The trades sector is a diverse one, with many options of expertise available. In today’s current market, it is far cheaper to obtain a trade than it is to obtain a university degree. Not surprisingly there are quite a few people who are choosing to join the circle of professional tradespeople and work in either established companies or begin to operate as a sole trader or business owner.

Whilst owning your own business can be a mixture of the good, the bad, and the ugly, you can benefit from the rewards when they come at your own merit. Here are some simple tips to get your business started.

1. Make sure you have the right qualifications and experience.

A trade certificate can be completed in 4 years, although gaining a decent amount of experience may take you a few more years. Each person will vary on when they wish to start up their own business or if they want to contract their services out to an established company as part of their group of professional tradespeople initially to gain experience but still function independently. 

Your work will carry more merit with a qualification such as a completed trade certificate. Whilst you might excel at your chosen craft, there are plenty of cowboys out there without that qualification, and you want to avoid being stereotyped.  

Keep your skills updated and expand in your field when you can. This will allow your work capability to extend as you gain more skills, experience, and qualifications meaning that you have a higher level of diversification with your trade capability.

2. Investigate the licenses and legal requirements you require.

Some of this will vary from state to state, so be mindful to check the regulations for each state. There are often very strict requirements and legislation you will need to adhere to, which will prevent any unexpected and unwanted fines and penalties.

It is important to keep updated regarding these matters as they often change and you don’t want to be caught unaware.

Join the appropriate regulating bodies and have the certification codes or license numbers displayed on your business cards and website to add more credibility to your business.

3. Whilst you’re at it, check out agreements and other contracts.

There are a variety of legal matters you’ll need to tend to prior to commencing operation. One of the most pertinent will be insurance, such as public liability, professional indemnity, and workers’ compensation coverage. If you are hiring additional staff, you’ll need to ascertain employee and contractor agreements and contracts. 

4. Fully investigate initial and ongoing costs.

Being aware of all the expenses can prevent any nasty surprises. Look into the initial costs of setting up a business and the ongoing costs of ordering stock and providing services. You’ll need to thoroughly investigate all areas of the tasks you intend to advertise, including stock costs, too, usage, equipment hire, and any other incidental outlay.

Once you have determined this, develop a pricing system to ensure all costs are covered and allow a margin for profit. Investigate what other companies are charging to make sure the sum you are charging is not undercutting yourself or charging too much which may deter potential clients.

5. Choose your service areas.

Scrutinize what demographic area you want to service. You may elect to work on the side of the city or be flexible enough to travel to further locations for an additional service fee. Determine if you want to have a call-out fee or conduct free quotes as part of your service. 

6. Decide how you will structure your business.

There are various methods as to how a business can operate. You may elect to be a sole trader or function as a separate entity or company. Each manner has its own tax obligations, so be sure to investigate this deeply before you make your final decision.

The next step is to register your company and gain an ABN. You will still need an ABN if you choose to work as a sole trader. 

7. Develop a secure business plan.

Every reputable business has a business plan. This should outline what your company will do as well as your principles and values. It should also provide guidelines as to how you conduct your work, handle complaints, liaise with other shareholders, and generally operate as a business.

8. Choose your suppliers.

As a tradesperson, there will be an extensive amount of tools and stock you’ll require to start up your business and complete your duties and projects. Liaise with a variety of wholesalers until you find one that is the right for your company.

Determine if you want to have a line of credit made available to you, or if you will purchase all required components ahead of schedule. If you elect to take on a credit aspect, be sure to set limits to avoid financial difficulties. 

Maintain a good relationship with your wholesalers, they provide you with all you need.  Being friendly and courteous to these guys will help your business in volumes.   

9. Get finance if you need it.

Liaise with banks regarding business loans and the capital you’ll need to commence your business. Be sure to consider all expenses, such as advertisement, start-up costs, fees for registration, and vehicle and equipment purchases.

10. Advertise and gather up clients. 

Advertise on social media outlets and other networks you have available to gather initial clients. Utilize all avenues available, including word of mouth and free advertising where available. Consider loyalty rewards systems or bonuses for referrals. 

Maintain a steady social media presence, one that will allow you to connect with your audience. Connect to the community in a positive way. If you support local charities or are an advocate for positive mental health strategies, have these on your website.

Announce your specials and promotions on social media. Let clients know where you are and what areas you’ll be servicing. 

Author: Therese Vickers.