Self-employed tradies’ checklist

Should I start my own business? It’s a common thought in the tradie world. Many tradies wonder if greater flexibility and an increased income are to be gained from making the switch.  If you are starting to wonder the pros and cons of starting your own small building business make sure you read our blog post on things to consider before you start your own business. If you have already thought long and hard about taking the leap this guide will run you through some first steps ensuring your small business is ready to go with our self-employed tradies’ checklist.

1. License

Not all trades require a license to operate in Australia, however, some do, and it varies between state to state. If you do work in one of those select trades, ensure you are eligible for the license before going any further with your business. A great place to start is at the government website Australian Business Licence and Information Service. The site allows you to search and determine which trade and business types need a licence to operate. 

2. Business structure

Deciding on your business structure means deciding how your business will operate. In Australia, there are four ways a business can be structured: sole trader, company, partnership or trust. When starting a small business yourself you wold most commonly be looking at becoming a sole trader as you the single individual responsible for the business. As your business evolves you may then choose to change the structure to a company, partnership or trust. 

To get set up as a sole trader the first thing you will have to do is apply for an Australian Business Number (ABN) and apply for a business name is you are choosing to operate your business under a name that isn’t your own. Registering for an ABN can be done at the Australia Business Register.

You will also have to for Goods and Services Tax (GST) if you intend on earning an annual income above $75,000 per year. While doing so is free, you will be obliged to submit Business Activity Statement (BAS) reports to the ATO quarterly. 

3. Business plan

Writing a business plan is an essential step for many reasons. A business plan is a written description of how you see your business unfolding from inception to completion. Primarily this is a crucial step if you are entending to source funding from banks or investors. However, it is also a great roadmap to frequently refer back to as you and your business grow. Doing so means that you can check if you are on track with budgets and projects and make any change that are needed as they arise.

4. Insurance

As one of the most common reasons tradies want to own their own business is financial freedom, it is crucial that you protect that freedom. As the owner of the business, you are now responsible for not only all of your own actions but also the actions of the business and its employees. To ensure any accidents or mishaps don’t send you bankrupt you’ll need to invest in public liability insurance. You’ll also want to consider insurance for your tools. 

Income protection or disability insurance is also highly important to consider as when you make the switch to working for yourself you loose things like sick leave and sometimes workers compensation.

5. Technology

Nearly all businesses use technology and no doubt you will too. Thinking about what kind of technology you need to invest in to ensure you have everything you need to get and keep your business running. Thinking about things like laptops, tablets and smartphone, but also consider all the different types of software and apps that are revolutionising the way small businesses are functioning. For our selection of the best apps for tradesmen, check out our list of 5 apps for builders to download.

6. Web and social presence

Creating a brand for your business and setting up a presence on the web and across social media is a crucial step in beginning to market your business. Not only does a website give potential clients somewhere to leave queries and feedback it also creates a space for them to learn more about what your business does and how it can help them.

Being active on social media compliments this as it keeps you in communication with a wide and ever-growing network of people who are potential clients.

First steps could include:

1. Registering and purchasing a website domain name that matches your business name
2. Design a logo for your business
3. Print business cards and any signage or decals you want, vehicle signage is particularly effective
4. Design a website, even if it’s a simple one page with contact details and a small about of information. Squarespace has a very simple and user-friendly interface that means even people with limited computer skills can design a website
5. Start a Facebook business page and Instagram page

7. Compliances

To cover yourself down the track, get into the habit of always ensuring your business is adhering to compliances. While this requires you to be vigilant at checking both state and national levels, it can save a lot of hassle in the future.

8. Documentation

Being prepared with documents from day one is the best way to start off on the right foot. This means have any terms and conditions or binding legal documents drafted and ready to go for the first client. Ensure you are all set up from an accounting and payroll side of things too. If you plan to employ other staff for the business, print copies of the form they need to fill and find an accounting system that works for you or consider hiring someone for the task.

Whilst this is a brief guide on how to start your own business we always suggest talking to other people who have taken similar leaps to the one you are planning. Additionally, always seek professional advice if you feel unsure or unclear on any of the aforementioned steps.