How to Start a Trade School: Complete Roadmap [2025]

What Licenses or Permits Are Needed to Open a Vocational School?

Starting a vocational school requires more than designing a curriculum and admitting students. You'll need to get proper licensing and meet regulatory compliance. These permits and certifications ensure your school operates legally, meets safety standards, and qualifies for funding and accreditation. 

Check for a state-level private school license requirement

Most U.S. states require that you get a private or postsecondary license to prove that you meet specific standards before you can legally run a vocational school.

To get this license, you can apply through your state’s department of education or other agencies that oversee private schools. Regardless of the institution you submit your application to, they’ll typically request:

• A curriculum (a detailed outline of the courses you'll offer).

• Proof of instructors’ qualification, such as relevant degrees, certifications, or work experience. 

• A business plan that shows how your school plans to make and manage money.

Some states may also inspect your facility before they approve your license. And in some cases, they'll require you to pay for a surety bond, which protects your students if the school closes. 

Get a business license and local permits

You need a business license to register your school as an official business. 

First, you’ll need to decide whether you want to be incorporated as a limited liability company or a corporation. Afterward, you can register the business with your state’s secretary of state.

Lastly, you’ll need to visit your state’s department of education or other agencies to secure the required local permits, such as: 

• Zoning permits

• General business licenses

• Industry-specific licenses for the courses you’ll be providing

Comply with fire, safety, and ADA regulations

Your building must have safety measures in place, including smoke detectors, fire extinguishers, and clear, accessible emergency exits.

The facility should also be accessible to people with disabilities. This can involve installing ramps, wide doorways, accessible restrooms, and clear pathways.

Not sure how to stay compliant with these regulations? Use this checklist to evaluate how well your space meets the requirements:

• Smoke detectors and fire alarms in every room

• Fire extinguishers placed in areas that are easily accessible

• Clearly marked emergency exits and evacuation routes

• Emergency lighting along existing paths

• Regular fire drills for staff and students 

• Fire safety equipment that undergoes frequent inspection and maintenance

• Wheelchair ramps at entrances

• Restrooms with proper grab bars 

File for a Federal Employer Identification Number (EIN)

An Employer Identification Number is a unique nine-digit number assigned to you by the IRS (Internal Revenue Service) to identify your business for tax purposes, just as a Social Security number identifies individuals.

To apply for an EIN, check out this guide written by the IRS.

How Do I Create a Curriculum for a Trade School?

Trade school curricula are designed to prepare students for the real challenges they'll face on the job. The best curriculum combines theoretical lessons with practical training, so graduate students are immediately employable.

Here’s how you create such a curriculum:

Define your trade focus and career outcomes

Decide on your program scope. 

Do you plan to prepare your students for a career in plumbing, electrical work, HVAC, or another trade? What are the topics you’ll be teaching?

You should define your trade focus early to apply for the proper licenses.

Consult industry experts and employers

Creating a curriculum based on assumptions can produce unemployable graduates, making your trade school an expensive irrelevance.

So, before writing your curriculum, speak with your students' potential employers—business owners, field supervisors, and trade association leaders. You can find them at trade association meetings, social media platforms, or local job sites.

Ask questions such as:

• What skills do you expect from entry-level employees?

• Are there tools you expect them to know how to use?

• What are the things new hires commonly struggle with?

• Is there a specific skill you wish all new hires came with?

Pro tip: You can invite business owners to join your advisory board, so they provide continuous input on your curriculum and other education aspects.

Provide the right tools 

To truly prepare students for the demands of their future professions, providing industry-standard equipment is non-negotiable. 

Electricians can't learn without hands-on experience with wiring tools and testing devices, just as HVAC students require refrigeration gauges and training boards to develop practical skills. 

Also, to give students an edge in the job market, teach them to use digital tools like apps and spreadsheets, because that's how most work gets done nowadays. Clipboards and manual paper processes are becoming obsolete.

They should learn to use these digital tools to perform administrative tasks such as job scheduling, inventory management, and financial reporting.

Pro tip: Instead of subscribing to various tools for each administrative task and trade, you can use a comprehensive platform like ServiceTitan. It has a full suite of tools trusted by thousands of trade businesses that automate business tasks, such as:

• Job scheduling

• Dispatch

• Inventory management

• Customer relationship management 

• Performance tracking

• Marketing

You can even submit a request for our team to send certified instructors to teach your students the different ways to use the platform.

Incorporate soft skills and business management

When students leave your trade school, they’ll get into the real world, where they’ll engage with customers by starting their own business or getting a job. They’ll need a solid foundational knowledge of soft skills and business management.

