Career Change / Business Owner - early 40s
Discussion
Originally posted this in Jobs sections but StevieBee made the good suggestion of reposting here...
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:
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.
A bit more info on the business opportunity......it'd take ALL of our savings and probably a bit more. Profit (after taxes) is around 10% of revenue and has been the last couple of years. Covid years were more like 5%. It has been around for a long time but not the current owners only business, it would be mine. Has senior staff that help run it, i.e. not totally dependant on the owner. One risk I see if lease is up in a few years although they've had the premises for over 10 years.
Also open to other ideas. I have been viewing the business op as the most risky, mainly due the amount of money involved but StevieBee has me rethinking that.
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:
- 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 only 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.
- 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.
- 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.
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.
A bit more info on the business opportunity......it'd take ALL of our savings and probably a bit more. Profit (after taxes) is around 10% of revenue and has been the last couple of years. Covid years were more like 5%. It has been around for a long time but not the current owners only business, it would be mine. Has senior staff that help run it, i.e. not totally dependant on the owner. One risk I see if lease is up in a few years although they've had the premises for over 10 years.
Also open to other ideas. I have been viewing the business op as the most risky, mainly due the amount of money involved but StevieBee has me rethinking that.
As you have a young family and a good job at the minute is there any scope of dropping a day a week at your current place (due to family) and spending that day and Saturday starting your new business and seeing how it goes
If it takes off notice goes in - if its a flop get your day back at your current place?
Or just advertise and go for it
If it takes off notice goes in - if its a flop get your day back at your current place?
Or just advertise and go for it
crossie said:
As you have a young family and a good job at the minute is there any scope of dropping a day a week at your current place (due to family) and spending that day and Saturday starting your new business and seeing how it goes
If it takes off notice goes in - if its a flop get your day back at your current place?
Or just advertise and go for it
In my current role, not possible. It's not about what days or hours I work, it's about results. Having said that, I'm fairly certain I won't be doing it much longer, hence me looking at options! If it takes off notice goes in - if its a flop get your day back at your current place?
Or just advertise and go for it
Correvor said:
Originally posted this in Jobs sections but StevieBee made the good suggestion of reposting here...
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:
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.
A bit more info on the business opportunity......it'd take ALL of our savings and probably a bit more. Profit (after taxes) is around 10% of revenue and has been the last couple of years. Covid years were more like 5%. It has been around for a long time but not the current owners only business, it would be mine. Has senior staff that help run it, i.e. not totally dependant on the owner. One risk I see if lease is up in a few years although they've had the premises for over 10 years.
Also open to other ideas. I have been viewing the business op as the most risky, mainly due the amount of money involved but StevieBee has me rethinking that.
Your in a decent position OP.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:
- 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 only 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.
- 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.
- 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.
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.
A bit more info on the business opportunity......it'd take ALL of our savings and probably a bit more. Profit (after taxes) is around 10% of revenue and has been the last couple of years. Covid years were more like 5%. It has been around for a long time but not the current owners only business, it would be mine. Has senior staff that help run it, i.e. not totally dependant on the owner. One risk I see if lease is up in a few years although they've had the premises for over 10 years.
Also open to other ideas. I have been viewing the business op as the most risky, mainly due the amount of money involved but StevieBee has me rethinking that.
My advise is limited, but I certainly wouldn't be putting my entire savings (not to mention borrowing money) to put near anything that operates within the construction industry. The margins are generally low, and its ruthless, with insolvencies rife. You could have a profitable business but if you client/s are vunerable it doesn't matter. You will likely be working on 'application' rather than 'invoice' which if you haven't done before is open to abuse on a massive scale. If you get into a dispute in Construction its generally dealt with via adjudication, which is extremely costly with many advisors telling you not to even consider if its less than £50,000.00 (depending on complexity) due to fees involved.
Personally, for 40k, I'd go the route of doing something you know you would enjoy, as believe that level of income is easily attainable if you are decent at what you do and provide a good service. There will no doubt be hassles along the way, such as people struggling to pay for works done, etc, or challenging the work upon completion, but that goes with the gig I assume, so just protect yourself as much as possible by way of paperwork (ie purchase order, etc).
Have you considered doing up properties. Obviously its hard to find the right ones and the competition is rife, but for someone able to buy for cash then I suspect now is as good a time as ever, what with mortgage/finance rates being what they are. It sounds like you could do most of the works for a house yourself, ie replacing a heating system, etc, and changing sanitaryware, so maybe an option ? The assett is always yours, and your really not at any risk of losing it. You may even end up keeping them as BTL's.
I wouldn't be buying anything. Not a franchise, nor any kind of already existing business. There is simply no need.
