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REVEALED: HOW LONG IT TAKES TO BREAK EVEN WHEN STARTING A TRADE BUSINESS

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  • Joinery businesses are the cheapest trade to set up, costing around £6,600
  • Self-employed plumbers recover their start-up costs the quickest – under six weeks

 

Joinery businesses are among the cheapest trade companies to set up in the UK, averaging nearly £2,500 less than other sectors, new research has revealed.

With over 40% of construction firms expected to make redundancies due to the virus[1], tradespeople may be considering going self-employed. IronmongeryDirect, the UK’s largest supplier of specialist ironmongery, has identified the cheapest industries in which to do so.

The study added up the typical costs people pay when entering the UK’s four most popular  trades[2] (joinery, building, electrical, plumbing), with everything from insurance to marketing.

Joiners pay the least, with the average set-up fee totalling £6,642. With the typical daily rate for joiners around £150[3], these initial costs could be repaid within nine, five-day weeks.

Despite being the most expensive businesses to set up, plumbers can expect to earn back their investment quickest, as they are able to charge the highest daily rates. Averaging nearly £350 a day[4], the £9,124 start-up cost could be repaid within six working weeks.

The trade businesses which are the cheapest to set up in the UK are:

1)     Joinery – £6,642 (repaid in nine weeks, £150 a day)

2)     Building – £6,791 (nine weeks, £160 a day[5])

3)     Electrical – £6,873 (six weeks, £245 a day[6])

4)     Plumbing – £9,124 (six weeks, £347.50 a day)

 

One of the most significant outgoings is accreditation. New plumbing companies pay the most in this department, with organisations like HETAS and OFTEC charging substantial sums for membership. Such credentials, combined with the cost of other important courses, like First Aid at Work, the Gas Safe Register and Asbestos Awareness, can set you back over £3,000, which is significantly more than other trades.

Some expenses, however, are necessary across all sectors, such as insurance, marketing, company registration and van hire.

A new trade business can expect to pay over £600 a year to completely cover themselves with insurance. Contractors All Risk insurance is one of the most costly forms of protection, starting at £298 a year, but includes cover against both property damage and third-party injury, so is worth the investment.

Marketing is another significant outlay, but an important one nonetheless. Paying out for business cards, flyers, logo design and a new website usually costs at least £600 pounds. However, such costs will pay for themselves if they lead to a surge in new clients.

Finally, there’s the crucial cost of equipment. A tradesperson may have accumulated tools during their career, but if they are new to the industry, there are tools they will need before taking on work. Joiners pay the most here, with key equipment adding up to £600. Circular and table saws are the biggest outlays, so it could be worth looking for second-hand retailers, whilst ensuring the products are high quality, as income will depend on their performance.

 

The full breakdown of costs per trade is as follows:

 

Type of Cost Joiner Builder Electrician Plumber
Accreditation £1,005.00 £1,041.00 £1,005.00 £3,481.00
Trade Association £117.00 £472.80 £585.00 £231.00
Marketing £610.54 £610.54 £610.54 £610.54
Insurance £638.21 £638.21 £638.21 £638.21
Equipment £599.38 £355.97 £361.87 £490.98
Other (storage, van hire, business registration) £3,672.00 £3,672.00 £3,672.00 £3,672.00
Total £6,642 £6,791 £6,873 £9,124

 

Andy Porter, a self-employed carpenter from Southampton, has given his three top tips for people looking to set up their own trade business:

1)     Look at local adverts and see what similar trades are doing (e.g. services, pricing)

2)     Get quote and invoice terms and conditions in place early and make sure they are watertight

3)     Make sure you have plenty of money saved up as cash flow is incredibly important

 

Marco Verdonkschot, Managing Director at IronmongeryDirect and ElectricalDirect, said: “Many tradespeople will aim to run their own businesses one day, so it’s useful to get an idea of how much it would cost to do so. While these sums can appear quite daunting, most of the expenses will directly improve your service or help you win more work, so are worth the investment in the long run.

“Owning your own business can be incredibly satisfying, so to help those who are considering going it alone, we’ve compiled a list of tips on how to do so effectively.”

For eight pieces of advice from tradespeople who have set up their own business, visit: https://www.ironmongerydirect.co.uk/blog/eight-top-tips-for-setting-up-your-own-trades-business

 

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Wealth Management

WHAT WILL TRADING FLOORS OF A POST-COVID WORLD LOOK LIKE?

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By

Ganesh Iyer, Chief Marketing and Strategy Officer, IPC

 

The last year brought around a monumental change to the way most people work due to the impact of the pandemic, and the financial services industry was no exception. The last few months, though, have provided hope that life could very soon return to ‘normal’ with the strong vaccination efforts around the world.

This time provides the perfect opportunity for all of us to consider the best aspects of remote working in a bid to create a new concept of what a healthy work-life balance should look like. One way financial firms could achieve this is through developing distributed hub-and-spoke offices or putting in place the infrastructure so people can work on a longer-term basis from remote locations. But for this to happen, the financial services community needs to overcome the challenges of ensuring security, reliability, resilience, compliance, all while adhering to strict regulatory requirements.

 

Importance of flexibility

As we look towards the future, banks such as JP Morgan and Goldman Sachs have recently informed their employees that they should be prepared to return to offices again in the coming weeks. News like this may seem like the financial services sector is keen to return to pre-pandemic ways of working, but this is not necessarily an outlook supported by the whole industry.

