Anyone worked for a big company then take the leap into working for yourself?

[payney1974]

Hello there, ive been working for a company for 16 years now doing plumbing, c / h, servicing then for the last 6 years ive been doing breakdowns and working on chp's / pps. I worked my way up through the ranks and became in my eyes a very good engineer but recently we were taken over by a VERY big company and i am now just a number and the way they work is very strange. I have been planning to work for myself but just wondered if anyone had got any tips for me, for example how do you work direct one day and then you have a week full of your own work the next? I cant advertise yet while im still with the company. I could start doing jobs on the side and building a customer base that way and then when i give a months notice start advertising? Also my company has said if anyone has there own gas safe card they will be sacked???

Any advice would be very much appreciated.

 

[wnjswozo]

start planning,youve got the experaince,youll,nail it workng for self ,youll soon get in work.my only tip would have at least 3 months money behind you as a reserve,if poss.dont blow all your money save 1 third for tax,and work out your overheads,
ie public liabilty insur,van,petrol,van tax,insurance,holiday pay,tools,accoutant,ads . stay on top of paperwork,work out a mim callout fee.remember it will take 3 years to become established.and finally dont give up,there will be highs and lows,but planning money wise is a must

 

[payney1974]

Thanks for the quick response, i only thought keeping 2 months money back would be enough im glad you said, im thinking of making the transition when it starts to get cold next year maybe September (is this a good time?) so plenty of time to save some cash although i need a van, power flush unit and a few other little things.

 

[wnjswozo]

would,nt bother with powerflush gizmo,you can hire them cheap now,if your not in a rush,i would leave it longer see how the recession pans out next year maybe think year after, more time to plan/save/get name about.

 

[oldplumber]

The biggest point to make is dont overspend on kit , vans etc before the money is coming in, surefire way to go bust. Hire it if you need it and charge the customer the hire fee. Get your invoices out quickly and chase up late payers politely and firmly. If your works ok then they cant argue about paying.
Get your reputation , turn up , ring up if late nothing ****es off the customer more than a no show, it kills your local reputation.
I only advertise in local post code services mags, papers are a waste of time and thompson/yellow pages put you in with 100s of the same response rate isnt good in my experience, you only cover the cost of the ads.

good luck

JD

 

[stevetheplumber]

ive heard that some companies ban employies having there on gas card which in my opinion is a complete liberty what you do with the other 16 hours a day is your buisness
you will probably find the directors of said company is also involved with other companies in various roles

 

[Puddle]

You have to look over both sides of the fence
Directors may have other interests but probably not in other gas work firms,as that would be a conflict of interests,as is if you do gas work private outside of your firms work
As I have said before if you go into work in the morning and they send you home because the job you was going to do and get paid for by the company has cancelled because the customer got it done cheaper by a bloke the night before and you end up with a wage packet of half what in should be at the end of the week,you would soon be up in arms

 

[payney1974]

I understand what your saying puddle because in the future i could take a guy on and he could be out there undercutting me without my knowledge which i would be annoyed at!! Lets face it though im not going to affect my company at all am i ?, i think customers that use companies like say "british gas" will always use them because they think they are " the best " and are scared of the possibility of getting a rogue trader so they end up paying the 4 or 5 grand for a bog standard sytem, this is the customer small companies or sole traders would never get. The customers i would get are the ones who simply can't warrant paying that sort of money and never would. How else can i start up on my own without doing jobs on the side (still paying tax though)? i mean is'nt that the way everyone has to do it? and when your diary is getting pretty full take the plunge and advertise.

 

[Puddle]

I understand what your saying puddle because in the future i could take a guy on and he could be out there undercutting me without my knowledge which i would be annoyed at!! Lets face it though im not going to affect my company at all am i ?, i think customers that use companies like say "british gas" will always use them because they think they are " the best " and are scared of the possibility of getting a rogue trader so they end up paying the 4 or 5 grand for a bog standard sytem, this is the customer small companies or sole traders would never get. The customers i would get are the ones who simply can't warrant paying that sort of money and never would. How else can i start up on my own without doing jobs on the side (still paying tax though)? i mean is'nt that the way everyone has to do it? and when your diary is getting pretty full take the plunge and advertise.

