Early 40s Career Change

[Correvor]

I know there have been similar thread, apologies, hopefully giving some specific examples which I’m hoping people have thoughts on.

Background: early 40s, young family, no mortgage, got some savings and currently healthy. I have a corporate management role but the writing is on the wall and I cannot face another 20 years of the same elsewhere. I've always wanted to do something based around a trade, not tech which is where I am currently.

I’m handy, have all the gear (no idea), reasonable joinery skills, can do basic plumbing and electrics. I do some work (mainly joinery) for relatives, am punctual, tidy and well organised but a day-to-day keyboard basher. I want to do something else for the next 20 years but don’t have a previous trade or similar to fall back on.

I have a few options and am curious if people have any thoughts:

1. Buy a business. Without giving specifics, something of interest is available locally, its construction related, I have some knowledge but not in depth. I’d need to plunge all my (our) savings into it, possibly take a small mortgage. Without growth I could expect around 25% return annually (on my investment) which would be my salary. It’s well established (20+ years) but with very little marketing, no social media, impossible to find on google by accident and processes / equipment have room for improvement although all that would require further investment. Obviously, it could shrink and die too through my piss poor management or other factors. Probably the riskiest option.
2. Kitchen / bathroom fitter. Done both for myself, would focus on plumbing and fitting. Tiling, electrics and plastering would be for others. My current kitchen was fitted by Wickes (not in my ownership) and looks crap. I know I could do better, although probably not as quick. I’m not expecting to stop one job and start doing this. I’d do courses and try to get some local experience before taking on my own jobs but I do have 3 bathrooms lined up – my own. We tried and failed to get someone to do them last year, have the cash set aside so can pay myself the fitting cost.
3. Buy a franchise. There seems to be a lot of rubbish out there, many I’ve never heard of. Drainage / emergency plumbing, lock smith or similar could be interesting but it’s hard to talk to people without getting a massive sales pitch. If anyone has real world experience, I’d be very interested to hear from them. Zero interest in fast food or many of the other more popular franchises. Blinds (shutters) seem to be a common home improvement one but they seem like a fad where as there will always be plumbing emergencies.

Joiner or furniture maker would be great, but money is rubbish, especially for the latter. Had considered traditional plumbing / sparky but they don’t appeal massively.

Ideally I'd like a salary of 40k to 60k appreciate that'll take time and probably harder with #2 than the other options. I'd also prefer to not retire with a broken body and #2 could lead to that although kitchen fitting is easier than bathrooms in my experience.

Also open to other ideas

[fat80b]

Round our way there seems to be plenty of opportunities for "general handyman" - i.e kitchens, bathrooms, bit of fencing, skirting etc.

There are several who seem to get work on nextdoor and facebook groups and they are constantly busy (when I try and book them). The going rate seems to be £235 per person day which lands squarely in your target range.

[Correvor]

That's a good shout and something I've considered but kind of forgotten about. I was put off a bit by reading accounts of some other handymen who cited the need to have everything to fix anything as a challenge.

Definitely something to consider though and I think I'd be happy with most handyman tasks. Perhaps something I could do for a bit before specialising.

Should probably note I do have a workshop (converted garage) geared towards woodwork which could be used for any future profession. It's well equipped, I've largely ignored woodwork as a serious avenue though because I know various furniture makers who make paltry amounts when you look at their cost of study and quality of work. Handyman with a view to specialising in built in furniture could be a route though.

[StevieBee]

Correvor said:

Buy a business. Without giving specifics, something of interest is available locally, its construction related, I have some knowledge but not in depth. I’d need to plunge all my (our) savings into it, possibly take a small mortgage. Without growth I could expect around 25% return annually (on my investment) which would be my salary. It’s well established (20+ years) but with very little marketing, no social media, impossible to find on google by accident and processes / equipment have room for improvement although all that would require further investment. Obviously, it could shrink and die too through my piss poor management or other factors. Probably the riskiest option.

I would be concentrating all your efforts towards this.

From what you've described, you would be leveraging into a business that is already established and doing well. You've identified how it can do better and by virtue of your current role, would have the necessary skills to implement those measures that would see it grow. I disagree that it's the riskiest option (with caveats that I'll come back to) for the following reasons.

Setting up as a Kitchen Fitter carries the most risk as there will be a period of time when you'll not be earning anything whilst you market yourself and build awareness. You will need to use your savings to cover your costs during this period and pay for marketing costs. Without undertaking some meaningful research, you have no idea how big the market is, whether there's space for another fitter in the market and whether it's likely to be worthwhile. Plus, it's just you so, assuming it is successful, you will reach a limit to how big it can grow unless you start building the business, employing staff, etc ... which adds to the risk. You could spend a year or two trying to get a foothold and determine that it's unviable. At which point, you will then face a period of time to find something else, having lost a chunk of money in the meantime.

Franchise is potentially low-risk but you are less owning a business and more owning a job. And unless you're looking at a few McDonalds, it's unlikely you'll get near to the 25% ROI you're looking at with option 1.

All of them carry risk but the business acquisition option has the potential to be the one where this risk can be lessened. This is dependant upon the health of the business and you would need to undertake due-diligence and consider the impact of the current owners leaving. But if all is good, I think this is your best bet.

I'd advise that you post this in the Business section. Many of the lads there have been through the same thing and doing well and few venture onto JEM so you will get a wider range of inputs there.

HTH and Good Luck.