Starting new buisness in UK.

[godzilla12345]

Hi there,

Thanks for taking a look at this thread - I would like some advice and help if anyone can at all.

Right so I am looking to start new manufacturing buisness and have taken all licenses costs into account in my research stage of the buisness. The company will be manufacturing u-PVC windows and doors to customers. I have done market research before getting involved and around (my area) they're are a lot of new builds coming into the market - also a lot of the council houses need to be refurbished with double glazed windows.

They'res a huge market out there for u-PVC windows and doors - I believe I could be of hand in the market.

I have found a premises to start off, something small I beleive it is 1400sq ft that would be big enough to fit 1 main saw in, reinforcing station, welding station beading and glazing area (of coruce Qualitiy control area).

The premesis is priced at £5,000 a year on a 12 month contract around £420 a month monthly rental.

I will be shipping my equipment in from China from a company I have soruced - The equipment will cost £2,751 to be delivered and installed via our factory space.

The u-PVC profile I will be using will be; Rehal and Eurocell and will be developing VS (vertical sliding system).

I will be using pen and paper to design customers windows to manufacture to keep costs low.

I have (where I currently work) agreed on a low cost rate of glass units to be manufactured and delivered to our location this will be priced at £12 per unit manufactured + £0.40p for the first 10 units delivered.

I have worked out for each VS that we manufacture will cost us; including electric, profile, finishing

from saw to door ->

Standard size window; 500mm heigh to 600mm width

4 x profile cut out of 60m

£89.88 manufactured. PER window (INCLUDING glass)

Can anyone give me any sugestions to start?

Thanks

 

[webgeek]

Looks like you've got a great grasp of the supply chain, and supply side in general.

How about demand? Got a sales and marketing plan in place, budget set aside, buyer personas mapped so you know who to target with which messages, website design, seo, paid search, social presence, etc?

 

[godzilla12345]

Hi there,

The reason for this is as I currently work in the industry and have been for the last 2-3 years I am highly qualified.

Website will be made within the next few weeks, we will be first

1) trading from where I work as I have a great deal with the manager of the company for cost windows and doors.

SEO - I can do this myself as I have learnt from my father.

For marketing - We of coruce will be using website - however the great advantage of this that a lot of local builders require windows 24/7 and having family that works within that industry is also and advantage

Of coruce will be starting small expanding via Word of mouth to start with - Getting a few contracts through with the local builders.

The u-PVC market is worth over 1bln a year - huge amount of potential for a small starter to get going.

 

[webgeek]

Coming from a background in online marketing, it's the area where I can give the most advice. IMHO, the online marketing plan seems to be a bit lean at the moment

If you can sit down and invest 8-10 hours in addressing the points I've made above, you should find that the exposure you gain, boost to organic, jump on lead capture, etc, will more than pay for that time spent, quickly.

Given the fact that builders are a big potential source, then surely acquiring a list of builders to drop an email to (a very inexpensive way to get the word out) would be in the plans for early days, and ongoing.

Again, IMHO it just seems that if the demand side was as strong as supply, you'd be profitable before opening your doors

 

[godzilla12345]

Coming from a background in online marketing, it's the area where I can give the most advice. IMHO, the online marketing plan seems to be a bit lean at the moment

If you can sit down and invest 8-10 hours in addressing the points I've made above, you should find that the exposure you gain, boost to organic, jump on lead capture, etc, will more than pay for that time spent, quickly.

Given the fact that builders are a big potential source, then surely acquiring a list of builders to drop an email to (a very inexpensive way to get the word out) would be in the plans for early days, and ongoing.

Again, IMHO it just seems that if the demand side was as strong as supply, you'd be profitable before opening your doors

Thank you very much.

I know money is a little bit hard to get by but I've wanted to know if they're is any loans out there to get some money with people on poor credit?

Wanting to start ASAP - I will be writing up a business plan as soon as.

Thank you

 

[Ding Dang Doo]

Are you planning on doing the sales, marketing, design, planning manufacture, invoicing, accounts etc all by yourself?

