View Full Version : Starting own business?
Really want to start my own place up offering custom alloy fab bits and general fab/welding work exhausts etc.. along with the general fixing cars, diagnotics side.
How hard can it be really? i can get a unit thatll fit 6 cars in local to me for £450 a month.. its just havig the balls to set it up and if il get any work :confused:
Markey Mark (BD)
02-02-2014, 15:01
I almost did the same few years ago setting up on my own, found a nice sized unit and all the bits needed. Bit that stopped me was knowing if I could bring in enough work to pay for it all and live too, in a way as things went on I could of but in a way glad I didn't do it
I was only offering working on 5's and various bits of work on other Renaults too but with the alloy work your offering you could do well mate, just a question if you want to take the gamble
Funny you mention it! I'm toying with the idea too but not really in the fabricating scene.
More all kinds of stuff realy, shame the automotive market jn the nl isn't as big as in the uk but gives me some oportunities too as there's also less competition...
But i have exactly the same issue as you, where do i start!
Really want to start my own place up offering custom alloy fab bits and general fab/welding work exhausts etc.. along with the general fixing cars, diagnotics side.
How hard can it be really? i can get a unit thatll fit 6 cars in local to me for £450 a month.. its just havig the balls to set it up and if il get any work :confused:
For £450 could you afford that whilst still working ? Because my mate did that and waited until things got busy enough to support him and then left his job and went full time self employed. Also how much stuff do you currently own like welders and tools and so on or would you need to get a loan for equipment because you would have to factor in that on top of £450. I have thought many times about going on my own doing Hgv's but there's so much to think about. And a lot of luck is needed, looking at your work you certainly have the skills. :)
Running a business is the most stressful and time consuming thing you can ever do mate. I work 7 days a week. It will take over your life lol.
Well thats the thing havnt got any welders my self i always use the stuff at work, iv got tools and that to work on cars and got dianostic software on laptop, but my mates up for putting into it aswell like its just the gamble like you say knowning if id get enough work in to make it pay foritself and make some profit..
Just a hard one to decide on what to do.. obv id help any of the 5 boys put with anything but id also try with other cars too..
Will you have to pay electricity bills etc on top of the £450? Best to try and work out the total amount that will be going out each month in bills etc then see how much your gonna need to earn to stay afloat/ earn a living etc and way it up! Unfortunately there's only one way to find out if it's successful or not. But if you don't do it will you always be wondering what if? I run my own carpentry business but I have hardly any overheads etc just the initial outlay for tools vans etc
andybond
02-02-2014, 18:39
There are several decisions to decide before you start
What type of business are you wanting to be classified under ?
Sole trader
Limited Liability ?
Limited Liability partnership?
Are you going to be VAT registered ?
Each has its own perks and benefits.
Andy is right. You'll need or need to pay for:
Business account
Public liability insurance
Vat registering if your turn over exceeds £73000 a year (you can volunteer to register)
Income tax
Business rates on your unit
Accounts software (optional, but beneficial)
Book keeper
Accountant
A very patient girlfriend
Plus you'll need the most important thing which is a customer base.
If I were you, I'd create a business plan & go to see your bank mate. From what I have seen, you are one hell of a gifted individual. Could you not start by working at your house or parents garage. Minimal overheads when starting are essential. :)
Do not borrow money to start .Keep it as simple as possible .Do not reg for VAT until you have to .Stay sole trader .Employ a good accountant .Get insured .
Ltd company has had it's day for the actual 'sole trader '
You have to have the right mind set to do it .You will have to work harder and longer for less money initially and perhaps forever but you win or fail on your own abilities .
Not had a proper job for 25 years ,it's still a struggle and a worry most times but I'm pretty happy with life :smokin:
Me Dawny has also been se for the last 15years but has now just gone back into the workplace .A regular income being the main issue as we have 3 boys that just won't stop eating .You just have to be prepared to be flexible .
andybond
02-02-2014, 19:33
Andy is right. You'll need or need to pay for:
Quoted for prosperity. Not often you see that on this place . :D
. Minimal overheads when starting are essential. :)
Most true.
Cashflow kills buisness' dead ( that sounded like a toilet duck ad didnt it ? Basically keep the income high and the outgoings low. You never ever want high outgoings , but minimizing risk is the key.
andybond
02-02-2014, 19:35
.Do not reg for VAT until you have to .Employ a good accountant .Get insured .
Interesting take on the vat thing there Lee. There are lots of perks of being VAT registered.
Excellent advice on the accountant. Dont use your mates mate from the pub. Do it once and do it right.
VAT becomes workable at a certain point but all relative to outlay .It can be a killer if you are just starting .Customs and exise have a lot of power and can fine very heavily .....All very well on paper but in reality it's a big bill you MUST pay on time every time .
