You’ve spent years — maybe decades — building your trade business. Early mornings, late nights, quoting, chasing payments, and keeping clients happy. But have you thought about what happens when you’re ready to hang up the tools?
For a lot of Aussie tradies, there’s no clear plan. They hope to sell the business “one day,” but when that day comes, they realise there’s nothing to sell — just a phone number, some gear, and a list of clients in their head.
That’s not a business; that’s a job.
Experts from The Finance Shed says it straight:
“If your business can’t run without you, you don’t own a business — you own a job with expenses.”
The goal of Exit Plan for Trade Business isn’t just to walk away — it’s to build something valuable, something that rewards you for the years of sweat you’ve put in.
Here’s how to prepare your trade business for sale and make sure it’s worth something when you’re ready to move on.
What Is an Exit Plan (and Why You Need One)?
An Exit Plan for Trade Business is your roadmap for eventually stepping away from your business — whether that means selling it, passing it on to family, or simply winding down and retiring comfortably.
It answers questions like:
- Who would buy my business?
- What is it actually worth?
- How can I make it attractive to a buyer?
- When should I start preparing?
Most tradies don’t think about this until it’s too late. But the truth is — your exit plan should start years before you leave. The earlier you start, the more valuable your business becomes.
In CARE Model, this is the E – Exit pillar: planning ahead so you can cash out, not burn out.
Step 1: Build a Business That Can Run Without You
The first thing a buyer looks for is independence.
If every client calls you directly, if you do all the quoting, or if the business falls apart when you take a week off — you haven’t built a sellable business yet.
What Buyers Want to See:
- A team or systems that handle jobs without you.
- Documented processes for quoting, invoicing, and scheduling.
- Clear roles — admin, onsite, and client management.
- Reliable subcontractors or staff.
Start delegating early. Even if it’s just admin or quoting, build systems that keep things moving without your personal input.
“The more replaceable you are, the more valuable your business becomes.”
Step 2: Keep Clean, Digital Financial Records
If your bookkeeping is a shoebox of receipts and handwritten invoices, no serious buyer will touch it.
A trade business is only as valuable as its verifiable numbers.
Buyers (and banks) will want:
- At least 3 years of digital financial records (Xero, MYOB, or QuickBooks).
- Clear Profit & Loss statements showing consistent margins.
- BAS and tax compliance.
- Proof of recurring clients and predictable cashflow.
Clean books make your business:
- Easier to value
- Easier to sell
- More attractive to lenders (if the buyer needs finance)
If you ever plan to sell, start now — switch to cloud accounting and treat your business like you’re already preparing it for someone else to buy.
Step 3: Build a Loyal, Transferable Client Base
Buyers don’t just buy your tools or logo — they buy your client relationships.
But if those relationships only exist between you and the client, they’re not transferable.
How to Fix It:
- Use a CRM or job management app (like Tradify, ServiceM8, or simPRO) to store client info, job history, and contact details.
- Have clients engage with the business brand — not just you personally.
- Introduce key staff or supervisors to clients, so relationships exist beyond you.
- Maintain repeat work agreements or long-term maintenance contracts.
A buyer wants to know that once you walk away, the clients (and cashflow) don’t walk away with you.
Step 4: Diversify and De-Risk Your Income
A business that relies on one big builder or contract is risky — for you and for any potential buyer.
If that single client cancels or delays payment, the whole operation stalls.
To build stability:
- Spread your work across multiple clients or sectors (domestic, commercial, maintenance).
- Avoid over-reliance on one client or project type.
- Keep consistent, repeatable work — e.g., service or maintenance jobs.
- Document your major clients and job types to show income diversity.
Buyers love steady, predictable income. It signals security and lower risk.
Step 5: Value Your Business the Right Way
Tradie businesses are typically valued using a multiple of profit — often 1 to 3 times your annual net profit, depending on how well-structured and independent the business is.
Factors That Increase Value:
- Stable, documented earnings
- Loyal, transferable clients
- Good reputation and online presence
- Solid systems and trained staff
- Minimal debt and legal risk
Factors That Decrease Value:
- Irregular cashflow
- “Cash jobs” and missing records
- Owner-reliant operations
- No recurring clients
Example:
If your business consistently makes $150,000 profit per year, and it’s well-structured, you might sell for 2× profit = $300,000.
If your income is patchy or all in cash, that value might drop to less than half.
“Hidden cash might save you a little tax now, but it kills your business value later.”
Step 6: Start Exit Planning Early
Exit Plan for Trade Business isn’t a last-minute scramble — it’s a long-term strategy. Ideally, you should start 3–5 years before you plan to sell.
Why Early Matters:
- You’ll have time to clean up your books.
- You can improve profit margins and client mix.
- You’ll be able to show consistent results to buyers.
- You can structure your business to reduce tax on the sale.
An accountant or financial advisor (like The Finance Shed) can help you plan the best way to extract value — whether that’s through a business sale, asset sale, or gradual handover.
Step 7: Don’t Forget Succession Planning
Not every tradie wants to sell to a stranger. You might want to pass the business on to a family member, business partner, or key employee.
If that’s your goal, you’ll need:
- A clear succession plan outlining who takes over and when.
- Training and mentoring to prepare them.
- Legal agreements to protect everyone involved.
- Updated insurance and superannuation to support your transition.
Even if you plan to hand it over, your business should still be sale-ready — because that’s what gives it real, measurable value.
Step 8: Keep Building Assets Outside the Business
A good exit plan doesn’t rely 100% on selling the business. You should also build personal assets — superannuation, property, and investments — while you’re working.
This way, even if your business doesn’t sell for top dollar, you’ve still got long-term wealth.
Think of it as the “A – Assets” pillar of the CARE model working hand-in-hand with “E – Exit.”
Expert’s Take — “An Exit Plan Is a Business Plan in Reverse”
Expert from The Finance Shed puts it best:
“Most tradies start their business without a plan for how to finish it. But if you build it with the end in mind, every decision you make — from invoicing to hiring — adds value.”
You don’t need to be planning retirement tomorrow. You just need to start thinking like a buyer — because that’s how you’ll build a business that’s worth something when you’re ready to step away.
Conclusion:
The first time your business pays you is when you earn a wage.
The second time — if you plan right — is when you sell it.
A tradie business with clean books, loyal clients, and solid systems can sell for hundreds of thousands of dollars.
A business without those things? It disappears when you stop working.
So, ask yourself — if you walked away tomorrow, what would your business be worth?
Start planning your Exit Plan for Trade Business now, and when the time comes, you’ll have something to show for every early start and late night you’ve put in.
“Work hard now — but make sure you’re building something you can one day sell.”