Going Self Employed

[paul44]

After being in this business now for about 8 years I'm starting to think about going it alone to earn my millions and retire somewhere warm, with a flash car and a trophy wife.

 

I have been doing some research and am wondering what the best way to go is. LTD company seems good because you could  pay less tax, and if it all goes t**s up, im not going to loose the house etc .

 

However sole trader on the other hand seems a lot easier to set up and manage.

 

 

 

[matthew.brough]

I take it you are currently employed by an alarm company?

[paul44]

Yea ive been there about 7 years now, im at  the stage now where I have got as far as I ever will with the company due to its small size ( cover a massive area though )

[matthew.brough]

Whilst I wouldn't want to discourage someone taking the leap, I think of you asked most people here who run alarm companies they'd probably advise you to a better company to work for. There are many who go it alone and find it immensely hard, often having little or no cash in the early fee months. The key thing is how do you propose to compete with the thousands of established alarm companies who are already finding it hard to keep market share?

[paul44]

Its not something im going to jump into. Im planning on having at least 6 months worth of cash to fall back on to cover mortgage etc, van sorted, website set up, local advertising , paperwork in place and hopefully some subby work  ready for when i make the leap.

[matthew.brough]

Building up a source of sub contract work is a good plan. There are a few companies (us included) that use subbys frequently and can be a godsend in the early days for cash. What is your motive for wanting to go it alone? Lifestyle, cash, own boss?

[ChrisMurphy]

Dont take this the wrong way, and I have no way of knowing your thoughts and how much you know.

 

But many on here will agree, that "engineers" often see the prices of materials etc and the cost to the customer and it seems very profitable. But the fact is even with massive gross profits turnover etc many companies still make a loss.

 

We have all seen many companies set up for a few years with the bloke having it in his mind that within a few years he will be making a profit, and in the end he gives in and cuts his losses.

 

However all the companies started somewhere and many many of them are successfull

 

Good luck.

[paul44]

Bit of all the above really, lifestyle- would be nice the have the flexibility to be able to plan my own work so if I need a day off for say the  kids  sports day I can have it with out having to give 3 weeks  notice just to be told sorry someone has it off already. Cash - i know when I first start i will be taking a hit, but with a bit of luck that would soon change through hard work, networking and building  a good reputation.

[matthew.brough]

The mass market isn't bothered about standards or quality, it cares about cost. Making vast money in this market isn't something you will do on your own. You need an immense economy of scale. You also have the danger that those of us that own arcs can sell to your end user and make a profit at below your cost price.

That's my 2p worth. Those of you that have gone it alone and done it for a few years, worth the grief and lack of cash?

[Alarm Protection]

Good luck but I have had a week of this year with the family in total.

It's just the way it goes with new customers but the older ones are the most important with new work.

Do I want to be in this trade in 10 years.... Not at all.