The demand for handymen in Australia is not about to go down anytime soon. As housing infrastructure across the country continues to register an upswing, handyman requirements are bound to grow. In such a scenario, having your own handyman business can reap substantial rewards in the long run.
However, how do you go about setting up your handyman business in Australia? If you want to know the answers, read on. This post will take you through the step-by-step process of setting up a handyman business in the Land Down Under from scratch.
1. Pick a business structure
During the ideation stage, the most important thing is to select a business structure. Most handyman businesses in Australia are sole traders. In a sole trader structure, you would be personally liable in terms of debts or damages it causes. Setting up sole trader businesses is cheap and does not involve many formalities, which makes it an attractive option for handymen.
However, you could also consider setting up your handyman business as a company or trust. If you take this route, your business will be considered a separate legal entity. This means you will not be personally liable in case the company fails to pay its debts. At the same time, starting a company is more complicated compared to a sole trader structure owing to compliance regulations.
2. Australian Business Number (ABN) application
Every existing business in Australia has an Australian Business Number (ABN). So, before you get your handyman business up and running, you need to apply for one. You can apply for an ABN on the official website of the Australian government.
Successful applications typically receive ABNs within a matter of minutes. After you receive your ABN, the Australian Business Register (ABN) will add you to its catalogue. At this point, you should also consider getting trade insurance for giving your business financial coverage. Find out more here.
3. Set up a business bank account
Following the completion of all ABN formalities, it’s time you opened a bank account exclusively for your business. You can also opt to use your personal bank account for business purposes. However, it would be best for your business to have a separate account.
Here are a few reasons why an exclusive business bank account is better than using your personal account:
- Personal liability limitation
- Enhanced legal protection
- Simplification of accounting workflows
- Better business credibility
- More effective for lending or business credit purposes
4. Decide on your services
Most handymen offer a wide range of services such as:
- Appliance repair
- Installation and maintenance of tiles
- Interior and exterior painting
- Window repair
- Replacement of fixtures
- Power washing
Many provide several more services depending on their demand across the locations they serve. It’s up to you as to how many services you want to provide. You could either specialize in a handful of services or offer them all if your business has the manpower.
5. Invest, invest, and invest
Handymen rely on numerous tools that allow them to provide their services efficiently. The most commonly-used tools handymen leverage include:
- Power drill
- Circular saw
- Angle grinder
- Orbital sander
- Power washer
- Heat gun
Ultimately, the tools you need boil down to the services you want to offer. You should also consider investing in a vehicle as you would need to rapidly move from one location to another.
6. Fulfil your tax registration obligations
No business in Australia can operate without paying taxes to the Australian government. So, as a business owner, it’s also your responsibility to get your business registered for tax purposes. Tax registration and licensing costs vary across states. You should carefully go through the rules and regulations that are applicable based on the state you want to set up your business.
Alternatively, you could hire a tax consultant or agent to handle these obligations for you. Of course, this would involve greater costs as you would have to pay the consultant or agent. Irrespective of how you want to approach this, you should set some money aside so you don’t run into licensing or tax registration hiccups.
7. Draft employee and supply agreements
Last but not least, you should pay attention to employee and supply agreements. These agreements are aimed at protecting both your business along with its employees and suppliers. If you have decided to operate as a sole trader, employee agreements are not necessary. You can reach out to contract lawyers if you want expertise in drafting the agreements.
Well, that’s about it, all the steps you need to take for getting your handyman business in Australia up and running. After you have successfully set up your business, it’s time to aggressively promote it, especially across the locations your business intends to serve. Here’s wishing you all the best for your business!