Owning a business is a dream for thousands of Aussies—especially for tradies keen on breaking free from the boss and calling the shots.
Whether it’s chasing bigger bucks, gaining more independence, or just taking on a fresh challenge, the idea is enticing.
But when it comes to making that dream a reality, there’s a crucial choice to make: start a business from scratch or buy one that’s already up and running?
Well, the decision isn’t as cut and dry as you would think. After all, whether you’re rocking steel-capped boots or wielding a paintbrush, the right business move can make all the difference in shaping your future.
Starting from scratch
If you’re the kind of tradie who loves a challenge, starting a business from scratch could be right up your alley. It’s all about turning your vision into reality, crafting a brand that reflects your values, and setting yourself up as the go-to in your trade.
Let’s dive deeper into what makes this option both exciting and demanding.
Ultimate creative freedom
When you start your own business, it’s like building a dream home—you’re in charge of every detail. Want to focus on eco-friendly materials? Specialise in high-end renovations? Or maybe create a one-stop shop for tradie services?
The direction is entirely up to you. There’s no need to untangle someone else’s legacy or fix a tarnished reputation.
Build a brand
From the name on the ute to the tone of your social media, everything is yours to shape. You can design a logo, establish your values, and develop a unique selling point (USP) that sets you apart in the market. It’s your chance to create something that customers will remember and trust.
Room to innovate
The tradie industry is evolving fast—new tools, greener practices, and smarter technology are shaking things up. Starting fresh gives you the flexibility to embrace innovation, use cutting-edge tech, and carve out a unique niche.
Whether it’s going paperless or specialising in electric vehicle infrastructure, you’ve got room to blaze a trail.
The tough stuff to watch out for
Massive time sink
Starting a business is no walk in the park. Forget 9-to-5; it’s more like 24/7 in the early days. You’ll be wearing all the hats—marketing, accounting, quoting, and actually doing the work.
Show me the money
Most tradies are no strangers to budgeting, but getting a new business off the ground can drain your wallet fast. You’ll need to invest in equipment, materials, branding, and possibly even a workspace.
Banks can also be hesitant to lend to startups, so you might have to rely on savings or convince family and friends to back you.
Risk of burnout
When it’s your business, the pressure is all on you. It can feel like there’s no off-switch, and that’s a fast track to burnout. Juggling client expectations, chasing invoices, and perfecting your craft can quickly wear you down.
No guarantees
Here’s the hard truth: plenty of startups don’t make it. It’s a competitive world, and breaking into an established market takes time.
In the last year alone, the Australian Securities and Investment Commission (ASIC) estimates that recent cost pressures and market conditions have seen over 3000 building companies go bust.
If you’re going to beat the odds, you’ll need to be patient, adapt quickly to challenges, and stay motivated even when things don’t go to plan.
Buying an existing business
For tradies who want to own a business without the teething pains of starting from scratch, buying an existing business can be a game-changer.
Whether it’s taking over a local plumbing company, a successful building business, or a franchise that’s already firing on all cylinders, this option gives you a head start.
Let’s dig into the perks and challenges so you can see why this path is so popular.
Instant cash flow
Unlike starting from scratch, buying an established business often means there’s already money coming in.
The customers, jobs, and processes are in place, so you could see a profit as soon as you take over. It’s a dream come true for anyone who wants to skip the stress of building a client base from zero.
Established brand recognition
Taking over a business with a known name gives you a massive advantage. Customers already trust the brand, suppliers have relationships in place, and the groundwork has been laid.
Whether it’s a family name or a franchise with a national presence, you can leverage that credibility to grow the business further.
Less financial risk
A business with a proven track record is a safer bet. You’re not gambling on an idea—you’re investing in something that’s already been working. As long as you do your due diligence (more on that below), you can avoid many of the risks that come with a startup.
Easier financing
Banks and lenders are more likely to say yes to a loan for an established business than a startup. The business’s financial history shows its earning potential, and lenders are much happier to back something with predictable revenue.
Time-saving expansion
If you’re looking to grow quickly, buying an existing business—especially a franchise—can speed up the process. You’re stepping into a system that’s already set up, so scaling up to new locations or expanding services is much easier than starting from scratch every time.
The challenges
Inherited problems
When you buy an existing business, you’re not just taking over the wins—you’re also inheriting any baggage. This could mean unhappy customers, outdated systems, poorly maintained equipment, or even financial debts. A thorough review of the business is critical to avoid nasty surprises.
Valuing the business accurately
Figuring out what a business is truly worth can be tricky. It’s not just about the current profits but also the potential for growth, market conditions, and the value of assets like equipment and vehicles.
If the seller has overpriced the business, you could end up paying more than it’s worth.
Adjusting to existing systems
Stepping into someone else’s business model means adapting to how they’ve been doing things. It’s not always easy to change processes, update technology, or introduce new services without disrupting the business or upsetting long-time customers.
Making changes without upsetting the flow
Even if the business is successful, you might want to make improvements. However, introducing changes too quickly—like raising prices, rebranding, or cutting costs—can cause friction with customers and staff.
Finding the right balance between maintaining what works and introducing your vision is key.
So, which way should you go?
So, what’s the verdict? It all comes down to your personality, goals, and financial situation. If you’ve got a killer business idea and the grit to build something from scratch, starting your own biz could be your shot at greatness.
But if you’re ready to skip the teething issues and dive into a well-oiled machine, buying an established business might be the smarter play. It’s no wonder so many tradies are opting for this route—there’s less risk, quicker rewards, and a solid foundation to build on.
Take the time to weigh the pros and cons. No matter what you choose, owning a business can be the ultimate way to put your skills to work and create the future you’ve always wanted.
