1. What Is a Trade Business?
A trade business involves offering skilled manual services like plumbing, carpentry, electrical work, roofing, or decorating. These businesses serve homeowners, commercial clients, or contractors.
2. Choose Your Trade Specialism
Focus on a service you’re trained or experienced in:
- Plumbing and heating
- Electrical installation
- Bricklaying or roofing
- Painting and decorating
- Joinery or plastering
- Landscaping or gardening
3. Get Qualified and Certified
While not all trades legally require certification, most clients expect proof of qualifications:
- NVQ/SVQ Level 2 or 3 in your trade
- City & Guilds or BTEC courses
- Register with recognised bodies:
- Gas Safe Register (for heating engineers)
- NICEIC or NAPIT (for electricians)
- CITB for construction training
4. Register Your Business
Choose a legal structure:
- Sole trader: Easy to set up, minimal paperwork
- Limited company (Ltd): Offers liability protection
- Partnership: For shared ventures
Register with:
- HMRC for tax and self-assessment
- Companies House (if forming an Ltd company)
5. Get Insurance
Protect yourself, your clients, and your business with:
- Public liability insurance
- Professional indemnity insurance
- Employer’s liability (if hiring staff)
- Tool and van insurance
- Personal accident or income protection cover
6. Buy Tools and Equipment
Invest in reliable trade tools, safety gear, and transport (e.g., a work van). Many trades use lease or hire options for expensive equipment.
7. Set Up a Business Bank Account
Keep personal and business finances separate by opening a business account—mandatory for limited companies.
8. Build a Pricing and Quotation System
Offer quotes that include:
- Labour costs
- Material expenses
- VAT (if applicable)
- Timeline and payment terms
Use tools like QuickBooks, Xero, or simple Excel templates to manage quotes and invoices.
9. Market Your Trade Business
- Design a logo and create business cards
- Build a simple website with service details
- List your business on directories: Checkatrade, Rated People, MyBuilder
- Use local SEO and Google My Business
- Ask customers for reviews and referrals
- Promote on social media (Facebook, Instagram)
10. Grow Through Reputation and Referrals
Word-of-mouth is vital in trade:
- Show up on time
- Finish jobs to a high standard
- Communicate clearly with clients
- Offer aftercare or warranties
Frequently Asked Questions
What do I need to start a trade business?
Skills, certification (if required), insurance, tools, a van, and a solid business plan.
Can I start a trade business with no money?
Start small with basic tools, offer services locally, and reinvest your earnings. Grants or loans may help.
Do I need to be VAT-registered?
Only if your turnover exceeds £90,000/year (2025 threshold). Below that, it’s optional.
Is a website necessary?
Yes—many clients search online first. A simple, mobile-friendly site builds credibility.
How do I get customers quickly?
Use local directories, social media, flyers, and ask for referrals from friends or family.
Can I hire subcontractors?
Yes, but ensure contracts are in place and insurance covers them.
Conclusion
Knowing how to start a trade business means combining your skills with business basics—registration, pricing, marketing, and customer care. With solid planning and dedication, your trade business can thrive and grow steadily in the competitive UK market.