Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: mlscontractcleaner on November 25, 2015, 06:40:58 pm
-
To those of you who rent a unit to run your business from I have a question.
What, besides the actual monthly rental, is the true cost per month of running your unit?
I don't want actual figures; that'd be rude and nosy, I just want an idea of what to expect as my business is becoming too big to run from home.
The costs I've thought of are: Rent, business rates, water, electricity, telephone/internet connection and some sort of buildings/contents insurance.
I'm sure there are more charges than this and I really want to avoid any nasty surprises; I'm trying to calculate roughly what I'd need to put away each week to make a decent unit affordable.
By "decent unit" I mean a proper unit on a proper estate, roller shutter door, office space, room to drive in two or more Transit vans, not a shed on a farm lol.
Any advice would be warmly welcomed.
-
A chap I know his firm pays out approx £84,000 per month just on rent (big boys league). Now they are looking into building their own warehouse and distribution centre as would work out cheaper in the long run.
I think taking on a small size unit you have to think through it vey carefully and best get legal advice on the lease contract too or you might end up being stitched up like a kipper.
Another chap I know moved premmises but still had to pay rent on old unit for another year as was tied into the lease contract. Mind you it did not bother him much as he is loaded anyway.
-
In the motor trade heating a medium size show room was costly.
-
And what's wrong with a shed on a farm? ;D
-
I'm afraid of cows!!
-
Try if possible to get a council unit ours is big enough to house 3 large vans 2 smaller vans ibc tanks all the other gear and toilet and office space, yes it's a 3 year lease but can be terminated with 3 months notice
Some private leases hold you for the whole term of the lease, which can be 10 years or more, or you get a bill for roof repairs etc.. ( private lease get a solicitor to check it )
Make sure it's small enough not to be liable for biz rates - heating you don't need it! Admittedly Mrs smudger works from the home office. Then it's water, electricity and service charge ( grass cutting etc to estate ) that's about it
It's a neccasary evil, what I could do with that money rather than handing it over every month >:(
Darran
-
A chap I know his firm pays out approx £84,000 per month just on rent (big boys league). Now they are looking into building their own warehouse and distribution centre as would work out cheaper in the long run.
I think taking on a small size unit you have to think through it vey carefully and best get legal advice on the lease contract too or you might end up being stitched up like a kipper.
Another chap I know moved premmises but still had to pay rent on old unit for another year as was tied into the lease contract. Mind you it did not bother him much as he is loaded anyway.
84k a month ::)roll
-
A chap I know his firm pays out approx £84,000 per month just on rent (big boys league). Now they are looking into building their own warehouse and distribution centre as would work out cheaper in the long run.
I think taking on a small size unit you have to think through it vey carefully and best get legal advice on the lease contract too or you might end up being stitched up like a kipper.
Another chap I know moved premmises but still had to pay rent on old unit for another year as was tied into the lease contract. Mind you it did not bother him much as he is loaded anyway.
84k a month ::)roll
That's nothing to the gutter clearing he does ;D
Darran
-
I have never seen the point in having a unit for window cleaning. Surely its cheaper and more cost effective to supply staff with there own ro and to let them take van home etc than to shed out £600 plus a month for a unit/storage yard.
We have 4 vans out and i have no more need than to use a laptop indoors in the front room to update work etc and a garage at the back to store water to fill the vans. We do window cleaning, pressure washing and carpet cleaning and manage more than fine without the need of a unit.
what advantages are there to having 1? For me its not cost effective at all.
-
A chap I know his firm pays out approx £84,000 per month just on rent (big boys league). Now they are looking into building their own warehouse and distribution centre as would work out cheaper in the long run.
I think taking on a small size unit you have to think through it vey carefully and best get legal advice on the lease contract too or you might end up being stitched up like a kipper.
Another chap I know moved premmises but still had to pay rent on old unit for another year as was tied into the lease contract. Mind you it did not bother him much as he is loaded anyway.
84k a month ::)roll
That's nothing to the gutter clearing he does ;D
Darran
I wish ;D
-
I have never seen the point in having a unit for window cleaning. Surely its cheaper and more cost effective to supply staff with there own ro and to let them take van home etc than to shed out £600 plus a month for a unit/storage yard.
We have 4 vans out and i have no more need than to use a laptop indoors in the front room to update work etc and a garage at the back to store water to fill the vans. We do window cleaning, pressure washing and carpet cleaning and manage more than fine without the need of a unit.
what advantages are there to having 1? For me its not cost effective at all.
+1
-
We employ 2 part timers, so the vans are not dedicated to one employee
1 van is pressure washing only
Another gutter clearing and Windows
Then the rest window cleaning but may go out one of two men
Also I don't have to worry about them protecting everything from frost as they are inside overnight
Darran
-
The frost issue is a big bonus as far as I'm concerned; no more messing about trying to protect the vans from freezing up.
Also I want to separate work from home; we've been running from home for the past twenty five years so it'll be nice to have to actually "go to work".
Each to their own I guess.
-
All the same you have to be turning over a good amount to warrant renting a unit to operate from.
I would rather put the added cost of renting a unit into buying property myself as is dead money otherwise and is just lining someone else’s pockets for the privilege.
I remember a few years back two young window cleaning lads on dragons den getting backing from Duncan Bannatyne to go national and wanting to open up regional bases in different towns. One being local to me so was a big opening ceremony, recruitment drive for staff, new vans etc but within six months the unit was closed down so all the people they recruited lost their jobs. Talk about failure or what but was kept very quite for some strange reason ;D
-
I remember seeing them two on Dragons Den.
I am looking for a very small unit next year to work from for the same reason, to separate work from home.
