Just set up on my own- going to see the BANKS!

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MarkAqua

MarkAqua

Plumbers Arms member
Plumber
Gas Engineer
Hi, Im just after a bit of advice, more from the experienced self employed persons if possible

Obviously I dont expect your own secrets to success, however just a bit of setting up advice would be highly appriciated.

Okay so- after a long 4 year apprentership and one years "out of time" experience I feel the time is right to set up on my own. I am going to see the banks today/tomorrow to see what advice they give and see what finances I can get out of them.
What sort of costs am i looking at for initial set up? Obviously I already have my hand tools, blow torch, bender and all that basic stuff.

So far I know that i need:

  • Van + Sign writing
  • Van insurance
  • Liability insurance
  • Business cards
  • Power drills 240v electric such as Bosch Multi drill and a 18V battery screw driver/drill I think are the basics to get going.
  • Powerflush equipment
Is there anything else that I am in need of for initial start up? Also any other advice that you can spare will be greatly appriciated.

Thank you in advance,

Mark.
 
Would also be advisable to see an acountant.They will tell which business structure(ltd or sole trader), to set up and what you can claim for etc etc.
They will probably tell you that if you are planning on getting a newish van, then it is beneficial to lease one.I didnt I bought one, but that was my personal choice.

Graham
 
Thanks Graham. Yeah I forgot to mention i have got an appoitment with the accountant next week. I have already set my company up- as a limited company. I wasn't sure what to do with the van side of things- whether to go for a new one or just something like an 05-06 Vauxhall Combo.

Got an appointment with Lloyds Tsb on wednesday next week. Who do you bank with?

Has anyone got anymore advice?
 
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Hi Mark, not expert but someone might confirm with me ???, you buy a van on your own and then lease it out to your company,that way you don't loose out iether way, - thats what I've been told !
 
dont buy powerflush equip,yet,get decent hand tools,get a reserve fund
to at least cover overheads for 3 months
 
Yeah to be fair not buying the powerflush equipment is maybe a good idea. I've got all my hand tools though to be fair. Also if I were to fit a boiler to an existing system then manufactures require you to powerflush?
 
Mate i did the same thing went to the bank but they're not interested in helping anyone set up at the moment. They told me (after being a loyal customer for 15 years) that i would need to set up a business account then start trading and only then would they look at lending money. That's no good when you need the money to start up in the first place.

In the end i went to the Princes Trust, a charity that teaches you business skills, helps you build a business plan then lends you the money and also gives you a business mentor (from your sector) for 3 years. They help you with anything from marketing to tax returns.
 
the training companies have sold people the dream and ime afraid guys for a lot of you it will turn into a nightmare
not wishing to rain on anyones parade but you had best have a second job lined up because unless you have very good contacts the first couple of years you will prob go out of business if you have a mortgage and familly to support you will never make any profit and likely saddle yourself with debt
 
Probably because he's worried about the possible debts incase it doesn't go well? If you're limited then you don't have to worry about the debts. Whatever you do Mark don't go and buy a new van straight away you're just saddling yourself with debt straight away. Buy a cheap second hand one that still looks decent and then put a new one through the books at a later date when you have a customer base. If you're going to do it do it in the first year you can claim a 100% tax back!

I hate limited because all the tools and van etc aren't yours they belong to the company.
 
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go as a sole trader for a couple of years,then if all going great then LC,
the paper work ,more acc fees involved,harder for a new start LC to get acc at merchants
 
if you go ltd company none of the supliers will give you any credit accounts as they know you have only done so to protect yourself and unlessyou have soe time behind you as a proven trader then ltd co wont get credit so it is a waste of time. Keep things simple and sweet, dont get complicated and to big to early, basics are earn youre money and pay the bills whats left over is a bonus. The banks may help but it will cost you dear nowadays. For finace try the Princes Trust for a loan, they will also give good advice.
 
oldplumber said:
if you go ltd company none of the supliers will give you any credit accounts as they know you have only done so to protect yourself and unlessyou have soe time behind you as a proven trader then ltd co wont get credit so it is a waste of time. Keep things simple and sweet, dont get complicated and to big to early, basics are earn youre money and pay the bills whats left over is a bonus. The banks may help but it will cost you dear nowadays. For finace try the Princes Trust for a loan, they will also give good advice.
Click to expand...

I set up as Limited and got three accounts straight away.😎
 
what credit limit did you get, normally only low levels unitl proven, if you want need large credit status then as a new limited co youll find it hard to get.
 
5k on all accounts.Might seem small to some, but was more than enough to start with.
 
Yes! I think the main problem is simply getting work to start with.

It is perhaps better to start things rolling, not just in the one field of Plumbing but also in allied fields such as property development.

Have a look around at local trade associations, you might be able to get in with a group of people and work like a building contractor in which you are responsible for the Plumbing side.

A list of private clients supplying enough work to get a good income from can take years and the competition is fierce in places. The temptation to charge high prices to cover start up and running costs is also there. But if there is a lot of local competition you may simply not be able to get enough to cover those.

Try for an agency, such as a boiler manufacturer and become their local agent.

Try insurance companies and do the same.

Try selling Plumbing materials to the locals.

You may even have to learn to do things such as tiling to widen your field.

Don't put to much stuff in your van, you might get carting jobs.

If you stick to just Plumbing and get no work you may have to do any of these if you want to stay afloat. There is no law to say you can't. As your Plumbing side picks up you can then stop the other sides if you like.

I would not worry about being called names for working out of the trade area. You can always say your practising your multi skills. Anyway people can usually do more than one thing.
Lets be honest you don't have to know how to tile a bathroom to put a few tiles over a sink and your not intending to work as a fully fledged tiler.

Another good investment is a PAT tester. The likes of charity shops and other places would probably bite your hand off if you offered a cheap service.

You could do a short course and get insurance and off you go.
 
Hi Mark. I wish you well with the new venture. If it the route to a good income you want to achieve? My own experience suggests, try and specialise in one area of plumbing / heating of which there area many. In my early days i took on every thing that came through the door. Which with hindsight was good for the ego and experience. ( If i had not covered it during apprenticeship, i had the knowledge via college) but not so good for the pocket. Requiring to much investment in tools and plant and some where to keep it. It is also easier to market specialist areas of the trade as you become an expert. Needless to say on taking on any journey the first thing to identify is the route to the destination. This journey can impact on family and friends, as such it is important to discuss both the positive and negative aspects of the venture, in a effort to keep them onside. The very best of luck.
 
Thank you to everyone for your advices!

The reason for me going Limited really was, to be honest because it cost me nothing to set up and it just felt right to set a company up this way. Plus my company name is now protected incase i do decide to sole trade first and then move to a Limited company.

Also my long term goal is not to stay as a one man band. So it just keeps things simple and "right"

As I said earlier I am going to see the bank tomorrow to see what they say and then the accountant later this week or next (depends how it works out). However I will definitely contact Trust and see what advice or funding they can do with me.


I do greatly appriciate everyones advice even if it's negative - it still gives me things to think about!
 
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