There is so much work out there for someone who can fit kitchens/bathrooms, tile, plumb, do joinery work and so on, that all you would probably need to do is buy yourself a van and tools, and stick an advert on Facebook.
Your other option is to work as a trade but for someone else or a larger business. I run a division of a business which employs about 130 tradesmen of all kinds, and we pay around £45-50k for a 'multi' which is someone who has a couple of skills such as joinery and maybe bathroom fitting/tiling. They get a newish van, all tools provided, and just have to turn up at the jobs we send to them on an iPad. They are expected to perform, but we don't pile the pressure on them. We would rather they do a tidy job rather than rush it.
Our gas engineers spend their lives doing not much but servicing domestic boilers all day, and they get around £50-60k. Their work is fairly easy, from a physical point of view.
There is so much work out there for someone who can fit kitchens/bathrooms, tile, plumb, do joinery work and so on, that all you would probably need to do is buy yourself a van and tools, and stick an advert on Facebook.
Your other option is to work as a trade but for someone else or a larger business. I run a division of a business which employs about 130 tradesmen of all kinds, and we pay around £45-50k for a 'multi' which is someone who has a couple of skills such as joinery and maybe bathroom fitting/tiling. They get a newish van, all tools provided, and just have to turn up at the jobs we send to them on an iPad. They are expected to perform, but we don't pile the pressure on them. We would rather they do a tidy job rather than rush it.
Our gas engineers spend their lives doing not much but servicing domestic boilers all day, and they get around £50-60k. Their work is fairly easy, from a physical point of view.
Hobo said:
Have you considered doing up properties. Obviously its hard to find the right ones and the competition is rife, but for someone able to buy for cash then I suspect now is as good a time as ever, what with mortgage/finance rates being what they are. It sounds like you could do most of the works for a house yourself, ie replacing a heating system, etc, and changing sanitaryware, so maybe an option ? The assett is always yours, and your really not at any risk of losing it. You may even end up keeping them as BTL's.
Yes, it was a dream when younger and I still look regularly. Kind if discounted this though, feel like the boat has sailed and currently it's easy to get 5-6% on savings, potentially a lot more this year! Once I've paid stamp duty, had a surprise or two I could easily end up with less money than I'd of had if I've just sat on it. Interesting thoughts from Mont Blanc...I certainly get the impression locally that good trades are thin on the ground. Those that are good and recommended seem impossible to talk to, let alone quote and do the work. Doing a trade for a larger business could be appealing, not sure I'd have a foot in the door though without some experience which is fair enough.
Correvor said:
Yes, it was a dream when younger and I still look regularly. Kind if discounted this though, feel like the boat has sailed and currently it's easy to get 5-6% on savings, potentially a lot more this year! Once I've paid stamp duty, had a surprise or two I could easily end up with less money than I'd of had if I've just sat on it.
Interesting thoughts from Mont Blanc...I certainly get the impression locally that good trades are thin on the ground. Those that are good and recommended seem impossible to talk to, let alone quote and do the work. Doing a trade for a larger business could be appealing, not sure I'd have a foot in the door though without some experience which is fair enough.
Not sure its sailed. There were certainly a lost more proverbial boats in the sea over the recent years as every man and his dog was 'a developer', but think the current financial market issues have changed that considerably as the requirements for securing funds have certainly tightened, so people with cash available certainly find themself in a much better position than someone borrowing against LIBOR. Your posting history of the past 12 months (I had a quick look as tends to show what people like, etc) is massively about home improvement/being handy, so it does seem to suit you.Interesting thoughts from Mont Blanc...I certainly get the impression locally that good trades are thin on the ground. Those that are good and recommended seem impossible to talk to, let alone quote and do the work. Doing a trade for a larger business could be appealing, not sure I'd have a foot in the door though without some experience which is fair enough.
That said, as you say, its easy (currently) to make a good return on investment/saving. Tech funds are generally up between 30-50% in the last 12 months, and lots of others are doing 10-20%. You can get over 5% in a normal savings account for up to 250k I believe. Even Bitcoin & Etherium are up around 150% in this period, but lets not go there with your life savings.
As for working for someone else, whilst it may work for you, its not something I'd be considering as would be looking at it as 'semi-retirement' and with that I'd what to be picking exactly what I did, for who, at what price, etc, etc. I'm not ready to give up what I do currently (and private school fees don't allow just yet), but would be more than happy cutting grass on larger homes where they want a better service and fancy stripes/patterns, even if it were only to fill the days/occupy the mind and still do a bit of consultancy work which I do now anyway, but just ramp it down a little.
