Thinking of starting on my own

[D00DY_T00DY]

Now I know this has been posted many times before.

I'm thinking of starting up. Hopefully with another electrician 50/50 so it's not so much pressure on just myself. I've had advice from a friend who owns a business (not in a trade) and said going Ltd and vat registered from day one. Reading some of the posts here many if not everyone agrees it's a good idea.

I don't qualify until July 2018 so I'm thinking of setting up the business, doing some small jobs for friends and family to get the word out whilst working full time. My brothers a plumber and has offered a few extensions which I've had to turn down being unable to certify the works.
Do you think it's wise to do this and set up almost immediately after qualifying or waiting a year or two to get the experience and save up some money.

I'll be 21 when I qualify, so no commitments in terms of Morgages or a family of my own to support so thinking nows a better time than ever whilst I'm still young.

I'm hoping to do more commercial works however domestic Is what I know(have done commercial works but only some) hoping being vat registered will appeal more to builders and larger companies.

Any and all advice is appreciated. Again lots of time to think of a solid plan so it isn't all so daunting.

Still need many of the bigger tools but I'm always buying more tools and upgrading at the moment.

Cheers.

 

[Richard Burns]

The best of luck with starting up.
Having someone else to take the blame share the job can be very useful. Be prepared to compromise with your partner it is best to not have friction and work as well as you can together.
You will have seen the recent thread just started about a similar point this has some good information on it from a variety of viewpoints.
Plan and think and be prepared and then when it comes down to it, just be flexible.
To paraphrase "no plan survives the contact with the customers".
Limited or not is very case dependent, being a limited company is very useful because, as it says, your liability is limited. However charging VAT and being a tax collector for the government is never fun and can put off domestic customers. However it is not all just 20% more expensive, it is variable and will work in your favour for commercial customers.
Save as much as you can now, not next week, now. If you do not need it then you can have a free holiday in five years time, if you do need it it will prove a lifesaver.

 

[D00DY_T00DY]

The best of luck with starting up.
Having someone else to take the blame share the job can be very useful. Be prepared to compromise with your partner it is best to not have friction and work as well as you can together.
You will have seen the recent thread just started about a similar point this has some good information on it from a variety of viewpoints.
Plan and think and be prepared and then when it comes down to it, just be flexible.
To paraphrase "no plan survives the contact with the customers".
Limited or not is very case dependent, being a limited company is very useful because, as it says, your liability is limited. However charging VAT and being a tax collector for the government is never fun and can put off domestic customers. However it is not all just 20% more expensive, it is variable and will work in your favour for commercial customers.
Save as much as you can now, not next week, now. If you do not need it then you can have a free holiday in five years time, if you do need it it will prove a lifesaver.

Thanks for your reply.
I'm aware I would need someone who is just as motivated and who I get along with well. Even family have disputes when it comes to business so it is a big factor having someone I can trust and trust well to share the workload i'm thinking someone in my college class, same level as me. In the same boat.

My friend explained some of the ins and outs of being tax registered and having to become tax registered at the certain turn over as many said is just delaying the inevitable.

I am starting to save(just not very much at the moment with my little pay) even if it isn't used towards starting a business empire lol its there as a life line if needed, or to catch a few rays.

Thanks for your advice. Much appreciated.

 

[PEG]

Hi bud,i greatly admire your enthusiasm,and planning,and at 21!

This,will be one of your best assets. The down side,is at 21,however clued-up you are,everybody,and i mean EVERYBODY,will see you as a target,to extract their bit,especially the great British public...

The VAT bit,i would set aside for now,unless you are being gifted some decent contracts. A worthwhile accountant (pay him first,before the exchequer) should advise accordingly,and would be a first call,before HMRC.

You are probably going to need to build up some experience/history,before getting the type of reliable customers,a successful business will need,to sustain itself.

I would strongly recommend NOT,doing the carpet bombing of leaflets,with catchy pro-mo offers,etc. This blanket trawl,in open waters will ensure a catch of testers,triers,and blaggers,that could finish you off,in 6 months.

How much kit have you got? Concentrate on having the gear you need,and,importantly,being thoroughly capable with it.

If i ring you the day after you set up,with an intermittent tripping issue,in my 3 storey Victorian property,with 3 DB's,laminate floor,period features in some rooms,and 70 years of DIY additions and other work done to 4 different editions of regs...have you the tackle and kit to do that?

Remember,it could be extremely risky to use that job as a training mission,when it could be a good earner.

Please do not think,i am about putting you off. I applaud anyone with the mission you have stated,particularly at this point in your life.

I would rather you started with all facts packed,than had a disaster,and settled for lamp-fitting,for the rest of your natural!

Best of luck,pal.

 

[D00DY_T00DY]

Hi bud,i greatly admire your enthusiasm,and planning,and at 21!

