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Young Motor Traders: Your Role in ‘Broken Britain’

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Your Role in ‘Broken Britain’  and How to Get a Fair Insurance Deal

As youth unemployment continues to be a problem in the UK, some young workers are following the mantra ‘when there are no jobs, create your own job’ and setting up on their own in the motor trade in order to earn a living.

Between March and May 2013, 21.4% of Brits aged 16-24 were unemployed, according to figures from Parliament. Since then, the government has committed to a variety of schemes aimed at generating work for young people and bringing that figure down.

One of these schemes, known as the Youth Contract, was launched in April to provide more direction for job-seeking 18-24 year-olds, including support when looking for apprenticeships. However, the scheme has been heavily criticised and even said to be ‘on course to miss its target by 92%’.

Whereas the overall picture for unemployment in Britain has started to look slightly better – a decrease of 4,000 was recorded between April and June – the amount of unemployed 16-24 year olds spiked by 15,000 during this same timeframe.

Creating your own motor trade career…

Meanwhile, some people in this age group are simply not relying on government aid and are looking to generate their own income, using their skills in verticals like motor trade.

There is support out there for young entrepreneurs and when it comes to motor trade, there are plenty of roles in which to specialise, so it’s a smart option for some.

Whereas a certain group may choose to carve out a career-path in engineering, by becoming a freelance mechanic, others may follow a much more accessible (and potentially more lucrative) route in the short term, such as second-hand sales or even mobile car valeting.

Either way, the aim is to generate a healthy revenue stream and so a certain level of business acumen is required on top of their trade skills.

You might well have both.

Maximising profits as a start-up in motor trade…

In regards to maximising income, you can do things like working extra hours, marketing yourself effectively using your natural social media nous (a skill almost exclusive to younger generations) and charging lower rates than your local competition.

Maximising income is not easy. And it’s often only those who jump into the self-employed pool with both feet that make a success out of it. Thankfully, minimising outgoings (particularly in the start-up phase) can be a much simpler task…especially when it comes to insurance.

So – the business insurance quote. It can smack the ambition out of a young entrepreneur in a second and potentially derail your entire business plan. It’s a genuine obstacle, as a lot of providers don’t specialise in covering under 25s.

See, if you’re under 25, then you’re statistically much more likely to be involved in a road accident. The mechanic, second-hand dealer and mobile car valeter, all need to frequently access vehicles in their roles – some of which belong to customers.

For this reason, your first motor trade insurance quote can be gravely unaffordable. Still, without the cover there is no business. And without the right type of cover there is no protection should the worst happen.

You need low-cost and adequate insurance to make that first real step towards self-generated success.

The answer?

Get on-board with a broker who specialises in motor trade insurance for under 25s – a real-life, human representative who takes the entire specification of your business into account, draws up a unique custom policy and actively negotiates the quote for you.

At the same time, these brokers can offer advice on how to keep future quotes to a minimum (i.e. gaining certain qualifications, selecting the right type of premises/vehicle storage etc.).

Running your own business is never going to be easy but once you’re in the entrepreneurial mind-set and have the inside-knowledge on how to keep certain outgoings to a minimum, you can make a hell of a start.

Hopefully, if more youngsters choose this path, we could start to see the youth unemployment trend officially bucked – by the actions of the youth themselves.

What do you think? Do you have any more moneysaving tips of your own? Have your say on our Google Plus comment feed here.

 

by David Hambridge