If you start to get busy, (which I hope you do) you will soon find that there aren't enough hours in the day... Even before that it is a big ask.

Also in your calculations, I don't see any mention of waste... Of course this will be kept to a minimum, but it is manufacturing, and there will be waste, mistakes and rework required, for whatever reason...

HTH

Pete

 

[vvaannmmaann]

When this Chinese machine goes wrong/breaks down - who will repair it and what about spare parts for it?

 

[Ding Dang Doo]

Have you allowed for rates, insurances and all utilities in the unit? Will the unit have to be alarmed, many insurance companies insist on this.

Also, you will need a fair amount of working capital... You may be getting a good deal on your window units, I take it you have negotiated terms for them with your current employer, but have you sorted a credit facility with your plastics supplier? One of the most difficult parts of starting a business is cash flow, will those builders buying from you be paying up front for their units? Doubtful, because unless you can offer them credit, they will carry on buying from those companies that do. So you will be paying out for materials, and not receiving anything back for a minimum of 60 days (you invoice, in month 1, you get paid end of month 2.) if you are lucky.

The construction industry in notorious for paying slowly/badly/ or not at all. It is EXTREMELY contractual, down to the 'n'th degree... And if you get involved with some of the larger construction companies as a sub contractor of a sub contractor, which IS your playing position I'm afraid, you are bottom of the pile when it comes to getting paid.

Not trying to put you off, but you need to have your eyes WIDE open in the building/construction industry.

Pete

 

[qul]

the cost of £90 per window - is this competitive, or can the bigger, more established companies do this much cheaper as they can buy materials in bulk and could have more efficient equipment etc. if not, would your windows be a higher quality to compensate?

there might be some grants out there depending where you live and your age etc. have a look at:
http://improve.businesslink.gov.uk/resources/business-support-finder

it would probably be hard with poor credit, but occasionally banks can lend if there are assets being purchased, and you are also putting money up.

whilst the business is developing, you'll still have to put food on the table etc, so I would say, try and keep your day job for as long as possible, and maybe work evenings or weekends or part time if that can be done, until you can build up a critical mass of customers who will give you repeat business or recommend you to others, but you would probably need savings to pay for the factory rent etc as well.

also what you could do, is add up all the costs for the first couple of years and divide by the average profit per window, to try and work out how many windows you need to sell to break even, and then divide this per week etc and see if its achievable.

the trouble is that for many businesses, sales take a lot longer and much more effort to achieve, than initially anticipated before starting the business.


have you also considered providing a service direct to the consumer or to property developers to cut out the middle man? people are comfortable with buying tiles, bathrooms etc from shops and then getting a fitter to do the installation. But with double glazing, it doesn't seem so straightforward, when I was getting a garage conversion done a couple of years ago, it seemed difficult to avoid going through the large rip off companies or via builders, there wasn't much transparency on how much the windows actually cost.

 

[godzilla12345]

the cost of £90 per window - is this competitive, or can the bigger, more established companies do this much cheaper as they can buy materials in bulk and could have more efficient equipment etc. if not, would your windows be a higher quality to compensate?

there might be some grants out there depending where you live and your age etc. have a look at:

it would probably be hard with poor credit, but occasionally banks can lend if there are assets being purchased, and you are also putting money up.

whilst the business is developing, you'll still have to put food on the table etc, so I would say, try and keep your day job for as long as possible, and maybe work evenings or weekends or part time if that can be done, until you can build up a critical mass of customers who will give you repeat business or recommend you to others, but you would probably need savings to pay for the factory rent etc as well.

also what you could do, is add up all the costs for the first couple of years and divide by the average profit per window, to try and work out how many windows you need to sell to break even, and then divide this per week etc and see if its achievable.

the trouble is that for many businesses, sales take a lot longer and much more effort to achieve, than initially anticipated before starting the business.


have you also considered providing a service direct to the consumer or to property developers to cut out the middle man? people are comfortable with buying tiles, bathrooms etc from shops and then getting a fitter to do the installation. But with double glazing, it doesn't seem so straightforward, when I was getting a garage conversion done a couple of years ago, it seemed difficult to avoid going through the large rip off companies or via builders, there wasn't much transparency on how much the windows actually cost.

