benifits of going self employed

[wrights]

Hi first post sorry if in the wrong area but would just like to no the pros and cons of going self employed as been offered a postion sub contracting to a local well established fencing company all advice will be very thankful mat .

[Ian Clarke]

pros: you set your own days on and off.

you are your own boss *which i like the feeling of.

I find it more relaxing than working full time.

 

cons: you have the worries of a boss eg finding enough work, holidays, sickpay, funding your development *kit machinery training courses and then replacing or re training or upgrade of training.

 

its not for everyone but it was the best move I ever made.

 

good luck to you whatever you choose.

[wrights]

Thanks is it easy going about setting up

[Paul Jenks]

http://www.hmrc.gov.uk/leaflets/se1.pdf

Citizens Advice - Self-employment: checklist

 

You could do worse than reading these.

Be aware that if you are going to be working under the direction of the contractor or one of his staff, you are technically not self-employed. This has historically been used as a way of employers avoiding paying certain taxes and employee benefits. HMRC are catching up with this now so ask what sort of working relationship you are going to have with the contractor.

[wrights]

Ok much appreciated Im goig to look into it what about sub contractor ?

[ArthurBottlesworth]

Pay someone to get your legals sorted too

Will pay for itself at some point where someone tries it on with you

[theflyingscotsman]

Hi Mat.

 

I'm very pro self employment and will answer the main question as openly as I dare

 

Right good first step is to ask those in the know.(the Arbtalk 'search' is excellent for this, as there's lots of helpful knowledgable chaps on here)

I started 3years ago after being employed for about 14 years. I know have 3 small business's and specialize in properties plus an acre. (Biggest being 600 acres)

 

I started with about £7000 (mainly selling luxuries i didn't need and £3000 redundancy payment) + and £8000 loan.

 

In year one my target per day working was £100

 

In year two £200 and so on..

 

Set yourself targets and stick to them.

 

Pros: money.. Why be employed and put the bulk of the money in someone else's pocket? When your employed and even sub-contacting this is what your doing.

 

Job satisfaction is huge also: to pull off your first big job, complete your first year in business is epic.

 

Days off when you want?! Well yes it's good to do what you want Ish....days off can be extremely hard to get if you've a good going young business. It takes a lot of time to be the main man. Getting work (doing quotes) then doing the work (grafting) then asking to be paid, then accounts, then endless research into the best gear for your money. Research also into how to expand and new avenues of business to make more money.

 

Pro: sickness- once yourself employed you'll never have a 'sick' day again...as either don't need to, as you can take a day off or you don't want to lose a days wages

 

Main pro: it is extremely nice to do EXACTLY what you want to do. No one on planet earth tells me what to do any more. (Apart from my lovely wife) haha

 

Cons:

 

Risk and reward. So your planning to make a minimum of £100 per day with minimal kit for your first year.

 

But to get that money it's not about just turning up anymore.

 

You've now got to factor in total costs of getting paid. This means not only your business costs but physical and mental (stress mainly) and you have to do all this mainly unsupported. (No bosses to ask and no one else really cares!)

 

Having some of your work coming from a larger contractor is a very good thing: the bread and butter wages- however..

 

That work could and will in time dry up.

 

So begin by looking at the amount of competitors in your area and go from there. A simple trip to the local notice boards or in the local papers, google it::: but find out... If there's too many already it's going to be extremely tough.

 

A good contractor will have all bases covered. i.e. All my customers (around 300) use me solely for all there garden, tree, wood fuel and machinery servicing and won't go else where as I give them no reason to. My rates are reasonable but not cheap, work is all spotless (if their not happy with something it's remedied immediately) I tend to them like extended family almost. In turn they trust me and pay me very well. My business's grow year on year.

 

I work an average of 70 hours a week to achieve this. (I am planning to reduce this within the next two years as I employ more people and book keepers etc..)

 

Anyway I'm trying to not ramble on.

 

Make sure you've a business past the 'working for the other guy'

 

Tree work solely is a hard business to get off the ground.

 

Gardening is easier: cutting grass, strimming and weeding is easy to be neat and fast at: the tree work will come later. If you manage 1000 acres of property there's bound to be trees on your contracted sites.

 

Risk: everyday you go out to do a physical and sometimes dangerous job.

 

Accidents happen. Be insured to the hilt.

 

You'll have to make good calls when it comes to the dodgey work. One false move in tree work can seriously damage you and or you business reputation.

 

On to reputation: something that any good contractor should hold in high regard. Reputation wins you work, allows you to charge more, retains work and saves you money on advertising. Do not under estimated it. Do a good job, turn up when you say you are going to be there (or communicated if your not going to make it) and be polite and well dressed.

 

I provide all work wear for my guys which helps create a professional look from the off. Sites like buyworkwear are easy to use and surprising cheap.

 

My last main con is equipment: if you go self employed you will enter a world of kit dreaming and worry. Dreaming about the kit you want and worrying about the kit you've got breaking down. This is unavoidable.

 

Buy cheap buy expensive it always wears out eventually. Buy the best you can afford. Use eBay a lot. I reckon it's better to start with a full compliment of kit that's used, than two shiny new bits of kit that you can only do so many jobs with. Also get good repairing and maintaining your own kit.

 

Other cons are not having any time to spend with the mrs or family

 

If your planning to work from home, never leaving work.

 

Etc etc the same pro and cons list cold be drawn up for an employed person.

 

I do see two types of self employed person. The ambitious go getter types, who go for money and growth and the way of life guys: happy to dodge along doing bits and pieces.

 

I am the ambitious type: I really see the point of moseying along earning next to nothing...be smart work very hard and aim high.

 

Best of luck to you, it ain't easy but very worth it in the end.

 

Ps: this is all just my humble opinion and not gospel.

[Andy Collins]

Very well covered in that post. I will add.

Self-employed or sub contracting, do make sure you have sickness, accident and income insurance. In the event of serious illnesses or injury you will need this. IMO this is the biggest and most important thing to get in order. No one pays if you can't work.

[CJM]

When you say self employed do you mean starting up with a van and doing your own work or being a freelance climber?

I went self employed as a freelance climber I already had a climbing kit and saws so my start up cost were zero. Do the pros out weigh the cons of being self employed?? Yes/no it depends on your situation, if you are in a job the pays ok and you have a good working relationship with your boss but you get perks like holidays, pension, bonus, overtime, etc then I'd say no.

I think a lot of people see the day rate and think your making mega bucks, but once you take off tax NI repairs put a bit back for slack days and holidays, you've also got to remember the invoices so paper work when your not at work, tax returns ect. Also it's hard to get credit no matter how good your credit rating is.

Then self employment seems less desirable

 

On a side note It helps a hell of a lot if you know and are friends with lots of company's in your area

 

 

(Note to self; why am I self employed?? Haha)

[penfold]

Just beware if you do go self-employed and it doesn't work out for whatever reason and you try to get JSA or whatever; you might get knocked back for it as you will have paid the "wrong" national insurance contributions.