Hey needs must,I am just giving the other side,if the boot was on the other foot,I am sure the company would do what is best for them,There is no loyalty anymore,in he old days you would look after the firm you worked for and they would look after you,not anymore,as soon as you do not fit in ,your down the road
Also this trade is slightly differant as there are so many self employed/one man bands
I would build up my work then leave the firm as said,anyway ,good luck to you
Be very,very,very careful what kind of advertising you spend your money on,as can be expensive with small if any return

 

[payney1974]

I couldn't agree more as soon as there was a sniff of this recession heads rolled at our place, total mercenaries!! There attitude now is if you don't like it you know where the door is!! As advertising goes i was going to drop portfolios off at estate agents, posting business cards up everywhere and get the missus to walk the streets with flyer's ( she doesn't know yet) and get the van sign written.

Also what are the advantages / disadvantages of becoming " Limited " ?

 

[Bernie2]

I think companies are allowed to ban you working in your own right at any time and have been for years. But starting upon your own without a customer base to get even a smallish income is I think harder than it should be.

The government talks about providing opportunity for entrepreneurs willing to start up companies but doesn't seem to do much to help them start up.

I would like to see the whole thing break down and companies encourage their workers to work for themselves if they want too. An established company could be a source of real help to them.

There is no real reason why they don't, its just assumed I suppose they will open up in competition to them and take work away from them. In reality they may enhance a company and give them a chance to work together on larger contracts.

After all they may just leave and start up anyway.

I would also like to see the insurance scheme rejigged so that self employed people are able to claim full welfare allowances like eveybody else, on production of books and valid reason for lack of work.

 

[oldplumber]

Also what are the advantages / disadvantages of becoming " Limited " ?[/QUOTE]

As a Limited Company you are supposed to have a limited liability to your creditors if you go bust. Advantage is they are not supposed to be able to take your house/car/goods etc off you to recover their monies. This still true to an extent but also has disadvantages. The biggest draw back is that merchants will not always give credit to new companies as they can not recover their cost if you go toes up, being a sole trader at the start is better for credit.

As a company director, you have to file financial accounts to companies house annually, in a different format to your tax accounts, therefore you pay your accountant more for 2 sets of returns. You have to register as a limited company, with some costs involved.

There are loads of rules involved in running a company and failure to meet the rules can be alarming for an individual (fines/jail terms for serious infringement). However lots of directors run away and start several times over before they are finally caught up with by the law.

There are tax advantages in running a company, but you need to be earning the money first to gain tax advantage/savings.

Banks will require seperate company accounts and getting credit is harder for a limited co. Dont forget you can use your own personal cheque account (free banking) when you start up, until your bank wises up and makes start a business account along with all the fees/charges.

Best advice, keep it simple, keep it sweet, til you make your first million. Use an accountant for tax returns, less chance of a tax inspection and all the grief involved.

Happy new year, go for it

 

[andrewcplatt]

As far as i know,to register as a limited company youre turnover needs to be in excess of 60k per annum.Most small busineses start out as sole traders and as their sales/profits increase they tend to register themselves as limited companies once they reach this annual target of 60k plus.

 

[payney1974]

Thanks for everyones input i am certainly alot wiser now and as soon as i have some money behind me and a pretty full diary i will take the next step.

 

[oldplumber]

I think AP is mixing up vat registration with ltd co registration.. You have to register for vat when you 12 monthly turnover reaches £68,000 or face fines fm hmrc for late registration. You can register for vat before you reach this level of turnover but I can't think why you would as its extra aggro to you.

There is no minimum limit to registering as a limited company as in my experience properties made up of flats have to sometimes have a management company running their freehold assets and they may not show an income from ground rents for years, but just have a nil return each year sent to companies house iaw with company law.

If you want to go down either route talk to a qualified accountant or it could cost you dear in the long run if you get it wrong.

 

[GavinSmith77]

Hi mate
You can contract to a local plumper / firm they will deduct your tax and pay you weekly however the trick is to be able to come away for the odd week when you need to do your own work. I have a good relationship with the people i contract too. so a few weeks notice and they are happy. I have been self employed now for 5 years but only just got gas safe. I am hoping this will be the key to being able to work entirly for myself. However it take a lot of time and money to get.

 

[justlead1]

Hi. Large companies have sales men and admin. try and get referrals from them for a drink/commission. They wont sell at there rates to every Tom, Dick and Harry its a shame to waste em. Good Luck

 

[Bernie2]

I was told that limited liability companies, prefer to deal with other limited liability companies as most are reluctant to deal with sole traders knowing they loose so much if they have to sue them for some reason or other.

Hard way of looking at things, but makes sense in a way.

 

[oldplumber]

I would prefer to deal with a sole trader as you can take the roof off his head if he doesnt do the job, you cant win with a limited liabilty company because that is exactly what they are, limited liability, ie they cant lose anything they dont have, the only loser is you. Harsh but true