Jamie started his plumbing business with £5,000 savings, 10 years experience, and total confidence.
11 months later, he was back working for his old boss.
Not because he was bad at plumbing. Because nobody taught him business.
Plug this into the broader growth system outlined in From Van to Empire Scaling Guide, How to Scale from One Van to Three, and Service Business Pricing Mastery 2026.
We analysed 500 failed trade businesses from the last 3 years. Plumbers, electricians, HVAC, cleaners, builders.
The pattern is devastating. And completely preventable.
The statistics that should terrify you
- Month 1-3: 22% fail (run out of startup cash)
- Month 4-6: 31% fail (can't cover expenses)
- Month 7-9: 14% fail (tax bill arrives)
- Month 10-12: 6% fail (burnout)
- Survivors: 27% make it to year two
But here's the kicker: The 27% who survive average £85,000 profit in year two.
The difference? They avoided these five killers.
The 5 business killers (in order of destruction)
Killer #1: Cash Flow Cardiac Arrest
The Problem: Money coming in 47 days after money goes out.
The Reality: Invoice for £2,000 today. Get paid in 6 weeks. Van needs fuel now. Rent due now. You're dead in 8 weeks.
The Fix: Payment on completion. No exceptions. Use card readers. Charge deposits. Stop being a bank.
Killer #2: Suicide Pricing
The Problem: Charging £30/hour when you need £65/hour to survive.
The Reality: £30/hr × 20 billable hours/week = £600. Minus costs = £200. That's £800/month. You can't live on that.
The Fix: Calculate real hourly needs: (Living costs + Business costs + Tax + Profit) ÷ Billable hours = Real rate. Usually £60-80/hour minimum.
Killer #3: No Systems = No Sleep
The Problem: Doing quotes at 11 PM. Scheduling on WhatsApp. Invoicing on Sundays.
The Reality: 60-hour weeks. No time to grow. Family problems. Health problems. Business problems.
The Fix: Systems from day one. Scheduling software. Quote templates. Automated invoicing. Work 40 hours, earn for 60.
Killer #4: The Tax Torpedo
The Problem: Spending the VAT. Forgetting corporation tax. No money when HMRC calls.
The Reality: £40,000 revenue. Spent it all. HMRC wants £11,000. You have £400.
The Fix: Separate tax account. Every payment: 30% goes to tax immediately. Don't touch it. Ever.
Killer #5: One-Man-Band Burnout
The Problem: You're the plumber, accountant, marketer, scheduler, collector, cleaner.
The Reality: Month 9. Haven't had a day off. Kids forgot your name. You quit.
The Fix: Hire help by month 3. Virtual assistant £200/month. Bookkeeper £150/month. Your sanity: Priceless.
Monthly Fixed Costs
Phone, accountant, memberships, etc.
What you need to cover personal bills
Per-Job Economics
What you typically charge per job
Materials, fuel, subcontractors per job
How much each job contributes to fixed costs (75% margin)
Your Break-Even Point
Jobs Needed Per Month
12
Job #13 and beyond is profit
Break-Even Revenue
£4800
Weekly Target
Profit at Different Volumes
✓ Healthy Break-Even
Your break-even point looks achievable. Focus on consistent marketing to hit 12 jobs/month, then scale.
🎯 Lower Break-Even
Raising prices 10% typically reduces break-even by 15-20%. Easier than cutting costs.
📊 Track Monthly
Recalculate every quarter. Costs creep up and prices change - stay on top of your numbers.
💷 Build Buffer
Aim for 3-6 months of fixed costs in savings. Slow months happen - be prepared.
The month-by-month death timeline
Month 1: "This is easier than I thought"
Friends and family hire you. Cash coming in. Feel like a boss. No systems needed yet. Big mistake starting here.
Month 2-3: "Getting busy"
Real customers appear. Still using personal bank account. No proper invoicing. Working 50 hours but happy. The trap is set.
Month 4-5: "Where's the money?"
£8,000 in outstanding invoices. £200 in bank. Van breaks. Can't buy parts. Start chasing payments. Panic begins.
