If you decide to become a self-employed NatHERS assessor, here are the steps to set up your business:
1. Registering Your Business Name and Structure
First, you’ll need to decide on a business structure. Most self-employed NatHERS assessors operate as:
- Sole Traders: Easy to set up with full control over business operations.
- Companies: Offers limited liability protection (this option requires more paperwork).
Once you decide on a structure, register your business name through the Australian Business Register (ABR) at abr.gov.au. If you are a sole trader, you can trade under your personal name or a registered business name.
You’ll also need an Australian Business Number (ABN), which you can apply for online. The ABN is essential for issuing invoices, paying taxes, and claiming GST credits (if registered for GST).
Don’t forget to think about a website and domain name. These can be found and purchased cheaply via Go Daddy and other domain name service provders.
2. Get an Australian Business Number (ABN) and GST Registration
- ABN: All businesses in Australia need an ABN. You can apply for one for free through the Australian Business Register.
- GST: If you expect to earn over $75,000 per year, you’ll need to register for the Goods and Services Tax (GST). This requires charging 10% GST on services and lodging quarterly Business Activity Statements (BAS).
3. Insurance Requirements
Professional indemnity insurance is essential for NatHERS assessors to protect against legal claims resulting from your advice or assessments. Brokers such as Webber Insurance offer a specific policy for energy assessors.
You may also consider:
- Public Liability Insurance: Covers accidents or injuries involving clients or third parties during site visits.
- Income Protection Insurance: Provides financial support if you are unable to work due to illness or injury.
Check with industry associations or AAOs for recommended insurance providers.
If you have established a Company (Pty Ltd) you will also need Workers Compensation Insurance in the state where you are located.
4. Set Up a Business Bank Account
Even if you’re a sole trader, setting up a separate bank account for your business makes it easier to manage your finances. This will help with tracking income and expenses, lodging taxes, and meeting your reporting obligations.
5. Financial Management and Tax Obligations
- Invoicing and Payments: Use invoicing software like Xero or QuickBooks to manage payments efficiently.
- Bookkeeping: Keep track of all income and expenses to make tax time easier. You may choose to hire an accountant or bookkeeper.
- Tax Returns: As a sole trader, you’ll need to declare your business income on your personal tax return. If you’ve registered for GST, you must also submit BAS every quarter. Visit ato.gov.au for more information.
6. Marketing and Branding
Branding is essential to attract clients and stand out in a competitive market. Develop a professional logo and website to showcase your services. Create business cards and establish an online presence on platforms such as LinkedIn, Instagram, or Facebook to engage potential clients.
Tips for marketing your business:
- Build a Website: Use platforms like Wix or Squarespace to create a simple, user-friendly site. If you buy a domain name via Go Daddy you can also purchase a basic hosting and email package.
- Social Media Marketing: Share energy-saving tips and project updates to engage with your audience. Personal brand is critical to the success of your business – read more about building your personal brand here.
- Networking Events: Attend industry conferences and meetups to connect with builders, architects, and potential clients.
7. Setting Your Prices
Research the market rates for NatHERS assessments in your region to determine competitive pricing. Consider offering discounts for first-time clients to build your portfolio. You can charge per project, per hour, or offer package deals that include pre-assessment consultations and post-assessment recommendations.
Check out our blog post on pricing and also another about charging enough.
Established your own assessor business? Tell us in the comments below!
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