What is Meant by a “Main Trade”?

At Tradesman Saver, we understand that running a successful business requires staying up-to-date on the latest industry trends and concepts. One such concept that is essential for any business owner to grasp is “main trade”. Having the right insurance to cover your main trade is absolutely essential, whether you need public liability insurance, product liability or professional indemnity.

What is meant by a “Main Trade”? Put simply, a main trade refers to the primary activity or trade that a business undertakes. It is the core business of a company and the main source of its revenue.

Key Takeaways:

Understanding the concept of Main Trade is vital for any business ownerMain trade refers to the primary activity or trade that a business undertakesMain trade is the core business of a company and the main source of its revenue

The Significance of Main Trade

At Tradesman Saver, we understand the crucial role that main trade plays in the success of a business. Having a clearly defined main trade ensures that businesses can streamline their operations, avoid confusion, and focus their attention on their core competencies.

The significance of main trade extends beyond just internal operations. It is also an essential factor in the eyes of clients, customers, and potential partners. By having a clear main trade, businesses can communicate their expertise and establish themselves as industry leaders.

Furthermore, having a defined main trade can result in significant cost savings. It allows businesses to optimise their resources and investments towards activities that generate the most revenue, reducing wasted expenditure in areas that are not directly related to their main trade.

The Role of Main Trade in Business Success

When a business has a well-defined main trade, it is better equipped to succeed in its chosen industry. By having a focus on a specific trade, businesses can build a reputation and establish themselves as experts in their field. This, in turn, helps to attract more clients and customers, increasing revenue.

Additionally, businesses with a clear main trade can differentiate themselves from their competitors. They can provide services or products that are tailored to their customers’ needs, which helps to build loyalty and retention.

The Benefits of Having a Main Trade

Having a clearly defined main trade has numerous benefits for businesses. These include:

Better resource allocationIncreased efficiencyEstablishing a reputation as expertsDifferentiating from competitorsAttracting more clients and customersBuilding loyalty and retention

Overall, having a main trade is crucial for the success of modern businesses. At Tradesman Saver, we understand this, which is why we offer tailored insurance solutions that help to protect your main trade and safeguard your business.

Key Features of Main Trade

At Tradesman Saver, we know that understanding the key features of main trade is crucial for any small business owner or tradesperson. To be considered the main trade of a business, a trade must satisfy several criteria:

Criteria DescriptionSignificance The trade must be significant to the business and contribute significantly to its revenue.Stability The trade must be stable and consistent, with a history of performance and success.Expertise The business must have specific expertise in the trade and be able to provide evidence of this.Time The business must spend a substantial amount of time and resources on the trade.

These key features ensure that the main trade is central to the business’s operations and is not just a side venture or hobby. By focusing on their main trade, businesses can maximise their potential for success and growth.

What are Some Examples of a Main Trade?

As mentioned earlier, the main trade of a business can vary depending on the industry and the nature of the business. Here are some examples of businesses and their main trades:

BusinessMain TradePlumbing company Plumbing servicesConstruction company Building and construction servicesGraphic design firm Graphic design servicesProperty maintenance firm Property maintenance

These examples illustrate how a main trade can be specific to the industry or field in which a business operates. By identifying their main trade, businesses can focus their efforts and resources on their core competency, which in turn can lead to greater efficiency and success.

Main Trade in the UK

At Tradesman Saver, we understand the unique aspects of main trade within the UK context. In the UK, main trade is regulated by various bodies, including HM Revenue & Customs (HMRC) and Companies House.

HMRC defines main trade as “the activity which is a major and significant part of the company’s trade, determined by reference to the company’s most recent financial accounts.”

In other words, the main trade is the activity that generates the majority of a company’s income and is therefore crucial to its success.

Companies House requires businesses to declare their main trade when registering and filing annual accounts. This information is used to determine a company’s Standard Industrial Classification (SIC) code, which helps to identify the industry in which the business operates.

Main trade is also important for tax purposes. Businesses can claim tax deductions for expenses related to their main trade, such as equipment, materials and marketing expenses. It is therefore essential to ensure that a company’s main trade is accurately identified and recorded.

For Insurance Policies that Match Your Main Trade, Get in Touch With Tradesman Saver

At Tradesman Saver, we understand how important it is for tradespeople and small businesses to protect their main trade. We hope that this article has provided you with a clear understanding of what main trade is, its significance, key features, and how it applies to businesses in the UK.

We believe that by safeguarding your main trade with comprehensive insurance coverage, including public liability insurance, general liability, and employers’ liability, you can focus on what you do best – running your business. Our policies start from as little as £59 per year, offering you affordable protection that you can rely on.

Don’t wait until it’s too late. Get in touch with us today and let us help you protect your main trade with the right insurance coverage.