going self employed should i......

[Lons]

Hi Ben

You've had loads of good advice already and I'd echo much of it though I've never advertised my business and my numbers are actually ex directory ! All my business is word of mouth luckily as it means I always get paid and I pick and choose the work.
I spent 18 months establishing mine whilst fully employed and had the parent of the company I managed not gone bust, it would have been even longer. the result was an established client base from day 1 of self employment.

What I would add is:

As soon as you're in a position to do so - formulate a proper business plan. Doesn't have to be too complicated.
Accurately assess your likely overheads and don't forget the necessary insurances
Remember you don't get paid for holidays, sickness etc. so cost these in to your overheads / labour rates
Expect to relinquish some of your social and family life at least whilst getting established
Don't underestimate the shock of no longer having a guaranteed monthly salary and employee benefits
Set up a savings account to cover tax and set aside funds for essential tool purchases and repairs etc.
Make sure you use your allowable expenses and capital allowances and remember that can include your existing tools, equipment and vehichle.
Throw away any "rose tinted glasses" and approach it using your head, not just your heart.

All that said it will probably be the most satisfying thing you could ever do and if reasonably successful, something you would rarely regret.

Good luck

Bob

 

[Chems]

A website is good for a portfolio but useless with out search engine optimization to go along with it.

 

[superunknown]

A website is good for a portfolio but useless with out search engine optimization to go along with it.

This is very true and SEO is not easy!

 

[Anonymous]

but google places is

 

[chunkolini]

Re websites.
both of mine do well on google, and I have never paid anybody to do SEO. Have a look for Cool shelving and artinsteel.
Both sites have been running for a few years which is a big help.
Watch out for people who can guarantee front page slots on google, from what I understand they cant or we would all be on the front page.
I use the Mrsite package and think it is worth paying extra for the pro version. It allows dommies lie me to get reasonable looking websittes.
I have mates who get their sites done for them which is a pain, every time you want a new picture or project posting you have towait for it to be done and pay (Pay, the most foul word in English unless I am being paid).
Advertising? be very wary of this, I have seen mates pay lots of money for ad's in magazines for not even a single enquiry. One mate went over the £1000 mark and wont talk about it years later.
Showing stuff in 'galleries'or craft shop/cafes. Again be careful. A lot of these are vanity projects and they either dont make a effort to sell or want your stuff to make the chi chi shop look nice without paying for it.
Always take a least a deposit before cutting material. I usually ask for 50%, or 33% if over £1000, pays for materials up front and gives an incentive to finish the job.

Always involve the customer in every stage of the design process. Tow reasons, 1 they often like the feel of involvemant 2, stops them saying 'I dont like that'.

Post cards are better then business cards at shows etc. They tend to get stuck on the fridge, business cards just get discarded. Try Vistaprint.

It is a crazy game working for and by yourself. Last february I turned over £60.00. This March I bought a motorbike. (Honda pan).

Enough of this nonsense, cider calls. One more point dont carry a booze stash at work.

Chunko'.

 

[tomatwark]

I went self employed at 21 and although I had a break of 5 years, went back to being self employed 6 years ago.

You have been given lots of good advice.

I started off with a Kity Bestcombi and it was a bit of a mistake in that I had to replace it after about six months because it did not have the capacity.

Before you buy a combination machine think long and hard about exactly what you are going to make and if a combination machine is the right move.

Being self employed is hard work and really stressful at times but can be really satisfying .

The final thing is do not under sell yourself, you are sometimes better to turn a job away than to work flat out and make no money at the end of the job.

Tom

 

[shim20]

I went self employed at 21 and although I had a break of 5 years, went back to being self employed 6 years ago.

You have been given lots of good advice.

I started off with a Kity Bestcombi and it was a bit of a mistake in that I had to replace it after about six months because it did not have the capacity.

Before you buy a combination machine think long and hard about exactly what you are going to make and if a combination machine is the right move.