This,will be one of your best assets. The down side,is at 21,however clued-up you are,everybody,and i mean EVERYBODY,will see you as a target,to extract their bit,especially the great British public...

The VAT bit,i would set aside for now,unless you are being gifted some decent contracts. A worthwhile accountant (pay him first,before the exchequer) should advise accordingly,and would be a first call,before HMRC.

You are probably going to need to build up some experience/history,before getting the type of reliable customers,a successful business will need,to sustain itself.

I would strongly recommend NOT,doing the carpet bombing of leaflets,with catchy pro-mo offers,etc. This blanket trawl,in open waters will ensure a catch of testers,triers,and blaggers,that could finish you off,in 6 months.

How much kit have you got? Concentrate on having the gear you need,and,importantly,being thoroughly capable with it.

If i ring you the day after you set up,with an intermittent tripping issue,in my 3 storey Victorian property,with 3 DB's,laminate floor,period features in some rooms,and 70 years of DIY additions and other work done to 4 different editions of regs...have you the tackle and kit to do that?

Remember,it could be extremely risky to use that job as a training mission,when it could be a good earner.

Please do not think,i am about putting you off. I applaud anyone with the mission you have stated,particularly at this point in your life.

I would rather you started with all facts packed,than had a disaster,and settled for lamp-fitting,for the rest of your natural!

Best of luck,pal.

I actually forgot my age! 21 this year. Turn 22 a week or two after I qualify. Trying to knock years off already!

My friend is an accountant but again recently qualified; see how much she knows. I've already had a few asks of jobs but lacking some tackle like I said. Been borrowing things like big drill bits and other bits that are expensive that I'll use for the one job(for now).

My plan is to get a van sign written. Cards and hoping my work will do the talking and get word of mouth to get my work.

I agree I need more experience but believe I have a logical way to go about things but lack a multifunction tester and decent set of drills. At the moment I have all the hand tools I could need, a t5-600 and a multi meter I have a hammer drill and it's average but does the job.

I agree. This is why I posted this thread to get the facts, ideas and a plan. I have at least a year so I'm in no rush to go it on my own.

Thank you for the advice.

 

[PEG]

Right,forget the van and cards,get yourself a quality MFT,you are confident with,maybe what you have used during training,and practise your spoons off,with it.
Use it till it feels like private Piles rifle,and all your attention is on what you are testing,and very little,is wasted on the MFT's settings,etc,which should be second nature.

You will need to do this anyway,as part of your scheme carry-on,but more importantly,without this,or separates,you will struggle with 3/4 of your diagnosis work.

If you get half as confident with diagnosis,as you are with the rest of your plan,good things will happen.
The great British public,if these are your target,are a fickle lot,and even if you repair an issue,if they consider it was by chance,trial and error,or worse,luck...they will not pass you along.

I have an awful lot of respect,and even admiration,for the lads on here,that advertise to the public. Imagine trawling with your net,hoping to taste a salmon,but having to eat everything else caught...urchins,jellyfish...septic tank outfall...

Sounds harsh,but i've seen lads ruined and demoralised by just one,toxic consumer!

Jack the idea of Spain,a new I-phone and pump-up sneakers...GET some kit,and start wearing it in!

 

[D00DY_T00DY]

Right,forget the van and cards,get yourself a quality MFT,you are confident with,maybe what you have used during training,and practise your spoons off,with it.
Use it till it feels like private Piles rifle,and all your attention is on what you are testing,and very little,is wasted on the MFT's settings,etc,which should be second nature.

You will need to do this anyway,as part of your scheme carry-on,but more importantly,without this,or separates,you will struggle with 3/4 of your diagnosis work.

If you get half as confident with diagnosis,as you are with the rest of your plan,good things will happen.
The great British public,if these are your target,are a fickle lot,and even if you repair an issue,if they consider it was by chance,trial and error,or worse,luck...they will not pass you along.

I have an awful lot of respect,and even admiration,for the lads on here,that advertise to the public. Imagine trawling with your net,hoping to taste a salmon,but having to eat everything else caught...urchins,jellyfish...septic tank outfall...

Sounds harsh,but i've seen lads ruined and demoralised by just one,toxic consumer!

Jack the idea of Spain,a new I-phone and pump-up sneakers...GET some kit,and start wearing it in!

This is rifle this is my gun. This is for fighting this is for fun.
Sounds like a plan. Need a few more notes for a fluke! Costs more than my car (sad because it's true haha)

Starting to save now, most of my money does go on new tools rather than Friverous carp. I like getting shiny new tools.

This is why I made this thread. I don't want "yeah do it it's all sunshine, rainbows and wads of cash" I'd like the full picture of what can and does go wrong.

But out of interest what the procedures of late payment(or none payment)

On the invoice do you quote payment in so many days? What happens if they don't?
How do you keep track of paying and non paying customers? Do you have reference codes on your invoice?

Might be a bit too personal for some of you but if you're happy to say please do