Mobile Mechanic Start up help!

[gjukonline]

I am currently employed full time with an independant MOT and service garage as an MOT tester & technician. 6 years experience in trade and 4 years on their trade insurance with no problems. I'm 24 years old and starting a 4 year university adventure studying Motorsport Engineering.

I must give my full time job up and put university first but I'm looking to work a few hours a week as a mobile mechanic (10-16hrs) with my own van and tools.

I'm having problems with aquiring trade insurance just because I'm 24... I have 6 years in industry and am fully qualified with an MOT license. Why am I being penalised for my age? Does anybody know what I can do to solve this problem. I'm trying to do things above board and I'm finding it difficult to get the right cover. I'm 25 in 2 months but don't see why I should wait two months to start my business up when I need to get the ball rolling now.

Thanks in advance, George.

 

[Mitch3473]

25 yo is an insurance milestone but no real deal breaker time wise. Use the next 2 months to research, prepare and market your business. Best of luck with your studies and future career.

 

[The Byre]

Tip - farmers and builders need your services, especially small farms and similar operations and they are open to trouser-money deals and are very unlikely to want to see some sort of insurance. The dangers of something going horribly wrong when you are stripping and rebuilding the diesel pump on an old Perkins engine on a McCormick digger from 1968 are remarkably slim!

 

[gjukonline]

25 yo is an insurance milestone but no real deal breaker time wise. Use the next 2 months to research, prepare and market your business. Best of luck with your studies and future career.

Thanks for the response. I am just a little frustrated at the idea of somebody under the age of 25 not being able to start their own business in the motor trade. I understand the trade requires experience and is of risk but it's unfair for insurance companies to not even consider my individual case. I was just a little shocked at this. As you say I will no doubt use this time wisely if I do have to wait it out. I have a business name in mind. How do I go about registering my business or do I not need to as a part time self employed mobile mechanic? Is it just as simple as declaring my earnings at the end of the first year or do I have to submit something prior to business opening? Would I be allowed in the eyes of the law to promote a business publicly if it's not yet up and running? Thanks in advance. Apologies for so many questions.

 

[gjukonline]

Tip - farmers and builders need your services, especially small farms and similar operations and they are open to trouser-money deals and are very unlikely to want to see some sort of insurance. The dangers of something going horribly wrong when you are stripping and rebuilding the diesel pump on an old Perkins engine on a McCormick digger from 1968 are remarkably slim!

Good idea! I've no experience on agricultural vehicles / machines so would be a little shy to offer that as a service as I don't know my way around them. Of course they are similar to cars / vans so may consider this if I can get some simple maintenance tasks first. Thanks for the tip

 

[The Byre]

Look - as you are studying high-tech automotive engineering, you need to expose yourself to new ideas. Nowhere will you find more unusual solutions to everyday problems than in old machinery!

I have been fixing the diesel pump on my 1975 International Harvester tractor and the first stage of the pump is like nothing I have seen before - a set of wiper blades inside an irregular cylinder that looks and works rather like a Wankel motor!

Just getting the old head around the physics of an air-cooled diesel engine (and boy, are they noisy!) can be quite a challenge!

Of course the modern stuff is bonkers sophisticated (all that GPS-controlled, self-drive ploughing!) but the old stuff is remarkably satisfying to work on - and the amazing thing is, you really can fix that stuff quite easily!

If you leave a modern car out in a field for a few years, it will be dead. Every part of every modern car is calculated to within an inch of its life! No gasket is too thick or strong (if it even has gaskets any more!) no ring is a bit too chunky, no bearing is over-sized. Pistons and their rings are designed to have just the right type of oil and it had better be fresh. Let air or water get into the fuel, run the thing for a few years without fresh oil or just leave it standing for a few years and you have all kinds of problems - either that, or you can scrap it!

