OP
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.
Discuss Exeter Electricians Wages in the Electrical Wiring, Theories and Regulations area at ElectriciansForums.net
Good thanks. Been very busy for about the last 10 months so OK.
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.
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.
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.
Sensible answers would be appreciated. At £35 an hour I would not even sub contract to you
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!
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.
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.
You think starting a business is easy? Let's put it this way.... justifying his life choices (if that's what it was) at this point is a LOT cheaper than doing it a year after he's sunk tens of thousands into something that isn't flying.
Isnt it about time you left permenantly for DIY not where DIYers should be?
it is not only exter we are looking at . The aim is to expand across Devon and then look at other cities and nearby counties. We are aiming high and my partner will only take a wage when the business can take it. He does not have the money to go larger than being a sole trader and cannot spend so much on tools and advertising etc. The Idea is that I put up all the money, do all the advertising getting out meeting clients etc etc and spend hours on the business development. The reason he gets 30% is that I may well end up putting 30-50K into the business. I do not think he is getting a bad deal at all and he will still get paid more than he makes currently.
I do understand that the domestic market is very cut throat, but the work is out there. The commercial works will be more rewarding, but if any of you have looking at pre-qualifying tender check lists, you can't even bid without 3-5 years credit worthiness and a good float of cash in the bank to show you are big enough to handle the contract. That is why the domestic market is being targeted to perform some steady income - although profit margins are not great and then get a higher margin of the commercial work that is won.
Change the record, its boring now.
If everyone believed this, no company would ever be started.
You have to spend money to make money as everyone knows. It's about risk taking, take the risk and it may pay off, let people tell you it won't work, don't take the risk and then there will always be the 'What If?'.
I'm basically saying, gather as much info as you can for whoever you can and go out the and do it. I couldn't do it, I have no interest in doing it and I'm happy how I am. I have lots of respect for those willing to take the risk!
Hi Bill,
Thanks for the advise. Yes commercial has a higher profit margin, and I do intend to introduce myself to all the business around the area and try and make ourselves know. Like I said start-up takes time and patience. Local authority work is also going to be targeted.
We will be with the NICEIC, but cannot get Approved contractor status till at least 6 months of trading. Now this is not required for commerical, but clients do like to see the approved paperwork on certs etc as it has become such a published thing. I believe for the local authority tenders that one of the requirements is to be an NICEIC approved contractor. I even recall one post made sometime before of a contractor who was with NAPIT and his tenders got refused, as he was not with the NICEIC. All politics really.
Until I get the website etc completed I cannot go and do too much networking yet. I imagine the first 6 months or year will be slower and all about getting your services out there and your company recognised.
Payback on my investment can take time and I am not expecting it overnight
That's great advise Bill. Company Name is already registered. Will get onto the NICEIC son as well and see what they can do for us.
As you say I should get out and meet potential clients and get to know their requirements as early as possible. If you don't mind I can add you as a friend on here and let you know how things go over the next 6-12 months. I will drive the marketing campaign as much as possible and see where we go.
It sounds like you are making good ground with your business as well and hope all goes well with the LA work.
No3 spot on there.most domestic customers want " their" electrician to come round and do the work not really some employee who might / might not give a ----.Here's a couple of facts for you:
1) I'm about 45 mins from Exeter and my area extends that far (for jobs worth the bother)
2) You're dreaming
3) The reason why almost the entire domestic market gets serviced by one man bands is simple - people like the personal touch. They don't want some nameless technician rummaging around in their bedroom to do a job, they want Fred or Jack or Andy - a name to a face they can trust. I've got six guys on for me at the moment doing various 'project' level things, but I leave them to it and do the house calls as it's me that my customers have a relationship with. And like any worthwhile relationship it takes time, effort and honesty to get anywhere. You can come up with all the business plan maths that you like, but Mrs Jones wants the person that she spoke to on the phone to be the one knocking on her door.
No3 spot on there.most domestic customers want " their" electrician to come round and do the work not really some employee who might / might not give a ----.
the key to any start up is contacts.without a few of these to be starting out you will be up against it.
i have a good customer base mostly through recommendation and good contacts but it's taken me 10 years to get there.
saying tat I've ditched a few bad ones along the way.
good luck
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.
if its getting boring why are you staying or are we to find out in a few months you are retraining??
Reply to Exeter Electricians Wages in the Electrical Wiring, Theories and Regulations area at ElectriciansForums.net
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