Lucas_Dad

I suppose a sole trader is a small business, but anyway ...

I've just set myself up as a sole trader, offering all kinds of IT/network support, health checks, upgrades, etc. My focus right now is mainly remote non-contact support, for obvious reasons. I have a website, accounts facility (waveapps.com), facebook page, twitter account, phone number, Skype account, desktop remote control service, all ready to go. Even bought some $4 shirts, designed and ironed on a company logo (plus "Microsoft Certified") for me and my little boys to wear (they love that they're advertising daddy's company!)

I did a soft launch last week - just made everything live and boosted a Facebook post to the local area. Today I received my first contact from the website though that hasn't resulted in paid work yet. Baby steps...

I haven't sorted out tax or got an accountant yet. (Any pointers would be great). I haven't sorted out any form of insurance yet, either. If/when I get and am paid for work I simply need to log this on Centrelink, and they'll adjust my JobSeeker benefit accordingly.

I recall my old dad saying years ago that when he set up his own business it was important to him to set up as a Ltd, as that protected him and the family from any personal liability. What's the equivalent here? As far as I can tell, that incurs many extra costs. For me to be a sole trader I got an ABN, and basically that's that, isn't it?

As usual, any and all help/advice/pointers/warnings all gratefully received! I don't know what I don't know.

Happy Easter and stay well

Dreamy

I'd make sure you had professional indemnity insurance in place before accepting any work. Sole trader is quicker and easier to set up, with a lower level of legislation and red tape. With that comes a higher level of personal risk, as if you're sued, everything you own is up for grabs. A PLC has way more red tape, costs a little more and is more tightly regulated - but it is a completely separate entity, so if the company is sued, your level of liability stops at the company assets.

Here's the government's take on it: Sole trader or PLC?
I'd really get professional help from the off - any half decent accountancy firm would be able to talk you through the pros and cons or sole trader/limited company, and offer advice on how to set up your business structure from the off either way. A lot of them may also offer an introductory consultation for minimal cost.

GarryP

OK. to answer the main question, there are advantages to being a Ltd company, both in terms of the supposed limits to your personal liability (many eroded by governments) and to the taxation (as a sole trader your earning get taxed as income, whereas as a Ltd company it gets taxed in its own right). In Australia setting up a Ltd costs more in time and hassle than it does in the UK - making it less advantageous. I'd see if you can make any money first, before jumping.

Second, your offering sounds nebulous. A 'bit of computer support' is OK, and you may be able to get some work that way, but it's generic. You need to get certain in the value proposition you can make.

Personally, at the moment, I'd have a specific offering targeting 'home working', given the upheaval. There are a variety that come to mind, H&S audits of home workspaces and mobile support to home workers - both paid for by the company. I might also look at 'professional lighting setup for webcam' to selling additional lighting/sound setups to 'make you look better online'. Or '4G backup networking installation' for the NBN. The key part is offerings that take little effort to set up, no extra effort to run, and that can test this new marketplace to find where the pain is. You are looking for pain, and for companies to pay to fill it.

And finally, soft launches are all very well and good, but in the end you have to go to potential customers, they don't tend to come to you. You need well defined niche offerings, you need credibility, and you need to play the odds.

PS Professional Indemnity Insurance is unfortunately a must. Not because they will ever pay out, but because you are required.

Lucas_Dad

Thanks Dreamy and GarryP.

I have indeed targeted home working right now - perhaps not as well as I can, but that's down to experience. My web page home screen shows 'remote secure non-contact support' as a headline. I will get on to insurance. I have looked into it, but haven't sorted anything yet.

GarryP

First rule of SEO club. Always make sure the terms people would actually be searching for are on the page. And I'll be "remote secure non-contact support" isn't on the list of search terms.

astera

You need to be careful with choosing the right structure because Australia is a bit weird on this. The last time I did some research there was something called PSI which you might want to look into. https://www.ato.gov.au/business/pers...i-rules-apply/

This might have a bearing on whether you can just use a ltd structure or not.

Lucas_Dad

It sure is

At least I think it is ... I'm waiting for a mate who is a web designer to spare some time to double check my efforts.

Lucas_Dad

Useful read. Thank you

astera

Considering today's times it might be useful to include a number of services, some of which though would require a personal visit to the premises. I don't suppose too many people would be looking for support with their laptops/PCs let alone upgrading them in the way they used to do in the past, but I can think of some other services worth offering to rake in the $$$:

- setting up secure router mesh networks to cover the entire premises (incl. outdoor areas). And/or setting up a router (incl. mesh) that could be remotely managed by yourself (such as Google Wifi) which would be great for older people who don't want to worry about security/maintenance/downtime.

- setting up internet cameras to cover the premises according to the customer's needs/desires. Home monitoring is really gaining traction and lots of non-tech people don't want to handle this themselves.

- similarly to the above, but setting up the new doorbell-type devices for people in addition to other cameras.

Either way, there should be lots of things to do and btw I really liked Garry's idea about "audits of home workspaces and mobile support to home workers" as well as 4G backup networks in case of regular service interruption.

GarryP

Duty of care on home workers is a real issue. Some solve it by getting you to fill in a form, some to take pictures of your workspace, but a bulk cost for going round and doing the dirty for a company is viable as a service.

I think there is a real hole in the market for making the sound and vision for a video conference look and sound good. Better camera, better microphone, better lighting, etc.and setting it up right is the gap in the market of the moment.

BTW I would always look at services you can sell companies to make their workers better, rather than selling to people directly. Much easier to get $10-15k out of a company than it is to get it out from an individual.

Smart home has potential, but as always with commercially focused offerings - people are hard work.

Oh, and while I remember it, online solution for ordering and delivery are going to be 'hot' going forward. A lot of those shops aren't going to reopen.

carcajou

It pays to consult someone specialising in sole trader set-up like RSM. Don't trip over pennies when it could cost you Dollars - a half-hour consult could save you big down the road.