A 7-step guide to starting your own trade business

17 September 2018

Skilled tradesmen are always in demand. Whether you are a plumber, electrician, cabinetmaker, refrigeration expert, tiler or builder, there is a ton of work out there. For many, the best way to make the most of the opportunity is to open your own business.

Where do you start? The first step is to register your business, look for a catchy name that is easy to spell and memorable – you do not want customers to struggle. Register with the IRD and make sure that all your tax affairs are in order.

It is a very good idea to get a good accountant right at the early stages of the game. They can also help you set up the legislative requirements for running a business.

With that sorted, it is time to get on with the more exciting operational stuff.

Finding customers

You want to find customers in order to grow your business beyond the ones you already have, you will need a website and some smart online marketing, but if budget doesn’t allow this, just make sure you are online somehow – it can be as simple as setting up a Facebook page and a page on one of the other social media sites (like Instagram or LinkedIn). These services are at no-cost to you and allow you to quickly build up a following of loyal customers. You can share ‘jobs well done’, so prospective customers can see what you are capable of, while your contact details are easily accessible. In due course, consider some paid adverts on relevant social media platforms.

At the same time, list your services in community newspapers, noticeboards and newsletters so everyone in the area can easily see that you are available and what it is you do. Also, keep your eye on social media community groups – and ask family, friends and existing clients to refer and/or recommend your services when an opportunity arises.

Finally, there are many government initiatives and non-profit organisations whose aim is to help small businesses succeed. This help could range from facilitating access to finance, all the way to mentorship. Spend some time finding out what help is on offer.

Stay focused

For those just starting out, there might be a temptation to take any job that crosses your path. Rather stick to your area of expertise to build a reputation based on proven skills. Every trade is different, and you are an expert for a reason. Leave the other work for experts in those fields – but build up relationships with them so that you can refer work to each other.

Ride on your qualifications and references

You have spent a lot of time getting certified. Let your customers know about your qualifications and experience by putting it on your Facebook page, your invoices, e-mails and other communications. The same goes for references; these are valuable and provide evidence of your ability to get the job done. Ask for a reference when the job is complete and then on to social media it goes. The good news with social media, by the way, is that these references do not ever go away.

Stay on top of the paperwork

The good old days of doing business on a handshake may be behind us. Providing quotes, contracts, invoices and records of payments electronically makes paperwork a whole lot easier by creating a digital archive where physical copies aren’t needed, but it serves the same purpose, when it is formally recorded, it is far easier to see what has been agreed to, done and paid for. Do not skimp here, even the best customer service provider relationships can go awry if verbal agreements are all you have to go on.

Register with your trade association and invest in continuous professional development

Being a member of a trade association (like Master Builders, the Institute of Plumbing or other professional bodies) lends credibility to what you are doing. It also provides access to new customers should larger contractors need to sub-contract. Your trade association also formalises training and continuous professional development.

Get business insurance

All too often, this crucial service is ignored by those starting out on their own. You want to protect tools and equipment on the one hand and you also want to safeguard your employees and your business against third party claims should something go wrong on the job. On that note, chat to us at NexGen, we offer business insurance and are aligned with the best in the business!

Putting the right insurance in place can mean the difference between staying in business for the long term or folding the minute the tools grow legs and disappear.

Deliver good service

This should go without saying - do not forget that every job is a potential reference and, at the very least, is your entry into that client’s network of friends or business associates. Concentrate on giving good service and actively request feedback so you can remedy any shortfalls. A take-it-or-leave it attitude may be relaxing, but it will prevent your business from growing in the long term.