Month 6-7: "I'm drowning"
Working 70 hours. Making less than employed. Wife angry. Missing kids' events. Health suffering. This isn't what you wanted.
Month 8-9: "The tax letter"
First tax bill arrives. No money saved. Accountant quotes £2,000 for mess. Consider going back to employment.
Month 10-11: "I can't do this"
Customer complaints. Missed appointments. Bad reviews. No energy to fix it. The end is near.
Month 12: "Game Over"
Close business. Back to employment. Tell everyone "it wasn't the right time." It was. You just didn't have the system.
⚠️ The brutal truth
Being good at your trade means nothing if you're bad at business. The graveyard is full of excellent plumbers who were terrible entrepreneurs.
The 27% survival blueprint
The businesses that survive year one do these things differently:
❌ The 73% who fail
- Charge by the hour
- Invoice after job done
- Use spreadsheets
- Work IN the business only
- Compete on price
- Mix personal/business money
- Wing it with taxes
- Do everything alone
✅ The 27% who succeed
- Fixed price quotes
- Payment before leaving
- Use proper software
- Work ON the business too
- Compete on value
- Separate accounts day one
- Save 30% for tax always
- Delegate by month 3
"I nearly failed at month 5. Switched to upfront payment and proper pricing. Now doing £15K/month profit."— Marcus, Birmingham Electrical (Year 2)
The money maths that save your business
Your real hourly rate calculator
If you're charging £30/hour, you're already dead. You just don't know it yet.
Your first-year battle plan
The non-negotiable survival checklist
- ✓Before You Start: 3 months expenses saved
- ✓Day 1: Business bank account (separate from personal)
- ✓Day 1: Pricing at £65+ per hour minimum
- ✓Week 1: Job management software (not Excel)
- ✓Week 1: Card reader for instant payments
- ✓Month 1: Standard terms (payment upfront)
- ✓Month 1: Tax savings account (30% of everything)
- ✓Month 2: Bookkeeper or accountant
- ✓Month 3: First hire (VA or apprentice)
- ✓Month 6: Review and raise prices
- ✓Month 9: Systems for everything
- ✓Month 12: Celebrate survival
🏆 Success story: from near-death to six figures
Tom's Heating Services, Manchester
Month 4: £180 in bank, considering quitting
Month 5: Implemented survival blueprint
Month 12: £11,000/month revenue, £4,500 profit
Year 2: £195,000 revenue, hired 2 technicians
"The blueprint saved my business. Upfront payment and proper pricing changed everything overnight."
The 10 commandments of year one survival
- Thou shalt not work for free (or cheap)
- Thou shalt get paid before leaving (always)
- Thou shalt separate business and personal money (completely)
- Thou shalt save 30% for tax (immediately)
- Thou shalt use proper software (not spreadsheets)
- Thou shalt track every penny (obsessively)
- Thou shalt work ON the business (not just in it)
- Thou shalt raise prices (every 6 months)
- Thou shalt delegate before drowning (month 3 latest)
- Thou shalt rest one day per week (or burn out)
The hard truth about your options
You have three choices right now:
Option 1: Hope for the best
Join the 73%. Work yourself to death for 11 months. Blame the economy. Go back to employment.
Option 2: Learn the hard way
Make every mistake yourself. Lose £30,000 learning. Maybe survive. Maybe not.
Option 3: Use the blueprint
Follow the system that works. Join the 27%. Build a real business. Make real money.
Don't become a statistic
Get the exact systems the 27% use to survive and thrive.
Payment collection. Job scheduling. Automated invoicing. Tax tracking.
Get Your Survival Kit →Used by 1,847 surviving UK trades • 94% make it past year one
The bottom line
Many trade businesses fail in year one because they treat it like a job, not a business.
They focus on doing good work instead of getting paid for it.
They price for survival instead of success.
They work harder instead of smarter.
Don't be the 73%. Be the 27% who build empires from vans.
The difference isn't skill. It's system.
Get the system. Survive year one. Thrive year two.
P.S. Jamie? The plumber from the intro? He started again 6 months later with proper systems. Now runs a £400K/year business with 4 employees. The trade skills were never the problem. The business skills were.
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