Hello thank you very much for your reply! It's very nice to read that people are helping.

The costings of £90 for my manufactured windwos isn't compeitive with all the profile etc, steal screws, hardware (furnitcure) I have discovered that my current employer pays around (when all hardware is supplied) only £59.61 without paying employees to do the work for him (of coruce it'll double up when the wages come into play).

I'm going to be doing the work on my own + with one sales rep for the new "buisness" that will be apearing hopefully soon.

This will be a 15-18 hour day until I have enough money to employee some other people.

 

[Ding Dang Doo]

This will be a 15-18 hour day until I have enough money to employee some other people.

It sure will...

ATB

Pete

 

[AmazingGiftBoxes]

Hello thank you very much for your reply! It's very nice to read that people are helping.

The costings of £90 for my manufactured windwos isn't compeitive with all the profile etc, steal screws, hardware (furnitcure) I have discovered that my current employer pays around (when all hardware is supplied) only £59.61 without paying employees to do the work for him (of coruce it'll double up when the wages come into play).

I'm going to be doing the work on my own + with one sales rep for the new "buisness" that will be apearing hopefully soon.

This will be a 15-18 hour day until I have enough money to employee some other people.

How big is your employer, how many windows can he build in one shift and how many people work for him???

I ask because I dont think the costs of laubor will double, unless it is a small company.

I used to work for upvc window manufacturing company, and I think you will not be able to do everything by yourself, there is just not enough hours in a day.

I might be wrong but I wish you good luck.


Jerry D
_____________________________________________________________
Amazing Gift Boxes - Wholesale supplier of hand made and exclusive gift packaging.

 

[businessfunding]

It is vitally important that you get to grips with the cashflow of this business, as this, frankly is what will make or break you.

As has also been mentioned, you must create demand in advance of supply otherwise you will end up discounting yourself into oblivion (supply fed businesses are far more prone to discounting than demand led).

With regards to funding; this will be tough

There might be some regional or sector-based grant assistance, but statistically it is unlikely.

In this sector you should certainly be looking at factoring (though this will only help once you are up and running).

You might get finance on manufacturing macinery with a decent deposit & a solid PG.

Other than that I think it is really down to 3Fs.

 

[JhonnyMew]

Buddy,
Are you starting a business? Advice for small businesses on what it takes to create a solid business plan, including forming an outline, forecasting credible financial information, and establishing a marketing strategy.

Regards,
Jhonny

 

[godzilla12345]

How big is your employer, how many windows can he build in one shift and how many people work for him???

I ask because I dont think the costs of laubor will double, unless it is a small company.

I used to work for upvc window manufacturing company, and I think you will not be able to do everything by yourself, there is just not enough hours in a day.

I might be wrong but I wish you good luck.


Jerry D
_____________________________________________________________
Amazing Gift Boxes - Wholesale supplier of hand made and exclusive gift packaging.

Hi,

in regards to this, he has 36 factory staff, 2 sales reps,11 office staff and 1 production manager with 2 Managing directors, around 48 staff that are employed in the company, in an 8 hour shift 5 days a week he gets around 480 windows out per week within the factory he manufactures VS systems (Vertical sliding systems).

within an 8 hour period (were I work within the factory is currently reinforcing the profile) we are at the start of the process line it takes 3 hours from saw to door. Going through all QC checks throughout the way.

 

[JhonnyMew]

Striking out on your own in such times might seem risky but if you've been sitting on a great business idea, being made redundant could provide you with the starting point you need. In a downturn, competition dwindles and office space, stock and advertising become cheaper. It will encourage you to barter and teach you how to run a business on a budget. Downturns often encourage creativity as well – Apple, Microsoft and Facebook were all recession startups.

Smiles,
Jhonny
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