How to Start & Set Up Your
Trade Business
A step-by-step, practical guide for new tradies and service business owners to launch their business properly — from registration to getting paid.
Disclaimer: This guide is for general information only and does not constitute legal, financial, or accounting advice. Requirements vary by location. Always consult a qualified professional before making business decisions.
Choose Your Trade & Services
Before anything else, get crystal clear on what you offer and who you serve.
Choose your trade
Plumbing, electrical, HVAC, cleaning, landscaping, carpentry, etc.
Define your services
Emergency vs scheduled work, residential vs commercial, specialised vs general.
Identify your niche
E.g. 'Bathroom renovations' rather than 'General plumbing' — niches command higher prices.
Set your pricing model
Hourly rate, fixed price per job, or call-out fee + hourly. Research competitors in your area.
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Register Your Business
Make your business official. This protects you personally and gives clients confidence.
Guidance for United States
Choose a business structure
Sole trader / sole proprietor is the simplest to start. Company / LLC offers more protection as you grow.
Register your business name
Check availability and register through your country's business registry.
Apply for your tax number
EIN (Employer Identification Number)
Open a business bank account
Keep personal and business finances completely separate from day one.
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Licensing & Certifications
Staying compliant protects your customers, your business, and your reputation.
Identify required licences for your trade
Search your state/region licensing board website or ask your industry association.
Apply for trade certifications
Many trades require completed apprenticeships or formal qualifications.
Check local council permits
Some jobs require permits issued before work begins.
Set expiry reminders
Licences need renewal. Don't let them lapse — it can stop you from legally working.
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Insurance Setup
Insurance is not optional. One incident without coverage can destroy everything you've built.
Public Liability
Covers injury or property damage to third parties during your work. Usually required by clients.
Professional Indemnity
Covers claims of negligence or mistakes in advice or designs you provide.
Workers Compensation
Required if you have employees. Covers workplace injury costs.
Tool & Equipment Insurance
Covers theft or damage to your tools and gear — often your biggest asset.
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Set Up Your Finances
Get paid properly, track your money, and stay profitable from the start.
Set your pricing strategy
Calculate your cost per hour including overheads, then add your desired profit margin.
Define payment terms
Use deposits for large jobs, progress payments for long projects, and net-7 or net-14 for invoices.
Choose accounting software
Xero or QuickBooks are the industry standards. Connect them to Onwork for automatic sync.
Set up your invoicing process
Send invoices the same day the job is done. Every day you delay costs you cash flow.
Track expenses from day one
Every receipt matters. Tools, fuel, materials — these are all tax deductible.
💡 Best Practices
- • Always send written quotes — verbal agreements lead to disputes
- • Charge a deposit (20–50%) on larger jobs
- • Follow up on unpaid invoices after 7 days automatically
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Tools, Equipment & Suppliers
Having the right tools and reliable suppliers from the start prevents costly delays on the job.
List all required tools and equipment
Split into essentials (need on day 1) and nice-to-haves (buy when cash flow allows).
Source reliable suppliers
Get at least 2 quotes per product category. Relationships with good suppliers are invaluable.
Set up wholesale/trade accounts
Trade accounts often mean lower prices, credit terms, and priority service.
Track material costs per job
Materials cost can quickly eat your margins if you don't track them carefully.
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Build Your Online Presence
Customers Google you before they call you. If they can't find you, they'll hire your competitor.
Register a domain name
Something like yourbusinessname.com.au or .com. Keep it short and professional.
Create a simple website
Must-have pages: Home, Services, Service Areas, Contact. You don't need anything fancy.
Set up Google Business Profile
Free, essential. Shows your business on Google Maps and in local search results.
Add contact forms
Make it easy for leads to reach you — don't rely only on a phone number.
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Marketing Your Business
You need customers to survive. Start with 2–3 channels and do them well.
🏘️ Local Marketing
- •Flyers & letterbox drops
- •Vehicle signage & branding
- •Local business partnerships
🌐 Online Marketing
- •Google Ads (pay per click)
- •Local SEO (be found in search)
- •Directory listings (Yelp, Houzz, etc.)
📱 Social Media
- •Facebook (local community groups)
- •Instagram (before/after photos)
- •TikTok (job walkthroughs)
🤝 Word of Mouth
- •Ask every happy customer for a referral
- •Offer loyalty discounts for repeat clients
- •Partner with complementary trades
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Customer Management & Reviews
Repeat customers and referrals are your cheapest source of new business — treat every client like gold.
Collect customer details
Name, address, contact info, job history. You'll want this for follow-ups and future quoting.
Send quotes professionally
A professional quote builds trust before the job even starts.
Ask for reviews after every job
Send a follow-up message with your Google review link the same day you finish.
Respond to all feedback
Even a negative review responded to professionally shows future customers you care.
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Scheduling & Job Management
Stay organised, avoid double bookings, and stop losing jobs because of poor communication.
What you need to manage:
Common problems to avoid:
- ⚠️Missed appointments
- ⚠️Double bookings
- ⚠️Lost job notes
- ⚠️Forgetting follow-ups
- ⚠️Underestimating time per job
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Payments & Getting Paid Faster
Cash flow is the #1 killer of small trade businesses. Get this right from day one.
Offer multiple payment options
Bank transfer, card, tap-to-pay on site. The easier it is to pay, the faster you get paid.
Invoice immediately after the job
Don't wait until Friday. Every hour of delay is a day later you get paid.
Set automated reminders
Reminder at 7 days, 14 days, 30 days. Most late payers just forgot.
Take deposits upfront
30–50% for new clients or large jobs. Protects your cash flow and filters out time-wasters.
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Grow Your Business
Once you're stable, it's time to scale. Growth without visibility leads to chaos — track everything.
Growth steps:
📊 Key Metrics to Track
- →Revenue per job
- →Profit margin per job
- →Quote-to-win conversion rate
- →Average time per job type
- →Customer acquisition cost
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Disclaimer: This guide is for general information only and does not constitute legal, financial, or accounting advice. Requirements vary by location. Always consult a qualified professional before making business decisions.