Becoming self employed - is it really that easy?

[ant_daley]

Morning all. Woke up and realised I've just about had enough of being cards in. I'm working for a great company and I get payed a decent wage but I can't stop thinking how easy it looks going it alone. I get quite a few emails and phone calls from recruitment agencies asking me to do contract work and I'm beginning to wonder why I am turning them down. So I'm asking, before I do something I might regret, just how easy is it going self employed? What's the hardest thing you went through when starting up? Are there things that you find difficult that you never thought would be? I'm close to going for it so any advice, warning or heads up will be great!

Anthony

 

[Octopus]

When you say you get paid a decent wage don't forget you get sick pay, holiday pay and a pension.

Taking the leap and going SE takes planning and more importantly you will need a cash balance in your business account to ensure you can pay your bills and yourself when clients don't think they need to pay you promptly.

Do your sums very carefully and as a rule of thumb your over heads will be about £500 per month too.

You will need to tell HMRC, your insures etc. Read the business section on here ...

Hope this helps

 

[wayneob]

I kept myself going for 5 yrs and when I look back I do wonder how I got by! If you can land on a good shop fitting contract or local authority then straight away you have continuity of work! It's long hours and when you go on holiday it costs you twice and you will only make a proper living if you have lads working for you otherwise you will just get by, so you may aswell stay on the books with no headache!! There's a lot to be said for working on the books for a decent company! And with all the DIY sparks that can get registered by sitting a regs exam you will be constantly getting under cut!!

 

[Pete999]

I kept myself going for 5 yrs and when I look back I do wonder how I got by! If you can land on a good shop fitting contract or local authority then straight away you have continuity of work! It's long hours and when you go on holiday it costs you twice and you will only make a proper living if you have lads working for you otherwise you will just get by, so you may aswell stay on the books with no headache!! There's a lot to be said for working on the books for a decent company! And with all the DIY sparks that can get registered by sitting a regs exam you will be constantly getting under cut!!

Liked the bit about DIY sparks sitting the 17th and calling themselves Qualified, this happened at the place I worked at it was the 16th then, and the bosses put all the IT, Phone, come engineers on the 16th course and they all came back bragging that they were now Electricians, laughable really..........

 

[Midwest]

Think the most challenging aspect of being self employed, is having a regular source of work, which equals income. Doesn't matter what line of work you intend to follow, domestic, commercial or industrial, if the jobs aren't coming in you can't pay your bills & feed yourself. You can supplement your own work with subbying for other electricians/companies, but then that's just like working for a company, albeit you can pick & choose. So a good deal of planning and aforethought is needed. Once established though, think I'm right in saying, most would say they prefer working for oneself.

 

[Deleted member 93172]

I had 30 years of being employed across 2 companies, the last of them was in commercial world and major sites,the last of them was for about 18 years working away most of the time including weekends,living in BB's. Got too the point where both my wife and I got fed up with this what with the kids getting grown up, so I made the frightening step of going SE when a few sparky mates offered me a spot in a gang that subbed work from other companies, wow this was a whole new world no more working away a few weekends worked only, getting home at decent times. Then I found private customers such as small builders,friends of friends other sparky mates were offering work so then my domestic work was taking over, all that has now lasted over 17 years. Times have been hard sometimes but if you keep your paper work up and your billing up to date get a accountant on board you will get through it all, oh and don't pick and choose your jobs too much or get lazy, I wish you all the luck in your adventure, but remember you won't get sickness or holiday pay or the security of a company being SE and sometimes it can get a bit lonely at times.

 

[The Ghost]

I would suggest keep the daytime job and start taking on extra work. Try it out. If you are DI you need CPS scheme which will cost a lot. Your own tools, transport advertising there is a lot to work out. Its lonely out there sometimes when you hit a big problem. If you get ill....? If you treat it as a hobby to start it will grow organically.

 

[Midwest]

Its lonely out there sometimes when you hit a big problem. .

Guess that's where this forum is at it's best, two heads are better than one

 

[Deleted member 93172]

Guess that's where this forum is at it's best, two heads are better than one

Very true, wish I had found this site years ago, it's got it all -information-answers-suggestions and of course the famous sparky humour.

 

[David M]

Its not easy being self employed, the only folk who say it is have never been SE, so I would totally ignore any suggestions those people might offer.

Adding to what the others have advised so far, take into account that your working day does not start and end when you open your tool bag then close it for the day.
When you are SE you are also - owner, manager, accountant, sales rep, surveyor, designer, customer relations officer, complaints officer... the list goes on.

Not trying to scare you but as you've been advised it takes planning, dedication and long hours to build and run a successful business. My normal day starts around 6am and finishes around 8pm, plus I spend my free time still pondering over forth coming or on going jobs.

The rewards can be good I grant you that, as you may get the opportunity to make more money than you would in any cards in job as just an electrician. But it will test you at times, and you will have sleepless nights and nightmare customers to deal with. There will be plenty of headaches and stress that will drag you down. Its a gamble that may pay off for you.

I really hope it does work out if you decide to give it a go!!

All the best in your decision

David