As a tradesperson, the chances are that you’re living on a comfortable salary and get by with recommendations from friends, family, and satisfied clients. But if you’re ready to take your business to new heights, you’ve come to the right place. According to one report, tradies earn, on average, more than university graduates, with some electricians commanding an annual salary of more than £150,000. Are you ready to earn more? Good! We’ve rounded up everything you need to know if you want to generate additional income from your business.
Market your business online
One of the biggest mistakes you can make as a tradesperson is to assume that you’ll always have the same trickle of customers coming back to you. Un fortunately, the industry is more competitive now than ever before, and so you should always be on the lookout for ways to find new clients. Build your online presence by launching a website, setting up social media channels, and investing in search engine optimisation. You should come up on the first page when someone searches “electrician in York,” for example – it takes time but pays dividends.
Offer additional services
What other skills could you add to your bow? If you install kitchens and bathrooms, you could charge an extra fee for interior design work, putting together mood boards and concepts of new kitchen designs before you get started. As an electrician, you could branch out into other services, such as working with businesses as well as consumers. Look for an opportunity to grow and tap into a new market; you’ll soon be able to expand your business.
Make payments more straightforward
If you’re tired of chasing payments from clients, you’re not alone. Tradies spend countless hours sending out invoices, calling clients for an update on money-owed, and occasionally missing out on payments after a client disappears off the face of the earth. PongoPay is a construction payments service designed to make life easier and save time; download it today and start accepting payments in a new way, reducing late payments and unpaid invoices.
Consider putting your prices up
When did you last see what your competitors were charging? Do some competitor research and work out whether or not you’re charging an appropriate amount for your services. If you haven’t increased prices in a few years, now might be the time to add an extra £5 or £10 per hour to your asking price; it’ll soon add up and help you put some money away for a holiday!
Take on an apprentice
One of the best ways to build your business is to take on another member of staff, and an affordable way to do that is with an apprentice. Not only do you get to inspire the next generation of tradespeople and give them a foot up in the industry, but you’ll pay much less than you would a full-time member of staff, and their apprenticeship will last a year or two, so you don’t have to commit to a new employee permanently. The best part is that you can give your apprentice the jobs you don’t want to do, allowing you to focus on higher-paying tasks.
Transition from sole tradership to a limited company
Another way to reduce your tax implications and earn more money is to transition from sole tradership to a limited company. Consider doing the same with your own business; sure, it’ll take some work in the early stages, but it’s worthwhile in the long-run.
Do you have any other ideas? Let us know and check back soon for more advice on running a successful business, whatever industry you work in.