Self employment (Builder)

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Hi

Can any self employed builders give some insight /tips. This year I am hoping to go out on my own. Ive been building for 13 years with a bricklaying apprenticeship at 16. For the last 5 years I've been site managing. I've been thinking about going on my own for the last couple of yearsand feel this year is the time to do it and stop thinking.

I've been employed for the duration of my career so it's quite daunting to come away from it but feel it's the right decision. I've been talking for advice and everyone I've spoke said go for it. Just wondering what the wider audience's on here has experienced in there time.

I'm a bricklayer by trade but have strong building knowledge and will be going into general building (not site work). I understand that's its hard work but I don't mind that.

Thanks

[Eric Mc]

Would you be doing the work yourself or would you be using other people?

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I will be doing majority of the work myself. Except plumbing, electrics and carpentry which I will sub out to contacts I know.

[Eric Mc]

You will most likely have to get involved with the HMRC CIS Scheme (CIS stands for Construction Industry Scheme).

This involves making sure you deduct tax from contractors you use and pay that tax over to HMRC each month.

[herbialfa]

First thing I would do is make yourself a Ltd company. That way you protect yourself.

In the current climate try and get yourself subbied to a major housing developer. Years and years worth of work to see how you can handle it. Best time to do it!

I know brickies who are willing to graft (self employed) who have at least 6 years subbie work in front of them due to large developments. If they want a day off they take it. If they want to work Saturdays they take it.

[GT03ROB]

What is your target market?

[IanCormac]

Are you good at selling? Being capable of doing the work and being able to sell yourself to customers are two different things. Do you have any sales experience?

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herbialfa said:

First thing I would do is make yourself a Ltd company. That way you protect yourself.

In the current climate try and get yourself subbied to a major housing developer. Years and years worth of work to see how you can handle it. Best time to do it!

I know brickies who are willing to graft (self employed) who have at least 6 years subbie work in front of them due to large developments. If they want a day off they take it. If they want to work Saturdays they take it.

Going ltd seems a sensible idea. I will look into this more. Thanks

Site work isn't for me. I done 18 months as an assistant site agent for one of the biggest developers in uk. I was amazed by the bricklayers attitude on site. They didn't care or have any pride about what they do, complaining about too much detail in the brickwork etc. I know it's good money but not for me.

GT03ROB said:

What is your target market?

My target market is domestic builds doingextensuons renovations and general building and hopefully go into building houses for private clients. This has been my background through my career.

IanCormac said:

Are you good at selling? Being capable of doing the work and being able to sell yourself to customers are two different things. Do you have any sales experience?

I believe I am. I've worked for small builders all of my building career. With that you learn how to come across to people so they trust you. I've also worked for a major housing developer as a assistant site agent which consisted of helping the sales team make a sale. I come across professional and have the knowledge to take with me,

Edited by adsvx220 on Saturday 7th January 22:50

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herbialfa said:

First thing I would do is make yourself a Ltd company. That way you protect yourself.

In the current climate try and get yourself subbied to a major housing developer. Years and years worth of work to see how you can handle it. Best time to do it!

I know brickies who are willing to graft (self employed) who have at least 6 years subbie work in front of them due to large developments. If they want a day off they take it. If they want to work Saturdays they take it.

Site work isn't for me. I done 18 months as an assistant site agent for one of the biggest developers in uk. I was amazed by the bricklayers attitude on site. They didn't care or have any pride about what they do, complaining about too much detail in the brickwork etc. I know it's good money but not for me.

GT03ROB said:

What is your target market?

My target market is domestic builds doing extensions renovations and general building and hopefully go into building houses for private clients. This has been my background through my career.

IanCormac said:

Are you good at selling? Being capable of doing the work and being able to sell yourself to customers are two different things. Do you have any sales experience?

