Hugh Bowman

 How Much Should Tradies Spend On Marketing?

by
tradie marketing

If It Makes Money…

When you’re running a trade business, figuring out how much to spend on marketing is hard to know.  Some people just look at how much it costs (Bad plan!).  It is best to think of it like a job. If it makes money do it!  If the amount you spend on marketing brings in a new customer, makes a profit and covers the cost of marketing, then it’s worth it.  In fact, if this was the case, you would do it again, and again, and again!

But, how do you know if your marketing is actually working?  The key is to measure it. Ask every lead you get how they found out about you. Over a reasonable amount of time work out how many leads you got, jobs you won, and ultimately your profit made.  Compare this to your marketing costs and other marketing strategies you do.  With this information you should be able to work out where to spend your time and money for your future marketing.

Cheap Will Not Always Work For You

Let’s talk websites for example. Some folks might wonder if they really need to spend a lot on a website. Here’s the thing: if you’re proud of the high-quality work you do, your website should show that off. If your website costs $500 and only has your name and number, it’s not going to tell customers about the quality work you do. A simple, cheap website doesn’t scream “high-quality” to anyone. You want a website that shows off what you’re good at and why that potential customer looking at your website, should choose you.

Watch out for always going cheap. This doesn’t mean blindly spending $1000 on social media and getting no return. Its about who and where are target is and the most efective way of communicating with them. It could be Facebook posts and marketplace ads or it may be a flyer in the mailbox.

The Tradie Marketing Plan

Developing a plan is planning to succeed in any area of your business and even more so in marketing.

In your plan you lists

  • your target audience, the clients you want and where they are and how to get to them
  • a maximum budget (we recommend about 10% of your gross income)
  • a bunch of strategies (mentioned below to get started)
  • a measurement strategy to find out what is working best for you
  • a referral program (get your clients doing marketing for you)

Never Done Marketing Before Strategies

For a small tradie maintenance business about 4 or 5 strategies usually work well:

Van signage, site signage,
Website/Facebook
Google my business
Stickers/fridge magnets
Networking and alliances
Mailbox flyers

Now, about the best way to market your trade business. If you’re doing small jobs for homeowners, something as simple as having your business name and number on your van can work wonders. It’s like a moving billboard. People see your van, remember your name, and might call you for a job.

Big Business – Aim Directly

But, if your business deals with other businesses or big projects, van signs aren’t going to cut it. For B2B (business-to-business), the best approach is direct marketing. This means reaching out personally, maybe with a phone call or a visit, and building a relationship. It’s more about who you know and making those personal connections.

The Perfect Fit?

So, there’s no one-size-fits-all answer to how much you should spend on marketing. It all depends on what kind of trade business you have and who your customers are. The bottom line is: spend on marketing that works for you, brings in customers, and fits the kind of work you do. Whether it’s a top-notch website or personal outreach, make sure your marketing tells customers why you’re the right choice for the job.

The question of how much to spend on marketing cannot be answered with a simple figure. It demands a deeper exploration of what makes your trades business resonate with your customers, the quality of engagement you’re aiming for, and the measurable outcomes of your marketing efforts. By focusing on these aspects, businesses can navigate the complexities of marketing investment with confidence, ensuring that every dollar spent is not just an expense, but a strategic step towards growth and success.

 

tradie marketing

Working On Your Business

by
tradie-using-ipad

What Does Working ON Your Business Mean?

For electricians and those in the trades, the distinction between working in your business and working on your business is crucial for sustainable growth and success. Let’s dive into what this means for an electrician’s business and provide clear, actionable tips to make the shift.

I’ve an electrical business as an example here.

Understanding the Difference

Working in your business means being on the ground, doing the electrical work itself. It’s about troubleshooting, wiring, installing, and directly servicing clients. This is where most electricians start, but it’s also where many remain, often due to necessity or habit.

Working on your business, however, is about stepping back and focusing on the business’s growth, efficiency, and long-term strategy. It’s about setting up systems, processes, and plans that ensure the business can operate and even expand without your direct labor in every task.

Making the Shift: Practical Tips for Electricians

1. Schedule Strategic Time

Allocate specific hours each week solely for planning and strategy. During this time, assess your business’s performance, set goals, and plan for the future. For an electrician, this might involve evaluating which services are most profitable, exploring new markets, or considering how to improve customer service.

