The Benefits of Being a Self-Employed Tradesman
Many tradesmen have made the decision to follow the self-employed route because it allows them to be their own boss and work more flexible hours. While being a self-employed tradesman comes with many benefits, the reality is that you also need to deal with far more aspects than simply doing the job. Taxes, insurance, customer complaints - the list goes on. Below, we’re taking a look at some pros and cons of being self-employed in the trades.
Con #1 - Attracting Customers
Customers are the lifeblood of your self-employed business. Before taking the plunge, it’s worth considering how you intend to attract new clients by yourself. Without a well-established name behind you, it can be difficult. However, as your business develops and your reputation grows, this work can pay significant dividends in the future.
Pro #1 - Building Something
Over time, your business will grow and you’ll be building something that you’re proud of. You’re in the driving seat and your efforts will have a direct benefit for you and your business. The business will evolve around your aspirations and personal life commitments. Having a successful self-employed business will be a source of pride for what you have created, motivating you to go on and achieve even more!
Con #2 - Startup Capital
Unfortunately, there may be significant start-up capital required in order to go solo. What tools do you need to buy? Do you need to buy a van? The costs can quickly stack up. We recommend drawing up a list of expenses which you will have to pay for in your first year to give yourself full visibility.
Pro #2 - Variety
Running your own business can provide a significant variety in your work. Unlike most employed jobs where you will take on one role or project at a time, as the owner, you will likely have to cover various projects, roles and talk to lots of different clients. The increased flexibility and variety is a common reason why many tradesmen end up deciding to run their own business.
Con #3 - Admin
While some people excel at admin tasks, we still find it hard to believe anyone enjoys them. In general, there will be a significant increase in admin tasks involved with being a business owner, as opposed to an employee. You’ll need to stay well informed about many things including regulation changes, tax changes, employment law etc. While this might sound daunting, keeping organised is key to success and there are lots of free business resources available to help you keep on top of administrative responsibilities.
Pro #3 - Financial Benefits
There are certain tax and financial benefits to running your own business. While it’s integral that you remain compliant, you’ll often work out financially better off working self-employed carrying out the same work. Accounting and tax is a tricky aspect of the business and we’d recommend speaking to our tradesman accounting specialists.
Con #4 - Risks
Becoming self-employed and running your own business naturally has risks associated with it. In addition to the pressure of attracting new customers, you also have to consider when things might go wrong - damage to property, injury to a member of the public or a dispute with a subcontractor. In these events, the responsibility lies with you to deal with any complications and financial implications.
Luckily, we are here to help with some of these potential issues and our tradesman insurance will protect you and your business should something go wrong.
Pro #4 - Working with us!
Ok - so we’re stretching things a bit including ourselves as a pro. However, as a specialist tradesman insurer we talk to tradespeople every day and understand their needs and challenges. Not many industries have a dedicated insurance provider like us! Our highly rated, 5 star service means you’ll have expert protection on hand if a problem arises.
Should I go Self-Employed?
Overall, it is clear that there’s a lot to think about when going self-employed and our list doesn’t cover everything. We’d recommend thinking methodically about what you want now and in the future, and be prepared to tackle some of the “dirty jobs” along with the more enjoyable tasks. Make a business plan and try to be as comprehensive as possible - and definitely give us a call when you’re thinking about insurances!