Going out on your own can be a defining moment in your career as a tradie. There’s huge potential in starting a business, but setting yourself up for success takes careful planning. Every trade is fiercely competitive, and being your own boss comes with a lot of pressure.
If you have dreams of building an empire, or you’re craving the freedom that comes with working as a subcontractor, this checklist covers the best tips for tradies starting a business.
Know your trade
Starting your own business before you’re ready is a risky move. Rather than going it solo mid-way through an apprenticeship, make certain you have all the right qualifications and skills first.
Even if you’ve mastered the basics of your trade, business owners need an arsenal of expert skills. Working for successful tradies is a great way to learn the ropes of running a business while refining your technical capabilities. It can be frustrating to put your entrepreneurial plans on hold for a few years, but it’s all a part of laying the groundwork for future success.
Make a plan
A carefully considered plan is the strongest foundation a small business can be built on. Research your industry, know your finances, and have a contingency plan in place just in case things don’t work out. There’s no harm in being optimistic when starting a business, but it’s important to prepare for tough times ahead.
If you’re not sure whether you’re ready to become your own boss, here are some questions to ask yourself:
- Do you have enough savings to keep your business afloat until it starts making money?
- What if it takes longer than you thought to turn a profit?
- Do you have enough staff to meet demand?
- Do you have a set profit margin for each job you take on?
If you don’t have answers to these questions, you may need to go back to the drawing board with your business plan.
Have the right equipment
Up-to-date tools are a tradie’s best friend, especially if you work for yourself. Investing in quality equipment will ensure you have what it takes to get every job done properly. Aligning your equipment to your business needs prior to starting out on your own will ensure your toolbox is up to the task.
Upgrade your technology
Modernising your business operations with technology is a great way to edge out your rivals. It’s important to keep up with the latest innovations. Worksite iPads, online accounting and project management software can streamline planning and administrative tasks, leaving you with more time to get on with the practical side of things.
Get insured
Not even the most skilled tradies are immune to workplace mishaps. To protect yourself in the event of an accident or some other unlucky incident, get yourself:
- Public liability insurance
- Worker’s compensation insurance
- Income protection
- Tools protection.
Most types of insurance are mandatory and must be retained for licensing reasons. As workplace safety regulations in the construction industry can vary between states and territories, understanding all the rules can be a daunting task. The Safe Work Australia website is a great resource for checking if your business is compliant.
Whether you feel ready to start your own business, or you think you might need a few more years of experience before branching out on your own, persistence is key to making it as a tradie business owner.
Jessica Grant, Content Manager, AEG Powertools
