The best trade to start a business

Getting married and starting your own business have more similarities than you’d think. We’d say they’re up there with the biggest decisions you’ll make in life, both requiring deep commitment, shared vision, and hard work. Just as you’d have a list of green and red flags when choosing a partner, you’ll need to evaluate different trade business ideas to find the right industry for you.

When starting a business, you’ll want to feel confident that it has a chance to succeed. This guide will uncover the best trade to start a business, by revealing which business type is most successful amongst startups. We’ve looked into Companies House data to find the success rates of different trade businesses. We’ve also found the average daily earnings per trade to offer insight into the earning potential and profitability you could soon secure. 

Wherever you are in life, it’s never too late to make your business dream a successful reality. Read on to learn the most profitable trade business ideas, so you can choose a sector that reflects your interests and talents, and boosts your bank balance too. 

The most successful skilled trade businesses

On average, only 50% of startups last more than 3 years - which may sound disheartening, especially when you consider the investment and hard work that goes into entrepreneurship. But with plenty of preparation, a solid business plan and some self-belief, there’s no reason why you can’t start a business that thrives for the long haul. If you’re looking to boost your chances of business success, take a look at our guide of things to consider when starting a business, to help you survive past the three-year mark. 

When it comes to the best trade to start a business, plumbers took the top spot, with 58% of plumbing companies formed in 2021 still active today. Considering the plumbing industry brings in around £17.2 billion a year in the UK, it’s certainly a thriving industry to be a part of. Other top trade businesses that started in 2021 include glazing installers, with 57% of businesses still active today and carpenters with 53% of businesses still thriving. 52% of electrician businesses that formed in 2021 are still in business today, and landscapers are also top contenders, at 51%. 

Of course, becoming successful when starting a trade business isn’t all about money. There are several factors that can improve your chances of business success, including:

• A strong business plan: Your business plan is your entrepreneurial road map, there to guide you through the highs and lows of your business journey. A business plan is a written document, detailing every aspect of your business goals and how you’ll look to achieve them. If you’re looking to apply for a business loan, most banks will ask to see your business plan first to understand what you’ll use the money for. 

• Creating customer relationships: Building and maintaining strong customer relationships can encourage customer loyalty and repeat business. Try to maintain regular contact with your customers through marketing, newsletters and social media so they feel valued and appreciated. Make sure you provide good, helpful customer service to create a positive customer experience.

• Good branding: Prioritising marketing and branding can help you create a strong brand that your customers recognise. Without it, your customers won’t know you exist! Use social media to your advantage to spread your business’ message and connect with a wider audience. 

• Reputation in your local area: Your most loyal customers may be closer to home than you think. Connecting with locals can get your business’ name out there, as your customers may recommend your services to their network. Advertise your business locally and you’ll soon become the go-to tradesman for the job.

Anthony Fiske, a self-employed carpenter for over 40 years, claims his customer relationships are the key to his success: 

“In my experience, my success on a longevity front has been down to the local relationships I’ve built within my community. I’ll be the first to say I’m not hugely into local marketing, using platforms like Facebook to advertise. Firstly, I rely on my skills to get a job done to a high level, and secondly how approachable I am to clients. 

“I ensure communication is always kept at the forefront of the project which I’ve found clients really value. My number one takeaway from being a self-employed carpenter of over 40 years is to treat every client like they’re your first. Go above and beyond. Build relationships and do the very best you can at every job. You’ll see the benefits as calls come years down the line from the same clients who need some more work. Don’t underestimate client relationships.”

The least successful skilled trade businesses

The pandemic forced us all to slow down and find new ways to keep busy - and for many, that was through DIY and home improvements. DIY activities saw a huge surge across the UK during that time, with building equipment sales increasing by 31.4% and paint by 47.1%, compared to the same period the previous year. With this in mind, it’s likely that new skills learnt during the pandemic have encouraged Brits to carry out home improvements themselves, rather than paying for an expert to help. In fact, a report from American Express revealed that 50% of DIYers said they were confident with their DIY skills following the growth of tutorial videos on social media.

This surge in DIY home improvements may have a part to play in the least successful trade businesses. 61% of painter and decorator companies formed in 2021 have since dissolved, along with 49% of plasterer companies. There are likely to be several factors that have affected these industries and caused their closure. From rising material costs due to inflation and supply chain issues, to a reduced demand for these services, these DIY-specific businesses have taken a hit in the last few years. 53% of mechanic companies formed in 2021 have also closed, likely due to high running and startup costs affecting their sustainability.  

Which trade makes the most money?

If you’re looking to start a business, you’ll want to ensure it has strong earning potential. Knowing which trade makes the most money can help you assess whether your trade venture is sustainable and profitable, and be enough to replace your current income.

To help uncover the most profitable trade business, we’ve sourced the average daily earnings for popular trade professions from Checkatrade. While these are only estimated daily earnings, they should give an indication of the kind of income you could earn when starting your own trade business. 

Taking the top spot for average daily earnings were mechanics, at £480 per day, followed by electricians earning an average of £400 per day, and plumbers securing £347. Other profitable trade occupations include plasterers, glaze installers, landscapers and carpenters - all professions that require significant hands-on experience, training and knowledge. 

Some of the reasons these occupations are the most profitable may include:

• High demand: Many trade businesses provide services that are always in demand, such as mechanics and electricians. This need for skilled workers drives steady work and allows business owners a consistent income. 

• Skills and expertise: Trade jobs often require significant technical knowledge, certifications and training. This makes these businesses irreplaceable, as your customers rely on your expertise and you can charge premium rates. 

• Low overhead costs: As a tradesperson, you’re likely to have lower overhead costs compared to other types of businesses. This is because you won’t have a physical storefront, and your tools and equipment are typically one-time investments rather than ongoing costs.

• After-hours and weekends: You aren’t limited by the 9-5 as a tradesperson. In fact many skilled workers offer their services during evenings, weekends and holidays. You can often charge higher rates for out-of-hours services, further increasing your profitability. 

Set up your own trade business

There sure is a lot to think about when starting a business, and the last thing you need is to worry about the sustainability and profitability of your new venture. We hope this blog gives you some inspiration and ideas of which are the most successful trades to consider. 

Ready to set up your limited company and take the business world by storm? There’s no time like the present. Check if your business name is available and let SUAZ help you with the rest.