2. Leverage Technology

Use technology to streamline your operations. Various apps and software can automate scheduling, invoicing, and customer follow-ups. Implementing a robust job management software can free up your time from administrative tasks, allowing you to concentrate on strategic growth activities.

3. Educate Yourself

Stay abreast of the latest in electrical technology, business management, and customer service strategies. Continuous learning can help you offer more value to your clients and manage your business more effectively. Consider joining trade associations, attending workshops, and subscribing to trade publications.

4. Build a Trusted Team

As your business grows, you’ll need a reliable team to handle day-to-day operations. Hiring competent electricians and administrative staff can allow you to delegate the hands-on work and administrative tasks. This frees you to focus on business development, customer relationships, and strategic planning.

5. Seek Advice

Consult with mentors, join business coaching programs (talk to me!), or network with peers. Getting external advice can be especially beneficial for electricians, as it can provide fresh perspectives on managing projects, handling clients, and marketing your services. Business coaches who specialise in trades can offer valuable insights into scaling your business.

Transitioning from working in your electrician business to working on it is essential for long-term success and scalability. By dedicating time to strategic planning, embracing technology, continuously learning, building a trusted team, and seeking external advice, you can ensure that your business thrives. Remember, the goal is to create a business that not only provides excellent service but is also structured for growth, efficiency, and sustainability. Start taking steps today to elevate your electrician business to the next level.

tradie-using-ipad

The Power Of Van Signage

by
Van signage example

Van Signage – An Effective Marketing Tool

The most immediate benefit of van signage is increased visibility. As tradies navigate the streets, their branded vans catch the eyes of pedestrians, drivers, and residents, effectively broadcasting their services to a wide audience. Unlike stationary advertising, which is limited to a specific location, van signage works tirelessly, promoting your business in every corner of the community you serve (your portable billboard). This constant exposure helps embed your brand in the local consciousness, making it the first that comes to mind when services are needed.

5 Things That Make Van Signage Effective.

1. Make it absolutely clear what you do. I’ve seen van signs with a great big logo displayed but without a clear explanation of the services that are being advertised. This is often easy and obvious for the business owner but not from Joe Public that has never seen your logo before. If you kept potential clients guessing they are more likely to move on.

You might be in love with your branding but people have a problem they need solving first so make sure you explain that your business is coming to the rescue

2. Be specific with the EXACT service you provide – you cant be everything to everyone – if you’re a residential electrical service then listing data cabling and IT services is not aiming at the “mum and dad” type clients.

If you’re a builder of high quality homes then small renovations – even though you could do them – is not selling to the right type of high end client you would prefer to deal with.

You have limited space on a van so be specific and use the sign space to advertise services that you really want to tackle in your business.

3. I know you love your logo but does any one else? Keep your logo small and use the space to talk to potential clients with the services that appeals to them. If you are going to do any marketing, ever, always make it about the client and not your branding. Your logo doesn’t have to be tiny but its not as important as what services and benefits your clients will receive.

4. Be friggin loud as. Use the whole vehicle – contact details BIG. Don’t be shy, yell at people to call you or visit your website. Put your phone everywhere: front, back sides. It’s a tool to get leads and new business so don’t be frightened to go bold and loud.

5. Van signage should be part of your over all marketing mix across every aspect of your business. Blue van, white logo, blue shirts, white logo. Blue business card, white logo. see how it follows a pattern.

Great First Impression – More Clients

First impressions matter, and a well-designed van sign can significantly enhance the professional image of your trade business. It suggests reliability, attention to detail, and pride in your work, qualities that customers value highly. A branded van also instills confidence in potential clients, reassuring them that they’re dealing with a legitimate and established business. This level of professionalism can be the deciding factor for customers choosing between multiple service providers.

The benefits of van signage for tradies are clear. From enhancing visibility and providing cost-effective marketing to bolstering a professional image and generating leads passively, van signage is an invaluable tool in a tradie’s marketing arsenal. It’s a straightforward yet impactful way to promote your services, ensuring that your business moves forward, quite literally, as you do. In a competitive landscape, investing in van signage could be the catalyst that propels your trade business to new heights.

 

Van signage example

 

Working ON Your Business vs. IN It

by
tradies office desk

Navigating Success: The Art of Working ON Your Business

As a tradie, your days are likely filled with hands-on work, from managing on-site tasks to ensuring everything runs smoothly. It’s a grind you’re well accustomed to, but amidst the hustle, it’s crucial to differentiate between working IN your business and working ON your business. Understanding this distinction is vital for growth, sustainability, and ultimately, success. Let’s break down what this means for you and how you can leverage this approach to elevate your business.

