Planning On Being a Trade Business Owner?
Starting up your own trades business is an attractive proposition – be your own boss, keep all the profits, take holidays when it suits you, run your business from home, the list goes on! The advantages are certainly in your favour but even with the best intentions, it can be difficult to know where to begin.
We’ve put together a few quick tips to help you get started.
Are you ready to go?
Before you launch your new trades business, you need a business plan to outline your goals, objectives, target market and the financial forecasts you’re aiming to achieve over a given period of time. The business plan is an important document because it gives you a direction and provides a roadmap for your business’s future. If you need to secure finance to get your business off the ground, the business plan will vital in convincing lenders and investments that your business is worth funding.
Get to know your customers
Having an understanding of who your customers are is a great head start for your business. You’ll need to make contact and build relationships with customers to get your business off to a great start. The more you know about your customers – the better!
Get to know your product/service
The more you know your product or service, the better you will be at convincing new customers to give you a go. Getting them hooked is the biggest challenge, so get a good understanding of how your product/service works, its key benefits, why it’s better than others out there and do some research on how your price sits in the market. If you’re the only one in your area that is offering a particular product or service then make the most of what could be a golden opportunity.
There are a lot of administration tasks that need to be taken care of when you start your trades business. You’ll need to register a business name, create a credit policy and get an ABN from the Australian Tax Office. You may also need to register for GST, set up a bookkeeping system, develop a marketing plan and take out relevant insurance. Contact an accountant to help you keep track of your tax liabilities, accounts and finances. You may even need to consult a business lawyer for advice if you need to issue or manage legal documents as part of your business.
And of course, get yourself protected with public liability insurance as a minimum. Speak to a good insurance broker about what other insurances you may need with your trades business including equipment, income protection, motor vehicle and workers compensation insurance.
Though it may seem daunting at first – the hard work in the initial stages will be worth it later on when you can enjoy the success of your new business.