Heating business start up costs...

[Mbear]

...and running costs.

I've always been employed, myself and my mate are seriously considering starting out on our own. We mainly intend to fit, repair, service (inc L/L inspections) domestic gas boilers/heating, but obviously would do fires, cookers, bathrooms and general plumbing aswell. We are trying to crunch no.s at the minute but we arent sure on certain monthly costings.

We have so far factored in...diesel, PLI, van insurance, a wage each (as low as we can afford at start up), van consumables, website and "cheap" advertising (initially). Is there anything else that we have missed?

Also, (excluding your salary) what are your costings on the list above if u lot dont mind me asking. I've scoured the web for relative info on this but to no avail, we obviously want to be exact as we can with projected outgoings so any help is very much appreciated.

Ps we are in the process of saving for the actual start up cost, ie van, some extra tools, fga, powerflush machine, core drill, gas safe registration changeover etc, so hope to start with no debt as such.

Many Thanx in advance

 

[AWheating]

van (van,insurance,tyres,service,mot,breakdowns,road tax,waste tax,roof rack), PLI, GSR, fuel, tools, accounting, training/qualifications, advertising, office supplies, phone bill, holidays, uniform/work clothes, PPE.......

these are some thing to consider, theres loads to consider really but you will learn alot in your first year.

 

[Mbear]

Thanks for the reply

I'm doing my acs again in may (my current employer will pay for that) so initially I'll only require to change my gsr no. Accross and do the minor work elec course (I think).

My uncle is an accountant so I'm hoping he'll do our accounting at family rates so to spk.

Is PLI dearer in the 1st yr, for eg when a 17 yr old passes driving test and insurance is mega high?

 

[kirkgas]

Thanks for the reply

I'm doing my acs again in may (my current employer will pay for that) so initially I'll only require to change my gsr no. Accross and do the minor work elec course (I think).

My uncle is an accountant so I'm hoping he'll do our accounting at family rates so to spk.

Is PLI dearer in the 1st yr, for eg when a 17 yr old passes driving test and insurance is mega high?

if you have been with current firm long enough it might be worth asking the company they use for a PLI quote as they will know you have not had any claims against you via them, they might offer a discount, if you dont ask you dont get

 

[thereisawizza]

Make sure you factor an accountant in, might seem like an unnecessary cost but worth they're weight in gold if you can get a goodun!

 

[dontknowitall]

Tools (and replacement tools)?
Stock.
Telephone.
Clothing.
Training (re-training)
Subscription fees.

Probably looking at an absolute minimum of 5k each to start.
Say: £3k van, van insurance, MoT, servicing, etc £1k, Tools £500, Stock £500

Then there's living expenses.

Best of luck!! If you work hard and put yourself out for others, it's perfectly possible to succeed.

 

[CES]

As above, also remember to factor in your tax, either income (or corporation if you are going limited) and NI and keep an eye on your VAT threshold, (you may want consider registering at some point depending on your workload)

 

[Kev the gas]

Be very careful and sign a contract with your new partner.

Many friendships have been broken through working together.

Have you thought about going on your own??

 

[PlumbBobBob]

make sure there is work in your area maybe advertise first to judge need

 

[dontknowitall]

Be very careful and sign a contract with your new partner.

Many friendships have been broken through working together.

Have you thought about going on your own??

There's much to be said for this. I frequently work with another plumber both on my jobs and on his jobs. When one of us is really busy we phone the other to ask if they can sort a customer out. When times are quiet we each do our own thing and owe nothing to the other. We each have our own business, have a similar way of working (clean and thorough), quality and low price but not speedy. I'm not sure it would work if he went for fast, high price but not good quality and I went for quality, low price but slow.

Additionally, when you're new you might only pick up small jobs. Does it really take 2 plumbers to change a basin tap washer? Might not look too good if you both turn up and are seen to be sharing the money paid.

Having said all this, some partnerships work really well, especially if you both have other commitments (e.g. family). Once again, best of luck!

 

[blayedrunner]

My accountant just got me a rebate on my PAYE from last year of 2k. Well worth the employment. First year is BLOODY expensive but after 9 months things are looking good.

 

[Destroyer2813]

As above for me as well work for myself but doind subbing work for two other blokes when there busy and they do same for me when im busy

 

[REDSAW]

unless i have misread i can answer your question the easy way forgetting all you have mentioned about set up costs.

'about half of your wages your on now for at least the first year'.
hope that helps.?.

 

[Mbear]

Ther is work in our local area, my friend who is self employed/ltd heating company is knocking back work because he's got so much on (bearing in mind that we are 10/15 degrees celcius better off than this time last yr). I agree about the contract between business partners/friends. As I have already said I'm hoping my uncle will do our accounting at a "preferable" rate which will save money, he has tenanted flats around Glasgow/paisley area so we can do his L/L checks and repairs, scratching backs so to spk. Van wise we hope to get a transit size straight off and maybe a cheap astravan a little bit down the road. The idea is one of us would do ch repairs whilst the other can do a boiler change the same day to maximise income. I know it won't always work that way but we'd have the option if it did.

@ dontknowitall
To be honest I'd rather steer clear of the plumbing, I much rather prefer doing the heating but if this kinda job came about then only one of us would do the job

 

[tamz]

To be honest with you, you are going to be starting out at a disadvantage as a partnership unless you have guaranteed steady work lined up.
Start up costs will be the least of your worries.

 

[Mbear]

U reckon two 1man limited companies would work better?

We can still share work to an extent that way but earn as much as we like as we wouldn't be anywhere near the £68k tax threshold come end of tax yr

 

[tamz]

I reckon finding 2 wages a week is a lot harder than finding 1

 

[REDSAW]

you could be right there.imo.