Soft skills to include in your trade school curriculum include:

• Communication

• Customer service

• Teamwork

• Time management

• Workplace ethics

• Safety practices 

In addition to soft skills, teach students the core aspects of running a trade business. This includes scheduling jobs, managing financial accounts, and promoting the business.

Plan classroom time, lab time, and internship hours 

Your curriculum should balance classroom instruction, hands-on training, and real-world experience.

Classroom sessions build foundational knowledge, like safety protocols, system design, and diagnostic techniques. 

Lab time lets students apply what they've learned in a controlled environment, using actual tools and equipment.

Internships or apprenticeships then take it a step further, placing students on real job sites to gain professional experience and develop job-ready skills.

Together, these three elements ensure your graduates are job-ready and gain an edge over their contemporaries.

What Are the Steps to Getting a Vocational School Accredited? 

Accreditations prove your school is credible and meets industry standards. They also make your institution eligible for funding opportunities, like federal student aid, grants, and investments from private equity firms or philanthropic foundations. 

However, the process can be very complex, especially if you’re U.S.-based.

Below is a three-step framework to guide you:

1. Choose the right accrediting agency

Find an accrediting agency that best aligns with your school’s goals, location, and programs. For vocational schools in the United States, such agencies can include national accrediting bodies such as: 

• Accrediting Council for Continuing Education & Training

• Accrediting Commission of Career Schools and Colleges

• The Council on Occupational Education

After you’ve gone through with the national accreditation process, consult your state and region’s education department to confirm if there are additional licenses you need to get.

Pro tip: Check that the accreditor is recognized by the U.S. Department of Education or the Council for Higher Education Accreditation.

2. Prepare a self-study and submit the required documentation

After you've selected an accrediting agency, the next step is to compile and submit an application containing a self-study report. 

A self-study report is a written evaluation that shows how your school meets the specific standards and requirements of the accrediting agency, in areas such as:

• Curriculum quality and instruction hours

• Qualified instructors with relevant experience and certifications

• Physical facilities and equipment for hands-on training

• Proper governance, ownership, and financial stability

You may also be required to provide your financial statements and program guide alongside the self-study.

3. Complete an on-site evaluation

After you submit your documentation, the accrediting agency will assign your school candidate status and schedule an on-site visit to verify the information you provided. 

A team of reviewers and education experts will tour your facilities, observe classes, interview staff and students, and review other records.

After the visit, you’ll receive a report. You may be asked to:

• Submit additional evidence

• Make specific improvements

• Develop a corrective action plan

The review team also submits a report to the accrediting agency with a recommendation to approve or deny the accreditation. 

If denied, your school will receive a list of required improvements and can address the concerns and appeal the decision.

What Are the Costs Involved in Starting a Trade School?

Starting a trade school involves several up-front and ongoing costs, such as:

• Facility lease/purchase and renovation: Securing a suitable location is one of the most significant start-up expenses. Costs vary based on size, location, and whether you're leasing or purchasing. Also, you may need to renovate the facility to meet safety codes and accessibility standards or to accommodate classrooms, labs, and administrative offices. 

• Classroom and lab equipment (tools, simulators, tech): Trade schools, depending on the programs offered, mostly use specialized tools, machinery, simulators, and other technology. It's important to note that all equipment must be industry-grade and regularly maintained.

• Licensing and permit fees: You'll need state and federal licenses to operate legally. Also factor in accreditation, occupational program approvals, fire and safety inspections, and other regulatory fees when drawing up your budget.

• Staff salaries and benefits: Hiring qualified instructors, administrative staff, and support personnel is another significant expense. Adequately plan for competitive wages, healthcare, retirement benefits, and training costs.

• Marketing and student recruitment: Branding, website development, digital ads, local outreach, and open-house events are effective strategies for attracting students. Make a plan for these recruitment investments, which are important for driving enrollment. 

• Student management and learning systems: You'll need to subscribe to a platform that can handle your students' admissions, records, programs, and performance tracking. 

How Do I Develop a Business Plan for a Trade School?

Writing a business plan for a trade school involves detailing your vision, strategy, operations, and financial roadmap in a way that appeals to investors, regulators, and stakeholders. 

Here's a breakdown of what to include in your trade school business plan.

1. Start with a mission, vision, and target market

What are your goals? Who is your target audience?

Once you’ve answered those questions, define your mission. This should align with your values and the competencies students will obtain upon graduation.

For example, let’s say your target audience is between the ages of 25 and 40. And your mission is:

• Our mission is to equip adult learners with practical, industry-relevant skills in electrical and plumbing trades through immersive, hands-on training and career support. 

Your values are the principles that guide how your school operates. They might include things like inclusivity, quality education, community partnership, and student success.

