WelshWood Posted September 4, 2013 Report Share Posted September 4, 2013 Hey guys, I'm currently working for a construction company, been there for around 7 years fully employed. Things have been really slow on the work front and nothing seem to be about on the horizon (high spec company so don't do the smaller jobs). I've been approached by a local carpenter who ALWAYS seems to have work on, and he's offered me to go self employed under him. This is something that I'm most definitely interested in, but find it a bit daunting starting out as self employed.. I've spent hours searching online for some sort of 'guide' as such, but can't find anything! The tax and insurance I'm aware of as I've done research into this, but would like to know if there are any grants or such available for starting out? Sorry if this post is vague but i'm sure you get the idea! I'm based in the UK if that helps, Cheers! ~WW Quote Link to comment Share on other sites More sharing options...
Chris H Posted September 4, 2013 Report Share Posted September 4, 2013 I don't know if the UK has a SBA program or not. In the USA, the Small Business Administration has some literature and some different programs that can include tax incentives to start a small business. I haven't seen any grants though unless you are doing research work of some kind. Some SBA loan programs offer discounted lending rates, but no where near free! Quote Link to comment Share on other sites More sharing options...
T-astragal Posted September 4, 2013 Report Share Posted September 4, 2013 SBA can take 2 years ! The banker doesn't seem motivated enough to push the paper through on small loans with loads of red tape. I nearly starved waiting that long and finally told them no thanks. Make up your mind that you will make it happen'. Keep your overhead low take a part time job if you must. Don't borrow money to live on and try to avoid it for all reasons. You gotta realize that making sawdust might be 30-50% of your time. Making contacts, selling, drawing, quoting, ordering, collecting money, installing etc etc. will take lots if time and those things are not really income producers. There are lots of failures out there. Be ready to work your butt off and have a determined "damn the torpedoes" attitude. Steve Quote Link to comment Share on other sites More sharing options...
dwacker Posted September 4, 2013 Report Share Posted September 4, 2013 Here the Small business Administration is very easy to work with. When I first went out on my own I got a 50K revolving line of credit through the SBA. Turn around time on loans with good business plans and a good credit standing is usually only a week or so. Funding may take a few week but not years. My son in law just took out his third 70K loan and was funded in ten days. That really doesnt help you at all PM or contact GS Haydon sp? he is on your side of the pond. Im sure he will be happy to help. No matter where in the world you live you will need a good business plan to borrow funding. The good part is that if can come up with a good plan you may stand a chance of making it without struggling. If you cant develop a good business plan there is a reason. Quote Link to comment Share on other sites More sharing options...
G S Haydon Posted September 4, 2013 Report Share Posted September 4, 2013 Hello WW Sound like a promising lead. I'm assuming the client will pay you direct rather than the carpenter, otherwise you are an employee, unless you only work infrequently for him SE can be very liberating. Most guys who I see go SE don't go back. Be prepared to keep records, invoice regular, etc. Also find a good accountant. Your not going to need much help and although the service might seem expensive a good one will be a great help. If you doing job site work investment is usually low at the outset. A van and the tools you already have would do most things. If you need extra kit hire it initially and pass this charge on. Hope that helps a bit. Not sure on grants, money from grants is often not able to be used on a vehicle which is likely to be you biggest cost. Make sure you adequately insured too. Good luck! Quote Link to comment Share on other sites More sharing options...
TerryMcK Posted September 5, 2013 Report Share Posted September 5, 2013 Hi WW I was self employed for over 20 years and got fed up of all the issues with paperwork, tax, VAT, NI, IR35 etc. It got in the way of me actually doing my job. This was in my day job industry that I still do, computers, but I was lucky enough to get offered a permanent job that I do now for almost the same wage + benefits. I personally wouldn't go self employed again. I have decided at the moment just to have woodworking as a hobby selling occasional pieces and doing commissions every so often. If (!!!) I retire (pension drawing age for me is currently 67 years old ) I may start a small bespoke business to sell on a more commercial basis to supplement income. When I had my first days leave after starting a "regular salaried job" I celebrated as I was actually being paid to be on leave! First time in years. I hope I haven't put you off but as far as you are concerned it sounds promising and you have to grasp the opportunities when they come up. Have a look here and here as there is a lot of useful information and as Graham has already said find a good accountant. They are well worth it and can save you a lot of money in the long run as they understand the rules better than mere mortals (such as us ) Quote Link to comment Share on other sites More sharing options...
