Go Your Own Way By Setting Up As a Contractor

If you work in a hands-on job, you’ve likely learned a lot from various people. You might not have gone to college, but perhaps you went to a vocational school or completed an apprenticeship, and you learned as you earned. After a while, though, you can start to think that you no longer want other people telling you what to do. You want to set up as a tradesperson and run your own business. Perhaps you actually don’t have a lot of professional experience yet, but you want to turn a hobby, such as carpentry, into a business. No matter what your background is, there are steps you’ll need to follow to get your business up and running.

Start With Experience and Qualifications

Before you launch yourself into a new business, you need to think about your experience and qualifications. There are likely to be standard qualifications in your industry that customers will want to see, or that you might need to join any professional boards. Sometimes, however, it’s the experience you have that matters most. Being able to provide good references or show a portfolio can get you a long way. You should spend time working on your qualifications and experience to ensure you’re ready to strike out on your own and start running a business. It’s sensible to have a good few years of experience under your belt.

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Ensure Essential Certifications

As well as trade qualifications, there are sometimes certifications you are required to have to practice your trade. You may already have what you need if you’ve been working for someone else. However, sometimes you or your business might need to be approved by certain regulatory bodies before you can start carrying out your work. Make sure you’re aware of any certifications you might need to prove that you can do your work safely and effectively. There could be professional boards you are required to be a member of too.

Choose a Legal Structure for Your Business

When you start a new business, you need to decide which legal structure you’re going to use for it. In the US, you can own a sole proprietorship, partnership, LLC (limited liability company) or, corporation or S-corporation. Contractors are often unsure of which structure is most appropriate for their business. There are advantages and disadvantages to each choice. Many people choose a sole proprietorship to start off with while they get their business off the ground. Later, you might like to formalize your business by making it an LLC or corporation. A sole proprietorship doesn’t offer you a lot of legal protection, so it’s not a structure you necessarily want to hold onto for long.

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Create a Business Plan

A lot of people make the mistake of simply launching their business without really knowing what they’re doing. It’s important to have a clear plan so that you know what direction to take your business in. Writing a business plan doesn’t have to take you that long, but it can be useful if you need to seek financing of any kind. Many banks and other loan providers want to see a business plan if you’re asking to borrow money. Your business plan can provide guidance, and you can update it as things change for your business.

Seek Financing

You need money to not only get your business going but also support you while your business is still growing. Before you start contracting, you should make sure you have enough money saved up for at least a few months. As for your business, you might decide to save some money to get what you need. However, taking out a loan or borrowing money in another way is also an option. You might consider looking for investors or even using crowdfunding to get the money you need to get started. You should think about the costs of starting your business, from tools to marketing.

Get a Vehicle

As a tradesperson, you’re going to need a way to get around with all the tools and equipment you need. You’ll be visiting clients regularly, and you need to decide how wide of an area you want to cover. Without a vehicle, you won’t be able to carry out your work. It’s going to be one of your most essential tools, so it’s worth considering your options. You could buy a vehicle, or you could lease one if you think it makes financial sense. With a vehicle you own, you have more freedom to customize it and put your own branding on it. Think carefully about how much space you need and what you need to transport.

Buy or Rent Essential Tools

There are also essential tools and equipment you need to do your job. They might be big or small, but you’re sure to need a basic kit that you’ll use all the time. Tools and equipment can also be bought or rented, and you should consider a couple of factors when deciding which is best. If you’re not going to use a piece of equipment often, especially if it’s large or expensive, you might only rent it occasionally. You can also rent something long-term to save money and perhaps consider a rent-to-buy option. For the tools you use all the time, owning them (if not now, then later) is the best idea. When choosing tools and equipment, always prioritise quality and reliability. Look for trusted brands and read reviews to ensure you are making a sound investment. Having the right tools at your disposal not only increases efficiency but also ensures safety and precision in your work. Investing wisely in quality equipment, such as platform ladders from a website like https://www.platformsandladders.com/, is crucial for long-term success.

Buy Relevant Insurance

You need to protect yourself if you’re setting up as a contractor. There are different types of insurance cover you should have to cover yourself and protect your business from any legal issues. It’s a good idea to look at insurance policies that are designed just for your trade. The Tradesman Saver’s Roofer Policy takes into account the risks that a roofer faces, offering a range of insurance options. No matter what your trade it, you are likely to be able to find an insurance provider with options tailored to your business. You can take out liability insurance, protect your tools and your vehicle, insure against financial risk, and more.

Organize Accounts and Taxes

Money matters when you run a business, so it’s important to be organized from the very beginning. When you set up your business, you should make sure you arrange anything related to taxes that you need to sort out. Decide how you’re going to manage your accounts too. There are many fantastic tools you can use, from bookkeeping software to expense tracking apps. Find an accountant you trust to make sure that you are keeping your accounts accurately and that you file your taxes correctly when it’s time to do so.

Employees

When you’re first starting out on your own, perhaps you’re going to work solo. You could also be going into partnership with someone, or maybe you’re considering taking on an employee. Some contractors have apprentices or someone to offer them general help, while others need someone more skilled. If you do hire anyone, make sure you do all the required legal work, like insurance.

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Consider Your Contacts

When you’re starting up a new business, making the most of your contacts can help you get going. If you’ve got a few years’ experience in your trade, you’ve probably got some great contacts who can help you out. You might know some people who can give you business advice or can help you get the ball rolling with clients. It’s also useful if you have some past clients who might be able to spread the word that you’re starting up on your own. The right contacts can help you find and win work if you’re smart. Your contacts will also help you with things like sourcing equipment and materials.

Plan Your Marketing

You need to market your business if you want people to know about it. It’s essential to make sure you have a marketing budget, even if it’s only a small one. There are several inexpensive and even free ways to market your business, including word of mouth. But you should also have some money to spend if you want to promote your business further. Your marketing should include setting up a website and working on local SEO. As a local business, you need to help people in your area find you. Paying for advertisements, especially online, will help you too.

Getting Work

Of course, securing work can be a big challenge. Even if you get a couple of contracts, to begin with, you need to keep the momentum going. Marketing your business will help people to find you, but it takes more work to turn those leads into customers. You need to be able to make a successful pitch and convince people that you’re the best person for the job. Some things that might help include having a portfolio of work to show, providing competitive quotes, and generally presenting yourself well to the client. Building your contacts in other trades will also help you. Other people will call on you when they need your expertise.

If you’re starting up as a tradesperson with your own business, there’s a lot to think about. Consider both good business practice and industry regulation when you’re making plans.