Joinery businesses are the cheapest trade to set up, costing around £6,600 Self-employed plumbers recover their start-up costs the quickest – under six weeks Joinery businesses are among the cheapest trade companies to set up in the UK, averaging nearly £2,500 less than other sectors, new research has revealed. With
MyJobQuote, a website that allows homeowners to easily source local tradespeople, has received more than 190,000 quotes this year, generating over £220 million worth of jobs for tradespeople. It connects homeowners looking for home improvement projects to qualified, local tradespeople who are right for the job. After the users enter the details
Almost half (44%) of plumbers, builders, electricians, carpenters and other trades in the UK say that they are quoting for more work than this time last year, according to the latest survey carried out by Screwfix. Out of the 95% of tradespeople currently working, most of them (67%) said that
A mixture of good and bad can be perceived in the professional trades industry. On the one hand, it has been noted that there has been a great surge in tradespeople confidence, hitting the highest figures it has reached in the past 3 years; certainly a good sign of success
BDC 319 : Aug 2024
Joinery businesses are the cheapest trade to set up, costing around £6,600 Self-employed plumbers recover their start-up costs the quickest – under six weeks Joinery businesses are among the cheapest trade companies to set up in the UK, averaging nearly £2,500 less than other sectors, new research has revealed. With over 40% of construction firms expected to make redundancies due to the virus[1], tradespeople may be considering going self-employed. IronmongeryDirect, the UK’s largest supplier of specialist ironmongery, has identified the cheapest industries in which to do so. The study added up the typical costs people pay when entering the UK’s four most popular trades[2] (joinery, building, electrical, plumbing), with everything from insurance to marketing. Joiners pay the least, with the average set-up fee totalling £6,642. With the typical daily rate for joiners around £150[3], these initial costs could be repaid within nine, five-day weeks. Despite being the most expensive businesses to set up, plumbers can expect to earn back their investment quickest, as they are able to charge the highest daily rates. Averaging nearly £350 a day[4], the £9,124 start-up cost could be repaid within six working weeks. The trade businesses which are the cheapest to set up in the UK are: 1) Joinery – £6,642 (repaid in nine weeks, £150 a day) 2) Building – £6,791 (nine weeks, £160 a day[5]) 3) Electrical – £6,873 (six weeks, £245 a day[6]) 4) Plumbing – £9,124 (six weeks, £347.50 a day) One of the most significant outgoings is accreditation. New plumbing companies pay the most in this department, with organisations like HETAS and OFTEC charging substantial sums for membership. Such credentials, combined with the cost of other important courses, like First Aid at Work, the Gas Safe Register and Asbestos Awareness, can set you back over £3,000, which is significantly more than other trades. Some expenses, however, are necessary across all sectors, such as insurance, marketing, company registration and van hire. A new trade business can expect to pay over £600 a year to completely cover themselves with insurance. Contractors All Risk insurance is one of the most costly forms of protection, starting at £298 a year, but includes cover against both property damage and third-party injury, so is worth the investment. Marketing is another significant outlay, but an important one nonetheless. Paying out for business cards, flyers, logo design and a new website usually costs at least £600 pounds. However, such costs will pay for themselves if they lead to a surge in new clients. Finally, there’s the crucial cost of equipment. A tradesperson may have accumulated tools during their career, but if they are new to the industry, there are tools they will need before taking on work. Joiners pay the most here, with key equipment adding up to £600. Circular and table saws are the biggest outlays, so it could be worth looking for second-hand retailers, whilst ensuring the products are high quality, as income will depend on their performance. The full breakdown of costs per trade is as follows: Type of Cost Joiner Builder Electrician Plumber Accreditation £1,005.00 £1,041.00 £1,005.00 £3,481.00 Trade Association £117.00 £472.80 £585.00 £231.00 Marketing £610.54 £610.54 £610.54 £610.54 Insurance £638.21 £638.21 £638.21 £638.21 Equipment £599.38 £355.97 £361.87 £490.98 Other (storage, van hire, business registration) £3,672.00 £3,672.00 £3,672.00 £3,672.00 Total £6,642 £6,791 £6,873 £9,124 Andy Porter, a self-employed carpenter from Southampton, has given his three top tips for people looking to set up their own trade business: 1) Look at local adverts and see what similar trades are doing (e.g. services, pricing) 2) Get quote and invoice terms and conditions in place early and make sure they are watertight 3) Make sure you have plenty of money saved up as cash flow is incredibly important Marco Verdonkschot, Managing Director at IronmongeryDirect and ElectricalDirect, said: “Many tradespeople will aim to run their own businesses one day, so it’s useful to get an idea of how much it would cost to do so. While these sums can appear quite daunting, most of the expenses will directly improve your service or help you win more work, so are worth the investment in the long run. “Owning your own business can be incredibly satisfying, so to help those who are considering going it alone, we’ve compiled a list of tips on how to do so effectively.” For eight pieces of advice from tradespeople who have set up their own business, visit: https://www.ironmongerydirect.co.uk/blog/eight-top-tips-for-setting-up-your-own-trades-business