Again though, I certainly wouldn't be risking it all on a construction industry company, and I operated in that industry on the financial side for a significant time, hence nothing suprising me anymore about the levels people will stoop to in that game.
Edited by Hobo on Thursday 14th March 16:55
Correvor said:
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.
I was in a similar situation to you as I turned 50. Spent a while looking what to do, decided to buy a franchise which ended up being really quite successful. Sold it 5 years later for a material profit and really enjoyed every minute of ownership. Enjoying retirement now. If you're interested in chatting, let me know (I'm nothing to do with the franchisor either, so no conflicts there)You seem to have your head screwed on. A lot of people just talk about always having a dream of running a business or being their own boss, and they don't actually realise what running a business is like. Whatever you end up doing, two things I've realised is that (1) whatever you call yourself, you are now a part-time marketer (2) you aren't your own boss - you now have tens, hundreds or thousands of bosses, depending on what you do. 
If you're happy to do a range of different things, then I would pick the one that's the easiest for you to get into given your skills and kit. Start to make an income from that and transition into something more specialist if you fancy it.
Making bespoke furniture is cool but unless you have good training, are great at marketing and are creative, it's not only expensive to get into but a hard sell. I know someone who has spent about £50k on a workshop, course and kit. He has probably made about £200 profit a month for the last 12 months. He should break even in about 21 years if he doesn't eat or do anything. His only strategy is to start selling chairs at £5000 a piece.
On the other hand, fixing problems (knackered boilers, leaky showers, broken toilet flushers) or helping a developer to build a house or 50 might be more boring but it's easier to earn a regular income. I know my plumber isn't doing too badly. Rather than join Bladerunners and hack down ULEZ cameras, he just bought a brand new van.
If you're happy to do a range of different things, then I would pick the one that's the easiest for you to get into given your skills and kit. Start to make an income from that and transition into something more specialist if you fancy it.
Making bespoke furniture is cool but unless you have good training, are great at marketing and are creative, it's not only expensive to get into but a hard sell. I know someone who has spent about £50k on a workshop, course and kit. He has probably made about £200 profit a month for the last 12 months. He should break even in about 21 years if he doesn't eat or do anything. His only strategy is to start selling chairs at £5000 a piece.
On the other hand, fixing problems (knackered boilers, leaky showers, broken toilet flushers) or helping a developer to build a house or 50 might be more boring but it's easier to earn a regular income. I know my plumber isn't doing too badly. Rather than join Bladerunners and hack down ULEZ cameras, he just bought a brand new van.
Thanks for the replies all, much appreciated. Definitely some stuff to think over.
I do think bathrooms, kitchens and potentially built in cabinets / shelving is where I'd be aiming and see what's enjoyable / profitable / in demand. I'd prefer not to be fixing things and being asked to bodge a fix because funds don't allow a proper solution but will need to start somewhere. Speaking of which my en-suite started leaking in to my kitchen today so guess what I'm doing at the weekend.
I've thought previously about doing some part time contract work while things build but I'm pretty much done with long commutes and corporate fun so my options may be limited.
I do think bathrooms, kitchens and potentially built in cabinets / shelving is where I'd be aiming and see what's enjoyable / profitable / in demand. I'd prefer not to be fixing things and being asked to bodge a fix because funds don't allow a proper solution but will need to start somewhere. Speaking of which my en-suite started leaking in to my kitchen today so guess what I'm doing at the weekend.
I've thought previously about doing some part time contract work while things build but I'm pretty much done with long commutes and corporate fun so my options may be limited.
Correvor said:
Interesting thoughts from Mont Blanc...I certainly get the impression locally that good trades are thin on the ground. Those that are good and recommended seem impossible to talk to, let alone quote and do the work. Doing a trade for a larger business could be appealing, not sure I'd have a foot in the door though without some experience which is fair enough.
You would be surprised. In our business, as an example, we value honesty, customer service, and someone with the right attitude over outright skills and a CV of "I've been doing this for 20 years".
We have technical leaders and other experienced operatives who are there to advise the people with lesser experience.
In all honestly, looking at of the shoddy work people on this forum (and other forums) seem to receive from tradesmen, you probably already have better skills than many of them who have been doing it for years.
Hobo is right that working for yourself allows you to pick and choose your work, gives you flexibility, and if you wish to move into semi retirement, or just want to do less, this is the way forwards.
But, working for a larger business as a trade means you get paid holiday, sick pay, a pension, a van provided, tools provided, training provided, and probably more importantly, you don't have to chase homeowners for payment, answer the phone to the general public, or run your own diary.
We are public sector so terms and conditions are very generous.
