I turned over

 

[gselectrical]

Have you ever thought about trying to get in with a council or big contractor.I did that in Dec 08, and havent looked back, I turned over

 

[mcgaw81]

I was very fortunate, the contractor I sub to, I used to work for. And it has just been contract after contract with them. I have not advertised much.

Search the net, look outwith your area. Im over 100 miles from home just now, and will be for the next 4 yrs!!!!!.

 

[wozz]

ive been out on my own for 18months, i dont know my turnover but i usually charge approx

 

[oneofthedamned]

Hi Danny,

I know just how you are feeling I never seem to get a minute. I went self employed in June last year. I've worked every day, except for two weeks at xmas, I work most Saturdays and I've worked a few Sundays. I am owed about 3 grand at the moment and my diary is full for the next month but my bank account looks like that of a student. Are we doing somthing wrong?

 

[sellers]

maybe its to do with personal spending? When going self employed you need to keep all your personal out goings at an all time low.

This is my first week self employed. I've got 3 and a half weeks work ahead including weekends. I've got rid of some luxurys, my car is off the road for now, I'm not going out or spending any money. I'm lucky in the fact that I have nothing to buy for my business as I had already bought it all when I was employed.

I charge 180per day. Don't really do an hourly rate, depends on what needs doing. Never turn a job down. I will do jobs slightly cheaper to gain custom.

 

[androiduk2002]

Danny,

Im not self employed hell Ive been on the dole since October 2008 ! ! but one thing I can tell you is to always mark up what you need to do the job, it you happen to overtighten the odd face plate screw and crack it that comes out of your pocket, if you have a switch fail 2 weeks after fitting , you should get a replacement switch free of charge but your time is not covered, that 20% to 50% (what ever you choose) will help to cover those costs and make you a bit of extra profit with out making you to costly either that are try to make a deal with a specific retailer to get a discount ! ! Do you included any kind of CUF (cock up factor) when you quote for a job ?

As i was once told work out what is costs you per day to work make sure you cover all your outgoings fuel, all insurances, costs of any governing bodies you maybe part of, and what you want to earn per day after deducting tax and NI, then add 10%, if you do this you should make a profit. I am sure some will disagree with me, but we are not charities .

Try it ............... work out a few quotes both ways there will always be someone cheaper but quality is worth paying for.

 

[binky]

Try it ............... work out a few quotes both ways there will always be someone cheaper but quality is worth paying for.

This is the hardest bit, so many customers don't appreciate the difference that they tend to opt for the cheapest. Pricing is always hard, but at the moment I'm opting for less apparent labour charges, and more on parts. People quibble labour more than parts prices in my experience.

 

[gselectrical]

This is the hardest bit, so many customers don't appreciate the difference that they tend to opt for the cheapest. Pricing is always hard, but at the moment I'm opting for less apparent labour charges, and more on parts. People quibble labour more than parts prices in my experience.

Thats exactly what I do. If they see the labour is reasonably low then they cant complain, and its unlikely that they could source the materials even with the mark up added. J

 

[Lurch]

This is the hardest bit, so many customers don't appreciate the difference that they tend to opt for the cheapest. Pricing is always hard, but at the moment I'm opting for less apparent labour charges, and more on parts. People quibble labour more than parts prices in my experience.

You itemise your quotes? I never do, customers don;t need to know. Write quote at the top, put a description in the middle and a price at the end. Take it or leave it.

 

[gselectrical]

You itemise your quotes? I never do, customers don;t need to know. Write quote at the top, put a description in the middle and a price at the end. Take it or leave it.

Only on some jobs. For example storage heaters. The customer rarely knows how expensive they are. J

 

[kme]

You itemise your quotes? I never do, customers don;t need to know. Write quote at the top, put a description in the middle and a price at the end. Take it or leave it.

I do, insofar as the cost is split across materials (total amount) ; labour and certification. This gives agrand total, which is their "bottom line".

KME

 

[Lurch]

TBF, most of mine is commercial or other work on recommendation, that probably helps. If I was doing mainly domestic then I'm sure more people would complain about non-itemisation issues.