Being self employed is hard work and really stressful at times but can be really satisfying .

The final thing is do not under sell yourself, you are sometimes better to turn a job away than to work flat out and make no money at the end of the job.

Tom

thanks tom that good advice sounds like your speaking from experience, bit late on the kity side ive just won a k5 on ebay i think it will be ok for a start anyway ill upgrade if things go well, i will be taking on anthing really from furniture to joinery its bit better if you can do a wider range of work i think? could be wrong here?, thanks again
ben

 

[doorframe]

Hi. My 2 penneth...FWIW

I went self employed aged 21 till past 39 (sounds better than "nearly 40!"). Firstly as an electronics engineer (TV, Video etc) and later as a sparx. During that time I came very close to losing my house (more than once). I never owned a car newer than 10 yrs old, and never had more than a grand in the bank after the mortgage was payed.

But... I loved it. The freedom from bosses giving you cr*p is what it was all about.

I've been back in PAYE for nearly 7 yrs now and I hate it with a passion. I'm certainly better off financially but that's about all. I'm not happy on the inside.

I've been building up my workshop at home ready for the day Joe Public starts spending money again, so I can turn my hobby (passion) into a meagre living. When I feel that day has arrived I'll be back in the land of self employment quicker than a rat out of a drainpipe.

So my advise is.... go self employed for the quality of life. Simply being your own boss is such a 'high' that even when you arn't earning much your still happy. DON'T go self employed to get rich.

And probably most important ... make sure your wife / partner is 100% behind you!

HTH

Roy

 

[MickCheese]

And probably most important ... make sure your wife / partner is 100% behind you!

HTH

Roy

This is really important.

Mick

 

[Anonymous]

And probably most important ... make sure your wife / partner is 100% behind you!

HTH

Roy

This is really important.

Mick

i 3rd that, I have had some big ups and some big downs but with my wife behind me 100% it has always seemed to work out.

 

[Benchwayze]

Shim,

I am a hobbyist woodworker. I have worked in the trade, before I got sucked into a safe, but poorly paid job. When things got really low in that day job, I thought about moving from spare-time moneymaking from my workshop, to being a full time self-employed woodworker.

It was only the knowledge that a decent pension awaited me that kept me at my job, and I never took the step.

I wish I had at least tried. But I didn't. Am I happy now? Yes I am, but I shall always wonder... What if?

One thing I am sure of. If you can rent a space, then get the biggest shop you can afford. You will always be working on top of yourself if you don't.

I am sure your decision will be right for you.

So, the very best of luck in your endeavours.

John

 

[tomatwark]

thanks tom that good advice sounds like your speaking from experience, bit late on the kity side ive just won a k5 on ebay i think it will be ok for a start anyway ill upgrade if things go well, i will be taking on anthing really from furniture to joinery its bit better if you can do a wider range of work i think? could be wrong here?, thanks again
ben

Ben

It is better that you can offer a wider range of work, BUT remember that if you start taking on lots of site only work you still have to pay for your workshop, where as the joiner with just a van does not and can charge less than you.

If you make something fit it but if a customer asks you to fit skirting from a builders merchant for example, you may not make enough money to make it worth doing.

We have all fallen into this trap at some point, just because it is work it does not mean it is worth taking on.

Tom

 

[shim20]

thanks all for the avice been so usefull, tom see your point and will bear that in mind

 

[Karl]

Hi Ben

I started working for myself 6 years ago. To start with I took on a wide range of work (fencing, tiling, decorating, plumbing) even though I targeted my work at joinery. I took it on to fill gaps in my diary, and soon found that I was inundated with work. People like somebody who is doing their kitchen to be able to do the tiling as well.

