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By mailee
#684827
I was forced into it having been made redundant at the age of 55. I did start with less than 10K but I did have most of the equipment I needed already having been hobby woodworking for a number of years and building up a customer base. All of my equipment is 240 volt as is my workshop but I manage well without it so far. A has been stated there is a lot of outlay on insurances, rent, electricity, van, and rates. Consumables do take more money than you think even if your very frugal with them. When you start you will need to spend some money on advertising too, not to mention a website. I am now coming up to two years in business and still enjoying it with a good customer base but there never seems to be enough hours in the day for me. After a working day there are the books to be done and all of those plans for your commissions. JMHO :wink:
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By devonwoody
#684830
A truck, van or whatever, £10k to start with plus.

I think the day is coming when tradesmen will have to carry some liability insurance/bond upto very high amounts to provide indemnity on the work carried out. Its happening elsewhere in the world.
By tomatwark
#684832
Shim

You could set up for about £10K and get going, I think that public liability insurance is a legal requirement, and on its is not that expensive, the expensive bit is the insurance on the kit.
You want this well as if you have a fire or a visit from the thieving b*****ds how will you set up again?


You will need to invest as you go a long as £10k will get you going but you will be amazed how many extra bits and pieces and bigger machines you will need over the years.

I am in former farm buildings which I am lucky with because they are converted and have heating, 3 phase etc and on a fairly busy road so get some passing trade, but still advertise as well.

If you are stuck up a farm track you will need to market quite a lot to start with so people know where you are.

Also if the buildings you are in are not converted they might well be to cold and damp in the winter to do any serious woodworking without some insulation and heating.


Tom
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By Lons
#684887
To the best of my knowledge, public liability insurance is NOT compulsory but any small business which doesn't make that provision is taking a huge risk. In the event of a claim, especially if an injury is involved, the costs can be astonishing and all sorts of costs are recoverable including ambulance and some NHS costs. In todays society of injury lawyers no win no fee activities, you can be taken to the cleaners :shock:

What new business owners don't always appreciate though is that if they expand slightly and take on an employee, they are legally required to buy employers liability insurance and from memory, this can be expensive depending on the level of risk.

As an alternative to initial advertising, a very cost effective method is to print or buy in a load of A5 leaflets and enlist family and friends to blanket post your local area. People tend to retain details of local tradesmen. Whilst most of my enquiries came fairly quickly, I got a call from one of the recipients more than 3 years after posting through her letterbox . :roll:

Bob
By tomatwark
#684896
You are right Bob public liability insurance is not compulsory.

I checked after my first post.

But I would advise anyone who is business to have it though.

Tom
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By custard
#684898
"Joinery and furniture" sounds pretty broad. Have you got a more specific business plan in mind? If you're clearer about your products and services you can get better and more relevant equipment. Trying to have the kit to do whatever comes along means there'll always be someone who can do the same job more efficiently (and therefore better/cheaper) than you.

Second point is working capital. Let's say you decide to go into fitted kitchens, then you'll need the cash to fund everything from Blum cup hinges to granite worktops...and the money to keep body and soul together, because it'll be months before you receive any payments.
By tomatwark
#684904
custard wrote:
Second point is working capital. Let's say you decide to go into fitted kitchens, then you'll need the cash to fund everything from Blum cup hinges to granite worktops...and the money to keep body and soul together, because it'll be months before you receive any payments.


This very true as when you start off it will be quite hard to get 30 day accounts with suppliers.

I always take a deposit and then staged payments on a kitchen, leaving the smallest one to cover the fitting payable with any extras at the end.

This is always put in the quote, so the customer is aware of my terms.

I have only had one person refuse the deposit, and I then refused the job, he went onto another local firm who did the work without a deposit and then did not get paid at the end.

I do have clients who I trust and will wait till the end for payment, but they are also the ones who will come in to see how their piece is going and offer a payment on account anyway.

The other point is stock, if like me you are a long way from any of the big suppliers and will get charged delivery on small orders for some stuff, you may have to carry a bit of stock of the usual materials you use to get the price right by buying more.

Tom
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By custard
#684911
Having "joinery" in the target rang some alarm bells. Yes, you can make a gate with hand tools, but the tooling alone for double glazed windows can easily exceed £10k.
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By shim20
#684964
wow right, i am working at the moment full time and i am slowly building up a range of customers and doing the work at home and at work, im not doing this yet maybe a year or so time after ive saved a bit then take my hours down at work and do it that way, i have a van well a mk3 hilux pickup which will last me years, way i look at it if my boss can do it i could? he dosent get in till 11 and dosent do much all day and dosent know the meaning or organised, i stand around alot at work doing nothing as he hasent sorted materials etc out, i dont know how he dose it to be honest as we havent that much work on, anyways thanks all for the input :lol:
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By mailee
#684988
tomatwark wrote:It also helps to be able to make and fit 4 sets of wardrobes in the morning and a few gates in the afternoon.

Just like Alan ( mailee ) :lol: :lol:

Tom

Oh Tom, that's an exaggeration! Only two sets of wardrobes in the morning. :lol: .....I wish.