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How to Start a Welding Business: 6 Steps to Strengthen Your Idea

Starting a new business is never easy as there’s a lot to juggle—you must meet all the administrative, financial and legal requirements, but if you’ve got the drive and skills, nothing is impossible. 

If you been excited at the prospect of starting a welding business, then this post is for you and the tips and steps will help you start one from scratch, minus the overwhelm.

Follow this post to learn the basics required to start your new welding business!

Table of Contents

What is a Welding Business?

A welding business deals with metal as repairs, restores, and assists building of a variety of items. The scope of a welding business can be quite great. From metal fabrication to plasma cutting, there are a range of services you can provide to a variety of different customers with different needs. 

Getting Started: The Pre-Planning Steps 


When understanding how to start a small welding business you need to research what equipment you will need as well as how much it will all cost. This is a great first -step in ensuring that everything is in order. 

Firstly, you must find a supplier who will provide all your equipment basics and other materials which you will use for each customer. Secondly, you must consider the type of fixtures you will need to operate your business. 

Your business research should help you find the best deals to optimise the profitability of your business.


When trying to figure out how to start your welding business location is key.  You can start your welding business from home but you need to consider how this will affect the clients you are able to serve. 

Develop a Welding 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, as a welding shop,, 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:

Source Insurance 

Insurance is arguably the most important step when setting up your business. It is vital that you protect yourself and your business from any legal action.  Public liability insurance with companies like BizCover can help you protect your property and your employees from damage or injury. 

Like any construction work, welding has a high rate of accidents, therefore it is important to be covered. You will need a type of public liability insurance, this will be beneficial for you and your business when customer or staff experience injuries. 

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

To ensure that your business runs smoothly as it expands you will want to consider hiring additional staff when starting a welding business. 

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. You can learn more in the Webinar below:

Marketing Your Business

To help you attract customers, you may want to implement a wholistic marketing strategy sos you can reach the people that need your help. 

This will allow you to gain insight into your target market and what services you need to provide. It will also be beneficial in helping you understand what is the most effective marketing method to reach your target market. 

Starting a social media page or putting an advertisement in your local newspaper are both great ways to start getting your name out there. 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

When starting any business you should always check if you a licence to weld at home or in a shop. As welding is a form of trade work you will be required to have a licence before you do any work, For example in NSW,, any work that is valued at more than $5000 (inc. GST) in labour and materials. 

You will need to acquire either a contractor licence or qualified supervisor certificate to operate your welding business. 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.

The relevant qualification necessary to become a licensed welder is a Certificate III in Engineering – Fabrication Trade.

There is an Australian Welder Certification Register which provides what constitutes best practice for your welding business. 

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 welding business. One of our Experienced Lawyers can provide you with all the legal information and requirements necessary for your business to succeed. 

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