Is going self employed worth it

[Alfie2022]

Hi,
I’ve been in the industry for 10 years now working for a firm, I can do most things gas ,oil installs, repairs ,servicing and plumbing. I’m currently taking home 50k and about 6k in scarp.

Been thinking hard about going out on my own to better myself and income. Could I really be earning more money? Is it worth it?

 

[king of pipes]

56 k is a good wage bud in all honesty I can't see you being any better off wage wise self employed but it's a decision only you can make , we're in a right old mess in this country and things are gonna get a hole lot worse before they get better is it really a good idea to risk what you have right now ? , you would need to employ 4 -5 other engineers and deal with all the crap that goes with it cash flow is crippling . Wages , materials , vat , vehicles , accounts , tax , training oftec , gas safe , fuel costs it's a never ending payout which can and will do ya head in. Kop

 

[SimonG]

56k is good money. You're going to need more than yourself to be earning good money self employed. You will need staff and therefore stress levels will increase.

I work on my own, will never be rich, I have a decent lifestyle and love my job.

All depends on priorities.

 

[ShaunCorbs]

Can you support your self for 5 years eg 200k in free cash ontop of start up costs

 

[Alfie2022]

56 k is a good wage bud in all honesty I can't see you being any better off wage wise self employed but it's a decision only you can make , we're in a right old mess in this country and things are gonna get a hole lot worse before they get better is it really a good idea to risk what you have right now ? , you would need to employ 4 -5 other engineers and deal with all the crap that goes with it cash flow is crippling . Wages , materials , vat , vehicles , accounts , tax , training oftec , gas safe , fuel costs it's a never ending payout which can and will do ya head in. Kop

Thanks for your honest opinion bud, I have thought hard about all the extras that come with a business and the timing of it all. it does seem like a lot of work! I have got to the point In my career where I don’t know which way to turn. I’ve always thought I will never make proper money working for someone else.

 

[Murdoch]

Sounds a very decent salary assuming it includes sick and holiday pay, and pension on top

 

[Alfie2022]

Sounds a very decent salary assuming it includes sick and holiday pay, and pension on top

Yes it does include those things as well

 

[Ben-gee]

In this uncertain time I’d stick with what you’ve got.

I enjoy being self employed but don’t earn as much as that. Flexibility and satisfaction is what I value, especially now my wife has been diagnosed with MS. With one of two children have flown the nest we are (nearly) at a stage where income is less important.

But there’s a lot of work behind the scenes and everything is down to you - good/bad/or at the weekend.

 

[Knappers]

I probably earn less now being self employed.
You could earn more than your on but imo you'd have to be either working constantly or trying to fleece all your customers for every penny.
For me the biggest barrier to earning is in the scheduling.
I work locally and want to provide a service to returning customers and build reputation.
If I filled my diary for max profit then every time something runs over, I'd have to drop jobs without notice or work 16+ hour days to keep on top of things.
I schedule a certain amount of redundancy to cover it and that allows me to take time and provide the customer service I want and gives time to service existing sustomers for breakdowns and emergencies.
For me to exceed your income I'd need to employ others. If thats your plan then I'd recommend trying to get some contract management experience with a company first, as those skills and contacts could be invaluable later.

The main benefit for me and prob most others is flexibility. I see my kids, do school runs, have more holidays etc.
If I need to I can do 16h days and earn over 2.5k a week but I generally do 8h and earn 1 - 1.5k,
which is equivalent to 30k - 40k PAYE salary (once you account for overheads, losses, downtime, benifits etc)

 

[Alfie2022]

I probably earn less now being self employed.
You could earn more than your on but imo you'd have to be either working constantly or trying to fleece all your customers for every penny.
For me the biggest barrier to earning is in the scheduling.
I work locally and want to provide a service to returning customers and build reputation.
If I filled my diary for max profit then every time something runs over, I'd have to drop jobs without notice or work 16+ hour days to keep on top of things.
I schedule a certain amount of redundancy to cover it and that allows me to take time and provide the customer service I want and gives time to service existing sustomers for breakdowns and emergencies.
For me to exceed your income I'd need to employ others. If thats your plan then I'd recommend trying to get some contract management experience with a company first, as those skills and contacts could be invaluable later.

The main benefit for me and prob most others is flexibility. I see my kids, do school runs, have more holidays etc.
If I need to I can do 16h days and earn over 2.5k a week but I generally do 8h and earn 1 - 1.5k,
which is equivalent to 30k - 40k PAYE salary (once you account for overheads, losses, downtime, benifits etc)

Thank you for your reply, it helped understand business life a bit more

 

[Deleted member 120897]

£56k even 50k without the scrap is a great wage - my wages are just over half that, granted probably not doing as much, but still. I earn slightly more than what I’ve said previously but can be hit and miss as it’s upped only by callout. Agree with others, probably best sticking where you are. I do wish I could get out of my current employment but there doesn’t seem to be much on offer that meets my wage, let alone yours.

 

[Ric2013]

The main benefit for me and prob most others is flexibility. I see my kids, do school runs, have more holidays etc.
If I need to I can do 16h days and earn over 2.5k a week but I generally do 8h and earn 1 - 1.5k,
which is equivalent to 30k - 40k PAYE salary (once you account for overheads, losses, downtime, benifits etc)

Absolutely. I had a minimum wage job I used to do and it made me more money than plumbing. Overtime was time and a half which wasn't bad though. And, in fairness, I did enjoy parts of that job very much indeed.

But it was 8 hours of flat out working as fast as I could all day long in a cold building without a moment of being allowed to stop and think about anything, so I was constantly tired as still trying to do all the things I wanted to do out of work hours. Getting a specific day off when I needed it was almost impossible without a month's notice. I had to listen to stultifying music all day long while working. The company I worked for sold food that was mostly junk: bad for the planet and unhealthy for the person eating it. However well I worked, any advantage went to shareholders. I have family abroad and, because I refuse to use air travel, it effectively meant I could never get enough time off to visit. The work itself was mostly enjoyable but it hardly felt like a noble profession.

Self-employment means I take on the jobs I want. Essentially I still work in exchange for money, but I can choose what I'm interested in doing and what I'm not really interested in. It's more responsibility, but I can actually make use of my intelligence and education (and former work experience involving contracts) rather than just follow orders. I feel less knackered. One of my parents now lives abroad and needs a hand with things from time to time and so I can make time for this. I can take out a library book and actually finish reading it before it's due back. And my job cannot become redundant as it's not easily automated. I don't feel I'm merely swapping a proportion of my life in exchange for a salary.

£56,000 a year is more than I'd ever want to earn as I wouldn't know how to spend that much without increasing my environmental footprint beyond the point I'd be comfortable with. That said, if I wanted to really push my business and get as much work as I could, I could probably earn my old employed salary in 2-3 days a week and spend the rest of my time doing what the ---- I want.