As also mentioned by Hobo, that wouldn't be the case if you were working for a large housebuilder or building/construction company.
A mate was a little older (and no kids) and went a similar handyman route, more by accident as he was taking some time off after a contract and a conversation between his wife and a neighbour about some work they needed doing.
There’s definitely a market for friendly, reliable, polite people to do DIY-level jobs, especially if you have plenty of comfortably-off retirees around. Word spreads quickly, and he enjoys doing it.
He’s not making fortunes though, partly because some of it is outdoors and gets put back in poor weather, and partly because a middle-aged body used to office work can’t hack a week of full physical days.
If you’ve got no mortgage and some savings then nothing wrong with giving it a go. You don’t need a van, just work from your car and if it’s local area then easy to pop back for a tool you’ve forgotten. Try it for a year, put some leaflets through doors in surrounding streets, if you’re not making enough then easy to go back to an office job.
There’s definitely a market for friendly, reliable, polite people to do DIY-level jobs, especially if you have plenty of comfortably-off retirees around. Word spreads quickly, and he enjoys doing it.
He’s not making fortunes though, partly because some of it is outdoors and gets put back in poor weather, and partly because a middle-aged body used to office work can’t hack a week of full physical days.
If you’ve got no mortgage and some savings then nothing wrong with giving it a go. You don’t need a van, just work from your car and if it’s local area then easy to pop back for a tool you’ve forgotten. Try it for a year, put some leaflets through doors in surrounding streets, if you’re not making enough then easy to go back to an office job.
Thanks again for the responses, including Ezra who kindly has given me some great insight in to the world of franchises.
I'll continue to mull things over while I set about our bathroom this weekend but definitely erring towards the self employed or franchise route.
Mont Blanc if you have something come up in the South West, I'd be interested to know more. I'm definitely not ruling out employment for the right role but not afraid to try myself. I can do customer service, have an eye for detail and am generally quite tidy. I'll be using tech to make my life easier too. Hopefully all of that will go a long way to get me going.
I'll continue to mull things over while I set about our bathroom this weekend but definitely erring towards the self employed or franchise route.
Mont Blanc if you have something come up in the South West, I'd be interested to know more. I'm definitely not ruling out employment for the right role but not afraid to try myself. I can do customer service, have an eye for detail and am generally quite tidy. I'll be using tech to make my life easier too. Hopefully all of that will go a long way to get me going.
I did seriously look at EV chargers, solar and ASHP a while ago but discounted it all due to training time (i.e. need to be fully qualified as noted above) and unsure how interesting I'd find the work.
However, I looked back over some old notes and realised I've forgotten a couple of things.
However, I looked back over some old notes and realised I've forgotten a couple of things.
- Mobile bicycle mechanic: not a serious option. No money in it, especially where I live. There's an amazing place in town that charge pennies but are thriving. Lovely team, felt like I'd robbed them last time I went in and had a wheel rebuilt for £15.
- Picture framing: local places are always heavily booked (weeks / months) and fairly well priced. Entry cost isn't huge and I have a workshop so don't need a premises. I'm going to seriously reevaluate if I could run a collection / drop-off service with a good website. I've seen others doing this. I don't see this as a sole business but it may be something I could slowly build as a side business to keep money flowing. There are franchises for this but unsure it's worth it in this instance.
Interesting thread, similar position here.
I think electrician is a good shout.
Or a ‘do it all’ person (at least capable of) for kitchen/bathrooms… and electrics are critical for those so seem the best focus.
That way you can price and complete a job within a timescale to a standard you or client are happy with if needed (ie, can’t get other trades)
I too thought about houses to do up.
But you need to get stuff so cheap, and the stuff cheap enough is then intensely bid.
Unless you’re willing to do up stuff you live in? Aim for bigger stuff that gives you room to renovate as you live there?
I think electrician. Quite some qualifications though so might need a few years doing an apprenticeship type gig, but once you’re confident and qualified just go it alone?!
Anything but another 20 years staring at a screen all day
I think electrician is a good shout.
Or a ‘do it all’ person (at least capable of) for kitchen/bathrooms… and electrics are critical for those so seem the best focus.
That way you can price and complete a job within a timescale to a standard you or client are happy with if needed (ie, can’t get other trades)
I too thought about houses to do up.
But you need to get stuff so cheap, and the stuff cheap enough is then intensely bid.
Unless you’re willing to do up stuff you live in? Aim for bigger stuff that gives you room to renovate as you live there?
I think electrician. Quite some qualifications though so might need a few years doing an apprenticeship type gig, but once you’re confident and qualified just go it alone?!
Anything but another 20 years staring at a screen all day
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