To properly start your new plastering business (and make it a successful one) you must meet all the administrative, financial and legal requirements.
With so much to do, starting a business may get a bit overwhelming and to put you at ease, we have put together this guide that will take you through the steps involved in starting a plastering business from scratch!
Read along to know the 6 steps that will get you up and running in no time. We will cover everything from choosing the right business structure to tips on attracting new customers.
What is a Plastering Business?
The process of creating a plasterwork is called plastering and plasterers ( a tradesman) play a key role in the construction industry. Plasterers usually work alongside a team or often as solopreneurs in aiding wall plastering for protection or decoration purposes.
Getting Started: The Pre-Planning Steps
Research
Doing your research early on will ensure that everything is in order, when you launch your business. When starting a plastering business you are going to need equipments and tools, so understand what you will need and how much it will cost is a good first start.
You must also find a supplier who will provide all your equipment basics and other materials which you will use for each job.. Secondly, you must consider the type of fixtures you will need to operate your business, such as motor vehicles. Moreover, you should do your research to find the best deals to optimise the profitability of your business.
Location
It is important to choose an appropriate location where you can operate your business. This will affect who the clients you are able to serve.
Develop a Plastering Business Plan
Excellent planning will often lead to success. Using your research, you should develop a formal business plan to guide your business. This might include your:
- Business objectives and goals
- Business structure
- Target market
- Competition
- Marketing strategy
You can always seek assistance from a professional accountant or business lawyer to assist you with this, if you aren’t confident in developing a business plan yourself. It’s important to revisit and review your business plan regularly.
Determine your Business Name
Now you need to decide on a business name. Once you decide on your name, you can check the availability of the business name you have chosen.
If the name is available, you can then register your business as a trademark to ensure that you have the exclusive rights to your business name throughout Australia.
Determining your Business Structure
You will need to decide on a business structure to establish your business plan. Consider whether you will operate as one of the following.
- A sole trader is someone who owns and operates a business under their personal name.
- A partnership is when two or more people come together to form a business.
- A company is when you register your business as a separate entity from your personal affairs.
You should contemplate which structure will work best for your business goals. It is important to know what the legal ramifications are of each structure and how they can affect how you operate.
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Registering your Business
You need to register for a few things in order to make your business official. For instance:
- A business name
- An Australian Business Number (ABN) to help the Australian Tax Office (ATO) and customers identify your business.
- It would be good practice to also register your business as a company (ACN) so you can benefit from limited liability.
- Register your Tax requirements.
- Ensure that all relevant licences or permits are valid.
Source Insurance
Insurance is the most important step when setting up your business. It is imperative that you protect yourself and your business from any legal action. Firstly, you will need a type of public liability insurance, this will be beneficial for you and your business when customers or staff experience injuries on site or otherwise.
Public liability insurance from insurance companies such as BizCover can help you protect your property and your employees from damage or injury.
Additionally, you will want to ensure you have worker’s compensation set up for these instances. Finally, you will need a form of coverage for all your equipment to protect against loss, damage or theft.
Hire Employees
You will want to consider hiring additional staff to help ensure that your business runs smoothly, especially as it expands. You will need to decide how many employees you are looking to hire and what type of employment they will receive. Will they be full time, part time or casual workers?
You will then need the appropriate employment agreements drawn up and signed. There are different types of employees that you can hire, learn more about how they may affect your business in the Webinar below.
Marketing Your Plastering Business
Now all you need to have a successful business is customers. When considering how to advertise your plastering business to help you attract customers, you may want to implement a strategic marketing plan to cover all your bases. This will allow you to gain insight into your target market.
It will also be beneficial in helping you understand what is the most effective marketing method to reach your target market. Some marketing methods you may choose to use include starting a social media page or putting an advertisement in your local newspaper. Another simple and effective approach of reaching new customers is through word of mouth.
Having an online presence is important even for construction companies. Using websites like Shopify or GoDaddy can help you create a well-established business so that your customers can easily find you. Additionally, you should set up and maintain a website which means you need to consider any website terms and conditions to ensure that your customers are safe.
Considering the Law
Before starting any business you should always check if you require any licences or permits.
Moreover, you may ask yourself if plasterers need to be licenced? Well, to put simply as plastering is a type of trade work you will be required to have a licence before you do any work. For example in NSW you need a licence for any work that is valued at more than $5000 (including GST) in labour and materials.
To operate your plastering business you will need to acquire either a contractor licence or qualified supervisor certificate. A contractor licence allows you to contract and advertise to do work. While a qualified supervisor certificate allows you to supervise and do the work described on your certificate.
When trying to determine your plastering business description and how the law impacts it, it’s important to consider the two different types of plastering and how they apply to you.
Dry Plastering
Dry plastering as per schedule 4 of the Home Building Regulation 2014 is the internal installation of rigid building sheeting or boards, which are made of gypsum plaster set between and bonded to outer covers of cardboard.
Dry plastering includes:
- installing fibrous plaster;
- sheeting, boards, fibrous cement sheeting or boards;
- cornices, and
- false and suspended ceilings (not including work that provides structural support).
The qualifications needed for this can include:
- Certificate III in Wall and Ceiling Lining;
- Certificate Ill in General Construction (Wall and Ceiling Lining);
- Certificate Ill in Plastering Fibrous and Plasterboard; or
- Certificate III in Fibrous Plaster and Plasterboard.
Wet Plastering
Wet plastering means applying a mixture of lime, cement or gypsum plaster and/or sand and water to cover internal or external walls and ceilings which harden when dry. As with dry plastering, schedule 4 of the Home Building Regulation 2014 outlines the requirements for wet plastering.
The qualifications needed for this can include:
- Certificate III in Solid Plastering
- Certificate III in General Construction (Solid Plastering);
- Certificate III in Plastering Solid Trade
Legal Documents you will need
To get up and running, you should consider these legal documents so that you can protect your business. Some documents you should consider include:
- A Services Agreement can outline the service you provide so that your customer can know what to expect.
- A Employment Agreement can outline your employee’s responsibilities and their obligations to your business.
- A Sub-Contractor Agreement can be useful if you need to employ another business or sole-trader when operating your business.
How Lawpath Can Help
At Lawpath, we can help guide you through starting your own plastering business. One of our Experienced Construction Lawyers can provide you with all the legal information and requirements necessary for your business to succeed.
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