Discussions of entrepreneurship often center those who have experience running businesses, like executives and managers. However, there’s another group of individuals who may also potentially benefit from starting their own businesses.
Blue-collar professionals who have no practical experience with the hands-on requirements of business operations are among some of the most successful entrepreneurs who branch out and start their own companies every year. Someone who has years of experience working with HVAC systems or installing bathroom tile could significantly increase their income by starting their own business instead of continuing to work as an employee for someone else company.
Many blue-collar professionals turn away from entrepreneurship because they fear financial losses and legal liability. The following are some of the risks for those aspiring to become their own bosses after working in a blue-collar profession. They don’t necessarily need to deter anyone’s dreams, but they should be carefully considered.
The complications of paperwork
Someone with limited or no experience running a professional office the frequently complex paperwork required to start a successful business. Entrepreneurs need to develop business plans that they can show to investors and financial institutions. They need to keep records of company operations and to negotiate contracts with workers. Blue-collar workers often need assistance getting the right documents together. Proper contracts, business plans and other paperwork make operating their business a possibility.
The financial exposure involved
Starting a new business means making a financial investment. It also means accepting a degree of financial liability. Business owners may need several kinds of insurance and a source of outside financing. They may also need to look at when they could be vulnerable if there are financial claims against the business. From insurance to taxes, there are many financial issues that entrepreneurs may need to address early in their days of business ownership.
The need for legal compliance
Numerous professionals ranging from crane operators to architects need to maintain a professional license issued by the state. Professionals who intend to hire workers in addition to relying on their own professional capabilities have to worry about complying with all employment laws. There may also be workplace safety regulations that they need to learn now that they aspire to be the boss rather than just a worker on a job site. An attorney familiar with the challenges of running a small blue-collar business could help someone identify the regulations that may apply to their budding organization.
Blue-collar professionals who get the right assistance when starting a business can focus on what they do best. Entrepreneurs who start out with the right systems and protections in place have the best chance of running a successful small business in the long-term.