Is now a good time to go self employed

[Richard S]

Morning all

I think the recent thread on making money from furniture making established that a living could be made from woodworking provided you where prepared to make what the market wanted and this would appear to be built in furniture ( alcove units, bathroom vanities, kitchen cupboards, study furniture etc. ) and also keep your overheads as low as possible.

My question is this, given the above is now a good time to strike out on your own?

My own feeling is that it may be. If people are not moving home perhaps they will spend a little more on the house they currently have. However I have no evidence to back this up.

So if it's not too cheeky a question what do the pro's think, is business still good, are you getting a good level of enquiries and more importantly how do you see the near future panning out?

Enthusiastic amateurs, whats your take? All opinions informed or otherwise gratefully accepted.

Who's optimistic for the future and who isn't?

Richard

 

[Escudo]

Richard,

I would be nervous about commencing in business at this challenging and difficult time for the construction / building trade.

There are rough times ahead - and I do not think we have seen the bottom of this depression yet.

I would worry that in difficult times, inflation, fuel costs, food and heating all rising that many households will cut back on non essentials including the type of work/jobs you mention.

Sorry to be so doom and gloom, and I hope I am wrong, but it doesn't look good for the next few years.

Tony.

 

[Richard S]

Tony

Don't apologise for "doom and gloom" all opinions are valid, after all we are all consumers of one type or another.

Thanks for taking the time to share yours.

Richard

 

[OPJ]

I try to be optimistic wherever possible, but I'm afraid I have to agree with Escudo's comments, with some of the largest house-builders in the country axing around 40% of their employees in these turbulent times!

One day though... :wink:

 

[bluezephyr]

Now isnt a good time, But my old boss is apparently upgrading premesis and machinery right now despite the hard times some people are facing, So unless he knows something i dont, Having an extra 4500 sq foot in a more expensive area is going to cripple his finances very soon.

Myself and the people i deal with have noticed a big downturn in orders.

 

[CNC Paul]

Richard,

I would agree with Escudo as well, your profile has you as a hobby woodworker..... What sort of experience do you have ? and do you make lots of private jobs ?

Are you planning to the work at home or set up a workshop ?


Paul

 

[Richard S]

Thanks Olly and BZ

Paul, it is true I am a hobby woodworker and whilst almost all of my work experience is in sales and sales management I am not without the practical skills required to produce the type of work required, I also feel that one of my key strengths is in dealing with the customer which is why I asked about enquiries. I feel confident that if I got the enquiries I could sell myself to the client. I have also fitted out and sold a 57' narrowboat recently, I've known experienced builders take 7-8 months to complete a fit out, mine took 16 weeks and was pretty good.

I suppose like everyone I'm looking for the good life, the children are growing up and I feel I'm going to see my earnings potential drop this year, thanks to the downturn that maybe I ought to take the leap now!!

I admit I am wracked with doubts, but I probably would be whatever the economic outlook. It's great to be able to use a forum like this it's a bit like thinking aloud and I really appreciate everyones input, Thanks again.

Richard

 

[CNC Paul]

Richard,

The biggest problem when starting out is generating enough enquiries to turn into paying jobs and doing it consistently.

You are not far from me, if you are around this area stop by for a coffee.

Paul

 

[paulm]

Sorry to say but I think Tony's comments are spot on.

Peoples disposable incomes have shrunk dramatically with higher power and fuel costs etc not to mention interest rates.

Unless you are good enough to cover the higher end of the market I think it would be extremely tough to get people to spend money at the low to mid market level.

Could all change again in a year or two though, these things tend to go in cycles, the difficulty is predicting how long the cycle will be and riding it out till things become easier.

Cheers, Paul

 

[9fingers]

If you are in paid employment, I would suggest you keep the current job.
With that as a basic income, there would be no harm in starting to look for woodworking jobs that you could fulfill in your spare time and use this experience to test the market.
If then the worst comes to the worst and your day job goes t*ts up you have the start of self employment up and running.

Good Luck anyway

Bob

 

[brianhabby]

Hi Richard,

Surely the way to go is to try to do what you are suggesting without giving up your day job. Lots of people start businesses part time while keeping a job to pay the bills until things get going.

And if you do that I would think now is a very good time to start, you will have the chance to get yourself established over the next couple of years and then you will be in a much better position to decide.

Hope this helps,

regards

Brian

 

[CWatters]

I think I'd want 12 months mortgage money in the bank just in case.