For example, the Financial Times reported that there are differences between North America and Europe over the speed at which bankers should return to their desks, with some US executives calling for a swift return to pre-pandemic normality while many European banks – such as London-based HSBC and France’s Société Générale – are taking a different approach. These variations demonstrate a need for banks to remain flexible to the ever-changing circumstances and differing views, especially as the sector has been quite effective in working productively away from the trading floor.

However, even for larger institutions, the balance between flexibility, security, reliability, and scalability is a challenging task. There are many firms that are still experiencing significant pressure on costs and resources, and there is still uncertainty around what the future will bring. It is important that firms consider whether there needs to be an even split between homes and offices, or if some employees will prefer to permanently work remotely, as well as prepare for any future scenarios that may require remote working at scale again. The list of questions goes on and they may be difficult to answer, but they are fundamental to the choices that financial firms will make regarding the vendors they work with and the technologies they implement.

Fortunately, many of the elements that address these concerns already exist – it is just a matter of implementing them in a way that is right for firm-specific needs. In the last 10 years, there has been a growing trend towards firms utilising the cloud and taking advantage of the subscription model, which has enabled technology vendors to create solutions that combine flexibility with reliability, and scalability with certainty. The subscription model benefits firms of all sizes and ensures everyone has access to the same state-of-the-art technology as their competitors.

There are also several well-proven benefits of leveraging technology solutions through a subscription, or software-as-a-service (SaaS). As most businesses adopting a cloud-native environment will know, subscriptions mean companies only pay for the solutions they need, while also having the choice to expand and consume more as the business grows. A subscription model also means firms will not be implementing aging technologies, as SaaS is evergreen given it can be seamlessly updated and upgraded in the background, with new delivery channels, access mechanisms and markets added and made available on-demand.

 

Adaptable trading environment

Being able to trade at any time, from anywhere and from any device in a way that is secure and compliant is a huge competitive advantage during this uncertain climate.

For example, a newly established firm requires a solutions provider that can offer the latest, most efficient, and affordable technology that is scalable. Additionally, all businesses are now very much aware of the importance of resilience – both now and for the future – and require a solution that offers an element of futureproofing, enabling them to adapt and maintain their competitive edge for any unforeseen events or challenges that may come their way. This means technology and infrastructure providers need to provide a higher standard of service and constantly evolve, update, and upgrade their tech so that it operates seamlessly and transparently for clients.

 

Supporting the post-COVID trading world

There are many unknowns and uncertainties about what our post-COVID world will look like, but one thing that is certain is that there will be change. Regardless of whether firms choose to revert to pre-pandemic ways of working or not, almost every industry has learned valuable lessons based on the experiences of the last year of the vital need to be flexible and adaptive in order to be able to pivot in whatever direction the business needs to take to thrive and maintain resilience. By leveraging the right technologies, adopting a cloud-native environment, and using the subscription model, financial firms can ensure they are ready to embrace the working environment of the post-COVID world in whatever form it takes.

 

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Finance

A BRIEF GUIDE TO TRADING IN CRYPTOCURRENCY SECURELY

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Trading in cryptocurrency is becoming increasingly popular in the financial world. Crypto’s huge rises in value over recent months has encouraged many to consider it a valid and important way to invest their money. However, it can be tricky for someone new to the world of crypto to know how to start. The process of setting up can take a few days, but once you’re ready to go, it can be fairly simple to start trading.

 

Find A Crypto Wallet

To store crypto, you will need a cryptocurrency wallet. There are many wallets out there to choose from, in both software and hardware forms. You could choose a free to use software wallet, to begin with, and then invest in a more secure hardware wallet if you plan to hold amounts of crypto for the medium to long term. Hardware wallets typically cost anywhere from £50 to £150, so it is worth doing your homework and finding the right wallet for your needs.

 

Sign Up With A Brokerage

You will need an account with a brokerage service to begin trading. It would be best if you looked for brokerages that offer good security, an easy-to-use interface and plenty of cryptocurrencies to choose from.

You will need to provide some identification to open an account with a reputable brokerage, and it may take a few days to get your account verified. Therefore, it is vital to do your research and ensure that the brokerage you choose is legit before providing any personal information.

 

Get Help From Experts

Once you have your account up and running don’t rush to buy your first Bitcoin. As a beginner to the world of crypto trading, there are plenty of potential pitfalls, and talking to experts can go a long way to reducing the risks.

Check out Traders Of Crypto, a cryptocurrency community that provides expert, collective knowledge to those starting out with crypto trading. There you can find plenty of free guides to help you on your trading journey.

 

Choose Your Crypto

The next step is to decide on the crypto you want to trade in. There are thousands out there to choose from, with the most well-known being Bitcoin. The more popular the crypto, the more likely it is to remain stable, so it may help to start with Bitcoin for your first transactions.

Once you have some experience, you could branch out to smaller altcoins, though it is often wisest to keep most of your trades to the bigger coins.

 

Make Sure You Have The Capital

You will need sufficient capital to buy and trade cryptocurrency. You can add this to your brokerage account, typically by bank transfer or debit card payment. It is crucial to keep in mind that the value of crypto frequently changes, so ensure that you are spending only what you can afford.

 

Start Trading

You can start by either trading cash for crypto or crypto for crypto. However, keep in mind that there may be brokerage costs for each trade, so you should choose your trades wisely.

 

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