A little while ago I ran a poll on this channel asking how much you charge per hour if you're self employed and run a successful business. The results were interesting and inspired this video! Let's take a look at what it costs to run a typical small and large commercial joinery workshop in the UK and how much you need to be charging customers to pay your bills and earn a living. Obviously this is a very high level view of things just using very approximate figures - I've tried not to over inflate the running costs while keeping things as realistic as possible. The main aim of this is to make sure you do the maths and KNOW YOUR NUMBERS before committing to overheads that might destroy your business. I'm still seeing folk vastly under charging and wondering why they're always broke. There's a market out there - just make sure you're charging enough for your hard work. The spreadsheet discussed is now available via membership of my Small Business Toolbox site here: https://smallbusinesstoolbox.u....k/hourly-rate-calcul

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If you can't be bothered watching the video (and if you consider a 25 minute investment of your time to avoid potential bankruptcy too much, then I'd suggest you don't set up in business, ever) and want to cut to the chase, in my opinion:
£30/hr - bare minimum any self employed person should be charging
£31/hr - enough for the smaller workshop AND minimum wage
£49/hr - enough for the smaller workshop AND average wage
£63/hr - enough for the bigger workshop AND minimum wage
£80/hr - enough for the bigger workshop AND average wage

Remember I'm not talking about subcontractors who generally don't have to actively win business. Smaller unit is approx 500 sq ft. Bigger unit is 2500 sq ft. Average wage based on £36k pa gross = approx £28k pa take home. Minimum wage based on £8.21/hr (25+) = approx £16k pa gross = approx £14.2k pa take home. Obviously with the larger unit you'd be well in excess of the VAT threshold so you'd have to cater for this too. Haven't covered VAT at all, just to keep things as simple as possible.

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#Woodworking #Workshop #Joinery