Realistic startup costs for a single-operator Canadian trade business run somewhere between $10,000 and $50,000 or more in the first year, depending mainly on the trade and on whether you already own a suitable vehicle. The vehicle is by far the biggest variable: most of the spread between the low and high numbers below is whether you are buying a truck or van or already have one. The figures here are ranges and estimates, not fixed quotes; your actual costs depend on your trade, your province and what you already own.
Why these are ranges, not a price list
Tool requirements differ enormously between trades, prices move, and a used truck can cost anywhere across a wide band depending on condition and market. Treat every figure below as a realistic range for a solo startup, excluding your own living expenses. Insurance, registration fees and WCB premiums also vary by province, so confirm those locally rather than relying on a single number.
Plumber (residential service)
- Hand tools and a basic plumbing kit (pipe wrenches, tubing cutters, channel locks, levels): $2,000 to $5,000
- Power tools (drill, reciprocating saw, press tool): $2,000 to $4,000
- Truck, used half-ton or three-quarter-ton, if not already owned: $15,000 to $35,000
- Truck fit-out and racking: $1,000 to $3,000
- General liability insurance ($2 million): $1,500 to $2,500 per year
- WCB registration and first premium: $500 to $1,500
- Business registration and BN: a modest fee; confirm the current amount with your provincial registry
- Accounting software and first-year accountant: $1,500 to $3,000
- Website, Google Business listing, basic marketing: $500 to $1,500
- Starting inventory (fittings, common parts): $1,000 to $3,000
- Total without a truck: roughly $10,000 to $20,000. With a truck purchase: roughly $25,000 to $55,000.
Electrician (residential)
- Hand tools (screwdrivers, wire strippers, testers, pliers): $1,500 to $3,000
- Power and test equipment (multimeter, clamp meter, drill, fish tape): $2,000 to $5,000
- Truck: $15,000 to $35,000
- General liability plus errors and omissions insurance: $2,000 to $3,500 per year
- WCB registration: $500 to $1,500
- Licensing and certificate maintenance (annual certificate renewal, plus exam fees if not yet certified): a few hundred dollars; confirm with your provincial trade authority
- Contractor/electrical authority licence where your province requires one: confirm the current fee with the provincial electrical authority
- Accounting and business registration: $1,500 to $3,000
- Total without a truck: roughly $8,000 to $16,000. With a truck purchase: roughly $23,000 to $50,000.
Carpenter or general renovator
- Hand tools (hammers, chisels, squares, saws, levels): $1,000 to $2,500
- Power tools (circular saw, mitre saw, router, nailer, drill set): $3,000 to $7,000
- Van or truck: $12,000 to $30,000
- Trailer, optional, for site deliveries: $2,000 to $5,000
- General liability insurance: $1,200 to $2,000 per year
- WCB registration: $400 to $1,200
- Accounting, software, registration: $1,500 to $3,000
- Total without a vehicle: roughly $8,000 to $18,000. With a vehicle purchase: roughly $20,000 to $48,000.
General contractor or small construction business
General contractors sub out most trade work and focus on project management, so their tool spend is lower, but their working-capital needs are much higher because they fund materials and labour before the client's progress payments arrive.
- Basic site tools and safety equipment: $2,000 to $5,000
- Vehicle: $15,000 to $35,000
- General liability insurance ($2 million to $5 million): $2,000 to $4,000 per year
- Builder's risk insurance, per project, roughly 1 to 3 percent of contract value: variable
- WCB registration: $500 to $1,500
- Working capital (about three months of overhead plus a materials float): $20,000 to $50,000
- Accounting, legal, incorporation: $3,000 to $7,000
- Project management software: $300 to $600 per year
- Total capital required: roughly $45,000 to $105,000 or more.
Where the money really goes
Across every trade, the same few line items dominate. The vehicle is the single biggest swing. Insurance is an annual cost you cannot skip, since most general contractors will not let you on site without $2 million of general liability. For a general contractor, working capital matters more than tools: you need a cushion to carry materials and crew until the client pays. Budget for the slow start, too. Few solo operators are fully billable from week one, so carry a few months of personal living costs separately from these business figures.
Common mistakes
- Treating ranges as exact. These are realistic bands, not quotes. Price your actual kit and get real insurance and WCB figures for your province.
- Forgetting working capital. Especially as a general contractor, running out of cash to fund materials before payment is what sinks otherwise busy businesses.
- Underinsuring to save money. Skipping or under-buying liability cover saves a little now and can end the business with one claim.
- Buying every tool on day one. Buy what the first jobs need; add specialist kit as the work demands it.
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Keep reading
Need help pricing your work? Read Section 14: Pricing Your Work - day rates, job prices and how to stop underselling yourself.
Finished your apprenticeship? Read our guide: After Your Apprenticeship - the stuff nobody teaches you in college.
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