Month: September 2025

Do you know your Gross Profit?

by
How to calculate your gross profits

As a business coach, I often get asked about gross profit – what it actually means, how to calculate it, and why it matters. A client asked me about it just this week, so I thought it was worth breaking it down here for other tradie business owners.

Gross profit is simply the money left over after subtracting the direct costs of a job – things like materials and site labour — from the total sales. For example, if a job is billed at $100 and the costs of materials and labour are $60, the gross profit is $40. That’s the amount that tells you how much money your business has earned from the job before overheads like rent, insurance, or admin costs are factored in.

It’s also useful to look at gross profit on a monthly profit & loss statement. Let’s say sales for the month are $100K, and costs of sales (materials and site labour) are $60K. That leaves a gross profit of $40K. Once you subtract fixed expenses (say $20K), your net profit is $20K. By tracking gross profit percentage — gross profit expressed as a percentage of sales — you can see more clearly whether jobs are truly profitable and how efficiently your business is running.

This is why I always encourage clients to measure gross profit percentage on every job. If you know your overheads run at 20%, then a job with 50% gross profit is a winner, while a job at 30% gross profit is a red flag. Comparing gross profit percentages helps you benchmark jobs, identify underperformers, and even measure your business against others in the industry.

Understanding gross profit isn’t about getting bogged down in accounting jargon — it’s about giving yourself clarity, confidence, and control. When you know your numbers, you can make smarter decisions that improve both your jobs and your business overall.

If you’d like help making sense of your numbers and building a stronger business, I’d be happy to talk.

Thanks
Hugh
0409 402 474

Reducing Stress for Business Owners

by
Reducing Stress for Business Owners

As a business coach, I often see owners struggling with stress – and I’ve been there myself. What I’ve learned is that while the challenges you face may not always be as big as they feel, the impact on your wellbeing, your business, and your life is very real. 

That’s why I want to share some practical ways I manage and recommend to my clients when stress starts to take over. It starts with self-care: setting clear work hours so you don’t burn out, exercising daily to clear your head, eating a healthy and balanced diet, getting 7 to 9 hours of good sleep, and taking regular breaks or holidays to recharge. 

The other big one is seeking support. Whether it’s talking with other business owners, leaning on a mentor, or speaking with a professional, you don’t have to go through stress alone. 

These simple steps have helped me and my clients reduce stress, regain balance, and perform better in business and life.

If you’re feeling the pressure, let’s talk – I’d be happy to help.

Thanks
Hugh
0409 402 474

Doers Versus Completers

by

In this video, I talk about the difference between “doers” and “completers” and why this really comes down to creating a sense of urgency in your team. Doers are often busy with tasks, but without much focus on getting things finished. Completers, on the other hand, are the people who push through, finish the job, and get that sense of achievement that comes with completion. 

As business owners, we want more completers. The best way to encourage this is by using what I call “time talk.” It’s about framing every meeting, every discussion, and every instruction with a time frame. For example, “Will you have that finished by the end of today?” or “Can we complete this by the end of the week?” By consistently talking about time and completion, you pass on your sense of urgency to your team. 

This can be a great discussion point in team meetings and a tool to boost productivity across your business. If you’d like help building urgency and accountability into your workplace, reach out, I’d be glad to help. 

Hugh
0409 402 474

How to Qualify Customers

by

In this video, I talk about how to qualify customers properly and why it can save you a huge amount of time and frustration. I share a real example where one of my clients wasted half a day on a prospect who was nowhere near ready to buy, and how better qualifying could have prevented that. 

The key is to ask better questions. I explain how to:

  • Uncover the customer’s real problem
  • Understand the impact it is having
  • Clarify their time frame
  • Find out if they have a budget in mind

These questions quickly reveal the quality of the lead and how serious they are about moving forward. 

I also share some practical ways to raise the quality of your leads: using questionnaires to gather more detail, inviting prospects to your office or showroom so they buy into the process, and even offering paid site visits that show commitment and deliver value. 

By combining great questions with strategies that encourage buy-in, you can focus your time and energy on customers who are genuinely ready to do business. 

If you’d like help designing your own qualification process or building tools like questionnaires and site visit offers, reach out, I’d be glad to help. 

Hugh
0409 402 474

The Real Value of Capability Statements

by

In this video, I talk about capability statements – what they are, how to use them effectively, and the one thing you should never do with them.

A capability statement is more than just a glossy brochure; when used properly, it’s a powerful tool to attract the clients you actually want to work with – the ones who are profitable and can provide repeat business. 

I share my best advice on how to present a capability statement face-to-face, how to highlight the right services for each client, and why showing genuine passion and enthusiasm makes all the difference. Most importantly, I explain why emailing your capability statement is one of the quickest ways to lose its value. 

If you’d like help creating or using a capability statement to win the right customers for your business, get in touch, I’d be glad to help. 

Thanks
Hugh

Should Staff Be Paid by the Hour?

by

I’ve been having a lot of conversations with clients about how to structure pay for non-billable office staff – especially project managers and operations managers in trades and manufacturing businesses. A common question that keeps coming up is: Should these staff be paid by the hour? 

I’ve seen a pattern, especially with team members who’ve moved off the tools and into the office. Some of them come in with a bit of a clock watching mindset – they’re used to being paid hourly and working to rigid schedules. But once they’re in a leadership or coordination role, things need to shift. 

In my view, these roles should be based around fixed hours, say 8:30 to 5:00, but with a clear understanding that there needs to be some give and take. Maybe they’ll stay back late to finish a project, drive back from an interstate site, or set up jobs for the next day. On the flip side, they might pop out to a dentist appointment or need some flexibility from time to time. That’s all part of it. 

What’s most important is that they understand their role is no longer about punching the clock. It’s about managing their own time and being focused on results and completion. The job is to get things done whether it’s submitting a tender, finalising a schedule, or making sure the team has what they need to hit the ground running. 

But here’s the key: this needs to be communicated right from the start. When you’re hiring, when you’re onboarding, and through everyday conversations. Talk about expectations, reinforce the idea of ownership, and most importantly lead by example. 

When this kind of culture is set up well, it works beautifully. But if it’s left unclear or assumed, that’s when issues creep in. 

If you want support with setting up these expectations and building a results focused culture in your business, reach out. I’m always happy to help. 

Hugh Bowman
Business Consulting for Tradies