PLEASE HELP, do I go on my own or continue working for someone else..

[PRplumb82]

Just after some advise if possible, I have been plumbing/gas eng for the past 8yrs, I have got good knowledge of heating and bathroom install and maintenance. I have also in the past 2-3 years got some really valuable knowledge of renewables such as solar pv, solar thermal and heat pumps.

im gas safe, nvq level 3, unvented ticket, f-gas (as some heatpumps require this qualification to install fridge pipe work)

i can't stop thinking about going on my own, I'm currently on a good wage with current employer 35kpa, I just feel that I need to earn bigger, I prob won't earn much more working for someone else so feel only way to progress is on my own. Want to do it for myself rather than grafting my nuts off for some one else to coin it in.

im sure I could make a success but just worry its not the right time due to current economic climate and my current situation. I have just bought my first house, have a 4yr old and another on the way.

sure alot of you guys have been in same boat at some stage, would very much appreciate your views.

thanks in advance...

 

[Atouchofgas]

Have you got any client base yet? With family do you have an money behind you?. You will have to put in quite a bit of effort to get yourself up and running, but with what you have got, its not going to be impossible sometimes it just takes balls to take the leap.

 

[armyash]

I say go for it, I am gaining experience at the moment so have to work for someone else but I don't intend on doing it in 8 years time. I can imagine if it's stressful for you slogging your guts out to make someone else well off then you'll be taking on a different sort of stress having to get a customer base and worry about a regular income but I know what I would rather do. For you it sounds like you'd be doing it to try and make more money which is fair enough, for me I'd be doing it just so I don't have to answer to anyone and I can run things how I want even if I was on the same sort of money I am now. Life's too short but good luck whatever you decide.

 

[woodsy]

Only you can know or make that decision but the chances of you earning 35k self employed in your first few years are small unless you are extremely lucky as can be seen by the number of posts by experienced plumbers on here either jumping ship to the employed ranks or completely out of the industry. Its probably not the best time with two small kids etc to support but then there is always a reason not to. If you can manage without the 35k for some time, have a good idea that you are nearly guaranteed some income as in some sort of client base, then give it a go as it will probably remain that itch that you need to scratch.

 

[woodsy]

I say go for it, I am gaining experience at the moment so have to work for someone else but I don't intend on doing it in 8 years time. I can imagine if it's stressful for you slogging your guts out to make someone else well off then you'll be taking on a different sort of stress having to get a customer base and worry about a regular income but I know what I would rather do. For you it sounds like you'd be doing it to try and make more money which is fair enough, for me I'd be doing it just so I don't have to answer to anyone and I can run things how I want even if I was on the same sort of money I am now. Life's too short but good luck whatever you decide.

While agreeing generally with your comments, this reply always makes me smile with the assumption that the person who is the boss is always raking it in when in fact this is generally not the case. Being your own boss comes with a whole load of crap that sometimes makes you wonder if its worth it.

 

[armyash]

While agreeing generally with your comments, this reply always makes me smile with the assumption that the person who is the boss is always raking it in when in fact this is generally not the case. Being your own boss comes with a whole load of crap that sometimes makes you wonder if its worth it.

I fully understand what you are saying but I was just going off what the OP said about his boss coining it in while he works hard. I can only imagine how hard it is to be your own boss with no guarantee of a regular wage. Just depends what the OP would rather deal with, I personally would rather be my own boss and deal with the problems that come with it.

 

[SimonG]

The crap I take would need far more than 35kpa, but it's not there.

Think you need to look at the numbers and see if you could manage in the first year if you make nothing, or even a loss?

 

[lame plumber]

currently you boss pays for your van,tools, insurance,training,holidays and sickness along with £35k. So decent van £10k,buying all your own tools and a decent stock, £5k, etc etc. Building up a customer base of 3000-4000 plus people to pay you some £60k a yr to allow you to net 35 will take a few years.

personally, youve been employed to long to jump ship unless pushed, if you had recently qualified, unmarried and no kids living at home go for it, time for a reality check sooner rather than later, you wont bring that sort of cash home going se at present unless you find a goose and its golden eggs.

 

[woodsy]

The crap I take would need far more than 35kpa, but it's not there.