Next, define your vision, which explains what success will look like in five to 10 years. For example, your vision can be:

• To become the region’s top HVAC training center, known for producing job-ready graduates and setting the standard for hands-on education.

2. Outline your educational offerings and structure

List the specific courses you’ll be offering, and define the duration, certifications, average class size, and teaching method (in-person, hybrid, or online). 

Clarify what structure each program will take. To do that, you can use this checklist as a guide:

• Skill level: Will your programs cater to beginners, upskillers, or both?

• Learning outcomes: Define what students should be able to do by the end of each course. This helps with both curriculum development and accreditation.

• Assessment methods: Outline how you’ll measure progress. Will it be through practical exams, written tests, internship performance, or a combination?

• Externships or apprenticeships: Include real-world training opportunities, especially if required by state boards or certification bodies.

Lastly, list the minimum qualifications you expect your faculty members to have, and how you plan to get them. 

3. Include a marketing and enrollment strategy

Explain how you plan to attract and retain students. This includes digital marketing channels like SEO, social media, and Google Ads, as well as traditional advertising methods like radio and billboards. 

You could also go further to build relationships with high schools, career fairs, and work development agencies. They can drive referrals to your school or even allow you to hold seminars explaining the opportunities in the trade industry.

4. Develop financial projections and pricing models

Finally, your business plan should include clear and realistic financial forecasts. 

Here's how to do it: 

• Estimate startup costs: What do you need for your school, and how much does it cost? These may be one-time or recurring expenses.

• Set and justify your tuition pricing: The amount should be affordable for students and sufficient to cover operational costs, labor fees, and your profit margin. To strike this balance, you should:

• Look at what similar trade schools in your region charge.

• Factor in the value of certifications and job placement rates.

• Forecast your ongoing costs and set a tuition fee that’s enough to cover them and provide a profit.

• Forecast revenue streams: Calculate the amount your school aims to bring in. This can come from: 

  • Tuition fees: Multiply your estimated number of students by the tuition fee per program.

  • Grants and scholarships: Include public or private funding you expect to receive.

  • Government support: If eligible, factor in income from programs like the Workforce Innovation and Opportunity Act or GI Bill benefits that help students pay for career training.

• Build a three- to five-year financial projection: This shows your estimated income and expenses over time.

What Are the Funding Options for Starting a Vocational School?

New vocational schools require significant investment in equipment, facilities, staff, and licenses. These costs can be too much for you to cover, so you may need funding from third-party sources.

Here are some funding sources to explore:

Federal and state educational grants

Some examples include:

• The Workforce Innovation and Opportunity Act

• Perkins V grant fund 

• The Adult Education and Family Literacy Act 

• State-funded grants like California’s Strong Workforce Program

Private investors or strategic partners

You can approach individuals or companies to invest in your school, promising them a stake in the trade school.

Show there’s a demand. Then, explain how your school will generate income through tuition, partnerships, or job placements.

SBA loans and microloans

Approach your local Small Business Administration (SBA) department to request loans. However, you must meet eligibility criteria such as:

• A credit score of up to 680

• History of no bankruptcy defaults on all government-related debts 

• Proof of experience in the industry or partnership with operators in the industry

Tuition pre-sales or income-sharing agreements

Tuition pre-sales involve offering early enrollment to students, often at a discounted rate, in exchange for up-front payment. This gives you immediate cash flow to cover startup costs like equipment, curriculum development, or instructor salaries.

On the other hand, income-sharing agreements (ISAs) allow students to enroll without paying tuition upfront. Instead, they agree to pay a fixed percentage of their income after they graduate and secure employment.

You can use pre-sales and ISAs if you already have strong demand or a waitlist, mainly containing people who can’t afford up-front tuition.

What Are the Common Challenges in Running a Vocational School?

Running a vocational school comes with its challenges. These include financial constraints, difficulty finding qualified faculty members, and keeping pace with the ever-changing job market.

Here are some of the most common challenges in running a vocational school.

Recruiting and retaining skilled instructors

Vocational schools need instructors with both teaching skills and real-world industry experience. 

However, such professionals enjoy higher salaries in the field than schools can offer. Therefore, they’re less likely to stay and work in a trade school.

The way to navigate this issue is to offer part-time teaching options to attract professionals who also want to work in the field.

Keeping the curriculum aligned with fast-changing trade needs

Trade industries constantly change.

New technologies, updated building codes, evolving safety standards, and changing customer expectations mean what you teach today could be outdated in a few years or even months.

To stay relevant, establish an advisory board with industry experts that regularly revisits and updates curricula. You should also enroll instructors in ongoing professional development.

Managing cash flow during low-enrollment periods

Student enrollment can fluctuate and affect tuition revenue. At the same time, fixed costs—like facility rent, instructor salaries, equipment maintenance, and utility bills—don’t disappear when fewer students enroll.