I only did it when I was shelling out loads on sub-con work during my plastic design days ...All you are doing is collecting tax for the MAN a lot of the time so just be aware ......
+ If I added 20% to my restoration costs then I think I'd lose a few jobs
Interesting take on the vat thing there Lee. There are lots of perks of being VAT registered.
Excellent advice on the accountant. Dont use your mates mate from the pub. Do it once and do it right.
Excellent advice on the accountant. Dont use your mates mate from the pub. Do it once and do it right.
I second this, having been there & done that & had the fines & levy stuck on my van for £1000 as he fooked my accounts up....
BTW, you don't need a business account, & I would steer clear of the VAT man unless you are buying alot of stock & going over £30-40k annually.
(apologies Andy, I hit edit instead of quote)
andybond
02-02-2014, 19:49
VAT becomes workable at a certain point but all relative to outlay .It can be a killer if you are just starting .Customs and exise have a lot of power and can fine very heavily .....All very well on paper but in reality it's a big bill you MUST pay on time every time .
I only did it when I was shelling out loads on sub-con work during my plastic design days ...All you are doing is collecting tax for the MAN a lot of the time so just be aware ......
+ If I added 20% to my restoration costs then I think I'd lose a few jobs
I did it the other way around Lee. Vat registered straight away and it paid.
The reason being is I export a fair amount of stuff to non EU countries so I get the VAT back.
andybond
02-02-2014, 19:50
(apologies Andy, I hit edit instead of quote)
http://www.thedrum.com/uploads/drum_basic_article/86249/main_images/specsavers.png
You daft hunt.
Apologies , I hit a h instead of a c
:cooter:
Quoted for prosperity.
.
Posterity, prosperity is something not something to be bandied around in this thread.
The spelling Nazi
All relative to the type of business .I just charge the vat price for parts I fit .I lose on rent etc but it's a small amount and not worth a 10k restoration bill turning into 12 and 2k that I don't see but have to find ....
Best advice ..get a good accountant .I was ltd for a while when it paid to be so ,,VAT reg for a while when it made sense .
andybond
02-02-2014, 19:56
Posterity, prosperity is something not something to be bandied around in this thread.
The spelling Nazi
Put me down for a bothered ;)
And I put an extra "something" in there anyway. Why does that always happen?
Its alot to take in and think about then all the ins and outs with it all, might just be young and dreaming but just feel i wanna get out there and make a name for myself! Lol
Im currently saving up for a tig and mig set that i can put in my shed as thats quite big, i could try that and see what i get from that..
The unit were on about getting was just something for our cars and to do mates cars etc then hopefully give it time could turn it into something worthwhile that i wont need to work i can just work from there..
One of them...... :scratch:
I'm sort of in the same boat ATM. My advise is build a customer base, invest all profits back into your business and don't try getting too big too quick.
For me, I'm using all profits from my sideline and investing in tools for the sideline so it grows, some of My full time job money went towards it at the beginning.
Found a Unit 3x the household garage for £70 a month all secure. Just waiting on customer base to build.
Yeah get what you mean mate im just gonna see what i can do at the min see how it goes i can use my work on weekends really as i have keys, jus obv cant take the piss as dont wanna loose my job lol most the things i make i say are for my car if they ever do see them.. But jus a waiting and saving game i think gradually build something
Running a business is the most stressful and time consuming thing you can ever do mate. I work 7 days a week. It will take over your life lol.
Nail on the head :)
Everyone worries at the outset, that's natural. You have to crunch the numbers, assume a 'worse case scenario' each month and if you still think you can make ends meet then you're in with a good chance. Anticipate a few months of twiddling you're thumbs. Once you have a happy customer base the work will find you. I think in the automotive world the trick is not to specialise. I could never have predicted the amount of Vaulxhalls or MX5s or random race cars I get through, and it'll be the same with fabrication. Advertise you're services to as broad a spectrum as possible.
Never forget to anticipate expense. Welders dieing, equipment breaking, time off through injury, income tax, VAT, insurance, business rates, etc. Always try to have some money floating in the business - you can't always predict when the next big bill will land on you're door mat.
The biggest difference between employment and running you're own business is the complete lack of time off. Even when you're not in work you're thinking about the next day, what needs to be done, who needs to be kept happy, what invoices you need to deal with. The list is almost endless. It's the sort of thing that will ruin some people and not bother others.
Be strict with you're prices. Every trader has their mates rates, and that's fine, but remember not to shoot yourself in the foot. Set yourself a minimum rate and don't ever break it.
And finally, you will spend at least 30% of you're day talking to customers, answering emails, chasing invoices, speaking to the bank, etc etc etc. Be sure to factor that in to you're model.
On the plus side, if you can manage all of that stress, the rewards can be great.