Think you need to look at the numbers and see if you could manage in the first year if you make nothing, or even a loss?

Agree, many a good plumber / gas engineer struggling to make it.

 

[plumber0808]

I went on my own 2 1/2 years ago, I was on the books with a company earning about 40k. I wasn't happy there as all the perks of the job were being wiped out, the money was being dropped so with that I was happy to bow out.
I started looking for another company and within about a month the company I was with offered redundancy which I was happy to take. Took the money purchased a van and off I went.
I didn't have much of a customer base, filled in the days with sub contracting. I advertise a little and slowly but surely building up a decent base.

i didn't want to be self employed, never have. But I could not earn the money I needed working for a company.

i now earn about the same as I did but have to work a lot harder, go out all hours to get work, quote for work and chase money. I love being my own boss it has its down sides but ultimately you must decide.




One day I will be a millionaire

 

[lame plumber]

One day I will be a millionaire

catch up most of us already are, in lira

 

[alibongo]

My friend earns £200 a day, clear, working for someone else who has a customer base. He does private jobs in the evenings, but cannot get enough work to branch out on his own. Their company turns over 250k per year, the owner pockets 60k, minus tax, per year (they fit bathrooms to new-builds). Like you, he is thinking of setting up his own business, but by earning £200 per day, (starting at 8am and finishing at 3.30pm),he can't find the motivation. He says he does 70% of the work and earns 30% of the money, but he does not have to find jobs.

 

[mountainman]

My friend earns £200 a day, clear, working for someone else who has a customer base. He does private jobs in the evenings, but cannot get enough work to branch out on his own. Their company turns over 250k per year, the owner pockets 60k, minus tax, per year (they fit bathrooms to new-builds). Like you, he is thinking of setting up his own business, but by earning £200 per day, (starting at 8am and finishing at 3.30pm),he can't find the motivation. He says he does 70% of the work and earns 30% of the money, but he does not have to find jobs.

Or get all the grief that owning your own business can bring.

 

[tamz]

My friend earns £200 a day, clear, working for someone else who has a customer base. He does private jobs in the evenings, but cannot get enough work to branch out on his own. Their company turns over 250k per year, the owner pockets 60k, minus tax, per year (they fit bathrooms to new-builds). Like you, he is thinking of setting up his own business, but by earning £200 per day, (starting at 8am and finishing at 3.30pm),he can't find the motivation. He says he does 70% of the work and earns 30% of the money, but he does not have to find jobs.

So your mate is making 10k a year less than the guy giving him the work and finishing early every day, no worries, no responsibility, no risk.
I know which one i would prefer to do!

 

[Kev the gas]

I personally think your mate wants to wake up and smell the coffee, infact I think his coffee has a little nip of brandy in it as well.

£200 a day to fit new bathrooms in new builds, no direct customer contact, all plastic with new isolators, nearly straight walls and floors.

I would happily go back to being self employed on that basis :smile:

 

[jtsplumbing]

My friend earns £200 a day, clear, working for someone else who has a customer base. He does private jobs in the evenings, but cannot get enough work to branch out on his own. Their company turns over 250k per year, the owner pockets 60k, minus tax, per year (they fit bathrooms to new-builds). Like you, he is thinking of setting up his own business, but by earning £200 per day, (starting at 8am and finishing at 3.30pm),he can't find the motivation. He says he does 70% of the work and earns 30% of the money, but he does not have to find jobs.

If your mate is earning that sort of money, and not even working a full day, doing new work, I would be asking his boss for a job, + his private work, He is coining it in, Hope he is telling the tax man,

 

[SimonG]

200 a day on the cards and clear seems a lot. 200 self employed or subbie and to take off own ni and tax might be nearer the mark. But i'm just guessing. If he is getting that and thinking of going self employed where does the queue start for his job when he leaves?

 

[woodsy]

My friend earns £200 a day, clear, working for someone else who has a customer base. He does private jobs in the evenings, but cannot get enough work to branch out on his own. Their company turns over 250k per year, the owner pockets 60k, minus tax, per year (they fit bathrooms to new-builds). Like you, he is thinking of setting up his own business, but by earning £200 per day, (starting at 8am and finishing at 3.30pm),he can't find the motivation. He says he does 70% of the work and earns 30% of the money, but he does not have to find jobs.

