- Original Poster
- #1
Hello all
After months of lurking around the forums, trying to glean the information that I need, I am just going to have to ask outright.
I have been a sole trader for 10 years, and have recently become a ltd company at the advise of my accontant. I have also become a contractor and now sub out half of my work. I am in the construction industry, and my affairs are very simple. All I provide is labour (me) and my tools. Anything else required to do my job is provided by the companies I subcontract to. My accounts are very simple, and my accountant deals with most of it. I just do the invoicing and CIS payments to my sub-contractor. I earn fairly good money, and my life is relativley simple.
For a few years now, something has been bugging me. There is a company within my industry I shall call 'x'. 'x' provide a tempory safety feature that they deliver, install, and remove when it is no longer required. They charge a delivery/install/removal fee, and a there's a daily hire charge all the time that it is on site. They are the only company in the UK that provide this product for rental, but it is now 15 years old and has some flaws. I know that I could design a better one.
A contact at one of the companies that myself and 'x' work for say that he alone pays 'x' approx £300,000 per annum for their services, and that his employers pay £1million plus in total. There are another 3 or 4 companies out there that use them to some degree. I have no contacts there yet, so can't comment on 'x's revenue from these other companies. My contact said that if I could come up with a safer (and not nesecessarily cheaper) design, then he would give me his £300,000 per year contract, and would talk to his bosses about the remaining £700,000 that they spend as a company as a whole. Saftey is their number one priority over cost.
My stumbling block is that I lack the necessary business skills to get this thing started.
I understand that you need a soild business plan, but thats as far as it goes.
i know that you need to research your market, but I don't know how to. I know that making a saftey device has all sorts of legalities/patents attached to it, but I wouldn't want to miss one out. I know that I would need to fund and develop a prototype and manufacture at least 100 units to start off with ('x' has 1000 units and rising). I know that I would need premises and a vehicle/s but don't know the implications of all that.
I appreciate being my own boss more than most things, and I have quite a simple time at the moment, but now want to take my life that stage further.
Could any of you business experts give me some pointers in the right direction. Should I really be looking for a business minded person to partner up with and deal with the nuts and bolts side of it myself, or can an engineer make a good business person with the right amount of help. I have read books, but they just seem to be success stories. There are no 'how to' guides out there that I can find.
You all seem to be very knowledge able people on here, and there is a great community feel to this forum. Any help/pointers/book recommends would be greatly appreciated
Many thanks for you time, in advance...
Matt
After months of lurking around the forums, trying to glean the information that I need, I am just going to have to ask outright.
I have been a sole trader for 10 years, and have recently become a ltd company at the advise of my accontant. I have also become a contractor and now sub out half of my work. I am in the construction industry, and my affairs are very simple. All I provide is labour (me) and my tools. Anything else required to do my job is provided by the companies I subcontract to. My accounts are very simple, and my accountant deals with most of it. I just do the invoicing and CIS payments to my sub-contractor. I earn fairly good money, and my life is relativley simple.
For a few years now, something has been bugging me. There is a company within my industry I shall call 'x'. 'x' provide a tempory safety feature that they deliver, install, and remove when it is no longer required. They charge a delivery/install/removal fee, and a there's a daily hire charge all the time that it is on site. They are the only company in the UK that provide this product for rental, but it is now 15 years old and has some flaws. I know that I could design a better one.
A contact at one of the companies that myself and 'x' work for say that he alone pays 'x' approx £300,000 per annum for their services, and that his employers pay £1million plus in total. There are another 3 or 4 companies out there that use them to some degree. I have no contacts there yet, so can't comment on 'x's revenue from these other companies. My contact said that if I could come up with a safer (and not nesecessarily cheaper) design, then he would give me his £300,000 per year contract, and would talk to his bosses about the remaining £700,000 that they spend as a company as a whole. Saftey is their number one priority over cost.
My stumbling block is that I lack the necessary business skills to get this thing started.
I understand that you need a soild business plan, but thats as far as it goes.
i know that you need to research your market, but I don't know how to. I know that making a saftey device has all sorts of legalities/patents attached to it, but I wouldn't want to miss one out. I know that I would need to fund and develop a prototype and manufacture at least 100 units to start off with ('x' has 1000 units and rising). I know that I would need premises and a vehicle/s but don't know the implications of all that.
I appreciate being my own boss more than most things, and I have quite a simple time at the moment, but now want to take my life that stage further.
Could any of you business experts give me some pointers in the right direction. Should I really be looking for a business minded person to partner up with and deal with the nuts and bolts side of it myself, or can an engineer make a good business person with the right amount of help. I have read books, but they just seem to be success stories. There are no 'how to' guides out there that I can find.
You all seem to be very knowledge able people on here, and there is a great community feel to this forum. Any help/pointers/book recommends would be greatly appreciated
Many thanks for you time, in advance...
Matt
