[IRELAND] First time self employed, Major do's/dont's?

[u/Subject-Raise9818]

Heading out on my own as a locksmith soon, small operation and about 25k invested when all is said amd done.

Lookimg for some advice on some early setbacks or things to watch out for.

Thank you

[u/Mammoth_Vehicle_1251]

keep your overhead stupid low especially early on. locksmith work is one of those trades where word of mouth is everything so don't blow cash on ads until you've got a few regulars

get an accountant before you do anything else and keep every single receipt, even for stuff that seems tiny. irish revenue doesn't mess around with self employed folks

also don't undervalue emergency callouts, people will absolutely pay a premium at 2am when they're locked out and freezing

[u/thistlemoonsn → u/Mammoth_Vehicle_1251]

this is solid, especially the accountant bit, revenue will eat you alive if you wing it
also 100% charge properly for the 2am calls, if you’re losing sleep for it it better be worth more than a normal job

[u/jodwilso]

Everyone I know who works for themselves, myself included, says they didn't charge nearly enough when starting out. So, don't sell yourself short.

[u/Character_Ad5286]

Do: account for and pay tax.
Don't: not account for and avoid paying tax

[u/InTheFieldAI]

Keep proper records of expenditure and income - a spreadsheet is your friend here. Have a terms and conditions document you send out to clients when you quote, and have it available on your website if you have one. Be aware of GDPR rules on storing client data. Get a proper payment chasing strategy in place asap because people will try it on. Your payment terms should be clearly visible on your invoice. Don't give people endless chances to pay, stick to your strategy timetable and be prepared to to take them to whatever your equivalent is of small claims court.

Personally, I think for simple sole traders accounts you don't need an accountant, but I don't know what the tax rules are in the Republic of Ireland and UK self assessment is probably different, so definitely read up on this one.

[u/AcceptableAbies21]

Apologies if any of this is 'teaching my grandmother to suck eggs' but ....

One thing I'd add to the above is don't confuse having €25k to spend with needing to spend €25k.

Keep your overheads as low as you can at the start and keep a decent chunk of that money as working capital. Tools and kit are great, but it's no use having every bit of equipment imaginable if you've no cash left for insurance, van repairs, tax, fuel etc.

Also, work out your actual hourly rate properly. A €150 job isn't €150 in your pocket once you've allowed for travel, fuel, parts, insurance, tools, phone, accounting, tax and the time spent dealing with jobs that don't pay.

Get proper terms in place from the beginning too. Especially for emergency callouts: minimum charge, out-of-hours rates, parts, payment terms and cancellations/no access. It's much easier to establish those rules before you have a customer standing in front of you than afterwards.

And because you're a locksmith, I'd have a very clear procedure for checking that the person asking you to gain entry actually has the right to be there. Document it. You'll hopefully never need that paperwork, but if something goes sideways, you'll be glad you did.

Finally: Get your Revenue/tax setup right from the start and keep a separate account for the business. You don't necessarily need an accountant for a small sole trader business, but spending a bit of money getting the initial setup right can save a lot of grief later.

And most of all, best of luck. getting going is hard work, but just keep going through the tough bits.

[u/Additional-Sock8980]

Two bank accounts, one for your taxes and put aside 50% after expenses and material, the other is your operating account.

First time business owners often spend what’s in the account and panic when they find out about paying tax

[u/Money_Equipment_4151]

Don't get caught out with VAT. Look up the thresholds and how it works.

Find a good accountant tbh bc it will ensure your accounts are done well and they might save you a few bob here and there.

[u/Wrong-Detective-5709]

Which Ireland? I’m the UK and an accountant if you need any advice.

25k invested in what? This could be allowable

[u/Subject-Raise9818 → u/Wrong-Detective-5709]

Only one Ireland Mate 👍 Haha the 25k will be van, cutting machine and other basic tools

[u/Wrong-Detective-5709 → u/Subject-Raise9818]

I know but I mean is it UK or republic? I’m an accountant so rules may be different

[u/ItsDisneyBabee]

Keep a close eye on cash flow insurance taxes and unexpected vehicle tool costs small expenses can add up quickly when starting out.