Working IN Your Business: The Immediate Grind

Working IN your business involves the day-to-day operations that keep your business running. This includes tasks such as scheduling jobs, ordering materials, meeting clients and writing up quotes, managing admin and payroll, and putting out fires as they arise. It’s the groundwork, the essential labour that brings in the immediate cash flow but often keeps you caught in a never-ending cycle of hands-on work. While necessary, it’s a role that focuses on the present, leaving little room for growth or strategic planning.

Working ON Your Business: The Strategic Vision

In contrast, working ON your business is about stepping back and taking a strategic view. It involves planning for the future, setting goals, developing systems, and processes that ensure your business can run without your constant, hands-on involvement in daily tasks.

This might include:

  • Delegating and Outsourcing: Identifying tasks that can be delegated to employees or outsourced to free up your time for more strategic work.
  • Systems and Processes: Implementing systems and processes that improve efficiency, from customer management software to streamlined invoicing and billing systems.
  • Marketing: Building a brand, developing a marketing strategy to attract new clients, and establishing a strong online presence.
  • Financial Planning: Setting financial goals, budgeting, and planning for investments in tools, technology, or additional manpower to support growth.
  • Training and Development: Investing in training for yourself and your team to improve skills, expand services, and enhance overall quality.
tradies office desk
Laptop with blank screen on the engineer desk.

Why It’s Crucial to Work ON Your Business

Focusing solely on working IN your business can lead to burnout and stagnation. On the other hand, taking the time to work ON your business sets the foundation for sustainable growth, resilience, and a competitive edge in the market. It’s about creating a business that thrives, not just survives.

Here are a few tips on how to shift your focus:

Schedule Strategic Time: Dedicate regular, uninterrupted time to strategic planning and review. Treat it as non-negotiable as any client appointment.

Leverage Technology: Use technology to automate routine tasks where possible, freeing up your time for more strategic endeavours.

Educate Yourself: Invest in learning about business management, leadership, and industry trends. Knowledge is power when it comes to strategic growth.

Build a Trusted Team: Surround yourself with a competent team that can handle day-to-day operations, allowing you to focus on big-picture planning.

Seek Advice: Don’t shy away from consulting with mentors, business coaches (like me), or industry peers. External perspectives can provide invaluable insights.

For tradies, the difference between working IN your business and ON your business is the difference between just getting by and truly thriving. While the hands-on work of servicing clients is crucial, it’s equally important to step back, strategise, and plan for the future. By dedicating time to work ON your business, you’re investing in its growth, sustainability, and your own personal development as a business owner.

Remember, the goal is not just to create a job for yourself but to build a business that grows, innovates, and leads in the industry. Start today, and watch your business transform from a demanding job into a thriving enterprise.

If you struggling to get started call me today.  0409 402 474

Break Even Or Cash Break Even

by

Understanding Break Even and Cash Break Even in a Tradie Business:

Knowing your break-even point is a crucial aspect of running a successful tradie business. It helps you determine the minimum level of sales needed to cover all your costs and expenses. Additionally, understanding CASH break-even goes a step further by considering financial obligations like loan repayments and taxes. Let’s delve into the concepts of break even and cash break even and how you can calculate them for your business.

Break Even Point:

The break-even point is the level of sales at which your total revenue equals your total costs, resulting in zero profit. In other words, you’re covering all your expenses, but you’re not making any profit either. This information is essential because it acts as a safety net, allowing you to sleep easy during periods of declining sales. Knowing your break-even point helps you set realistic sales targets and understand how much revenue you need to generate to meet your financial obligations.

To calculate the break-even point for your business, follow these steps:

1. Analyse Past Data: Look at your financial records from the past six or twelve months and determine the ratio of cost of sales to sales during that period by dividing the total cost of sales by sales:

Cost of Sales Ratio = COS/Sales

2. Look at the past 6 or 12 months of expenses and calculate the average monthly expenses.

3. Calculate Break Even:  The break even is the amount of sales for which we make zero profit.  I have found the easiest way to do this is by choosing different amount of sales until we get close to the close no profit using this equation.