Designers of tractors, diggers and other toys out of the past assumed that oil was inevitably going to be totally black and have lumps in it. They assumed that a harvester would just be left in a field for a whole year between harvests and when working, every piece of machinery would be abused to within an inch of its life!

They also assumed that the farmer or contractor had to save up and buy the machines, so longevity and reliability were the main selling points - not a 5.1 sound system in the cab, a hydromatic drive and a computer controlled fuel management system!

It was perfectly normal for a farmer to go straight from the auction house, having sold that year's line of bullocks, to the tractor dealership and pay cash in big wads of twenties, bundled in rubber bands. That man did not like the sound of something he couldn't fix with a set of basic air tools and an arc welder!

 

[gjukonline]

Thanks for the great insight. I will consider it all. I'm happy to diversify as I do have a lot of small farms in my area and I do know some farmers. Main body of work will be cars

 

[gjukonline]

I just got a surprise quote for £2650
Unlimited number of vehicles owned by me included up to group 28 insurance and value of 5k each vehicle.

Also customers cars covered up to value of 15k and group 28 insurance.

Considering I have a car and a van and my renewal would be £1000 combined I am quite happy.

So I just need to find out what else I must do to start my business. Got van, tools, provisional insurance. What else do I need to do before I start?

 

[The Byre]

Customers!

 

[gjukonline]

Customers!

Of course! But anything else legally? Do I need to register a part time mobile business prior to opening it ? Or do I just do it at the end of the first year when doing tax return etc

 

[The Byre]

https://www.gov.uk/set-up-sole-trader/overview

http://www.startupdonut.co.uk/blog/2011/12/13-things-you-need-know-about-being-sole-trader

and last, but by no means least -

https://www.amazon.co.uk/Starting-Business-Dummies-Colin-Barrow/dp/1118837347

c.a. £10 well spent!

Right now, it all looks hunky-dory, but working on someones Vauxhall Viva in the depths of Winter ain't no fun, esp. without a lift. Working on Farmer Giles' harvester in a dry barn is far better.

And when the time comes to ask for £500 for two days plus parts, it is even less fun when the Viva owner looks shocked and amazed and asks if he/she can pay in instalments. Farmer Giles will ask why you are so cheap and go to that roll of twenties in rubber bands that he keeps in a jar in the kitchen.

 

[Mitch3473]

Of course! But anything else legally? Do I need to register a part time mobile business prior to opening it ? Or do I just do it at the end of the first year when doing tax return etc

Go find an accountant, he or she will answer all your questions, other than that, it's easy.

 

[14Steve14]

Register with HMRC.

Check what other insurances you will need. There may be more. Apply to get a set of trade plates. They will be of huge benefit to you if used correctly. Find genuine and OEM part suppliers as you will need their numbers in your phone to get prices for repairs. Sort out getting a way to take payments onsite before you leave or hand over the keys.

I am sure there will be more, but those above may be a start.

 

[alasdair1982]

Hi, wouldn't thought insurance would be an issue.. I started as mobile mechanic when i was 23 and was insured with traveller's insurance, I was commercials tho but that shouldn't matter. Ill try and dig out the name of my old broker and send you it He was great for me and i used him 7 years straight.

 

[gjukonline]

Go find an accountant, he or she will answer all your questions, other than that, it's easy.

Thank you. I will be talking to the accountant who works for my current employer when he next pays a visit.

 

[gjukonline]

Hi, wouldn't thought insurance would be an issue.. I started as mobile mechanic when i was 23 and was insured with traveller's insurance, I was commercials tho but that shouldn't matter. Ill try and dig out the name of my old broker and send you it He was great for me and i used him 7 years straight.

Thank you very much! I am considering waiting a few months until I'm 25 if my best option is 2600. Think it is quite steep. I can still continue with registering my business then and getting everything else in order

 

[gjukonline]

Register with HMRC.