-
You sound happy people lost their jobs...
Darran
-
You sound happy people lost their jobs...
Darran
No I was not happy that people lost their jobs smudger but still found it funny they failed bigtime so Bannatyne pulled the plug but still kept it very quite they had. Now that's was funny as he must have lost a mint on those two clowns ;D
-
I'm a sole trader and I rent a place.
It's about necessity. It's relatively cheap as it's a storage place that has a water and electricity supply.
I live in a flat and circumstances prevent me running electricity or water out to the van - I often have to park in another road. An on board RO would prevent me from using my vehicle in the evening - it's my only vehicle.
Sometimes renting a work place is the best option.
-
You sound happy people lost their jobs...
Darran
No I was not happy that people lost their jobs smudger but still found it funny they failed bigtime so Bannatyne pulled the plug but still kept it very quite they had. Now that's was funny as he must have lost a mint on those two clowns ;D
The general idea was probably sound. A lot of people screw up by trying to expand too fast.
-
I'm a sole trader and I rent a place.
It's about necessity. It's relatively cheap as it's a storage place that has a water and electricity supply.
I live in a flat and circumstances prevent me running electricity or water out to the van - I often have to park in another road. An on board RO would prevent me from using my vehicle in the evening - it's my only vehicle.
Sometimes renting a work place is the best option.
I'm in the same sort of situation but use a twin di in van and customers tap water. £150 for 2 sacks of resin lasts about 3 months got to be a lot cheaper than renting?
-
Smurf is spot on, unless it works out cheap then that money would be better spent on a new home with better
facilities to suit your business.
I separate work from home life as soon as I get into my van and drive off, you could understand that being a reason if
you worked all day at your property.
-
if your turning over proper money i.e more than 200k per year then you will need a unit and the cost is well worth it but if your a small 1 man or don't plan on growth then no,
true unit costs are rent, electric, water and insurance,
-
What about telephone/Internet connection????
-
And business rates???
-
I don't pay business rates, and my mobile phone bill is still the same unit or not, I don't have internet at my unit either, I can get on bt openzone so no extra cost there either
-
Wanting a unit to feel your 'going to work' that is madness! I'm sure that novelty would soon ware off.
I couldn't think of a much better way to waste £6000 odd a year to feel special having an office to update work in with a toilet and space for a van to keep warm in winter. Myself Id rather update work whilst comfy on my sofa and having a poo in my own toilet parking my van out front of house on road.
Each to there own i guess. Just my view on renting a unit if not realy needed.
-
That's precisely it, each to their own, everyone has different needs/requirements, you have to do what you feel is right for your business, the guy did say he lived in a flat so couldn't fill up there, so for him a small unit 'lockup' is an essential part of his biz.
Likewise for me, I can not keep 5 vans on the drive or on the street I also can not put that money towards a place to own, so catch 22 I have to have a unit.
It's great if you can park one or two vans at home, I'd say do that for as long as it's reasonable possible.
But sometimes a growing biz needs a commercial unit
Darran
-
That's precisely it, each to their own, everyone has different needs/requirements, you have to do what you feel is right for your business, the guy did say he lived in a flat so couldn't fill up there, so for him a small unit 'lockup' is an essential part of his biz.
Likewise for me, I can not keep 5 vans on the drive or on the street I also can not put that money towards a place to own, so catch 22 I have to have a unit.
It's great if you can park one or two vans at home, I'd say do that for as long as it's reasonable possible.
But sometimes a growing biz needs a commercial unit
Darran
Sorry I don't mean to pry into your personal/financial affairs but I don't understand why you have to pay out rent for somewhere to live. On top of that have to pay out rent for a unit to operate your business from if you can afford to have 5 vans on the road.
-
I'm a sole trader and I rent a place.
It's about necessity. It's relatively cheap as it's a storage place that has a water and electricity supply.
I live in a flat and circumstances prevent me running electricity or water out to the van - I often have to park in another road. An on board RO would prevent me from using my vehicle in the evening - it's my only vehicle.
Sometimes renting a work place is the best option.
I'm in the same sort of situation but use a twin di in van and customers tap water. £150 for 2 sacks of resin lasts about 3 months got to be a lot cheaper than renting?
The rent and water bill works out about £1,700 a year, give or take. I suspect that my tap TDS (and/or my water usage) is higher than yours and £75 a month for resin would be a conservative estimate. That would be £900 a year. I'm unsure what my RO maintenance costs exactly but say £75 a year for pre-filters, £75 a year for resin to polish up after the RO and, maybe, £40 a year average to replace membrane. So £1,700 + £190 = £1,890 a year as opposed to £900 a year for resin; a difference of maybe £1k a year.
So, for £1k a year, I have independence from my customers' water supplies (tricky in winter when taps might be frozen or shut off) and a place to store any tools/containers/resin bags/broken trolleys :) I'm not using.
For me, that is worth £1k.
Rates aren't an issue because it's storage rather than a business address.
-
There are tens of thousands of people that have to rent, many reasons for that.
Darran
-
10s of thousands rent that earn good money and have multiple vans on the road,10s of thousands bankrupt or have been though lol.
-
http://www.ft.com/cms/s/2/8ea42442-cade-11e3-9c6a-00144feabdc0.html
-
The two from dragons den are still about.
like most large cleaning companies they see the money more in cleaning.I am fairly shure that industrial cleaning is more there major work like deep industrial kitchen cleans and supermarket fridges etc.
They also offer training courses and have a shop.
It's worth having a unit if you have plenty to put in it .my friends in construction have them as they have a lot of plant and stock.they also have staff so for them it's essential but it costs them 2k a month.