Starting a Trades Business? 7 Things to Do First

The idea of starting a business appeals to many people for a variety of reasons. Often, those considering a business believe they will find freedom and wealth as a business owner. For those working in the trades, starting a business is a traditional thought. Many tradies spend their apprenticeship dreaming about becoming their own boss. As exciting and rewarding as the idea sounds, budding business owners must remember that a great deal of know-how and general knowledge is needed to start a business and see it last long enough to succeed.

In this guide, you'll find seven things to sort out before you start operating your trades business.

1. Decide on the type of business you are building

Generally, many tradies start out as sole traders. If you plan to operate your business as anything other than a sole trader business, please consult professionals for advice. The government's business.gov.au site lists these key elements of a sole trader business structure (business.gov.au, Sole trader, read 21 October 2026):

What works in a sole trader's favour

• Simple to set up and operate
• Full control of your assets and business decisions
• Fewer reporting requirements, and usually inexpensive to set up and run
• You use your individual tax file number (TFN) to lodge tax returns

What to weigh up

• Unlimited liability: all your personal assets are at risk if things go wrong
• You can't split business profits or losses with family members
• You are personally liable to pay tax on all the income the business earns

Being a sole trader can have both advantages and disadvantages when operating a business.

2. Get a licence if necessary

Many trades require licensing, but the requirements differ from state to state. You will need to know which licence you must have, as well as the conditions you must meet to qualify for it.

3. Sign up to get your Australian Business Number (ABN)

The ABN is the 11-digit number identifying your business to the Australian government. You will need to register an ABN before naming your business.

4. Name and register your business

If you plan on using your own name for your business, you do not need to register it. However, before naming your business, take a few moments to check whether the name is available, not only as a business name but also as a trademark and a domain name.

5. Register for GST and keep good records

Registering for GST is optional for some small businesses, but you must register for GST once your GST turnover reaches the threshold the ATO sets, or you expect it to. Check the current threshold with the ATO.

Set up your records before your first job. You are legally required to keep records of all transactions relating to your tax, super and registration affairs, such as receipts, invoices and other documents for your business income and expenses, and you need to keep most records for 5 years (ATO, Overview of record-keeping rules for business, last updated 18 June 2026, read 21 October 2026).

6. Begin the work of marketing and branding your business

While you do not want to sink a lot of capital into this area of your business, skimping here can be costly. Exactly how much is enough for you depends on your business as well as your connections. If you're a painter and expect to get most of your business from other tradies, you may not need to put much time, money or effort into marketing or branding. However, if you're starting an electrician's business, you should consider putting effort into your marketing, so you stand out from the pack. If you will be doing marketing on your own, here are a few basic necessities to get started:

• Register a domain name to match your business
• Design a logo or have one professionally designed
• Print your business cards, and if you like, stationery with a company letterhead
• Create a website. You can build a basic one yourself, or pay a designer to help you stand out.
• Build a social media presence. It is worth the time and effort to make business pages on Facebook, Instagram, X or LinkedIn. Be sure to pay attention to your social media accounts and interact.

7. Sort out your insurance

Good insurance cover matters for a sole trader. Remember, unlimited liability means just what it says: as a sole trader you are legally responsible for all aspects of your business, including its debts and losses (business.gov.au). Your business and personal assets are on the line if something goes wrong and you are not insured for it. Talk to a broker who arranges tradies insurance, such as Tradies365, about the cover your work calls for.