Nowadays I try to steer clear of the extra's, and concentrate on the joinery work, whilst trying to promote the bespoke stuff. I still do tiling etc, but I charge a good rate for it as i'm not that bothered about whether I get it or not. For example, I did a job before Xmas where I priced for tiling and decorating at the same rate as the joinery work (£200/day). Because the customer wanted 1 person to come in and do everything, I got the work, so it is sometimes useful to be able to offer a full range of services.

HTH

Cheers

Karl

 

[shim20]

thats a good idea karl, maybe i should learn how to tile etc, im sure i could decororate, mind you how hard could tileing be? or is there more to it?
ben

 

[No skills]

Cant belive I've found this thread today, going through similar thoughts myself at the moment - major turmoil at work with some unbeliveable things going on :x Not a day has gone by for the last few months without thinking about walking out and trying my own thing.

I'm not ready or able to make that jump at the moment but the notion is there and waiting, theres a lot of good advice here - I hope you make the jump and things go well for you.

 

[Pond]

My two penneth,

I have been self-employed for 18 years, so long I don't think I COULD work for someone. My business is not woodworking, but associated to the building industry.

There is a lot of good advice here, especially the 'other' side of working for yourself, ie the paperwork/ business side.

An awful lot of self-employed people, especially at first, only concentrate on getting and doing the work, with little or no regard to the 'admin' side. Remember if you work for yourself you become a 'small business'; keep on top of accounts, paperwork, invoicing, tax, VAT (if you register) etc. Bad business practices can be financially as damaging as having no work.

Find out what the average rates for the work you want to do in your area, don't go in too cheap as you will get a reputation for being cheap and cheerful but don't price yourself out of the market

You will have to be tea-boy to MD all in one day, but IMHO I wouldn't have it any other way!

Also, work will come from the strangest places, advertising isn't the be all and end all! Being in the right place at the right time can count for an awful lot. Don't turn down small jobs because they are not worth the money, especially at first. Fixing a hinge on a door could lead to a commission for a bespoke kitchen!

Good luck and hope it goes well

andy

 

[Lons]

And probably most important ... make sure your wife / partner is 100% behind you!

HTH

Roy

This is really important.

Mick

i 3rd that, I have had some big ups and some big downs but with my wife behind me 100% it has always seemed to work out.

I would 4th that big time and add that it really helps if your partner has a job as it removes some of the financial worries when starting out.

I've always quoted at the high end of time and labour rates and I put a healthy mark up on materials I buy in which covers overheads and more. Customers rarely go for the cheapest IMO and if they do then maybe you don't want that job as it will inevitably go wrong.
Everybody wants a mini for the price of a rolls royce but generally customers are mostly interested in getting a quality job by people they can trust and word of mouth is by far the best method of obtaining work. I turn down almost as much as I accept these days and I pick and choose. I've just today completed a 6 day building job for instance and charged £300 per day time & labour and a net profit £256 (28%) on the materials I provided. My customer is delighted and I certainly wasn't the most expensive quote. She has today asked me to quote 2 more sizeable jobs.

The work is still there if you can build up an excellent reputation.

Bob

 

[Benchwayze]

All those years went into learning your stuff and building up a good reputation Bob. Now it's paying off.
Deservedly so. :wink:

John (hammer)

 

[ondablade]

Hi guys. I still completing my shop set up to go commercial at age 55 after 15 years of management consulting. Luckily my wife works too.

My thoughts echo quite a lot of what's been posted:

1. Don't get heavily borrowed or the need to make repayments will drive what you undertake, and massively raise the stress levels. It's best to grow it organically if you can, and that includes equipment purchases. (luckily i had enough reserves to get set up)
2. The above led to my doing large amounts of heating, wiring and dust system related work myself. Which has been a great way to get into the various systems and ensure quality - but the schedule has really stretched. (x2 or thereabouts)
3. Loneliness is as above definitely an issue. I was well used to it after years of self employment, but it could come a shock if you are used to working in an organisation.
4. This and other forums (and also websites run by the mags etc - including the US) have been such a great help in getting some sort of fix on what's out there.