What are things to consider when starting out on your own?

[ppelec100]

I have been working on site and for other people for the last 5-6 years but here and there I’ve done private works and I appreciate the freedom more and feels more rewarding when you complete a job and the customer is happy.

I am not niceic registered or with any of the other boards, I’ve just got my gold card and 18th. Will be getting into a testing course and registering in the near future but for now the odd jobs to build a client base.

Anyways I’m slowly going towards becoming a private electrician. What are things to consider when starting on your own? I know the obvious like liability insurance, tax, van etc. But even if it is obvious please still mention it as I may have missed it.

Also what are some ways to get myself out there? I know word of mouth is a good way but this is never enough. I have registered with my builder and bark but yet to use them. Any others that you have used you could vouch for?

Thanks for any help have a good weekend

 

[Dustydazzler]

Start a YouTube channel .... and no I am not joking

Also remember when you are the boss , the driver , the electrician and the labourer YOUR time is MONEY

All Jobs no matter how small need to pay you a wage , pay you for time off ill , holiday etc and make you a profit to finance a new van and tools every 5-10 year etc

 

[Dartlec]

I found that an advert in a local magazine can pay off, if you get the right area. Parish magazines are also something to consider.

They often are (only) read by an ideal target market - older home owners with some money who like the idea of building up a relationship with their tradesmen and will come back to them and also spread the word.

It might only be small jobs at first, but the experience is worth it and gradually your name will be passed around.

In those cases it's best to push the fact you are a one man band, not a faceless chain that might rip them off. I pay for a landline number that diverts to mobile, because lots of older clients still dislike mobiles (though that is always gradually changing).

Be wary though - once you get on a list of 'new' businesses, you'll be bombarded with companies selling you 'advertising' on calendars, medical practise board and all sorts. Some of them are genuine, but plenty are just after your money.

I've seen mixed (mostly negative) things about many of the Checkatrade type sites, but haven't used them to have personal experience.

Estate agents are another possible solution - they are often looking for people to do small jobs for landlords and may bring in regular work. Be very clear up front about your prices though and only do it if you are happy to push back when asked to cut corners, as that will happen (the clue is in the Estate agent bit).

As already mentioned, once you are on your own you will be doing everything (unless you have a partner to help with paperwork etc).

You will soon realise that not as much of your time as you think will actually be doing chargeable electrical work. Much of it will be building relationships, explaining costs, answering weird questions and generally running around after yourself. It's very liberating, but it's not for everyone.

 

[Dustydazzler]

Like this week , I have been doing small jobs all week, I have probably spent more time going back and forth to the wholesalers and the local screwfix than I have actually doing the jobs.
It is quite amazing house much time a small 1-2 hour job actually takes up when you factor in driving time , parking time and trips to get supplies. I reckon a 2 hour job takes more like 3.5 hours out of your day...

 

[ppelec100]

Start a YouTube channel .... and no I am not joking

Also remember when you are the boss , the driver , the electrician and the labourer YOUR time is MONEY

All Jobs no matter how small need to pay you a wage , pay you for time off ill , holiday etc and make you a profit to finance a new van and tools every 5-10 year etc

Thanks for your reply.

About the YouTube but, I would if I comfortable and confident being on camera but I’m not that type of guy. Kudos to you if you are.

How about things that I would need to get in order before or whilst I am building up such as liability insurance, website, business mobile number anything I need I need to consider so that people think hmm he seems professional?

 

[ppelec100]

I found that an advert in a local magazine can pay off, if you get the right area. Parish magazines are also something to consider.

They often are (only) read by an ideal target market - older home owners with some money who like the idea of building up a relationship with their tradesmen and will come back to them and also spread the word.

It might only be small jobs at first, but the experience is worth it and gradually your name will be passed around.

In those cases it's best to push the fact you are a one man band, not a faceless chain that might rip them off. I pay for a landline number that diverts to mobile, because lots of older clients still dislike mobiles (though that is always gradually changing).

Be wary though - once you get on a list of 'new' businesses, you'll be bombarded with companies selling you 'advertising' on calendars, medical practise board and all sorts. Some of them are genuine, but plenty are just after your money.

I've seen mixed (mostly negative) things about many of the Checkatrade type sites, but haven't used them to have personal experience.

Estate agents are another possible solution - they are often looking for people to do small jobs for landlords and may bring in regular work. Be very clear up front about your prices though and only do it if you are happy to push back when asked to cut corners, as that will happen (the clue is in the Estate agent bit).

As already mentioned, once you are on your own you will be doing everything (unless you have a partner to help with paperwork etc).

You will soon realise that not as much of your time as you think will actually be doing chargeable electrical work. Much of it will be building relationships, explaining costs, answering weird questions and generally running around after yourself. It's very liberating, but it's not for everyone.

Thanks for your reply.

I will look into the newspaper advertisement thing.

In regards to the landline number diverting to a mobile number, what companies are good? As I’ve looked at this and found mixed reviews.

