Exeter Electricians Wages

[Alasdair82]

at start-up I will not take any wages from the company for at least 2 years. I have a time served partner who is a minority shareholder at 30% who currently runs his own business so there is a small customer base already. The model is base don making a profit, but as long as the company breaks even to build a customer base this is not a problem. There will also be 10-20K going into advertising to bring in new customers.

 

[Octopus]

at start-up I will not take any wages from the company for at least 2 years. I have a time served partner who is a minority shareholder at 30% who currently runs his own business so there is a small customer base already. The model is base don making a profit, but as long as the company breaks even to build a customer base this is not a problem. There will also be 10-20K going into advertising to bring in new customers.

I wasn't meaning your wages, I was referring to those you will have to offer the employees.

 

[Alasdair82]

Thanks Bill, I have found your answers helpful

 

[Octopus]

I'm good, thanks - getting my erm.... plumber's product.... back together after a long time out.

Things getting sorted, and getting back into the swing

And your good self?

Good thanks. Been very busy for about the last 10 months so OK.

 

[Alasdair82]

Hi Murdoch,

Yes I have budgeted for wages to employees, employers NI, pension contributions, holiday pay, 10 sick days a year and in the first year to only be productive 75% of the week to make sure that we will still break even.

You are right in the fact that it is a competitive market, that is why I am aiming to get as much information as possible. The aim is that the company can provide me with a good income after 5-7 years and that I can stop going offshore.

 

[Octopus]

Hi Murdoch,

Yes I have budgeted for wages to employees, employers NI, pension contributions, holiday pay, 10 sick days a year and in the first year to only be productive 75% of the week to make sure that we will still break even.

You are right in the fact that it is a competitive market, that is why I am aiming to get as much information as possible. The aim is that the company can provide me with a good income after 5-7 years and that I can stop going offshore.

I've got a mate who's relocated to the south coast in your direction. He's VAT registered and getting constantly undercut by sole traders with a reputation.....

 

[Alasdair82]

That's good to know, I understand that it will initially be hard and take time . I am not looking to build Rome in a day. What I am looking for is steady growth.

Every new business is going to go through the same issue. It is about how much dedication and effort you are willing to put in and sacrifice to get things going. Everyone has to start somewhere.

 

[Tesla1980]

I dont get how someone with a degree in engineering wants to get involved in domestic work when theres bigger money to be made in the field you came from
excuse the pun. And a nuclear power station being built just north of exeter (Hinkley Point) sure they would have a need for electrical engineers I think the market is flooded with domestic sparks running small businesses as it is.

 

[Alasdair82]

It not all about the money. I have spent 12 years of my life with 60% of it away earning loads of cash. I enjoy building and construction work.I grew up in the trades with my father who was a building contractor and it must be something that is in the blood as my family are mostly all in the trades and doing well.

The business will off course aim towards commercial works but will need at least 3-5 years history and financial records to be able to tender for the better paying jobs. The Domestic market is where we will start and use as a basis to form a foundation before expanding.

 

[ian.settle1]

I dont get how someone with a degree in engineering wants to get involved in domestic work when theres bigger money to be made in the field you came from
excuse the pun. And a nuclear power station being built just north of exeter (Hinkley Point) sure they would have a need for electrical engineers I think the market is flooded with domestic sparks running small businesses as it is.

Yep plenty of 5WWs have flooded the market in the domestic field

 

[accordfire]

Good thanks. Been very busy for about the last 10 months so OK.

The way we all want it Glad you're busy

It's very much a case of chasing up everything you can at the moment I think.

 

[Alasdair82]

and that is exactly what I do not want my company to represent. Time-served sparks only on Job sites. I respect the trades and what people have to do to get their qualifications.

 

[Tesla1980]

And also some sparks like doing domestic and just want to work for themselves god knows why

 

[accordfire]

Hi Murdoch,

Yes I have budgeted for wages to employees, employers NI, pension contributions, holiday pay, 10 sick days a year and in the first year to only be productive 75% of the week to make sure that we will still break even.

You are right in the fact that it is a competitive market, that is why I am aiming to get as much information as possible. The aim is that the company can provide me with a good income after 5-7 years and that I can stop going offshore.

And contingencies for things like vans getting smashed up or stolen, employees leaving for no good reason half way through a job?

It's beyond competitive to be honest - especially in the residential market (which I presume is what you're going for in the main) - you're also fighting a willingness on the part of very many to have sub-standard work, and an attitude of "don't care - it works doesn't it?" - for us, enough not to want to touch residential at all.

You don't mention training costs, approvals and so forth. Specialist tools? All considerations - I'm sure you've made plans for it all, just that budget start up costs have a habit of ending up being about 50% of the reality of a first year.

£10-20k of advertising won't go very far either - unless your geography is very limited - 1/4 - 1/2 of that could easily go on SEO for a website alone. Advertising is probably something you should be commissioning now - not when you start. You can't get a website running too soon if you're going to rely on it at all, and want it "found" in Google.

I'm beginning to wonder - are you planning on launching with your partner only, or with guys too?

 

[worzol99]

at start-up I will not take any wages from the company for at least 2 years. I have a time served partner who is a minority shareholder at 30% who currently runs his own business so there is a small customer base already. The model is base don making a profit, but as long as the company breaks even to build a customer base this is not a problem. There will also be 10-20K going into advertising to bring in new customers.

Why would a minority shareholder give up his own customers for a smaller profit?

 

[accordfire]

It not all about the money. I have spent 12 years of my life with 60% of it away earning loads of cash. I enjoy building and construction work.I grew up in the trades with my father who was a building contractor and it must be something that is in the blood as my family are mostly all in the trades and doing well.

The business will off course aim towards commercial works but will need at least 3-5 years history and financial records to be able to tender for the better paying jobs. The Domestic market is where we will start and use as a basis to form a foundation before expanding.

Very different mentality and set up - it's perfectly possible to start off and stick to commercial work only - if that's your aim. You will, ultimately, end up with two divisions whether you really mean to or not, as many commercial guys won't touch residential for anything, and vice versa.

 

[Steve_P]

Sensible answers would be appreciated. At £35 an hour I would not even sub contract to you

It's about the going rate for a decent spark in the south west. I'll stick working for me then.

 

[Alasdair82]

Hi Bill,

plenty of tools etc accounted for in start up. Advertising will be my own money not the business. Web site is under construction now. Starting up will only be my business partner "jobbing" until the work load starts to come in. Once the work increases we will employ to meet the needs and demands. Plus he will only be paid for hours worked as opposed to all the time, unlike the employees once they are taken on. It will be the end of year 1 in quarter 3 or 4 before 2-3 full time sparks will be employed.

When you said beyond competitive did you mean over priced?

Steve-P comments on 35 and hour as the going rate will not be for an employee on PAYE. That would mean sparks earning $68,250 on payroll. I think eveyone would be out of business then!

 

[Stuuk1]

There are some very negative answers here. For someone who is attempting to set up a new company and provide jobs in the local community during a recession you are all making this unnecessarily hard..

If you have no advice to give then why are you commenting and making him justify his life choices?! Give the guy a break.

Take the pointless, cocky comments elsewhere and leave room for people to comment who actually have something productive to say.

Unfortunately I cannot help but I wish you all the luck in your venture.

 

[Alasdair82]

the partner would initially make more money than me for the first 3 years. He would be on £22 an hour for any work he does and after 6 months he should be filling a 37.5 hour week at that rate. Any other profits at the year he would be entitled to 30% of that. So there is an incentive to move from being a sole trader to being part of something bigger