Thinking of going self-employed?

[Dannycrosbie]

Hello everyone,

I was wondering if anyone had any experience on becoming self-employed in recent years and whether they would reccomend it?

I know that it's down to the individual but I just wanted to know roughly what they would reccomend would be needed (money wise) to pack in work and go it alone.

I'm 26 and I've been in the A/C trade for 10 years, I've done installations and service and breakdowns so I have a wide skill set ( not blowing my own trumpet )

I know I would be pretty much guaranteed work with my current company as a subby at least to start with, a) because they always seem to employ ex employees as subbys and b) one of my good mates is the installation project manager who would give me the work (obviously not unlimited)

I've asked sub contractors I've met what they think and I can never really get an answer, it's either oh you shouldn't do it if you've got a mortgage or yeh it's fine.

I'd appreciate any advice anyone can give me,

Thanks,

Danny

[Dannycrosbie]

Should add I live and work in London as well in case that makes any difference.

[chemi-cool]

Being self employed means you have to grow bigger balls than other people, NO, can become a very common word, your milage will rise, every little fault comes from your pocket, 24 hours day might be too short at times, you may spend more than your income at times, etc, etc......

But, it's a great feeling and if you become real good, you can make a small fortune.

The key to success is to love and enjoy the work you do.

[monkey spanners]

You want your van paid for, all the tools paid for, various insurances and refcom memberships sorted out. Wife or partner needs to think its a good idea too and be prepared for a cut in wages for a while, no holidays etc. Stop spending on things you don't really need.
Ideally get some work lined up, don't bank on your existing employer giving you work, i know at least on guy who got told that was the plan but turned out it was a way for them to get out of redundancy pay.... Try and avoid giving people credit. Get the office side of things sorted before you start, get a good bookkeeper if not doing it yourself and a good accountant.

Basically hope for the best but plan for the worst.

[chemi-cool]

[QUOTE=Basically hope for the best but plan for the worst.[/QUOTE]

NO!! Plan for the best!

[charlie patt]

Ms very wise words very wise as far as self employed goes I would ask myself the following questions
1/ do I enjoy going out at the weekend with friends and family
2/do I like to finish me work then turn the phone off
3/do I worry what people think about me
if u can answer no to all of the above go for it ........u need thick skin money in the bank and stubborn as hell the financial rewards can we excellent the stress can be overwhelming its like all jobs good days bad days but when ur self employed the bad days u don't get paid the big thing is be single or have a very very understanding partner u have a bad day guess who gets it in the neck your out at two am guess who really suffers I still have no idea why my wife puts up with me work is still first second and third but I just would not work for anyone else

[Dannycrosbie]

Wow ok thanks everyone for the replies. That's given me a bit of a reality check. Does everyone agree it would be better starting off at least with a partner?

[charlie patt]

No is my opinion very few partnerships last at some point one partner thinks the other one is getting more than the other then the rott sets in unless they are silent and owns a chain of supermarkets saying that a couple of firms good ones I work with run on a partnership but they seem to have opposite skills sets so they work well together but they seem to be a minority I think you just need to work on what suits u ur hourly rate ur on at mo do u enjoy it what would u change if u have a crack and it don't work at least u are in a industry that is crying out for engineers

[cadwaladr]

If you have enough money in the bank to sustain your personal expenses for twelve months after buying your vehicle tools accountants etc give it a shot.

[Grizzly]

Charlie.
Have you even thought about being a councillor!
Wise words based on experience no doubt!
Lost both of my businesses because of Lack of Cash Flow!
Basically had plenty of work but no B**ger paying me.
I will pay you at the end of the month when I get paid is not what you want to when accounts need settling.

Good Luck all the same, If you don't try you will be thinking what if for the rest of your life.
So give it a go!
Grizzly

[Magoo]

Totally agree with Grizzly
over the last twenty odd years if i could bank promises of payment would be great, usual excuse cheque in the mail. yeah right!! So concentrated on subbing to large corporations, OK slow payers but they pay eventually, usually 60 days at worst.
Have a serious talk with your bank manager, then find an accountant for budgets, and depending on personal out goings , plan for no effective income for at least 3 months. Lease second hand vehicles on a short term arrangement, so if all turns pear shaped your losses are minimised. Work is the easy part, then the paper work and time chasing money, plus suppliers need paying, us an credit or eftpos card for max discounts. BUT get a line of credit from bank manager. Don't forget the VAT and tax man either.. deposit 10% of every invoice into a separate account, should cover most of it. Wives are good for doing parework.
your call good luck hope it works for you.

[Alex77789]

All I can say is that self-employment pays off for sure. I've become self-employed last year and now I've covered almost all my expenses. What's more, I'm doing what I like and don't have any BOSS.
Here's some info about it, you may read if you like.
http://businessmentalmodels.com/self-employed-businesses/

[Gladstoneair]

Iv been self employed for some time now. (3 years) Generally I try to make 2k a week. This 2k will pay for all insurances, tax costs, licenses, fuel, advertising and it gives me a little over 1k a week. Hope This helps

[Mavricks Choice]

I have been in business now for 12yrs & starting out cold is hard no matter how good a operator you are!
Being a good fridgee & a good manager is two different things.
As many above have said if you can get over the highs/lows & manage on lesser wages for a period you will be ok. I'd recommend you need to be able to support yourself for at least six months. Don't go buying up big on lavish service vehicles nor tools & equipment until you really need to. Some good suppliers will hire out vac pumps, reclaim units & refrig bottles too. Or do what I did at times borrow from a friend.
I found once I got over the five year mark the word of mouth work is astronomical & besides a Home Tradie page I haven't advertised for the last four years.
I say have a solid go at it & good luck too!