As asked to dustydazzler, what should I get in order before starting out in order to save me time trying to find out once it’s too late? Business bank accounts, insurance anything like that.

 

[ppelec100]

Like this week , I have been doing small jobs all week, I have probably spent more time going back and forth to the wholesalers and the local screwfix than I have actually doing the jobs.
It is quite amazing house much time a small 1-2 hour job actually takes up when you factor in driving time , parking time and trips to get supplies. I reckon a 2 hour job takes more like 3.5 hours out of your day...

Yeah I’ve experienced this a few times already, it’s really annoying.

 

[Dartlec]

Thanks for your reply.

I will look into the newspaper advertisement thing.

In regards to the landline number diverting to a mobile number, what companies are good? As I’ve looked at this and found mixed reviews.

As asked to dustydazzler, what should I get in order before starting out in order to save me time trying to find out once it’s too late? Business bank accounts, insurance anything like that.

If and when you go for trade registration you'll likely need 2m or 5m public liability. If you want to be sure you're covered and you give advice, or do EICRs then professional indemnity may be worth it too.

You might want to check out Rhino trade insurance for liability insurance - there is usually a discount count on Nick Bundy's Youtube channel (or sometimes Artisan electrics too).

I've used Direct line for public liability for years, works out a little under £10 a month, so not too big an expense. Professional Indemnity I went with Rhino.

With banking, I use Starling now - the traditional banks tend to charge more for business bank accounts - but if you have a relationship with one already they may be worth approaching as they may offer deals like a free overdraft or a year without fees.

I use Vonage for my landline - there are probably better ways to do it now with SIP, but I've been with them for 15 years or so and they've been reliable. I use the version they currently call for home user - https://www.vonageforhome.co.uk

If you just want to dabble at first, then none of the above is strictly necessary - just the expertise to do the work (sometimes optional from the work I've seen by other professionals!) and the confidence to get out there and do it...

Good luck whatever happens. And don't forget to ever stop asking questions, however much experience you have.

 

[pc1966]

There are lots of issues around being a business, even down to choosing to be a sole trader, or a Ltd company, etc. They all have advantages and disadvantages, and really some of the decisions will need advice from a professional accountant, etc, depending on your circumstances and plans.

Make sure you have a separate account for your business. You are supposed to open a business account for this, and if Ltd company then no other options but all you get from a "business account" is lots of charges that you don't get on a personal account! So if doing small stuff first then at least open a separate account for work and remember that is for work, it is not your money, it is your business' money. You, as "your business", can decide to pay yourself money and obviously you need to, but keep them separate for accounting visibility or you will get in to all sorts of trouble down the line.

Accountants will advise you get familiar with some packages like Xero, Quickbooks, etc as they will save you time and money in the long term and HMRC now insist on digital tax returns for most people. We use Xero as our accountant recommended that and provides support for it, but whoever you have for advice might have one that suits you better.

As above, get insurance for your work. It can save your bacon if something goes wrong and letting folks know you have it is the mark of a professional.

If doing small stuff you probably don't need trade accounts at multiple wholesale outlets but having at least one with someone local who gives you decent prices (i.e. not CEF!) is very desirable. But you probably will find the likes of Screwfix are good for T&E cable, etc.

Same with scheme membership. For jobs falling under Part P it makes sense to pay the £500-ish per year and jump through the hoops due to the saving of not having to get LABC to certify stuff at extra cost as you would save the cost over a handful of such jobs, but for repairs and small jobs not worth bothering at first.

 

[ppelec100]

If and when you go for trade registration you'll likely need 2m or 5m public liability. If you want to be sure you're covered and you give advice, or do EICRs then professional indemnity may be worth it too.

You might want to check out Rhino trade insurance for liability insurance - there is usually a discount count on Nick Bundy's Youtube channel (or sometimes Artisan electrics too).

I've used Direct line for public liability for years, works out a little under £10 a month, so not too big an expense. Professional Indemnity I went with Rhino.

With banking, I use Starling now - the traditional banks tend to charge more for business bank accounts - but if you have a relationship with one already they may be worth approaching as they may offer deals like a free overdraft or a year without fees.

I use Vonage for my landline - there are probably better ways to do it now with SIP, but I've been with them for 15 years or so and they've been reliable. I use the version they currently call for home user - Cheap UK and International Calls - Vonage - https://www.vonageforhome.co.uk

If you just want to dabble at first, then none of the above is strictly necessary - just the expertise to do the work (sometimes optional from the work I've seen by other professionals!) and the confidence to get out there and do it...

Good luck whatever happens. And don't forget to ever stop asking questions, however much experience you have.

Thank you for this reply this helps a lot. I’ve seen rhino on bundys YouTube before. I’ve also seen tradify not sure if it’s him who mentions them or artisan or maybe both... have you ever used the platform?

 

[ppelec100]

There are lots of issues around being a business, even down to choosing to be a sole trader, or a Ltd company, etc. They all have advantages and disadvantages, and really some of the decisions will need advice from a professional accountant, etc, depending on your circumstances and plans.

