Going self employed

[Dave the Smeghead]

My dad did it, who I have a great admiration for, at the same age as I am now, and his business thrived, trouble free until he retired at 64, as a car mechanic. He is of the "Fred Dibnah" breed of mechanics that would stop at nothing to make a living

I would suggest that things are different these days. There is an awful lot more red tape to deal with than in your Dad's day.
In our industry there are the professional memberships to be considered, liability insurances (which are hellishly expensive especially if you work with gas and brazing / soldering / welding etc) and things like annual calibration of test equipment (which again isn't cheap), vehicles and insurances, and all that sort of thing before you actually earn a penny. It is the overheads that cripple many businesses and it isn't getting cheaper.
My qualifications are that I have been self employed, and for me it didn't work. However, Peter Jones (Dragons Den) lost it all on numerous occasions before hitting it big. I wouldn't mind being a fiver behind him these days.

 

[speccy1]

I would suggest that things are different these days. There is an awful lot more red tape to deal with than in your Dad's day.
In our industry there are the professional memberships to be considered, liability insurances (which are hellishly expensive especially if you work with gas and brazing / soldering / welding etc) and things like annual calibration of test equipment (which again isn't cheap), vehicles and insurances, and all that sort of thing before you actually earn a penny. It is the overheads that cripple many businesses and it isn't getting cheaper.
My qualifications are that I have been self employed, and for me it didn't work. However, Peter Jones (Dragons Den) lost it all on numerous occasions before hitting it big. I wouldn't mind being a fiver behind him these days.

He started at 38 in 1984, I`m now 38 in 2015, and yes I agree times are different, but I still admire what he did, and always will

 

[slowmotion]

^^^^^^^^^^^^Wot DavetheSmeghead said.

The red tape is getting pretty silly these days but really small outfits don't seem to attract the attention of the Man too much. When it comes to overheads, my most forceful advice would be not to rent business premises. You don't need that monthly drain on your income. Work out of a spare room, the loft, or a Transit van, but don't hose down a landlord with your cash.

 

[Markymark]

I've been self employed and made a fortune. Still am my own boss but now a limited company fir tax purposes.

I too was worried about irregular money with my mortgage but it was then paid off quite quickly.

 

[Levo-Lon]

Thers ups and downs..
partnerships usually fail as one feels the other is taking the piss.

go on your own if you decide too...

talk to a accountant ,talk to your bank 'dont get a loan' just talk to a business adviser..
Ive been at it for 30 odd years ..a regular paid job is fine but being your own boss is king.
i started small ,got quite large....and got shut of the stress and for the last 4 month have gone back to just me doing what i want at my pace..its lovely and almost stress free

 

[vickster]

There seems to be a general opinion here, to stay put!

Thanks guys, that has really helped to make my decision, as much as I hate my job there are a lot of perks

Why not look for a job elsewhere, especially if it's the company you don't like!

 

[MarkF]

It's easy setting up a business in the UK, I've set up 3 from scratch, unrelated, red tape isn't an issue. I was self employed for 25 years+ but I was scatterbrained though and never really considered the consequences of leaving a secure job, I was just bored. I am glad I did it though as the freedom (not cash) it offered me led to me having a whale of a time.
I'd certainly have earned far more in regular employment but that isn't/wasn't a concern for me, not being stuck in an office of grey suits was.

A £600 mortgage is a bind straight off, do you have cash reserves to fund your life till things take off? I got my figures and timescale wrong and ended up running out of cash and working during the day and also stacking shelves at night for 6 months, I just scraped through, but it was tight.

My main thoughts though would be directed at your prospective partner, I've had 3.

Partner 1, I knew for 5 years, worked alongside him, got on like a house on fire. He ripped me off, channeling company funds for home improvements and an apt in Spain.
Partner 2, I knew for 5 years, worked alongside him, got on like a house on fire. He ripped me off and left me £60k in debt to the IR and VAT man, he was a cocaine addict, everybody knew, but me, I just thought he had a runny nose.
Partner 3, I chose this one carefully and I had known him since childhood, always good friends. I knew him and his personal finances inside out. Things went ok.

So how well do you really know him? Is a partner needed? Funding 2 wages straight off is lot more difficult than funding 1. Often you'll be doing work where 2 men are needed but only one skilled pair of hands are required. Could you start up part time whilst keeping your job?

The relationship is already out of synch before you start, he is motivated to earn money (he has to, he'll soon have no job) but you are in stable employment without that pressing motivation. Why does he need partner to set up the business that you have described, I use a one man band for my electric and gas work?

 

[Drago]

I might be self employed by year's end, though nothing as mainstream as this.

 

[Dan B]

So how well do you really know him? Is a partner needed? Funding 2 wages straight off is lot more difficult than funding 1. Often you'll be doing work where 2 men are needed but only one skilled pair of hands are required. Could you start up part time whilst keeping your job?

The relationship is already out of synch before you start, he is motivated to earn money (he has to, he'll soon have no job) but you are in stable employment without that pressing motivation. Why does he need partner to set up the business that you have described, I use a one man band for my electric and gas work?

This is a good point. Why don't you both set up independently and then one of you subcontract the other on jobs where two pairs of hands are needed?

 

[screenman]

I had 32 jobs before becoming self employed before I was 20. I hate what if's which is why I had to try it.

I find it far more interesting and challenging than any job I ever had. I also enjoy every day at work with no intention of retirement.

 

[screenman]

As for partnerships, no thanks I can pay for an employee for less than a partner would cost.

 

[Markymark]

As for partnerships, no thanks I can pay for an employee for less than a partner would cost.

In your position of being established, yes. But when starting out it can help share the burden of cash flow, ideas and resources.

 

[MarkF]

In your position of being established, yes. But when starting out it can help share the burden of cash flow, ideas and resources.

My experience is that people need partners because they don't have the confidence (or skills) to go it alone, or they would, after all you don't need a partner to set up a business like one that the OP described.

 

[Markymark]

Or money. Two people can both invest if individually they don't have startup cash and financing can be hard to come by.

 

[MarkF]

Or money. Two people can both invest if individually they don't have startup cash and financing can be hard to come by.

But you don't need a partner or money/funding to set up a business like the one the OP described.