Check what other insurances you will need. There may be more. Apply to get a set of trade plates. They will be of huge benefit to you if used correctly. Find genuine and OEM part suppliers as you will need their numbers in your phone to get prices for repairs. Sort out getting a way to take payments onsite before you leave or hand over the keys.

I am sure there will be more, but those above may be a start.

Great advice! Would like a set of trade plates I've used them many times with current employer. Very handy for cars that have been sat for months etc. Luckily I know a couple of the local parts suppliers contact numbers off by heart but will create a contact list specifically for that! Especially for dealers etc.. thanks! It will be cash only for first few months and may invest in card payments once I'm up and running then so again thanks for that. Pre warning customers will be a must!

 

[Chris Ashdown]

You biggest plan must be to work out how you are going to get sales, there is no easy way and 99% of them cost money and little sales results in the immediate future though sometimes people come up with a scrap of paper from a advert three years ago asking you to service their car at the rate shown on the bit of advert.

I have known a few mobile mechanics who had to go back to employment after the first year or so as unable to get enough customers

I imagine 100% of new business over estimate their first year sales by a large amount

 

[14Steve14]

I used to work in the motor trade as a mechanic. Lots of the people that I worked with tried and failed to run their own mobile business. I know of one that has since taken over a small garage and is doing really well, and the other now fits towbars at peoples houses and services caravans. All the others are back in employment and most are still in the trade.

Its not for everyone.

 

[alasdair1982]

Thank you very much! I am considering waiting a few months until I'm 25 if my best option is 2600. Think it is quite steep. I can still continue with registering my business then and getting everything else in order

£2600 is cheap, My last years premium was £7k per year, as i was covering commercials vehicles i would expect it to be higher but personally i don't think your going to get it any more competitive than £2600

 

[gjukonline]

You biggest plan must be to work out how you are going to get sales, there is no easy way and 99% of them cost money and little sales results in the immediate future though sometimes people come up with a scrap of paper from a advert three years ago asking you to service their car at the rate shown on the bit of advert.

I have known a few mobile mechanics who had to go back to employment after the first year or so as unable to get enough customers

I imagine 100% of new business over estimate their first year sales by a large amount

Luckily as I will be in University studying for first year at foundation level I will be looking for no more than the taxable amount of income. I want to use this business as an accessory rather than a means. I am looking to advertise through friends and I know a fair few people are going through me to get repairs at my current work place so they will no doubt follow me. After some thought I am going to hold off getting trade insurance until I can get the ball rolling and see how it is two months in (when I hit magic 25) and assess from there. I am lucky in the fact that I will not be relying on the business for my sole income so the pressure is off and anything is a bonus. My only initial outgoing now will be my van insurance on business terms and my public liability. I own the van already and have all the tools and diagnostic equipment that I will need to run a mobile business. I hope going into business with no target and an idea that anything is a bonus will mean I will not over estimate. I do understand some days I will get 0 jobs, maybe even from one week to next. Every business must start somewhere and this is my plan B so I'm not fully dependant thankfully. Thank you for the input great stuff I will be sure to put an expiry date on my adverts haha.

 

[gjukonline]

I used to work in the motor trade as a mechanic. Lots of the people that I worked with tried and failed to run their own mobile business. I know of one that has since taken over a small garage and is doing really well, and the other now fits towbars at peoples houses and services caravans. All the others are back in employment and most are still in the trade.

Its not for everyone.

Yes I know exactly what you mean and I know that nobody in my immediate catchment area offers a mobile service which goes in my favour. I am happy to give it a go at a no win no loss basis and if it takes off and I get busy it's a bonus. Trying not to think too far ahead with business performance and just making sure I am legally covered to carry out my plan in the near future. Baby steps I think

 

[gjukonline]

£2600 is cheap, My last years premium was £7k per year, as i was covering commercials vehicles i would expect it to be higher but personally i don't think your going to get it any more competitive than £2600

I think it's a reasonable quote but I have come to the decision to trial run the business for two months first in order to secure some funds to allow for a traders policy. I don't want to purchase a traders policy, to then barely use it with being only a part time job. It's all a learning curve and I am urging myself to be patient. This will be my first business venture so I feel I should start bare minimum and scale it rather than overheads I don't actually NEED at the time. All of this advice is great!

