The construction industry is a mecca for tradies, employing more than 1.1 million of them. The latest data shows it’s an industry where tradies typically earn a weekly wage of $1280 – about $66,560 annually.But according to Service Seeking’s Tradie Rich List 2020, almost one in 10 tradies pockets over $200,000 annually. One way to earn that sort of money can be to start your own business. And there are good reasons to consider taking the plunge today.Australia is in the midst of a building bonanza. A recent report from the Housing Industry Association (HIA) shows the number of housing starts recorded by the nation’s top 100 builders in 2020-21 was the highest in the past 28 years, and nearly 20% higher than the previous record set in 2016-17.![how to start your own business as a tradie]()
“A record volume of detached home building and renovations is occurring,” says HIA economist Angela Lillicrap. “All regions across Australia are reporting an acute shortage of skilled trades, and all trades are in short supply.”That’s good news for anyone who makes a living with tools, says Daniel Wessels, founder of Jacaranda Finance, one of Australia’s largest privately owned finance providers. He adds that if you’re a tradie with in-demand skills, chances are there’s never been a better time to strike out on your own.“With Australia’s home building and renovation boom expected to continue until 2023, becoming self-employed is an attractive option for tradies who want to maximise their earnings,” he says.Going solo can be personally and financially rewarding. But kickstarting a business calls for careful planning.Sort your set-up costsA potential stumbling block for tradies setting up shop can be finding the cash to bring the new business to life, including shelling out for tools and equipment that were previously supplied by an employer.“If you don’t have the cash to buy everything you need upfront, an unsecured loan can be one way to get your hands on the gear you need to get going,” says Wessels. “Your cash flow, credit score and time in business will help to determine how much you can borrow and the lending terms and conditions.”Source