MyJobQuote, a website that allows homeowners to easily source local tradespeople, has received more than 190,000 quotes this year, generating over £220 million worth of jobs for tradespeople. It connects homeowners looking for home improvement projects to qualified, local tradespeople who are right for the job. After the users enter the details of the job, the platform matches the customer with the right local tradesperson across 32 categories, 200 sub categories and more than 13,000 verified trades, who will then get in touch in order to complete the job. The 32 categories and 200 sub categories include, but are not limited to: bathroom, builders, carpenters & joiners, cleaners, electricians, heating engineers, kitchen, plasterers and plumbers. The platform offers complete transparency and lets homeowners find a tradesman without having to search for hours online and in the telephone book. Once trades are sourced by the site, the user is able to choose the tradesperson that is right for them. Likewise, for tradespeople and businesses, the site allows them to connect with homeowners without the need for any marketing experience. Trades are able to sign up for the site on either a pay-as-you-go basis, or through a subscription. This year alone, over 190,000 quotes have gone through the site, generating more than £220 million worth of jobs for UK-based tradespeople. Since inception, £491 million worth of jobs have been generated through the platform, £220 million of which was generated throughout 2018. “It has always been our aim to offer a service that is both transparent and useful, both for trades and homeowners, and it’s what we have achieved from all of our hard work. We’re delighted to have been able to generate over £220 million worth of jobs for trades, whilst solving so many consumers’ problems,” said Carl Meredith, spokesperson for www.MyJobQuote.co.uk. There are currently more than 13,000 verified trades signed up to the site in total. What’s more, customers are able to submit feedback following a job to help others find the right person for the job, and the average review score given to trades is 4.2/5. The site itself has an average review of ‘excellent’ on trustpilot and reviews.co.uk. Since beginning operations in 2014, MyJobQuote has received more than 471,000 quotes of Britons wanting to find a tradesman for jobs of all sizes within their home and businesses.
Almost half (44%) of plumbers, builders, electricians, carpenters and other trades in the UK say that they are quoting for more work than this time last year, according to the latest survey carried out by Screwfix. Out of the 95% of tradespeople currently working, most of them (67%) said that they have sufficient work to keep them busy, while 16% say that they have more work than they can handle. Almost half (48%) believe that business will improve for them during the next 12 months. However, the most recent Trade Pulse report also showed that this optimism is tempered with a degree of concern about the UK economy in general. Almost one in three (32%) believe that it will get worse over the course of the next year, rising from 20% who felt the same way this time last year. Trade Pulse is a monthly index from Screwfix’s umbrella organisation, Screwfix, which surveys over 500 tradespeople in the UK including plumbing and heating engineers to track trade optimism and work levels. The retailer carries out the research to gather further insight into the needs of its customers to make sure that it provides the required products and services. Chief Executive Officer of Screwfix, Andrew Livingston, commented: “The optimism seen among the UK’s tradespeople at the start of 2016 is continuing, however, there also seems to be more uncertainty on the nation’s economic outlook from the trade. “Despite this, it is very encouraging to see that many continue to be in work, with more jobs to come, which is something we see reflected by our busy trade customers across our network of Screwfix trade counters.” However, earlier in the month it was said that UK tradespeople have expressed a degree of concern about the future of the general UK economy despite the reported high levels of work within the construction industry.
A mixture of good and bad can be perceived in the professional trades industry. On the one hand, it has been noted that there has been a great surge in tradespeople confidence, hitting the highest figures it has reached in the past 3 years; certainly a good sign of success in the industry itself. Yet, on the flip-side, it has been reported that, despite this level of confidence (and perhaps as consequence of), it is also the case that some 58% of tradespeople are actually needing to turn down work (published in ECIS’s latest industry survey). With a positive 48% of tradespeople who partook in the survey commenting that they remain confident about their success over the coming year, it could be theorised that the sector is performing fairly well. Yet, with 41% also saying that they feel considerable pressures on the fulfilment of contracts, there are also concerns that the profession is simply under too much pressure to pursue an “all work and no play” philosophy to life. With a questionable balance in fray on the division which tradespeople will be able to maintain between work and general day-to-day life, some 60% of respondents noted to the pressures they feel from work and 25% commenting that they also need to work evenings and weekends on a regular basis. This poses a concerning question as, while the industry does seem to be performing well in terms of confidence and levels of work available, it is mixed with those concerns as to the profitability of working in the sector when bearing in mind the sheer workloads and stresses associated with it. As a result, 22% of those surveyed have denied that they would look to encourage new blood to pursue a career in the industry, which is also effectively where the future of the industry itself will lie. Phil Scarrett, ECIS’s Sales and Marketing Director commented: “There is no shortage of work to go around, but serving that demand is evidently a source of significant pressure for tradespeople.”
