Thinking of Starting a Gas Company?
We have received a few emails over the last few months asking if we have any spreadsheets to help people better understand the associated startup costs of a gas engineer who wants to go it alone.
Unfortunately we didn't so we have put together a simple spreadsheet that each person can play with to better understand what costs thay would be submitted to (in our humble opinion of course).
We've added both installation and repair engineer items and kept it at a domestic level as the spreasheet could get a little out of control (you can delete items as necessary).
Now obviously we all have our opinions as to what is required to run a 'One man/woman band' so feel free to delete, replace or alter the sheet as you go so you are happy with it's final content and costs; it's only a guideline to help potential business owners with those items that people forget in their maths.
The main three columns to take note of are as follows:
- Must Have Tools - we have a long list of potential tools which you can keep, delete or change for your own opinions (if you change them then don't forget to put the estimated price of your new item in the cell)
- Estimated Life Span - this is the life cycle of the product e.g. if it is a tool which you feel will last 5 years then put '5' in the cell, if it is a van service then put '1' in the cell as this is required every year
- Estimated Annual Replacement Costs - this is the column which tells you how much you will need to set aside per year to either replace each item (e.g.a tool) or pay (e.g. van service)
If you take a look at the top of these columns you will see the financial totals which provide you with the real figures you need to take into account when deciding wether you feel it's is within your costs.
Looking at the spreasheet, you may decide that an initial outlay of £16k is a little steep so will want to reduce what you purchase on day one. Looking at the spreadsheet you will probably be a little shocked to see the amount of money you should be putting aside for annual bills or replacement tools, at the end of the day it's your call.
When we work out hourly rates, we work these figures and more into the calculations and i'm sure you will be surprised to learn that you should be charging yourself out at around £51 / hour to earn a salary of £40,000 / per annum (after total spreadsheet costs and excluding tax).
Hopefully you find this useful,
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