So the owner of this business turning over 250k with all the hassle of getting the money in, securing the work etc is earning 60k less 24k tax at 40% which comes to 36,000 a year. Now if you go back to the original post, the ops 35 k a year is not to be scoffed at for just turning up for work and highlights the words of warnings.

 

[nicro3]

You cannot beat a regular wage, if you want more money do a bit of private work.

 

[Millsy 82]

200 a day on the cards and clear seems a lot. 200 self employed or subbie and to take off own ni and tax might be nearer the mark. But i'm just guessing. If he is getting that and thinking of going self employed where does the queue start for his job when he leaves?

Behind me :smile: I would love that sort of money being employed and working those hours. During winter I work 12 hour days and earn nothing close to that.

I would love to go self employed been in the business for 15 years but at the moment whilst im getting a steady wage (Not great but not terrible) I will carry on the reason being I couldnt drop my money at all so I could pay my bills and I reckon for me to take home what I do now I would have to earn 60-70k before outgoings which isnt going to happen straight away. Maybe in a year or 2 things will pick up sites seem to be opening up all the time around me so that means a few plumbers will go back on site meaning less competition meaning prices may start to creep back up slightly.

 

[Foodface]

Really interesting thread this one, my mate is taking home £250.00 cash in hand a week, I'd take that right now. Two years into my self employment and I'm just keeping my head above water, I'm not earning hardly anything but still going at it. The hassle of running your own company comes with pro's and cons, I moved to a part of the country where no one knew me, no mates no family no nothing. So had to advertise a lot and that's where all the money has gone, only just now getting to point of which I can cut back on advertising. Being on regular pay has it's perks too, the stress of running a business is immense when the proverbial is hitting the fan.

If you can afford not to make money for a while while you get established then go for it, if not I'd seriously consider staying on some one else's pay roll.

 

[armyash]

Definitely a lot to consider. I'm lucky that the firm i'm with is really decent and make allowances for me being inexperienced.

 

[jefaz]

I earn 35k a year and think that's a good wage. I sometimes only get 1 job a day and sit there watching tv or sitting at home the rest. Granted the winter is busier but every hour worked over is OT, for me however I like having a guaranteed wage then going home as I want to have plenty family time...I love nothing more then my 2 nippers and to a lesser extent the misses . On your own when you finish are you really finished? All the part work,organising your next day and what if it does go quiet? The stress will undoubtedly affect your family life and personally I wouldn't put that at risk for 5k more!!

 

[DaveTidy]

Hi Guys

Myself and my brother in law sat down one Saturday and did 2 spreadsheets to see what we would need to charge an hour to give us £40k income each and the costs for owning all the correct gear and the costs for doing the job absolutely perfectly abiding by every rule regarding Health and Safety etc etc.

It took into account all the down time of a repair engineer and additional travelling between jobs compared to an installer with less time in the van Iin the area we would work).

There are no cash jobs here, everything is in a perfect world, you have every tool for every job and a lift with everything you should have and charged at the rate of a mate (nice world eh?)

The hourly charge rate for an installer was around £50 an hour and that of a repair guy was around £59 with overheads weighing in at £15 to £22 an hour (yes an hour).

Yes the overheads seem nuts but that includes massive downtime for regular training, increments to replace each tool, van, correct documentation backups in the van, stock etc etc.

So, as the perfect repair engineer you would need to turn over £2,400 a week / £125k (excluding materials) to clear £40,000 a year but we don't live in the perfect world. A couple of my mates laughed at the figures so we put their salaries in there and we proved to them that they must be doing loads of cash work if they were abiding by the regs as their hourly rates weren't enough to do the job correctly and pay tax. The pub was a ittle quieter for a moment then and so were they!!

It's a tough world working for yourself, I would leave £35k unless you have lots of private work and a secure strategy for work generation if you have a family (see other posts on work generation).

Sorry about the length of the post, i'm sure everyone will disagree with the figures as thats in the perfect world and we don't calculate our rates to be in that do we?

 

[lame plumber]

Hi Guys


So, as the perfect repair engineer you would need to turn over £2,400 a week / £125k (excluding materials) to clear £40,000 a year

Bout right