New Company start up - advise appreciated

[Nightfox122]

Hello all,

Myself and a friend are starting up a mechanical and electrical company planning to go live next year. We already have some potential customers lined up and a little bit of cash behind us so that side of things is not too bad, we have spoken with a business advisor and got a business plan drawn together.
It gets scary where we currently have steady jobs and young families, starting out on our own is a big risk as it is for anyone. I was just looking some advise from people who have already done so.

Did you find it easy/hard to find new clients?
Did you tap into commercial market rather than just domestic?
Do you find your own business better than working for someone?

These maybe obvious questions but I am just looking to pick peoples brains so to speak and talking to people who have made the leap of faith might put my mind at ease.

Many Thanks and any advise will be much appreciated.

 

[Darkwood]

Welcome to the forum

 

[Nightfox122]

Thanks Darkwood. Hoping I can get good advise and possible offer some as the treads go by

 

[Octopus]

Welcome.

One of the biggest issues you will face sooner or later, will be having to be VAT registered, which could well make you uncompetitive in the domestic market.

There is a business section on this forum with loads of threads in it to review and digest.

Happy reading.

 

[tomspark93]

There's pros and cons of working for yourself like everything else. Me for example, I just struggle to switch off. I'm always thinking about ongoing and upcoming jobs, things that need doing, potential problems etc it drives me nuts sometimes but I try to make sure it worth my while.

By far the strongest way to get work is through word of mouth. It's a domino effect and it can work both ways depending on what kind of quality you produce

 

[davesparks]

Personally the self employed lifestyle suits me, but I have health issues which mean I couldn't possibly commit to a fixed timetable such as a 5 day week. Plus I am also a young single person so have no dependants relying on me to bring home the bread, and I can (and have on occasion in the past) survived going hungry for a day or two.

I started my self employed life 4 years ago working mainly in domestic work, but since then I have, through a little bit of luck and managing to convince a few people that I've got half a clue about electrical work, managed to get some rather cushy specialist commercial work. And now I am expanding in that particular commercial market based on recommendation alone.

Initially I relied on casual work in a local theatre to pay my rent whilst my business was establishing itself, and still do that work to assist with reducing my tax bill (it's paye work) but could survive without it.

I can strongly recommend getting a good accountant from the outset. and also making friends with a decent local wholesaler, I would not have survived without having an excellent relationship with mine, including getting on very well with the credit controller and managing director. I always speak to them in advance if I know I am going to struggle to pay off my account on time, and they are always understanding and we work things out. A major national wholesaler will just stop your account and be somewhat unhelpful during such difficult periods.


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[Nightfox122]

Thank you for the replies and the advise. I guess the big thing is just taking the plunge then working hard to build a client base and a reputation. Once you have that its half the battle

 

[starni999]

Hi mate,
It doesn't have to be one or the other. I'm on the books with a company, but have my own company too. Just make sure you are fully legit with the Tax man! Down side is the amount of tax I have to pay, upside is no downtime, and paid holidays.
The hardest thing I've found is learning to say "NO" and walk away. Give them a fair price and stick to it.
Cheers
Chris Warr.