There are more than two million tradesmen in the UK, making it one of the country’s most popular occupations. With good pay, a secure job and plenty of openings, it’s easy to see why so many have chosen this career path. What’s more, by becoming a self-employed tradesman with your own business, you get advantages like being your own boss, setting your own work hours and enjoying a higher potential for earning.
Considering you’re reading this piece, we’re assuming you’re at least somewhat interested in starting up a trades business yourself. In order to do so, you need a solid business plan, outlining things like what your company will do, who your competitors are and — most pertinently to this article — how you’ll finance things.
So that you know exactly what to take into account, we’ve looked at the four main start-up costs you’ll need to factor into your tradesman business plan.
4 start up costs to factor into your tradesman business plan
Insurance protects your business against everyday risks, with your insurer covering costs if anything goes awry, like mistakes, damage or legal costs. The only cover that’s legally required is employer’s liability insurance — though only if a business actually hires staff. This covers you and your business if an employee becomes ill or injured because of the work they do for you.
That said, you will definitely want to factor in other covers too. Public liability insurance, for instance, protects your company against injury or property damage caused to third parties in the course of business. As insurance company, Tradesman Saver explains: “Though public liability insurance is not a legal requirement in the UK, it is considered a necessity amongst tradesmen. Accidents are always possible if your business involves direct contact with others, especially if your work is often carried out on client sites, or you frequently welcome visitors to your premises.”
Meanwhile, other useful insurance covers include professional indemnity insurance, legal expenses cover, accidental death cover, and stock, tools and/or equipment insurance.
Stock, tools and equipment
Speaking of stock, tools and equipment, you must also factor these into your tradesman business plan. Tradesmen specialising in a particular trade must purchase all the tools they’ll need to do the job. Whether it’s chainsaws, caulking guns, chisels or claw hammers, make a definitive list of the tools you’ll require and work out roughly how much this will set you back.
If you aim to run a commercial tradesman company that sells products to customers, you’ll need to purchase all the stock you intend to sell, making sure to obtain enough for display purposes too.
Finally, you may need to invest in some equipment too — think a laptop for your admin, a till for your shop or a telephone system and security if you intend to have physical premises. The list of equipment you might require can be seemingly endless, so again be sure to have a long think about what you need and how much it will all cost.
Certain tradesman businesses require physical premises, like shops, warehouses or even offices. If this applies to you, this is a pretty significant outlay that you need to consider. As well as the cost of rent or a mortgage, there are many hidden costs to renting or owning a property. These include everything from energy bills and maintenance, to stamp duty land tax and the cost of any renovation work that needs to be done.
Tips to cut costs include looking for somewhere in a quieter, less in-demand area, negotiating rent with the property owner, using an internet-enabled phone system and having staff work from home where possible to reduce the size of the office required.
To successfully make a name for your business and get customers on board, you’ll need to spread the word about your company. This necessitates a strong marketing strategy. There are so many techniques you can use, from traditional marketing like TV adverts, posting newsletters and telemarketing, to digital strategies like email marketing, social media campaigns and search engine optimization.
Marketing costs can add up quite quickly, so work out which marketing strategies could make the most impact on your business. Nowadays, it’s easier and cheaper than ever to market your business yourself by doing so online, though bear in mind that you will need to put in significant time and effort into this, and that it may be worth hiring marketing professionals to help you.
Author Bio: Syna Smith is a Seo Specialist at backlinksmedia.com. She is able to easily rank her client’s website. She is the Head of SEO Top SEO Agency She has experience of 8 years in the digital marketing field. She is a dynamic and problem-solving personality and is also an expert in blog outreach.