 

[Rich]

Rich, my advice would be, if you have a full time job, stay in it, if you get enquiries for pj's go ahead but let the client buy the materials, that way if it goes pear shaped you have only wasted time and not money, and you can always get a percentage up front.
Rich.

I know that sounds rich coming from me, Rich, but that's the only way to get rich, Rich. :lol:

 

[Richard S]

Paul thats avery kind offer, I get down to Watford on business from time to time, Croxley Green mainly, I'll give you a call next time I'm coming down and if you have the time I would like to take you up on your offer, it would be good to talk to someone who has experience in this area,although looking at your website I don't think we would be in competition with each other if I do decide to set up!

Paul, Bob, Brian, Colin and Rich, thank you all for your input, my only problem with doing something part time is my current job leaves me with little in the way of spare time or energy, which is part of the reason I am thinking of a change of direction.

The most content I have been in recent years ( workwise ) was fitting out the boat even though the events that led me to this where fairly traumatic.
I suppose in a way I may be clutching at straws as if the narrowboat market was better I would probably do this again.

Thanks again everyone, all your comment have been taken on board and sincerely appreciated.

Richard

 

[devonwoody]

Try an advert asking for a quote and see how many tradesmen respond, if it is very high you will know you wil have a lot of competition.

No replies mean they are too busy. Also you might get an idea at how low a price they will quote.

 

[skipdiver]

Looking at it from a different viewpoint.If you did go for it now,in the middle of a recession and pulled it off,then it can only get better.I went self employed in 91 after being laid off from my job and have never looked back since.I think the economy was a bit ropey at the time.The difference with me is that i am a time served joiner so can usually find some kind of work if things get sticky.Recessions come and go but i usually ride them out.

I would think long and hard if i were you before giving up a steady job but if you do then good luck to you.There's nowt like being your own boss.

 

[beech1948]

The advice given so far is pretty solid so I would listen to it.

I would do a few other things as well.

I would actively seek to challenge the advice and to find evidence that I could proceed.

Much of what has been said is Ok but only upto the unproven level. Some of it is at 180 degrees when considered against your market.

I do not mean to be insulting to those who have posted.

A basic thought behind the advice is that there may not be enough customers. The challenge might be to do the following:-

a) Write down a character sketch of your ideal customer and whwre you light find them. Then list how many people you know who fit this description. Use the list to network amongst these types and see what they are buying. Its called a pre-market survey

b) Write down a character sketch of the person who is your LEAST ideal customer. Test this as well.

c) Do a basic business plan to show you what your costs will be, either as a part timer or as a full timer or both. Business plans are simple and just a model of your thoughts they are not a multi-week exercise in spreadsheet maths.

d) Write down where you will contact your ideal clients and how.

regards

Alan

 

[joiner_sim]

I work for an architectual bespoke joinery workshop. Making windows, doors, conservatories, bays......etc.....

Apparently we have enough work to last us til christmas right now.

However. One order for 30 houses (which was to be completed this year) has been cut to only 6 homes now for this year.

There is also another company who at the moment still want us to do in excess of 30 homes for them, however we have not even seen the job sheets for them yet.

We are still busy, but things feel quiet and I would think it would be hard for a smaller firm to compete with a bigger firm like ours.

 

[dickm]

Any chance that you could cut back your hours in your day job? It could make the job less unpleasant, and allow you more time to try and build up a fitting business?
And if the recession is biting, your employer might be glad of some wage/salary saving. Danger with this, of course, is that you still find yourself doing 6 days on the day job for 3 days pay - I know, my wife did that for years

 

[BradNaylor]

So if it's not too cheeky a question what do the pro's think, is business still good, are you getting a good level of enquiries and more importantly how do you see the near future panning out?

Who's optimistic for the future and who isn't?

Hi Richard,

I have to say I tend to agree with the concensus and that now would not be the best time to strike out on your own.

My level of enquiries has dropped off a cliff in the last month or so and this is a trend I see continuing for the next couple of years or so. I am confident I can ride it out - but I have a fairly established business with very low overheads, no debts, and no need to spend any money on my workshop.

I would not like to be starting out just now, finding premises, setting up a workshop, and then looking for work.

The long term future however, is rosy for the self-employed custom furniture maker.

If I was in your position I would stay in a job and spend the next couple of years planning my move into self-employment when the coming recession is over.

Cheers
Dan