A business plan sounds like a corporate exercise - but for a tradie or small service business, it is simply a document that keeps you moving in the right direction. Most working business owners do not need forty pages of market analysis; they need a clear one-pager they can actually refer back to. This guide gives you a fill-in-the-blanks template you can complete in under an hour.
This guide is general information for NZ businesses, not financial advice - check business.govt.nz or a licensed adviser for your situation.
Why a one-page plan beats forty pages
A forty-page business plan is written for a bank or investor. A one-page plan is written for you. If you are a plumber, painter, electrician, or any other tradie starting out or trying to grow, the value of a business plan is not the document itself - it is the thinking you do to fill it in.
A tight one-pager forces you to get clear on what you charge, who your customers are, and what it actually costs to run your business. Once you are done, you can check back on it whenever you feel like you have lost direction. You can also use it if you ever need a loan or want to bring someone on board.
business.govt.nz has official NZ business plan templates if you need something more detailed for a bank application. If you are still sorting your business structure, read sole trader vs company and how to start a business in NZ before you dive in.
How to use this template
Copy the headings below into a Word doc, Google Doc, or a notes app. Fill each section in honestly - rough numbers are fine to start. Come back and update it every six months, or whenever something in your business changes significantly.
1. Business summary
What to write: One or two sentences describing your business - what you do, who you do it for, and where you operate.
Example: 'We provide residential electrical installations and repairs across the Wellington region. Our focus is fast, reliable service for homeowners who want licensed work done right.'
Your business summary: [Write 1-2 sentences here]
2. What you do - services
What to write: List your main services. Keeping it specific means you can price each one properly and turn down jobs that do not fit.
Example:
- New builds and rewires
- Switchboard upgrades
- Heat pump installations
- Fault finding and emergency callouts
Your services: [List 3-6 services]
3. Your market and customers
What to write: Describe your ideal customer and the area you work in. Think about who tends to call you, what their problem is, and why they would pick you over a competitor.
Example: 'Primary customers are homeowners in the Hutt Valley who want a licensed electrician they can trust. Secondary market is small landlords needing compliance work.'
Your customers: [Describe them here]
Your area: [Suburb / city / region]
Your point of difference: [Why would a customer choose you over someone else?]
4. How you will win work - marketing
What to write: List the two or three ways you plan to get most of your work. Word of mouth is valid - but write down what you will do to keep it flowing.
Example:
- Ask every happy customer for a Google review
- Keep a Google Business Profile updated with photos and hours
- Run a small Facebook ad in slow months targeting local homeowners
- Follow up past customers every 12 months with a check-in message
Your marketing plan: [List your 2-4 main channels or actions]
5. Pricing and rates
What to write: Write down your standard charge-out rate and how you structure pricing. If you are not sure what to charge, use our charge-out rate calculator to work backwards from what you need to earn.
Example:
- Hourly rate: $95 + GST
- Call-out fee: $75
- Materials: cost plus 15%
- Fixed-price quotes for jobs over $500
Your rates: [List your standard rates here]
If you are registered for GST, quote consistently - either all GST-exclusive or all GST-inclusive. Use our GST calculator to double-check your invoices before you send them.
Markup vs margin: what's the difference
These two get mixed up constantly, and mixing them up costs you money. Markup is the percentage you add on top of your cost price to set your sell price. Margin is the percentage of the final sell price that is profit. They sound similar but the maths is different: if something costs you $100 and you add a 20% markup, you sell it for $120 - but your margin is only 16.7% ($20 profit / $120 sell price), not 20%.
This matters most when pricing materials on a quote. If you want a 20% margin (not markup) on a $100 materials cost, you need to sell it for $125, not $120 - because margin is measured against the sell price, not the cost price. Mixing the two up is a common way tradies quietly underprice materials on every job. Use our charge-out rate calculator to check your numbers, and see managing cashflow as a tradie for how thin margins compound into cashflow problems.
6. Operations and tools
What to write: Note the key equipment, software, and systems you need to run your business day to day. This helps you spot gaps and budget for the right kit before problems hit.
Example:
- Ute (owned) - serviced and WOF current
- Xero for invoicing and GST returns
- Job management app for scheduling and quoting
- Phone for site photos and customer communication
Your tools and systems: [List what you need or already have]
7. Money - startup costs, cashflow, and break-even
What to write: List what it costs to get started (or your ongoing fixed costs), estimate your monthly revenue target, and work out your break-even point. Rough numbers are fine.
Example:
One-off startup costs:
- Vehicle: $18,000
- Tools: $4,000
- Licensing and registration: $800
- Website and software setup: $500
Monthly fixed costs:
- Vehicle loan repayment: $450
- Insurance: $180
- Software subscriptions: $90
- Phone: $60
- Total: $780 per month
Break-even: At $95 per hour, covering $780 in fixed monthly costs takes roughly 9 billable hours - before paying yourself anything.
The contractor take-home pay calculator helps you work out how much you need to bill to hit a target take-home wage. For keeping your books healthy once you are trading, read managing cashflow as a tradie.
Your startup costs: [List and total here]
Your monthly fixed costs: [List and total here]
Your break-even (hours or jobs per month): [Calculate here]
8. Risks and insurance
What to write: List the main things that could go wrong in your business and the cover you have - or plan to get - for each one. Insurance is not an afterthought; it is a core part of any solid business plan.
Example:
| Risk | Impact | Cover |
|---|---|---|
| Injuring a customer or damaging their property | High | Public liability insurance |
| A customer claims your work caused a financial loss | Medium | Professional indemnity |
| You are sick or injured and cannot work | High | Income protection |
| Tools stolen from the van | Medium | Tools and equipment cover |
| Vehicle off the road | Medium | Business vehicle insurance |
Not sure what applies to your trade? Start with our guides on types of business insurance and business insurance by profession. Before you skip this section because premiums feel expensive, read about the risks of running a business uninsured - one claim without the right cover can end a small business.
Your risks and cover: [Fill in the table above for your own situation]
Frequently asked questions
Do I need a business plan to start trading in NZ?
No - there is no legal requirement to have a written business plan to operate as a sole trader or company in NZ. But having one, even a rough one-pager, helps you think through pricing, costs, and customers before problems arise. If you apply for a business loan or overdraft, your bank will almost certainly ask for one.
Where can I find an official NZ business plan template?
business.govt.nz has free business plan templates built specifically for NZ businesses. They are more detailed than this one and are useful if you need to present a formal plan to a bank or investor.
How often should I update my business plan?
Review it every six months or whenever something significant changes - you take on staff, add a new service, move into a new area, or your costs increase. A plan you never update quickly stops being useful.
How do I work out what to charge?
Your rate needs to cover your fixed costs, the hours you will actually bill (not all 40 hours a week are billable), and leave enough for tax and a decent wage. Use our charge-out rate calculator to work through it properly, and read managing cashflow as a tradie for the bigger picture.
Should I set up as a sole trader or a company?
Most tradies start as sole traders because it is simpler and cheaper to get going. A company gives you some liability protection and can look more professional to larger clients, but it adds compliance costs and paperwork. Read our sole trader vs company guide to work out which option suits your situation.