The 1.3 fireworks business has become one headache after another. It is also full of uncertaintity and continual tighter and tighter controls which mean more expenses and more labour devoted to paperwork and compliance. I think it has become impossible to bear for a normal business person. If you add these increasing hassles to the existing hassles of 1.3 e.g weekend long hours, seasonality, insurance, danger, lack of co-operation between competitors and slow growth of sales the decision to move into another more rewarding business is much easier now.
The real 'sting in the tail' from 1.3 is felt when something goes wrong. As a business gets bigger this will happen. You can suffer a permanent physical disability from an accident or inflict one on your staff or a member of the public. You can also have your plant blow up which is happenning more frequently across the world. Apart from the immmediate loss you will be dealing with this for the next 3-5 years as all the investigations and lawsuits play out. This will most likely mean the end of your business and will likely destroy all your wealth unless you have structured your financial affairs properly from the outset. My observations is that only the biggest businesses have this in order.
The Govt will prosecute you regardless and the courts these days always will find you at fault and insurance does not cover you for court penalties and legal costs.
If a business person cannot break from 1.3 pyro they should focus more on 1.4/selling fireworks in the interests of their mental and financial health.
An alternative is a business model that shifts the dirty stuff to others e.g shooters. Own a company that contracts with the sponsor/customer and then wholesale product to shooters who take care of everything from that point including legal liability etc. Maybe provide the shooters with some infrastructure that they can hire e.g firing systems, racks, preparation buildings etc etc.
Some thoughts.