Good luck with whichever direction you go. :)
New poster! (less than 10 posts)
Don't forget you can apply for Tax Credits!
andybond
03-02-2014, 10:20
New poster! (less than 10 posts)
Don't forget you can apply for Tax Credits!
Speak to an accountant about that. They know the ins and outs.
B18ftMOJO5
03-02-2014, 12:37
Having run my own business in the past agree 100% with Scoff.
The biggest difference between employment and running you're own business is the complete lack of time off. Even when you're not in work you're thinking about the next day, what needs to be done, who needs to be kept happy, what invoices you need to deal with. The list is almost endless. It's the sort of thing that will ruin some people and not bother others.*
Cheers for the input scoff :) got alot to think about then really.. just not gonna rush into something straight away just gonna try and rent it out and see what i can get just from doing mates cars and that.. think there may be 4 of us now sharing it to do own cars/others so any £30-40 a week
If i can make it pay foritself least its somewhere 24hr access secure light and dry to work
and got dianostic software on laptop, ..
what system do you have? - EOBD only or something a bit better? - have you been on any diagnstics courses.....?
If I was you ask your company to allow you to borrow their facilities at weekends and after work and bung them a bit of cash their way to help out. Get the best of both worlds on that side and don't get the expensive layout initially.
what system do you have? - EOBD only or something a bit better? - have you been on any diagnstics courses.....?
Just got software called delphi mate its alright to be fair, i dod 3 years at college doing mechanics so got to use all that kind of stuff there..
If I was you ask your company to allow you to borrow their facilities at weekends and after work and bung them a bit of cash their way to help out. Get the best of both worlds on that side and don't get the expensive layout initially.
Well its my mates dads place hes alight 2bf he dont mind me going in or stopping over to do stuff they just think its always for my car they dont really know i make some extra cash like, well i think they dont lol.. but i can always use the place i just dont wanna take the piss to much to were i get the sack :laugh:
If I was you ask your company to allow you to borrow their facilities at weekends and after work and bung them a bit of cash their way to help out. Get the best of both worlds on that side and don't get the expensive layout initially.
Tax man won't like bunging cash mate. Lol.
Speak to an accountant about that. They know the ins and outs.
It's the same as being an employee, depends on your income/profit/dividends.
andybond
03-02-2014, 20:08
It's the same as being an employee, depends on your income/profit/dividends.
Indeed. Not all companies issue dividends , my LLP doesnt.
You cant get away with paying yourself peanuts and then getting a wacking great dividend any more either. You will raise suspicion.
Just got software called delphi mate its alright to be fair, i dod 3 years at college doing mechanics so got to use all that kind of stuff there..
we sell delphi, you got the DS150 or the older version. - its basically a delphi rehash of the Autocom apparently. - we can sell you the software for £495+vat, provided you dont have a cracked version or summat. - mind you it doesnt run out after the software has expired anyway.
Yea mate got the ds150 version cars/trucks and i heard it was better than the autocom one or watever it is
Yea mate got the ds150 version cars/trucks and i heard it was better than the autocom one or watever it is
you have a great tool there. - we sold one to a guy down south, who actually phoned up and wanted to congratulate us on selling him a tool that managed to look at everything he looked at with it!
I have the knock-off ds150 and can vouch for that, it finds stuff and is able to test stuff no other diagnostic device my friends have is able to
Yes mate can say its really good for the price to be honest! Easy to use too compared to some others my mates small thing is a right farse! Lol gives random mad codes at times lol
Weird, which one is correct?
The one at £115 delivered:
http://www.ebay.co.uk/itm/DELPHI-DS150E-CARS-DIAGNOSTIC-TOOL-4000-CARS-TRUCKS-/251442861626?pt=UK_Diagnostic_Tools_Equipment&hash=item3a8b29963a
Or the one at £4000 delivered?
http://www.ebay.co.uk/itm/DELPHI-DS150E-CAR-TRUCK-DIAGNOSTIC-TOOL-/200920341580?pt=UK_Diagnostic_Tools_Equipment&hash=item2ec7c91c4c
GSF sell it for £1645+vat for a new UK unit with 1 years car software updates.
the £4000 one is from hickleys, they are selling it with truck software too, which is extra, and the truck cable kit, which is extra. :)
if you notice the cheap one, has the delphi stickers seperate on its own paper for you to stick on the unit. - 'proper' delphi units have them on already.
andybond
05-02-2014, 17:58
if you notice the cheap one, has the delphi stickers seperate on its own paper for you to stick on the unit. - 'proper' delphi units have them on already.
Sparkie , are you alluding to the cheaper one being a cloned unit ?
Sparkie , are you alluding to the cheaper one being a cloned unit ?
Perhaps.... - no where on the advert does it say its a UK unit, just that its a 'UK Saler'.....
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