Best places to start a trades business in the UK

February 22, 2024 Neel Achary Business Comments Off

In the midst of the UK’s cost of living crisis, starting a business may seem like a daunting prospect. However, despite the economic challenges, launching a startup can still be a promising endeavour.

In fact, 361,775 new businesses were formed (ONS figures) in the past year in various niches.

But which UK cities are the best for a niche startup?

The experts at money.co.uk business analysed cities nationally on factors including job listings and planning applications to indicate demand, and the average salary of said trades in the areas to reveal the best cities to start a trade in.

The best UK cities for a niche startup:

City	Trade	Planning applications decided	New builds completed	Job listings	Annual Google searches	Average salary	Overall score /10
Reading	Plumbers	408	214	12.7	2,448	£40,073	7.52
Reading	Electricians	408	214	33.5	1,334	£41,332	8.07
London	Builders	693	238	11.6	676	£53,316	8.21
Edinburgh	Painters and Decorators	747	482	7.0	420	£30,538	8.28
Edinburgh	Tilers	747	482	2.1	1,214	£28,138	8.00

The best city for plumbers to start a business is Reading, with a start-up score of 7.52 out of 10. Reading has a high number of Google searches for plumbers per 100,000 people (2,448). The town also has a relatively high number of job listings for plumbers (12.7 per 100,000 people) and boasts an average plumber salary of £40,073.

Reading is also the best city to start an electrician business, with an overall score of 8.07/10. Reading has the highest number of job listings for electricians per 100,000 people (33.5), suggesting a robust sector for electricians. The average salary (£41,332) and Google searches per 100,000 people for electricians (1,334) are also high.

London is the best city in the UK to start a construction business, with an overall score of 8.21 out of 10. Ranking highly for both the number of planning applications decided at 693 per 100,000 people and the average salary for builders at £53,316.

Edinburgh is the best city overall to start a painting and decorating business, with a start-up score of 8.28. The city has 747 planning applications decided per 100,000 people and 482 new builds per 100,000 people, implying a healthy demand for painters and decorators.

Edinburgh is also the best city to start up a tiling business, with an overall start-up score of 8 out of 10. It boasts many planning applications decided and an average salary for tilers of £28,138.

Kyle Eaton, business expert at money.co.uk business insurance, offers his tips for launching a business:

Market research: Understand your market thoroughly. Know your competitors, your target audience, and what needs your product or service will fulfil that currently aren’t being met. This isn’t just about understanding your competitors and target audience but also about knowing where to get the best deals for the supplies or services you need. By comparing prices and quality from different suppliers, you can ensure that you’re getting the best value for your money, which is crucial when every penny counts in the early stages of a business.
Business plan: Develop a comprehensive business plan. This should include your business model, value proposition, marketing and sales strategies, financial projections, and an operational plan.
Legal structure: Choose the appropriate legal structure for your business (sole trader, partnership, limited company, etc.). This decision will affect your tax obligations and personal liability.
Finances: Secure funding if needed. This could be through savings, bank loans, angel investors, or venture capital. Also, maintain a strict budget to manage your cash flow effectively. Shopping around for the best prices can help you reduce overheads and increase your profit margins. It’s also applicable when securing funding – compare terms from different banks or investors to ensure you’re getting the most favourable conditions.
Compliance: Ensure you know all the legal requirements, including registrations, licenses, and permits. This includes registering with Companies House and HM Revenue and Customs (HMRC).
Brand identity: Create a strong brand identity. This includes your business name, logo, and overall brand aesthetic. Your brand should communicate your business’s values and appeal to your target audience.
Online presence: Establish an online presence. In today’s digital age, having a user-friendly website and active social media accounts is crucial for reaching customers and building your brand.
Networking: Build a network of contacts and relationships within your industry. Attend industry events, join relevant organisations, and engage on professional social platforms like LinkedIn.
Mentorship and advice: Seek mentorship and advice from experienced business owners. Their insights can help you avoid common pitfalls and accelerate your growth.
Adaptability: Be prepared to pivot your strategy as you gather real-world experience with your customers and market conditions change. Flexibility can be a significant competitive advantage.
Customer focus: Always keep the customer at the centre of your business decisions. Providing excellent customer service and listening to customer feedback is vital for long-term success.
Mindset: Keep a positive, resilient attitude. You will encounter challenges and setbacks, but persistence and a willingness to learn from mistakes are crucial to success.

“Remember, launching a business is a marathon, not a sprint. Take the time to plan carefully, but also be prepared to learn and adapt as you go.”

About Neel Achary 22445 Articles

Neel Achary is the editor of Business News This Week. He has been covering all the business stories, economy, and corporate stories.