setting up a mountain guiding company

Tue, Jan 18, 2011

I’ve been considering setting up a mountain walking company recently and did a bit of research into what’s actually needed. I didn’t include the initial cost of getting qualified as I’m already a Summer Mountain Leader, ML(S) and I’ve done the Winter Mountain Leader ML(W) training but until I go for assessment, I can’t get insurance to work in winter.

The first thing I’d need is a business, or in my case, set up as a Sole Trader. That means I can set up, say, Stravaiger Mountain Walking and have my name on all business communications as stipulated in the Sole Trader regulations. There’s a full guide to this here. I started on the Sole Trader stuff here.

There first things to do are register as a Sole Trader and sort out the tax implications:

  • Decide on a business name, staying within the rules.
  • Register as a Sole Trader
  • Income Tax
  • Class 2 NIC. £2.40 per week payable by direct debit or other variants, although If my earnings are less than £5,075 in 2010-11 I can apply for a Small Earnings Exception certificate.
  • Class 4 NIC. Payable at 8 per cent on profits between £5,715 and £43,875 for 2009-10 plus 1 per cent on any profit over that amount.
I did a rough outline of setup costs:
  • Insurance : £176.50. Provided via MLTA
  • First Aid : £200. I need to renew my first aid certificate for another three years, this year
  • New boots : £150
  • 4-6 person shelter : £62
  • 8-12 person shelter : £103
  • Total setup costs : £691.50
I have a lot of other leading gear already, such as suitable rope, spare gear etc.

Also yearly costs:

  • Insurance : £176.50. Provided via MLTA
  • MCofS membership : £30.00
  • MLTA membership : £25.00
  • Class 2 NIC : £0
  • Class 4 NIC : £0
  • First aid : £70 (for 3 yearly renewal)
  • Continuing Professional Development (CPD) : £200
  • Yearly total : £301.50
So to get off the ground it'll cost around £700 to get insured, with extra group leading gear I need to upgrade and yearly running costs of around £500. That's as long as I don't earn more than about £5000 in any one year. That way I can avoid NICs.

The next gnarly question is that of pricing. I did some research on other guiding websites and the median seems to be around £100 per day for one person, with varying prices for other people. Based on my research I’d prolly charge thus, with travel/accommodation costs extra:

  • 1 person £100 per day
  • 2 people £60 per person per day
  • 3 people £50 per person per day
  • 4 people £45 per person per day
  • 5 or more people £40 per person per day
  • Navigation training, £30 per person per day
What to provide? ML(S) is mainly concerned with walking in the mountains of the UK and Eire where use of the rope is not required. A good rule of thumb is, if the rope comes out, you're out of remit. It does allow for a leader to guide a suitable party on more challenging terrain, e.g. the Carn Mor Dearg arete or perhaps the Forcan Ridge. The Torridon classics are in remit if the right route is picked, e.g. on and off the ridge crest on Liathach, careful route choice along the Horns of Alligain etc. Routes like The InnPinn. Aonach Eagach and Tower Ridge are definitely out of remit. I'd love to lead these routes, which I've led many times with friends but to do so would mean getting MIA qualified at astronomical expense. So what would I offer to clients?
  • One day Munro/Corbett bagging trips.
  • Weekend or multi-day camping/bothy trips to remote Munros/Corbetts
  • Navigation training to NNAS Gold Standard
  • "Consultation" services for aspiring MLs
  • Environmental interpretation during trips. What's on the ground, in the air.
  • Gaelic language. Perhaps bespoke routes for Gaelic speaking groups.
There are hundreds of mountain leader and guiding companies out there. What's your Unique Selling Point (USP) I hear cried from the back rows!
  • ML(S) qualified
  • Qualified HF Holidays leader
  • Gold Standard National Navigation Award holder
  • Fluent in Scottish Gaelic. Not many MLs out there who speak Gaelic.
  • Almost 30 years experience in the hills, so low grade scrambles that are suitable for the right party, to stay within remit.
  • Experienced mountaineer who is willing to answer questions on just about anything related to mountains/language/environment. Me!
Based on all that, in the first year I'd need to lead for a minimum of 7 days to break even with about the same each year to cover costs and make a bit of a profit. Hopefully I could attract gear testing interest to cover gear upgrades but I think it's definitely a small scale proposition. Plus once I eventually go for ML(W) assessment I could open up winter training opportunities and the more challenging winter leading remit.