There are few things more liberating for those who have spent their working lives working for someone else than the idea of being self-employed. It’s a particularly great option for those with trade skills, as you have all the skills and knowledge you need to get started. However, there are a few more business-centric things to be aware of before considering this as a career move.
1. Build your customer pipeline
Trade work has always traditionally been a word-of-mouth business but that doesn’t mean you shouldn’t use modern tools to get your name out. Due to fierce competition, you need to actively put yourself out there to secure a customer base. Spend time setting up social media accounts so people know you’re in business and post yourself on as many tradesperson directories as possible. And don’t be afraid to offer your services for a discount until you start building up a reputation.
2. Manage your time
Being self-employed, you will need to manage your work diary effectively. Get in the habit of recording your jobs as soon as they are booked and keep note of any other requests so you can manage yourself and your time more efficiently. Your smartphone could be your best friend here, as you can use it to organize your working life and sync it to your work computer or laptop.
3. Get licensed
Due to the nature of the work, it is imperative that you secure the correct permits and licenses in order to safely and legally carry out your work. Register as a sole trader with HMRC and set up a tax profile so you can contribute income tax and national insurance. This will need to be paid according to earnings made between April and April and filed by the end of January every year.
4. Gather your gear
Depending on your specific trade, you’ll need a variety of tools and equipment to properly carry out your job. The tools required will depend not only on the profession but on the specific job. If you’re a roofer working on dry ridge roof systems, for example, you’ll need very different tools than if you are working as a mechanic or an electrician.
5. Sort insurance
A tradesman operating without insurance is not going to be trusted, plain and simple. It’s a necessary business expense that you need to seek out before you even consider your very first job. A good insurance plan for tradespeople should include public liability insurance protecting you from any costs incurred because of any third-party injury and it should protect your tools too.
6. Manage your finances
For those who have never overseen their own affairs before, managing finances is something they might not be particularly used to. Consider using an accounting app to help with a lot of the heavy lifting for you and if it’s all too much you can always hire an accountant.