“Should I start my own business?” It’s a very common question that many Aussie tradies think about. Even apprentice tradies look forward to the day when they will run their own operation and become masters of their own destiny.
Many tradies may be wondering if switching to their own, smaller trade business will give them better flexibility and a greater income. You may be wondering about the pros and cons of starting your own small tradie business. And if you are, here are seven self-employment business tips that you can use to get your business set up well for years to come.
Following this tradie business checklist can help you to take the all-important initial steps to ensure that your tradie small business puts its best foot forward and is set up for long-term success and not just flash in the pan success.
1. Trade licences
Some trades in Australia require a licence to operate, but this varies from state to state. Before you start your business, make sure you meet the licence requirements for the trade services and the work you intend to provide. The Australian Business Licence and Information Service (ABLIS) website is a great place to start when it comes to licence requirements for tradies.
Recommended reading: How to get a contractor business licence
Search the site to determine what types of trade businesses require what types of trade licences to operate. It’s worth noting that licence requirements can vary from state to state.
2. Business structure
Decide on the structure of your business to determine how it will run. There are four business structures available in Australia:
- sole trader (or individual);
- partnership; and
You would most likely choose to become a sole trader when starting your own small business, as you are the sole person responsible for it. You may decide to switch to a partnership, a company, or a trust as your business grows.
You will be required to apply for your Australian Business Number first, which can be done by visiting the Australia Business Register. If you intend to earn an annual income of more than $75,000, then you will have to pay the Goods and Services Tax (GST). You will still be required to submit quarterly Business Activity Statements (BAS) to the ATO.
3. Business plan
A business plan is important for so many reasons. A business plan describes how you envision your Aussie tradie business, from day one to day done. This is an important step to take if you want to get funding from investors or banks. A business plan is also an excellent roadmap that you can refer to often as you grow your business.
A well-developed business plan allows you to check your budget and project status against the targets you have set for your business, and make changes as needed.
4. Tradie business insurance
It is critically important to protect your new tradie business, and one very effective way to do just that is to reduce your exposure to risk with tradie business insurance. As a trade business owner, you are now responsible not only for your actions, but also those of your business, including your employees (if you have them). And this is where business insurance can have your back.
If you are starting your very first business, you may be wondering how your tradie business can benefit from investing in business insurance, and why business insurance is a great idea for trade business owners such as yourself. In fact, you may also look at this process as a personal risk assessment as well as a business risk assessment, given that you are the owner of the business and that it provides your main source of income.
Well, it’s simple – as a tradie you are exposed to many different kinds of risks, which means you can benefit from having measures in place for reducing your exposure to risk including business insurance products such as:
- Public Liability;
- Business Insurance;
- Professional Indemnity; and
- Personal Accident & Illness Insurance.
Examples of when business insurance can help tradie business owners include:
- protection against claims from third parties for damaging their property.
- Financial protection if you are faced with a claim.
- Protection for your tools of trade, if they are stolen or damaged.
It’s also worth noting that in some cases certain types of tradie business insurance may be required when you take on certain contracts or jobs.
You will also benefit from embracing new tech solutions. Consider what tech solutions you will introduce to keep your business running efficiently. Think about laptops, smartphones, and tablets, but also all the software and apps that make running a trade business easier. Odds are the solution is already in the market – and being used by your competitors.
6. Embrace social media and digital marketing
Our sixth self-employment business tip for tradies is all about digital marketing.
When you start marketing your new tradie business, it is important to create a strong brand and establish an engaging presence online – which means a great company website and an engaging social media presence.
A website is not only a place for potential clients to ask questions and leave feedback, but it’s also a way to let potential customers know more about your business and what you can do for them.
The last point on our tradie business checklist is to get into the habit of always ensuring that your business complies with all regulations. This will require you to check both the state and national regulations related to your trade, but it will save you a lot of trouble in the future.
Make business insurance easier with BizCover
It can take a lot of time, effort, and staying power to build a successful trade business. And if you’ve done all of that, then you owe it to yourself to protect what you have created. And BizCover is here to help by making business insurance easier than it ever has been.
When renewing or reviewing your tradie business insurance, check out your options with BizCover. Compare competitive quotes from leading Aussie insurers online and get covered in just 10 minutes. Give us a bell on 1300 920 871 to learn more about how BizCover can help your business.
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