Starting a business at work
Discussion
markiii said:
so you have an accident using your machine on his premises in either your time or his, whats the insurance situation?
you don;t maintain the machine and it has a fault, result burns down his premises, whats the situation with insurance?
sounds like a logistical nightmare to me
you don;t maintain the machine and it has a fault, result burns down his premises, whats the situation with insurance?
sounds like a logistical nightmare to me
psi310398 said:
Another potentially deal-breaking issue. If you are planning to put your plant in his space, how will the insurances work?
Imagine a fire caused either by your machine, or by your employer. What would the impact on either or both of you be? Ditto, say, an electrocution of a third party.
I'd imagine most underwriters would need to see a very clear written agreement and to understand the relationship between the risks they are being asked to cover and the existing insurances. This aspect could be quite messy, especially if you cannot hive off the relevant area completely and agree a designated area of his business exclusively for your use (in which case renting elsewhere might make just as much sense).
You would also need to explain access rights to the machine, right of entry/recovery to secure/remove the plant and any WIP and materials in the case of dispute, etc etc
EDIT - I see the same issue covered above as I was drafting my response.
All valid points, thank you. If it did happen it looks like I would just be renting the space off the farmer, have my own business with relevant insurances etc so hopefully separate enough to avoid anything too messy! Obviously one to really look into if it ever did happen.Imagine a fire caused either by your machine, or by your employer. What would the impact on either or both of you be? Ditto, say, an electrocution of a third party.
I'd imagine most underwriters would need to see a very clear written agreement and to understand the relationship between the risks they are being asked to cover and the existing insurances. This aspect could be quite messy, especially if you cannot hive off the relevant area completely and agree a designated area of his business exclusively for your use (in which case renting elsewhere might make just as much sense).
You would also need to explain access rights to the machine, right of entry/recovery to secure/remove the plant and any WIP and materials in the case of dispute, etc etc
EDIT - I see the same issue covered above as I was drafting my response.
Undercover Agent said:
Can you rent a lockup close-by?
I just got one to do some car stuff in and its the size of a double garage, high roof (12ft) at £100 pm.
If its anything like the 3/4 axis machines where I work, one would fit in nicely with room to swing a few cats and a kettle.
I'll have to speak to the farmer and see if there is some other space available, nothing advertised round here for anything like £100pm! Although I'm sure it's a case of asking round rather than relying on adverts etc.I just got one to do some car stuff in and its the size of a double garage, high roof (12ft) at £100 pm.
If its anything like the 3/4 axis machines where I work, one would fit in nicely with room to swing a few cats and a kettle.
High roof is key, if I do end up at home I will have to get a smaller machine, and even that is pushing it height wise.
Ikemi said:
Considering your part time position, I'd be more inclined to keep things separate (as others have said) and house the expensive equipment at another location (e.g. your home). Create a business, sort the insurance and do all the necessary paperwork.
During busy occasions where your employer is unable to handle the workload, they can ship it out to you to complete on your days off. This money can then be used to promote your business, allowing you to take on your own clients. Slowly, you can distance yourself from your employer, to the point where he essentially becomes another client!
Hopefully you'll know the market/demand/finances etc.
Yes it does look like being as separate as possible will be better. Which is a shame! If I can keep the part time safety net then I'm hoping that would let me be really picky with the work I take on for myself. I want to specialise in really complex work.During busy occasions where your employer is unable to handle the workload, they can ship it out to you to complete on your days off. This money can then be used to promote your business, allowing you to take on your own clients. Slowly, you can distance yourself from your employer, to the point where he essentially becomes another client!
Hopefully you'll know the market/demand/finances etc.
I hope I know them too!
You want to start up a business, your employer doesn’t want to lose your service, you have funds available to purchase equipemg that will benefit both you and his business.
Why don’t you go into business with your employer and become a shareholder / partner, with your investment and enthusiasm and his existing business it could be a win win.
Obviously not as simple as I have written it above and presuming that it is something you have thought of.
Why don’t you go into business with your employer and become a shareholder / partner, with your investment and enthusiasm and his existing business it could be a win win.
Obviously not as simple as I have written it above and presuming that it is something you have thought of.
tighnamara said:
You want to start up a business, your employer doesn’t want to lose your service, you have funds available to purchase equipemg that will benefit both you and his business.
Why don’t you go into business with your employer and become a shareholder / partner, with your investment and enthusiasm and his existing business it could be a win win.
Obviously not as simple as I have written it above and presuming that it is something you have thought of.
It's not that tricky to do. I helped set up a mate as a small builder - giving a larger building firm a 20% equity stake (for free). The larger (well established) building firm was turning down dozens of approaches for work under £500k - now they pass all of this to my friend and the larger firm will get a dividend on work they had previously refused. My friend has a steady pipeline of new business he doesn't have to hunt for.Why don’t you go into business with your employer and become a shareholder / partner, with your investment and enthusiasm and his existing business it could be a win win.
Obviously not as simple as I have written it above and presuming that it is something you have thought of.
It could certainly work for the OP.
NDA said:
It's not that tricky to do. I helped set up a mate as a small builder - giving a larger building firm a 20% equity stake (for free). The larger (well established) building firm was turning down dozens of approaches for work under £500k - now they pass all of this to my friend and the larger firm will get a dividend on work they had previously refused. My friend has a steady pipeline of new business he doesn't have to hunt for.
It could certainly work for the OP.
Except 20% is quite a high commission rate for construction work unless larger firm is contributing something else as well.It could certainly work for the OP.
springfan62 said:
NDA said:
It's not that tricky to do. I helped set up a mate as a small builder - giving a larger building firm a 20% equity stake (for free). The larger (well established) building firm was turning down dozens of approaches for work under £500k - now they pass all of this to my friend and the larger firm will get a dividend on work they had previously refused. My friend has a steady pipeline of new business he doesn't have to hunt for.
It could certainly work for the OP.
Except 20% is quite a high commission rate for construction work unless larger firm is contributing something else as well.It could certainly work for the OP.
Really dont want to sound patronizing but I have seen similar situations, both did not end well. (Investing in your own machine at the employers premises or going fully alone...)
Manufacturing is really complex, i think its better if you try to find a job where they have much better facilities and machines which you can involve and develop your career in a better scope.
Manufacturing is really complex, i think its better if you try to find a job where they have much better facilities and machines which you can involve and develop your career in a better scope.
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