You can manage this situation by diversifying your income stream by offering:

• Short-term courses

• Rolling admissions

• Employee training for trade companies

• Continued education for professionals

Meeting compliance and reporting requirements

Vocational schools are subject to local, state, and federal regulations on matters including accreditation, workforce data reporting, and financial aid rules. Non-compliance can lead to fines or loss of funding. 

To stay compliant, hire a compliance officer with expertise in educational regulations.

Ensuring student job placement after graduation

Graduates will judge your school’s value by your students’ ability to secure employment. Low job placement rates can discourage prospective students.

To overcome this challenge, focus on building strong relationships with local employers and hosting regular job fairs to connect students with potential jobs. 

Another effective strategy is to create a side business related to the trade your school teaches, using the school as a training ground to prepare skilled workers for that business.

For example, Peterman Brothers, a family-owned HVAC, plumbing, and electrical company, has a tech-feeder training school called Peterman Top Tech Academy. All students work as employees while growing their skills in the school and other supervised jobs.

With this strategy, Peterman Brothers currently hires about 15 to 20 people every two weeks, or about 40 employees per month—despite the industry-wide labor shortage. And in 2022, the company hired 300 techs, helping it double in size.

Check out how Peterman Brothers uses its tech-feeder training program to solve its labor shortage problem

What Are the Best Practices for Marketing a Trade School?

Before people enroll in your trade school, they must believe your school will be able to:

• Secure them a job after graduation

• Teach skills that are actually in demand in the job market

• Offer certifications or licenses recognized by employers and industry bodies

Marketing is the best way to demonstrate these qualities.

Here are some best practices for marketing your trade school.

Develop a compelling online presence

Promoting your trade school online lets you reach multiple people simultaneously, especially since many people use the internet.

The basic way of developing an online presence is by creating a website that contains key elements such as:

• A detailed explanation of your program, tuition fees, and how students can enroll.

• Pictures and certifications of your top instructors to build trust.

• CTAs like ‘Book a camp tour’ or ‘Request info.’

To generate leads from search engines, optimize the website for queries people use when searching for a trade school, such as ‘Electrical school near me’ or ‘HVAC certification program.’

Use social proof and alumni success stories

Use your trade school’s social media handles to share success stories from graduates. Such stories should contain a clear narrative of where they were before attending the school, what they learned, and where they work now.

Leverage local industry partnerships

Secure partnerships with local employers who can hire your graduates to show prospective students that you can help them get a job after school. This can be your major selling point and feature heavily in your ads, social media posts, and website landing page.

You can secure such partnerships by:

• Sending student interns their way

• Inviting business owners for guest lectures

• Giving them a seat on the school’s advisory board

Host free trial classes

Organize and promote free seminars and workshops to give prospects an idea of what they’ll get by enrolling in your program. 

During such events, allow attendees to interact with instructors and ask questions about the program.

How Can Technology Be Used to Improve Trade School Training?

Technology has dramatically improved how trade schools deliver education and manage operations. 

With modern apps, you can provide a more engaging learning experience that makes it easier for students to learn while improving your internal workflow.

Here are some ways to incorporate technology in your trade school.

Use learning management systems (LMSs) and simulations

LMSs are central online hubs for recorded lessons, videos, course materials, and quizzes. They allow students to learn at their own pace and help teachers organize content and monitor progress.

For hands-on skill development, schools also use simulators and visual labs. These allow students to safely practice skills before applying them in the real world.

Apply data analytics to track student progress and performance

Data analytics tools gather information like student grades, attendance, assessments, and engagement. This allows instructors to track individual student performance. 

Administrators, on the other hand, use the data that such platforms provide to evaluate the effectiveness of courses and instructors so they can identify and address areas needing improvement. 

Automate administrative workflows and communication

In any business, administrative tasks can be a huge time drain. Trade schools are no exception.

Fortunately, digital tools allow you to automate many tedious administrative duties, from recording student admissions and grading assignments to scheduling classes. This frees up precious time, minimizes errors, and boosts overall operational efficiency.

Over to You!

Building a trade school from scratch is a whole lot of work. But with this guide, you can complete the entire process with ease.

Remember to ensure your students are prepared for the real world. Your curriculum should combine theoretical knowledge with the practical skills they need to succeed in the field.

With a tool like ServiceTitan, your students can learn to use digital tools for various office and field tasks. You can also contact us to send a certified instructor to your school or deliver training materials you can include in your curriculum.

ServiceTitan is an all-in-one construction software solution that helps trade companies perform business-critical tasks and increase revenue. Contact us to join the thousands of trade companies nationwide already using the platform.