How to find a good local business

Finding a local business used to mean the phone book and a neighbour's recommendation. Now there are maps, directories, social media groups, review sites and comparison platforms, and the problem is too much choice rather than too little. The aim of this guide is simple: help you turn a broad search into a short list of businesses you've actually checked, so that when you pick up the phone you already know who you're dealing with.

This is general information. Rules for licensing, contracts and deposits vary between states and types of work, so we link to official sources and suggest you check the rules where you live.

Start with the job, not the business

Before you search, write down what you need in two or three sentences. What is the problem or project? Where is it? When does it need to be done? What would a good result look like? Is there anything unusual, such as access issues, older materials or a tight deadline?

This short description does three things. It helps you choose the right kind of business, because a leaking tap and a full bathroom renovation need different people. It makes your first contact faster and clearer. And it lets you compare quotes on the same basis later, because every business is answering the same brief.

If you're not sure what kind of business you need, it's fine to say so. A description of the symptom ("water stain spreading on the ceiling under the bathroom") is often more useful than a guess at the cause.

Where to look

No single source is complete, so use a mix.

• People you trust. Friends, family, neighbours and colleagues who've had similar work done are still one of the best starting points. Ask what the job was, whether it came in on time and on budget, and how problems were handled. A recommendation for a different kind of job is weaker evidence.
• Local community groups. Neighbourhood groups online can surface names quickly, but treat posts as leads rather than verdicts. Some recommendations come from friends or relatives of the business, and enthusiasm isn't the same as evidence.
• Maps and search engines. Searching for a type of business plus your suburb shows nearby options, opening hours and reviews in one place. Remember that the order of results reflects many factors, including advertising, and isn't a quality ranking.
• Directories. General and industry directories can help you find businesses you wouldn't otherwise come across. Our guide to local directories and search explains how listings and paid placements work.
• Industry associations. Many trades and professions have associations with member lists. Membership can indicate a commitment to standards, but check what the association actually requires of members.
• Shopfronts and vehicles. A business you've seen working nearby is worth noting. Write down the name and any licence number on the vehicle so you can check it later.

Build a long list, then cut it down

Aim for five or six names to begin with. Then cut the list to about three by checking the basics for each one. This takes a few minutes per business and saves a lot of trouble later.

1. Confirm who they are

Look for a consistent business name, a phone number and an address or service area. If the business quotes an Australian Business Number (ABN), look it up. The Australian Business Register's free ABN Lookup tool shows whether an ABN is active or cancelled and lists the entity name and any business names attached to it. Our guide to checking an ABN walks through what the results mean.

2. Check any licence

Many kinds of work, especially building, electrical, plumbing and gas work, need a licence, and the rules vary by state. In NSW, for example, you can check a builder's or tradesperson's licence online through the government's licence check. Make sure the licence is current, that it matches the person or business on the quote and that it covers the kind of work you need. See checking licences for more.

3. Read a spread of reviews

Look at reviews across more than one platform, and read the middle and low ratings as well as the five-star ones. How a business responds to criticism tells you a lot. Our guide to reading online reviews covers what to look for, and the ACCC's rules on fake reviews.

4. Look at how they communicate

Is the website or listing clear about what they do and where? Do they reply to messages within a reasonable time? Do they explain things in plain language? Communication early on is often a preview of how a job will go.

Questions to ask on the first call

When you contact your shortlist, a few questions help you compare like with like:

1. Have you done this kind of job before, and recently?
2. Are you licensed for this work, and what is your licence number?
3. Can you give me a written quote, and what will it include?
4. Who will actually do the work: you, your staff or subcontractors?
5. When could you start, and how long will it take?
6. What deposit do you ask for, and when are the other payments due?
7. What happens if you find something unexpected once you start?
8. Do you offer a written warranty on your work?

Write down the answers. You'll be surprised how quickly the details blur once you've spoken to three businesses.

Signs to slow down

Most local businesses are honest and want repeat customers. Still, some patterns are worth a pause:

• pressure to decide on the spot, or a "today only" price;
• a request for a large upfront payment or for cash only with no paperwork;
• no ABN, or an ABN that's cancelled or belongs to a different name;
• no written quote or contract for anything beyond a small job;
• a licence that doesn't match the person, has lapsed or doesn't cover the work;
• an unsolicited knock on the door offering work you didn't ask for.

None of these proves anything on its own, but each is a reason to ask more questions. If a trader approaches you uninvited, our guide to door-to-door sales and cooling-off explains the special rules that apply.

Choosing between good options

Once you have two or three businesses that pass the basic checks, the choice often comes down to judgment. Price matters, but so do scope, timing and trust. A quote that is much lower than the others might leave things out. A business that takes time to understand your job and explains its approach clearly is often worth a slightly higher price.

Our quote checker lets you put up to three quotes side by side, with prompts for deposit, warranty, licence and contract, so you can see the differences at a glance.

After the job

When the work is done, keep the paperwork: the quote, the contract, invoices, receipts, warranty details and any photos. If a problem shows up later, these records make it much easier to sort out. Your rights under the Australian Consumer Law apply to services as well as products; see our guide to consumer guarantees.

If you were happy, leave an honest review. It helps other people in your area, and good local businesses rely on it.

Key points

• Write a short brief before you search so every business answers the same question.
• Use several sources: people you trust, maps, directories and associations.
• Check the ABN, any licence and a spread of reviews before you call.
• Ask the same questions of each business and write the answers down.
• Slow down if you feel pressured or are asked for a large upfront payment.