How to Start a Business as a Tradie
Tradespeople are in high demand in Australia, and starting a small business can be a great option for tradies who want to take control over their income, working hours and lifestyle. Whilst being great at your trade is a good start when it comes to running a business, there are a whole range of other tasks (eg. administration, marketing and hiring subcontractors) that come with the business owner lifestyle. It’s important to consider whether you’re ready to take on that responsibility.
The number one challenge of starting a business as a tradie is understanding what needs to be done to get the business off the ground. In this article, we provide basic information on registrations, insurance, licensing and equipment financing in order to get your trades business started.
The Australian government provides a free business registration service to manage all aspects of business registration in one place. Firstly, you’ll need to decide whether you will operate as a sole trader or company (speak to an accountant to determine which is best for you), then you can use the registration service to apply for your ABN, business name, company, GST and other tax services as applicable.
Certain trades require licenses to operate legally, most of which require the business owner to hold recognised trade qualifications. Licensing requirements vary state to state, but the information is available through the Australian Business License Information Service.
Do not overlook the importance of having solid insurance in place before starting any business operations. Public liability insurance may protect you against any damages that a third-party suffers as a result of the operations of your business, and you will be required to hold Workers’ Compensation Insurance if you have employees. You may also wish to insure your business equipment, premises vehicles and machinery to protect your business assets in case of an accident. Finally, you may consider professional indemnity insurance to cover against any financial losses that occur due to mistakes or omissions in your work.
Funding to get started
The equipment needed to start a trades business doesn’t come cheap. As a start, you will probably need a work vehicle or truck, trade specific tools and equipment, plant and machinery, and possibly specialised vehicles such as a forklift, bobcat or excavator. Lendfin’s asset finance solutions are a great way to get started, as the asset itself can often be used as security and you have the option to renew the asset at the end of the term or own it outright.
For other business requirements, a business loan or overdraft facility may be ideal to help with cashflow in the start-up phase.
Whether you have years of experience or are have just finished your apprenticeship, starting a small business as a tradie can be very rewarding, both personally and financially. Speak with Lendfin to get the funds you need to help get your new business off the ground.