dwacker Posted September 5, 2013 Report Share Posted September 5, 2013 Hi WW I was self employed for over 20 years and got fed up of all the issues with paperwork, tax, VAT, NI, IR35 etc. It got in the way of me actually doing my job. Its the crazies and nut jobs that have been a real pain for me. Its nice when you can let someone else deal with the nut bag customers and their issues. 1 Quote Link to comment Share on other sites More sharing options...
G S Haydon Posted September 5, 2013 Report Share Posted September 5, 2013 Its the crazies and nut jobs that have been a real pain for me. Its nice when you can let someone else deal with the nut bag customers and their issues. Glad I'm not the only one Quote Link to comment Share on other sites More sharing options...
rodger. Posted September 6, 2013 Report Share Posted September 6, 2013 As a non pro, I sometimes dream of a shop where I can spend the day making furniture... Quote Link to comment Share on other sites More sharing options...
..Kev Posted September 6, 2013 Report Share Posted September 6, 2013 Careful what you wish for Pug, if you're doing it for a living, it might not be as much fun. Quote Link to comment Share on other sites More sharing options...
TRBaker Posted September 6, 2013 Report Share Posted September 6, 2013 Its the crazies and nut jobs that have been a real pain for me. Its nice when you can let someone else deal with the nut bag customers and their issues. I've made it a point to turn down jobs for people that appear to be difficult to deal with. I've done this long enough to be able to spot them a mile away. Life's too short to put up with flakes. Careful what you wish for Pug, if you're doing it for a living, it might not be as much fun. No "might" about it. It WON'T be as much fun. Quote Link to comment Share on other sites More sharing options...
WelshWood Posted September 7, 2013 Author Report Share Posted September 7, 2013 Hey guys, sorry for the long wait! A lot of good feedback from you guys, thanks very much! Been to have a few chats with the guy who wants to employ me, he can pretty much pick and choose his jobs at the moment which is a real bonus! The money he's offering is only marginally higher than the wage I'm currently receiving, but I believe that the 20% i'd be able to claim back on purchases would make up for that! He told me a story when recently he was asked to come in and fit 20 doors on a big site, including the main 2 x 4ft wide oaks to the entrance of the building.. fitted 8 hinges in total with a jig, all trimmed with a perfect gap all around, he was then gobsmacked when another carpenter came along, told him the brickies were coming to lay a different threshold so the doors would have to be trimmed to suit. As he had more doors to hang, he went to finish those whilst leaving the other chippy adjusting for the threshold.. He came back at the end of the day to see the other chippy was using a hammer to literally smash the hinges back into place, marks all over the doors from where he had 'placed' the door onto horses for trimming, and to top it all off, he cut the doors 40mm to short for the threshold!!! To add insult to inury, he was on the same wage... amazing what some people consider a decent job! ..But enough of my storytelling! will be looking at more info in the mean time, got another 2 weeks before letting him know my decision, so any other advice you can give would be greatful! many thanks, ~WW Quote Link to comment Share on other sites More sharing options...
G S Haydon Posted September 7, 2013 Report Share Posted September 7, 2013 Careful what you wish for Pug, if you're doing it for a living, it might not be as much fun. The most fun I get is at lunch break when I can do a few bits to the bench or a similar project. I enjoy the day job and like it but it is more fun when your the boss. Quote Link to comment Share on other sites More sharing options...
..Kev Posted September 8, 2013 Report Share Posted September 8, 2013 The most fun I get is at lunch break when I can do a few bits to the bench or a similar project. I enjoy the day job and like it but it is more fun when your the boss. Agreed. However, for every situation that works our well like yours, hundreds (or more) do not. Quote Link to comment Share on other sites More sharing options...
