Start Up Costs

[jaydub]

Hi everyone, this may have been posted before so sorry if that is the case, but...

Thinking of starting up by myself and I'm trying to calculate the average costs involved in starting up, followed by the on-going annual costs.

I will be setting up as a sole trader and do not wish to grow the business to anything more than I can handle by myself, I'm not out to make my first million, just want a nice, steady income and something I can call my own and enjoy / stress over!

So far, I've got this for annual costs:

Average accountancy cost: £300-600
ECS gold card: £36
Napit membership: £360
Tester calibration: £40
Public liability: £75
Van tax: £220
Van Insurance: £400-600
Business banking: £84

Start up costs (I already have my own van and most tools as I work for another sparky at the moment):

ECS gold: £48 (for your first one)
Drill set (good one, previously supplied): £360
Tester (previously supplied): £400 average
Public liability: £75
18V SDS: £140
230V SDS: £110
Steps: £50
Tall ladder: £120
Accountant: £300-600
Van tax: £220
Van insurance: £400-600
Banking: Free for first year or so

Any help, advice or criticism perfectly welcome! I'm trying to be as calculated about this as possible before I go for it as it's something you need to be fully committed to, otherwise I'll just go work for E-on fitting smart meters for £25K a year hassle free haha

Cheers!

 

[HandySparks]

Van servicing
Van repairs
Van replacement (eventually)
Mobile phone charges
Advertising
Website
Tools
Tools
Tools

 

[Octopus]

£500 per month ........

And you will need cash in the bank to tide you over when you get later payers....

 

[jaydub]

Do you mean it will cost roughly £500 per month?

Cheers guys

 

[Octopus]

Yes...

 

[jaydub]

That seems expensive?! £6000 a year? Why/how?

 

[Octopus]

Based on the last 7 years. You need to consider the other costs you will incur..... Such as fuel for vehicle and repairs for a start. A new laptop every 4 or 5 years. Certificate software......

Take a look at the business section on this forum....

 

[jaydub]

Okay cheers

 

[Octopus]

And don't forget you won't work 5 days per week, 48 weeks a year, and that you don't get paid for holidays, bank holidays, sickness, doing admin, visiting clients..... The list goes on and on....., No pension...

 

[jaydub]

My current boss has only just started to pay me holiday pay (even though I am on the books) because 'he didn't realise' until 3 years in that he needs to! He's not a great employer, lets put it that way, so I will be moving on somewhere, someway...

 

[Octopus]

My current boss has only just started to pay me holiday pay (even though I am on the books) because 'he didn't realise' until 3 years in that he needs to! He's not a great employer, lets put it that way, so I will be moving on somewhere, someway...

You need to get him to pay you the holiday pay he owes you. 20 days per year plus bank holidays if he didn't pay those either.

Didn't know.... My arse

 

[kropaske]

If your predict income of 30k+ per year think about going limited. Its little bit more admin but its worth it in long run. And if anything goes wrong its the company takes the blame not you.
Also cash flow is very important especially at the beginning...

 

[Liam howe]

Or you will just go fitting smart meters for 25k by time you take your tax etc out you may as well be on benefits

 

[jaydub]

Or you will just go fitting smart meters for 25k by time you take your tax etc out you may as well be on benefits

Welcome to Britain lol

 

[Liam howe]

Welcome to Britain lol

Its true though obvioisly i wouldnt do that, but 25k for an electrician in this day is ---- money. You need atleast 3.5k after tax per month to live atleast a half decent life.

 

[jaydub]

Its true though obvioisly i wouldnt do that, but 25k for an electrician in this day is **** money. You need atleast 3.5k after tax per month to live atleast a half decent life.

Currently take home £1K a month,must be doing something wrong I think!

 

[Andy78]

Currently take home £1K a month,must be doing something wrong I think!

Surely that sort of takehome must have you on minimum wage ?

 

[jaydub]

Surely that sort of takehome must have you on minimum wage ?

£8 and hour

 

[Andy78]

£8 and hour

Hmm, above minimum wage for your age and understandable seeing as you are not a qualified electrician yet, but still not great.

I can see the reason behind your desire for better things. Do you know what wage you will be on when qualified ? Going it alone calls on many areas of skill and it will be a real struggle if you are lacking in diverse experience.

 

[Liam howe]

£8 and hour

I take it your an apprentice then...

 

[jaydub]

Final couple of months before I qualify, I pay for all my own training, supply own tools, use own van, but am on the books.

 

[Diddy]

That is a tight old deal you are on there jaydub. I suppose it depends on where in the country and availability of adult trainees ect.

 

[Liam howe]

I was gonna say.... makes me think what a great apprenticeship I once had.

 

[Andy C]

Best of luck Jaydub, hope things all work out for you lad

 

[Andy_G]

Y

That seems expensive?! £6000 a year? Why/how?

You will have vehicle insurance,fuel and maintenance,you will have to replace tools that you have lost/been stolen,you will need to eat as well so you will need money for food and home costs,every cert you send to your scheme provider will have to be paid for,you may want/need to purchase literature or software to keep your business up to date and competitive,how many pairs of snickers a year will you need at £70 a time,the spending goes on and on and on

 

[telectrix]

i agree with murdoch on the estimate of costs. when you add it all up, £100/week is about right for a 1 man business. to start with your weekly fuel bill for your van/car will be £30-£50, depending on mileage. don't forget that you can simplify your tax return by logging business mileage each month and claiming 45p/mile (for 1st 10,000. 25p thereafter) in tax relief to cover all vehicle expenses.

 

[telectrix]

£8 and hour

that's disgusting. aldi pay more for shellf stackers as a starting wage.

 

[jaydub]

Thanks for all your help guys, much appreciated.

 

[tomspark93]

I was in a similar position about 2 years ago. Thankfully I already had a good selection of tools and organisers etc however even now I keep buying new bits. Cash flow is one of the hardest things to manage when you start off. To be an efficient you'll need to keep a good range of stock on your van which soon builds up. My overheads work out at roughly £20-25 per day.

 

[D00DY_T00DY]

that's disgusting. aldi pay more for shellf stackers as a starting wage.

Old tread but still..
5.55 yey
Own transport,tools, 3rd year apprentice with a year previous experience.

 

[Leader]

Will you not have a mate? Or are you only looking at small jobs initially? As Tomsparks said, you'll need a small stock at least if you don't want to be running about to get bits on every other job.

 

[Leader]

I'd also recommend an impact driver