starting a new property renovations company

Discussion in 'General Business Forum' started by robchops20, May 2, 2015.

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  1. robchops20

    robchops20 UKBF Newcomer

    34 6
    Hi all.
    Im starting a new company on my own. Previously i had another company with a partner. We started out with literally nothing. We managed to get a lot of work and employed a few guys. Unfortunately we never got an accountant and weren't very good with taxes, vat and financials. It eventually caught up with us and now owe the hmrc a huge amount of money. So we are liquidating. So here i am. Starting again but on my own. I already registered the new company name with bank accounts. I have new jobs booked in and i have 2 guys working for me. I really want to make a success this time and was wondering if anyone has some sort of business plan for this type of business. Also im starting with no upfront money. Could you help me as to how much markup i should add on labour if i pay the guys £125 / day (london wages). Should i be on the tools. Is 2 guys enough. I really want expand into something slightly bigger than a one man band business. I hope this is not asking too much.

    Thanks for reading.
    Rob
     
    Posted: May 2, 2015 By: robchops20 Member since: Dec 1, 2014
    #1
  2. ethical PR

    ethical PR UKBF Legend

    7,478 1,641
    Hi Rob

    There are lots of free business plans you can download including some you can get from the banks.

    Completing this along with a budget will help you avoid some of the mistakes that saw your previous business crash .

    The mark up you will add on will depend on what costs you need to cover and what profit you want to make. Also look at what your completion charges so;

    Learn lessons from what happened before
    Research and write your business plan
    Put together your business budget
    Put together your marketing strategy
    Get an accountant in board
    Make sure you keep money in the business for tax NI and VAT.
    Pay yourself a regular salary/dividends so you don't dip into money meant for your taxes.
    Make sure you set money aide for personal as well as company taxes

    Ideally you do this before you start your new business.
     
    Posted: May 3, 2015 By: ethical PR Member since: Apr 19, 2009
    #2
  3. stevon

    stevon UKBF Regular

    352 40
    I already registered the new company name with bank accounts.
    I have new jobs booked in and i have 2 guys working for me.
    I really want to make a success this time and was wondering if anyone has some sort of business plan for this type of business.


    Also im starting with no upfront money. Could you help me as to how dmuch markup i should add on labour if i pay the guys £125 / day (london wages). Should i be on the tools. Is 2 guys enough. I really want expand into something slightly bigger than a one man band business. I hope this is not asking too much.

    Only you can write the fundamentals of your business plan really Rob. What do you want your role to be? If you're on the tools, granted you'll save money on labour but you'll lose time and probably restrict your growth opportunities... Have you got the discipline to keep up with the paperwork if you're pulling 12 hour shifts? Maybe consider dedicating some time to paperwork and growing the business?

    In terms of mark ups - look at your competition, what are they charging? Why would I pay you any more than £125 if I can get guys at £125 myself? What are the risks for you - are these boys working self-employed or are you paying them £125 every day regardless of whether you have jobs on or not; unlikely, but factor in what risks you're facing. Will this be your main source of income? Surely you could price jobs in this way (ie. needing £100 of materials + both your boys for a 8hr shift + travel etc. = cost price + x%)...

    Writing an eloquent, clever sounding business plan is one thing. I think what your asking for is more about what your expectations are for the business and how you define success Rob.

    If you want to make £40k this year, get on the tools and sort out enough work to keep yourself and maybe a wee squad going. If you want to build a business then dedicate yourself to finding high quality work, building a reputation, gaining testimonials, applying for contracts and establishing a skilled/flexible/available squad of labourers and tradesmen. Surely you'd want to look at purchasing properties down the line as well, you'll need another plan.

    Finally, I'd strongly recommend keeping on top of your books this time or getting someone to do it for you... It's important and by the sounds of it you've got enough to liquidate to sort out your HMRC issues this time, that's lucky! Don't get burnt twice buddy.

    Good luck to you.
     
    Posted: May 3, 2015 By: stevon Member since: Mar 26, 2008
    #3
  4. robchops20

    robchops20 UKBF Newcomer

    34 6
    Hi All. Thanks for all your replies. I really appreciate it. It has given me a lot of food for thought. I will do some research and then implement a business plan.
     
    Posted: May 9, 2015 By: robchops20 Member since: Dec 1, 2014
    #4
  5. Tier1Logistics

    Tier1Logistics UKBF Regular

    238 43
    Hi rob, I'm Phil,

    I am currently in the same line of business and would offer my assistance in any way if still needed.

    Drop me a PM if you would like a chat.
     
    Posted: Aug 3, 2015 By: Tier1Logistics Member since: Jul 29, 2015
    #5
  6. Karllacey

    Karllacey UKBF Contributor

    159 22
    Hi Rob,

    Good to hear from you.

    I have worked with many one man bands in my time, all of which have grown into successful businesses in their own right. I do not just make you coin, I save it too!

    Feel free to drop me a message with your mobile number and I will give you a buzz if you want to have a chat
     
    Posted: Nov 18, 2015 By: Karllacey Member since: Jun 24, 2013
    #6
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