G S Haydon Posted September 8, 2013 Report Share Posted September 8, 2013 TIODS, I just read my post again and I did a really bad job of explaining myself. The "Boss" in my response was the client, I like it when I'm my own client best . Sorry for being incoherent. My day job is being the regular business Boss which is good but it's so much sweeter when I can do woodwork without the business hat on. 2 Quote Link to comment Share on other sites More sharing options...
..Kev Posted September 8, 2013 Report Share Posted September 8, 2013 TIODS, I just read my post again and I did a really bad job of explaining myself. The "Boss" in my response was the client, I like it when I'm my own client best . Sorry for being incoherent. My day job is being the regular business Boss which is good but it's so much sweeter when I can do woodwork without the business hat on. Agreed! 1 Quote Link to comment Share on other sites More sharing options...
Chuck Melton Posted September 19, 2013 Report Share Posted September 19, 2013 One of the key factors to keep an eye on is your "Runway". Which is cash + credit + AR divided by your monthly expenses. You need at least 90 days. Ditto on finding a good accountant and realizing you have to spend a good chunk of time doing administration. Also, if you aren't comfortable doing a bit of sales to keep yourself busy that is a pretty powerful reason to not strike out on your own. 1 Quote Link to comment Share on other sites More sharing options...
G S Haydon Posted September 19, 2013 Report Share Posted September 19, 2013 Yep, that's it. Get ready to less woodwork than you'd think. Quote Link to comment Share on other sites More sharing options...
missioninwood Posted September 20, 2013 Report Share Posted September 20, 2013 When I was ten my dad owned a Hallmark card store. I learned from that experience to NEVER own and operate my own business. The headaches with employees, taxes, customers, landlords, payroll, inventory, marketing, maintenance, etc. etc. etc. I agree that this leads to a life of non-fulfillment from your "career." But that's what brunettes, oh, and WOODWORKING are for.... For me, keep those corporate pay checks coming! Good luck with your difficult decision. miw Quote Link to comment Share on other sites More sharing options...
dwacker Posted September 20, 2013 Report Share Posted September 20, 2013 Its not all glory but its not doom and gloom either. I think if you find it overly difficult your doing something wrong. Self employment is just a job, do your part and let others do theirs. Their is no reason to be a slave to a business that is run properly. Quote Link to comment Share on other sites More sharing options...
G S Haydon Posted September 20, 2013 Report Share Posted September 20, 2013 Its not all glory but its not doom and gloom either. Nail struck firmly on the head. Quote Link to comment Share on other sites More sharing options...
Leif Napalit Posted October 24, 2013 Report Share Posted October 24, 2013 you got greater chance of success in self employment, Because you got the skills. In the corporate world, you need a lot of People skills. -----------------http://clericalstudio.wordpress.com/ Quote Link to comment Share on other sites More sharing options...
dustyshop Posted November 25, 2013 Report Share Posted November 25, 2013 I agree with alot that has been said I"ve been self employed about twenty years now sometimes I get stressed over money where the next job is coming from but over all I love it I"ve gotten good over the years of learning to let the customer get involved but not to a annoying degree where they think they can stand over your shoulder and micromanage the job just let them be involved do really good work clean up great count on your accountant and the word will get around as they say good news travels slow bad news travels fast so never do bad work good luck you can do it join the self employed crowd and lets make america what its inteneded to be a place to be free,proud and trick out other peoples houses lol Quote Link to comment Share on other sites More sharing options...
jHop Posted December 12, 2013 Report Share Posted December 12, 2013 One thing that most self employed almost never discuss is the "exit strategy." That is, how to get out of the business when it's no longer fun, no longer profitable, or no longer something you can do all day. If you just intend to go to a hobby level, you need to find someone to take over the business you've spent blood, sweat, tears, and years building. Or, you can incorporate, hire a board and some employees, and then retire and collect big bonus checks. (Sorry, McDonalds on the news again.) I'm not trying to be a downer, but factor in your "out route" into your plans... at least in a broad sense. If your plan is to die working... well, then, (and don't take this the wrong way) I hope you die happy! (Assuming you enjoy your job, that is... Otherwise... well, this got really creepy and morbid in no time flat.) Quote Link to comment Share on other sites More sharing options...
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