 

[Chris Ashdown]

Dont forget that when you ask people about jobs they all say they would use / help you as it sounds better than telling you NO, and nobody likes saying no to someone they know

Just take your survey with a pinch of salt

 

[Gecko001]

In business, I think you should start as you mean to go on. If you take risks with not getting insurance even for a few months, in my view, that is not a good start.

 

[gjukonline]

Dont forget that when you ask people about jobs they all say they would use / help you as it sounds better than telling you NO, and nobody likes saying no to someone they know

Just take your survey with a pinch of salt

Yes thats very true. I know what you mean. However I currently pick up a lot of cars to take to work to service or diagnose and as I am their "go to guy" I know they will be just as happy for me to do it outside their house or work. They already think I am the person working on their car (and usually I am). Every business has to start somewhere and granted the first few months will be very slow indeed. I have been told by my current employer that I can sub contract to him for his busy days too which will help me out.

In business, I think you should start as you mean to go on. If you take risks with not getting insurance even for a few months, in my view, that is not a good start.

Fair point there. I am thinking of just getting by for the first two months without road testing vehicles so just taking on small tasks to start with such as free winter checks and oil changes and code reads to get my business started. Jobs of which I will only require public liability and my van for business use. I am not looking to break the law and drive customers cars uninsured. I think it would be best to just put the feelers out first to see if things are likely to pick up or flop. A kind of trial period I guess before any real financial risk is added.

 

[The Byre]

1. I wish you would come around here and fix our digger! It really looks as if Muggins here is going to have to get stuck in! At least I was able to rebuild the diesel pump in my IH475 tractor, so I'll just have to roll up the old sleeves and get on with it!

2. Don't get caught up in too much "Ooo - what about this!" and "Have you thought this all through?" Bo-Locks! Just do it! This forum is full of numpties who are trying to do something they are obviously not able to do (and I get it in the neck when I tell them that they are on a hiding to nowhere!) You are doing something you really can do - so just go and do it!

3. UK businesses are usually over-insured. They are insured against flood when they live on a hill and it is all I can do to stop my people from insuring themselves against being eaten alive by whelks on a Shrove Tuesday! Our drive is 500m long, so somebody wanted to buy insurance for accidents happening on that 500m length of driveway - bonkers!

4. You don't have to cross all the I's and dot all the T's to get a part-time business going! But you do have to get on with it! Get in your van, stop worrying about being attacked by whelks when it isn't even Shrove Tuesday and start touting for business!

5. As stated earlier, take a long, hard look at farms and building kit! Them JCBs and Dear Johns are easier to work on, cost real money when they are down and you don't have to deal with Mrs Priscilla Smallpiece, living at 'Mon Repeau' or 'The Larches'!

 

[gjukonline]

1. I live in south wales if that helps Or hinders! Get stuck in! If you rebuild a diesel pump I'm sure some patience and time will solve the digger issues! Process of elimination and patience is the key!

2. Thanks for the gentle nudge. You are right I guess there is no time like the present and you'll never know until you try. My business is different to most where I don't have to buy in stock and take financial risk. I just have to make sure I do my job well and for the right price to make money and happy customers. It really is as simple as that.

3. You speak the truth there. Us Brits are very upright and sensible and I guess half of the risks genuinely will NEVER likely happen in a life time. Public liability and van insurance for business is a must but maybe not anything else for the present time.

4. Again thanks for the nudge! I will be hitting up facebook and local businesses as soon as I get my business registered in the next week or two.

5. I will make sure I include farmers on my places to visit

Thanks for a great boost and good advice.and good luck with the digger!!