start up costs

[atm84]

So guys tell me roughly how much it cost you to start up your business and how long did it take to see get into the black.

 

[Guest125]

I started in 2010 with nothing but £3k credit from Neweys. It can be done but it was not easy mate. Stay on top of invoicing is the key and only start jobs that you can afford to finish. I had a really nice QS that helped me and made sure I was paid on time and after a month I was earning money. I woukd say that only this year I would say I have the business where I want it though.

 

[Deleted member 26818]

A lot will depend on what sort of work you intend doing.
Someone who does domestic repairs and alterations, would not need a lot of start up capital.
Someone doing re-wires for a builder, would need more.
Someone doing commercial, would need even more.
Some commercial contracts will allow for payments at specific targets, 25% payment for 25% of the work completed etc.
I once re-wired an industrial unit and allowed the client the favour of obtaining the fittings etc. himself. All I needed then from him were wages.

 

[atm84]

(null)

Thanks for the advice. Was the QS a friend of yours or did you have to pay for his services. Well done for making profit so early on. What about a van, test equipment, scheme membership, tools, insurance etc etc

 

[Guest125]

Thanks for the advice. Was the QS a friend of yours or did you have to pay for his services. Well done for making profit so early on. What about a van, test equipment, scheme membership, tools, insurance etc etc

he is a friend now but he was just a QS for my client then. Realky helped me out showing me how things worked at that level.

I already had a van, tools etc. Insurance was cheap as it was only me back then. I did not have any scheme membership when I started. Have now but did not then.

 

[HandySparks]

So guys tell me roughly how much it cost you to start up your business and how long did it take to see get into the black.

£13k for first year capital including second hand van, some tools, insurance, C&G courses, etc.

Test gear was borrowed from a mate for the first few years, as he didn't need it at the time. Not Part P registered till later.

Took exactly a year before I broke even (with no wages taken out).

 

[Octopus]

Ongoing costs about £5k per year! start up costs vary massively and the most important thing you need is a separate bank account with about £2k float in it

 

[astormatt]

I have just set up on my own, in fact this week is my first official week!. I borrowed money from my folks to set myself up.
My costs up to now are about £3.5k and i still need to join a scheme, all i left my old compamy with was my hand tools so i did need pretty much everything else.
I borrowed £6.5k BUT in that i have allowed for wages while i am getting going as i have nothing in savings or the bank for that matter.
I have been given a van to borrow for as long as i need so i haven't had to pay out for a van or insurance so that has saved me a lot.

 

[Octopus]

I have just set up on my own, in fact this week is my first official week!. I borrowed money from my folks to set myself up.
My costs up to now are about £3.5k and i still need to join a scheme, all i left my old compamy with was my hand tools so i did need pretty much everything else.
I borrowed £6.5k BUT in that i have allowed for wages while i am getting going as i have nothing in savings or the bank for that matter.
I have been given a van to borrow for as long as i need so i haven't had to pay out for a van or insurance so that has saved me a lot.

I hope that you have made sure it covers YOU for YOUR business!

 

[astormatt]

Yes Murdoch it definitely does, i am a named driver and change of use. He kept it in his name as i realistically wont be borrowing it for long and saves hassle of cancelling insurance and re-insuring when i give it back.
I am waiting for the phone call "you know i lent you my van"