
Thinking about starting your own carpentry business?
Here’s what you need to know.
Whether you’re a first-year apprentice or you’ve been on the tools for a decade, every tradie chasing a bigger payday faces this question sooner or later: ‘Should I go out on my own?’
It’s a tough call. Taking the leap to become a subcontractor or run your own business comes with its fair share of financial risks. It’s exciting but can also be bloody daunting—especially if you’re not sure where to start.
Whether you’re ready to dive in or are keen to plan, here’s a straightforward guide to the basics.
Is going out on your own right for you?
Before you throw in your job, ask yourself this:
Can I handle the ups and downs of ad hoc work?
The jobs might not roll in straight away, and you’ll need some financial security to keep the lights on while you build up the work.
Let’s break it down into a few simple steps to get your business off the ground:
- Register an ABN as a sole trader.
- Check if you need a licence for the work you plan on doing (in most states you need a Builders’ Licence) – scroll down.
- Get public liability insurance.
- Chase those job leads.
These are the 4 things that will get you on your way.
Do You Need a Licence?
Most likely, yes. Regulations and requirements vary state to state, with NSW requiring a builder’s license for any work that exceeds $5,000 in labour and materials. This threshold in Victoria doesn’t start until a value of $10,000 is reached.
Make sure you check what is required in your state, and if you’re not sure, give us a call. Failure to obtain the necessary builder’s license can result in severe penalties, including fines up to $250,000 or imprisonment for up to one year.
You can also look up your state’s building authority for more details:
– ACT: ACT Gov Planning
– QLD: Queensland Building and Construction Commission (QBCC)
– NSW: NSW Fair Trading
– NT: Building Practitioners Board
– SA: Plan SA
– TAS: Consumer, Building & Occupational Services
– VIC: Victorian Building Authority
– WA: DEMIRS
Not sure the best way to go about it? Let us give you a call & talk you through it.
Sole Trader vs Company
Starting out? Keep it simple. Setting up as a sole trader is fast, cheap, and easy:
- Apply for an ABN (it’s free).
- Register a business name if you’re not using your own name.
Remember: If you’re turning over more than $75,000 a year, you’ll need to register for GST and file quarterly Business Activity Statements (BAS). It’s a bit more paperwork but nothing an accountant can’t help you with.
Thinking of going big with a partnership or company structure? Chat with an accountant first to see if it’s worth it for you.
Get Insurance.
Going solo means the buck stops with you. If something goes pear-shaped, you could be liable for serious damages. That’s why public liability insurance is a must—it protects your assets if the worst happens. Our mates at imar will sort you out.
Make sure you cover your tools, your vehicle, and yourself. Without sick leave or workers’ comp, personal accident insurance is a lifesaver if you get injured and can’t work.
Build Your Brand
If you’re subbing for builders, you might not need much marketing. But if you’re chasing your own clients, you’ll need to put yourself out there:
– Pick a solid business name and register it – make sure the domain name isn’t taken.
– Get the matching domain name.
– Get a logo and print some business cards that embody the work you do (e.g. decks, pergolas etc).
– Set up a Facebook/Instagram page for your business.
– Build a website (even a basic one works).
– Consider getting your work ute wrapped with your business / work types / contact details. You never know who’ll pass you on the street & take note.
Stay on Top of Your Accounts
Many tradies start with a DIY approach—think Excel spreadsheets (or worse, nothing at all). But if you’re serious about your business, invest in accounting software like Xero or MYOB.
Better yet, get an accountant or bookkeeper on board from day one to set you up right and keep your tax / payroll stress to a minimum.
Not sure where to start? Send us an enquiry and we’ll hook you up with
Growing Your Business
Once you’re set up, the big question is: Do you want to stay solo or build a team?
Some tradies can’t wait to get off the tools and manage a crew, while others prefer to keep it simple—just you, you tools, and a ute. Both paths have their pros and cons, so it’s all about what works for you. If you reach a point where you’re ready to grow your business nextminute may be the software to help you step this up.
At the end of the day, going out on your own is a big step but can be a game-changer if you’re ready for the challenge.
Take it one step at a time, ask for advice, and you’ll be sweet.
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