How to decide your target client type

Deciding who you want to work for is one of the most important first steps you’ll take. Your choice between working for domestic homeowners, commercial businesses, or public sector organisations will influence the type of jobs you do, how you find work, your pricing, and the paperwork you’ll need. This guide breaks down the three main client types to help you find the best fit for your new business.

Working for Domestic Homeowners

This involves carrying out work directly for people in their own homes. Think extensions, kitchen and bathroom refits, garden landscaping, or general repairs. It’s often the starting point for many new trade businesses.

• What to expect: Projects are usually smaller and shorter in duration. You’ll be dealing directly with the homeowner, which means communication is personal and decisions can be based on emotion as much as budget.
• The good bits: Payments are often quicker, sometimes in stages or on completion. Building a good local reputation can lead to powerful word-of-mouth referrals. The work can be varied and creatively satisfying.
• The challenges: Jobs are typically lower in value than commercial contracts. You might spend more time on quoting for smaller projects, and competition from other local tradespeople can be high.

Working for Commercial Businesses

This means your client is another business. Examples include office fit-outs, shop maintenance contracts, subcontracting for major housebuilders, or working on industrial units. You are a business-to-business (B2B) service.

• What to expect: Projects are often larger, more structured, and planned further in advance. You'll likely be dealing with a project manager, site manager, or business owner who is focused on budget, deadlines, and health and safety compliance.
• The good bits: Contracts can be for larger sums and may lead to regular, ongoing maintenance work. Clients are professional and less likely to change their minds on a whim.
• The challenges: Payment terms are much longer (30, 60, or even 90 days), which can impact your cash flow. There is significantly more paperwork, such as the need for detailed Risk Assessments and Method Statements (RAMS), and you will likely need more comprehensive insurance.

Working for the Public Sector

This involves winning contracts from government-funded organisations like local councils, schools, hospitals, or social housing providers.

• What to expect: Work is secured through a formal and highly regulated tendering process. You have to formally bid for contracts, demonstrating your competence, compliance, and value for money.
• The good bits: Contracts can be very large, long-term, and stable. Payment is generally reliable, even if it follows set schedules.
• The challenges: The bidding process (procurement) is complex, time-consuming, and bureaucratic. It’s very difficult for a new, small business to win these contracts without a proven track record and numerous accreditations.

How to Make Your Decision

Think about your own circumstances and goals:

1. Experience: Where has most of your past experience been? Play to your strengths.
2. Cash Flow: Can you afford to wait months to be paid for a commercial job, or do you need faster payments from domestic work to get started?
3. Scale: Do you want to manage large, complex projects, or do you prefer the satisfaction of smaller, quicker jobs?

It's often best to start by focusing on one primary client type. You can always expand later, but mastering one market first allows you to build a strong reputation, tailor your marketing, and become known as the go-to expert in that area.