Make sure you have a separate account for your business. You are supposed to open a business account for this, and if Ltd company then no other options but all you get from a "business account" is lots of charges that you don't get on a personal account! So if doing small stuff first then at least open a separate account for work and remember that is for work, it is not your money, it is your business' money. You, as "your business", can decide to pay yourself money and obviously you need to, but keep them separate for accounting visibility or you will get in to all sorts of trouble down the line.

Accountants will advise you get familiar with some packages like Xero, Quickbooks, etc as they will save you time and money in the long term and HMRC now insist on digital tax returns for most people. We use Xero as our accountant recommended that and provides support for it, but whoever you have for advice might have one that suits you better.

As above, get insurance for your work. It can save your bacon if something goes wrong and letting folks know you have it is the mark of a professional.

If doing small stuff you probably don't need trade accounts at multiple wholesale outlets but having at least one with someone local who gives you decent prices (i.e. not CEF!) is very desirable. But you probably will find the likes of Screwfix are good for T&E cable, etc.

Same with scheme membership. For jobs falling under Part P it makes sense to pay the £500-ish per year and jump through the hoops due to the saving of not having to get LABC to certify stuff at extra cost as you would save the cost over a handful of such jobs, but for repairs and small jobs not worth bothering at first.

Thank you once again for an in depth answer.

I will have a look at some of the stuff you’ve mentioned

 

[Dartlec]

Thank you for this reply this helps a lot. I’ve seen rhino on bundys YouTube before. I’ve also seen tradify not sure if it’s him who mentions them or artisan or maybe both... have you ever used the platform?

I had a trial with Tradify but never found them that useful as a sole trader - But I already had my ways of doing thing fixed so it was hard to organise everything around it.

I'm pretty sure Artisan did a video on it. You may want to keep costs down as much as possible when you first start though.

 

[telectrix]

don't be conned into paying for ads in magazines for children/schools/ etc. at £200 a year. these are usually offered over a phone call, one is called forresters. nobody ever sees them even if they actually get distributed.

 

[Mike Johnson]

And get a decent answer phone, so you can switch off your mobile, nothing more annoying to a client than you/they being interrupted by your mobile and whilst working having to stop to answer it, take time during the day to access the answerphone machine and reply at your leisure.

 

[pc1966]

And get a decent answer phone, so you can switch off your mobile, nothing more annoying to a client than you/they being interrupted by your mobile and whilst working having to stop to answer it, take time during the day to access the answerphone machine and reply at your leisure.

I know a guy who had that on steroids - he paid for some answering service that took down the call details, etc, then faxed him at some point in the day, then at 4pm they had time set aside to deal with all of the day's queries and call folks back ,etc.

It seemed a bit excessive compared to an answer phone but I think his argument was folk were happier to get some secretarial staff to speak to to provide details of number and reason for call, etc.

 

[Mike Johnson]

These type of office accommodations seemed to spring up around the beginning of the 2000, they usually had office space available to allow meetings with client's and provide secretary service's and even accountants if needed, one of my colleges started one in Kent, but that went by the way as he could not get enough sole traders to make it worthwhile and it was expensive.

 

[Intoelectrics]

Some really great advice so far!

I think the key thing transitioning from employed to self-employed is that all of a sudden you are lumbered with the full responsibility. This can be very stressful and worrying, and certainly takes up masses of time, that you probably had spare previously.

Also as its already been stated time is money! So you must cover all associated costs within your hourly rate. This is something Joe public often fail to realise and appreciate, but don't give in and go cheap or you will find yourself a very busy fool!

I'd also consider tool and equipment insurance cover in addition to public liability. I've seen tradespeople get all their stuff nicked and its cost a pretty package to replace!

There are some benefits to being self-employed, but it isn't all rosy. You will get stung, you will get complainants and you will worry over everything. But you will learn to deal with all of this over time.

Good Luck!

 

[Timbo]

Get yourself a domain name for email address. To me nothing screams cowboy or cheapskate so much as a gmail or outlook address on your van.
Ideally decide on your trading name first to direct your choice of domain name.

 

[Mike Johnson]

I also found having a separate office is beneficial you can leave your work behind and it will still be there when you return in the same place you left it, many I know (myself included) had a room in the garden that was out of bounds to everyone else in the household, it also meant when you went indoors you had officially stoped work, using a spare bedroom does not work as well.

 

[pc1966]

Get yourself a domain name for email address. To me nothing screams cowboy or cheapskate so much as a gmail or outlook address on your van.
Ideally decide on your trading name first to direct your choice of domain name.

This!

Even if you are not your own business, having an ISP-independent email is a really good idea. In fact, get a few so you have one for highly spammy sites, etc, etc.

If you check around you can register your own domain (the "joeblogs.co.uk" part of web site www.joeblogs.co.uk and email [email protected]) for something like £10/year, and then you can get hosted emails for something like £5/month or so. It might seems like an unnecessary expense to begin with but it saves you trouble long term if you change provider, etc.