I believe I am. I've worked for small builders all of my building career. With that you learn how to come across to people so they trust you. I've also worked for a major housing developer as a assistant site agent which consisted of helping the sales team make a sale. I come across professional and have the knowledge to take with me,

Edited by adsvx220 on Saturday 7th January 22:51

[GT03ROB]

adsvx220 said:

GT03ROB said:

What is your target market?

My target market is domestic builds doingextensuons renovations and general building and hopefully go into building houses for private clients. This has been my background through my career.

Then I could probably offer you a few tips. I'm at work right now but will jot them down later.

I cut my construction teeth here http://farr-roberts.com/ which my father owned until recently & still consults for. So I have some idea of the market.

[Eric Mc]

Although setting up a limited company MAY be a sensible option, before you commit yourself to going down that path, talk to an accountant about the pros and cons of operating through a limited company.

Whether it is a sensible thing for you to do depends very much of the size, complexity and risks associated with your business.

[Eric Mc]

Just thought I would add that this topic would probably fare better in the "business" forum as it is definitely NOT an "employment" issue.

[GT03ROB]

I'll leave the tax & financial structure you adopt to others far more knowledgable.

A few things that I've observed though:

• You will only be as good as your worst/least reliable subbie. Are you going to be putting enough work their way to be priority to them or will they do your work when then have done other stuff.
• Learn to manage your cashflow
• Make sure you are capable of planning & organising the worlk be it materials or subbies. Most people think this is easy. Many setting out to do what you are doing fail in this area. Customers don't want you turning up & working when you feel like it. They want you there, they want a job done & you gone ASAP.
• Remember although the lady of the house will make the demands, the man pays the bills. It's not your job to sort out their disputes. But manage the wife. If she's happy your life is easier, if she's not you're out.
• Did I mention cashflow?
• The taxman will want paying
• Scope & spec, be clear & document.
• Minimise mess if you are working in someones house, ALWAYS clear up.
• Establish a lower margin base workload.
• HNW customers tend to be higher margin, higher maintenance, but provide repeat business.
• Answer your phone.
• Start early or work late to organise everything for the next day
• Then there's cashflow.

As an example I have a guy doing work at my house. Quality is very good. But thats it. He's a frikkin disaster in every other respect. Couldn't organise a piss up in a brewery. It takes me to lose my rag with him every couple of months to get his attention. I decided not to pay a couple of his invoices to persuade him to finish what he has in hand. They hasn't worked as he is so disorganised he's forgotten I owe him the money!!

Edited by GT03ROB on Sunday 8th January 17:03

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GT03ROB said:

I'll leave the tax & financial structure you adopt to others far more knowledgable.

A few things that I've observed though:

• You will only be as good as your worst/least reliable subbie. Are you going to be putting enough work their way to be priority to them or will they do your work when then have done other stuff.
• Learn to manage your cashflow
• Make sure you are capable of planning & organising the worlk be it materials or subbies. Most people think this is easy. Many setting out to do what you are doing fail in this area. Customers don't want you turning up & working when you feel like it. They want you there, they want a job done & you gone ASAP.
• Remember although the lady of the house will make the demands, the man pays the bills. It's not your job to sort out their disputes. But manage the wife. If she's happy your life is easier, if she's not you're out.
• Did I mention cashflow?
• The taxman will want paying
• Scope & spec, be clear & document.
• Minimise mess if you are working in someones house, ALWAYS clear up.
• Establish a lower margin base workload.
• HNW customers tend to be higher margin, higher maintenance, but provide repeat business.
• Answer your phone.
• Start early or work late to organise everything for the next day
• Then there's cashflow.

As an example I have a guy doing work at my house. Quality is very good. But thats it. He's a frikkin disaster in every other respect. Couldn't organise a piss up in a brewery. It takes me to lose my rag with him every couple of months to get his attention. I decided not to pay a couple of his invoices to persuade him to finish what he has in hand. They hasn't worked as he is so disorganised he's forgotten I owe him the money!!

Edited by GT03ROB on Sunday 8th January 17:03

Thanks for that. Great help.