Which craft businesses offer the best time-to-profit ratio?
Introduction
Taking over a craft business represents a concrete opportunity for entrepreneurs seeking a stable, locally anchored sector. But not all trades generate the same profitability per hour worked.
Certain craft specialities offer a particularly attractive time-to-profit ratio. They combine strong demand, solid margins and a controlled cost structure. These activities enable significant income to be generated without multiplying working hours.
The Swiss context reinforces this dynamic. The labour shortage in the craft sector creates price pressure and maintains high demand. Well-positioned businesses can charge rates that reflect this scarcity.
This guide analyses the craft trades that offer the best returns. It details the criteria that explain their profitability and what needs to be checked before taking over. The objective: to give you factual benchmarks for evaluating these opportunities.
📌 Summary (TL;DR)
The most profitable craft trades combine strong demand, high margins and an optimised cost structure. Plumbing, electrical work, specialised carpentry and HVAC generate significant profits per hour worked thanks to sustained hourly rates and controlled productivity.
Before taking over, check the cost structure, dependence on the seller, quality of the customer base and actual margins by type of project.
📚 Table of contents
The criteria for a good time-to-profit ratio
To evaluate the profitability of a craft trade, four criteria are decisive.
Net margin indicates the actual profit after deducting all costs. A margin of 15% or more is generally considered solid in the craft sector.
Hours worked per week directly influence hourly returns. A craftsperson who generates 100,000 CHF in 40 hours per week has a better ratio than another who works 60 hours for the same income.
Labour requirements and initial investment in equipment and stock impact the cost structure and therefore final profitability.
Plumbing and sanitary installations
Plumbing shows net margins of 15 to 20%, with average revenues of 120,000 to 180,000 CHF annually for a structure of 2-3 people.
The time-to-profit ratio is favourable thanks to several factors: interventions billed by the hour, constant and predictable demand, little stock to manage. Emergencies allow premium rates to be charged.
The labour shortage in the craft sector strengthens demand and limits competition. Established businesses benefit from loyal customers and recurring maintenance contracts.
Electrical work
Electrical businesses show margins of 12 to 18%, with an average turnover of 150,000 to 250,000 CHF depending on size.
The trade offers an excellent time-to-income balance: plannable work, transparent billing, few returns or costly warranties. Strict standards limit unqualified competition.
In French-speaking Switzerland, demand remains strong thanks to energy renovations and new construction. Experienced electricians control their working time with rigorous organisation, thus optimising their hourly profitability.
Specialised carpentry
Mass-market carpentry offers tight margins, but specialisation changes the equation.
Carpenters positioned in bespoke fitting or high-end work show margins of 18 to 25%. They target customers willing to pay for quality and benefit from reduced competition.
Manufacturing time reduces with experience and process optimisation. Kitchen or dressing room fitting projects generate significant income for controlled working time. Premium positioning significantly improves the time-to-profit ratio compared to standardised production.
Heating, ventilation and air conditioning (HVAC)
The HVAC sector combines attractive margins (14-20%) and recurring revenues thanks to annual maintenance contracts.
The mixed installation and maintenance model ensures a stable revenue base. Maintenance contracts generate high margins with predictable and optimisable working time.
Energy standards strengthen demand for heat pumps and ventilation systems. With good organisation, HVAC entrepreneurs control their working time whilst maintaining solid profitability. Emergency interventions in winter allow premium rates.
What to check before taking over
Before taking over a craft business, analyse historical margins over a minimum of 3 years. The figures announced do not always reflect operational reality.
Examine the payroll: it often represents 40-50% of turnover in the craft sector. Check the cost structure (materials, subcontracting, vehicles) and the order book to assess visibility.
Use the Leez valuation tool to obtain an initial estimate. Then consult the guides on profitability analysis and margin evaluation. The Leez expert network can support you in this financial analysis.
Craft trades such as plumbing, electrical work, specialised carpentry and HVAC offer attractive time-to-profit ratios thanks to their strong demand, high hourly rates and ability to generate recurring revenues. These activities combine profitability and quality of life, provided the business is well structured and management is controlled.
Before embarking on a takeover, analyse the key financial indicators: net margin, dependence on the seller, cost structure and quality of the customer base. A well-organised business with clear processes is often worth more than an activity dependent on a single person.
Are you looking for a craft business to take over? Browse the opportunities available on Leez and filter by sector to find one that matches your criteria. Need support to evaluate the profitability of a target? Our expert network can help you secure your takeover.