Sales
Less COS
Less Expenses
= $0 profit

We already have the average monthly expenses from above, and the Cost of Sales can be estimated using the COS ratio by using this equation:

COS = Sales x COS ratio

So the equation becomes:

Sales
Less (Sales x COS ratio)
Less Expenses
= $0 profit

Lets put some numbers in to illustrate its use:

Presume we have calculated our COS ratio is 50%, and our expenses run at $25,000/month.  Now I am going to choose different amounts of Sales.  To start with I am going to choose sales of $60,000.  The equation looks like this:

Sales                            $60,000
Les COS                       60,000 x 50%
Less expenses             $25,000
Equals Profit                $5,000

Since there is profit, we need to choose a lower sales amount.  This time choose Sales of $50,000.

Sales                            $50,000
Les COS                       50,000 x 50%
Less expenses             $25,000
Equals Profit                $0

Since there is no profit, break even Sales is $50,000.

2. Calculate Break Even: Divide your total operating expenses by the ratio of cost of sales to sales to find the break-even sales amount.

3. Set Sales Targets: Use the break-even sales amount to set realistic sales targets for your business. Ensuring you achieve at least this level of sales will cover all your costs.

Cash Break Even:

Cash break even takes the concept of break even a step further by considering not only the business’s operational costs but also any financial obligations like loan repayments, taxes, and other cash outflows. This is vital because some expenses, such as loan repayments, might not be included in the traditional profit and loss statement (P&L), affecting your cash flow.

To calculate the cash break-even point, follow these steps:

  1. Determine Additional Obligations: Identify all the financial obligations, such as loan repayments and taxes, that are not reflected in your P&L statement. If you pay yourself by drawings, you will need to add this is too.
  2. Choose an increased Sales amount and rerun the equation so that the resultant profit covers the total of your other obligations.

Understanding both the break-even point and the cash break-even point is crucial for the financial health and sustainability of your tradie business. By knowing these figures, you can set appropriate sales targets and take proactive measures to ensure your business remains profitable and your cash flow remains healthy.

So, take the time to assess your business’s financial data and determine your break-even and cash break-even points to make informed and strategic decisions for your tradie business’s success.

I’ve created an handy excel spread that will help you calculate your cash break even.

Get A Free Copy Of My Break Even Spreadsheet

Fill in your details below to download a free copy of my break even spreadsheet that you can use immediately in your business.

 

break even calculator

Exceptional Service and Delivery For Tradies

by

The Crucial Elements of Exceptional Service and Delivery in Your Business

In the second volume of my book, “The Wealthy Tradie,” I delve into what I call the fourth pillar: service and delivery. This aspect is so pivotal that it can determine whether your business thrives organically or struggles to find its footing. Think of it as laying down one of the cornerstones of your enterprise.

The Backbone of Business Growth

When service and delivery are executed to perfection, your business experiences an effortless and natural growth trajectory. This dimension of your operation is akin to a sturdy foundation, underpinning all your efforts and endeavours.

Conversely, missteps in service and delivery can lead to customer dissatisfaction and a host of issues. Unmet expectations can result in an influx of customer complaints and frustration, creating hurdles in your business’s path.

Bridging the Gap: QEWS Framework

To navigate this challenging terrain effectively, I propose a framework that encapsulates the key facets of service and delivery: QEWS. This acronym represents four crucial elements that, when fine-tuned, lead to a streamlined and successful business operation.

Quality: Beyond Workmanship

“Quality” in this context transcends mere workmanship. It encompasses a comprehensive quality system that ensures every facet of your core service is impeccable. Evaluating team performance and devising strategies for consistent execution are paramount. Consider tools such as checklists, regular training sessions, detailed photos, and instructive videos to establish a robust quality framework.

Expectations: Crystal Clear Communication

Setting explicit “Expectations” for your team is indispensable. This extends beyond tasks and includes factors like attire, customer interactions, and leaving job sites in pristine condition. It’s essential to avoid assuming that your team shares your perspective. Instead, provide clear point-form instructions and comprehensive training to align expectations across the board.

Workflow: Seamless from Start to Finish

A well-structured “Workflow” is vital from the moment a job is initiated until its completion. This entails managing incoming calls, scheduling, task execution, and finalisation. By meticulously defining and assigning each step, you ensure consistency and minimise oversights, such as forgetting to invoice or neglecting essential site documentation.

Systems: The Backbone of Efficiency

Lastly, “Systems” encompass a range of tools, with a special focus on electronic systems accessible via devices like smartphones and iPads. Utilising job management applications such as “Fergus,” “SIMPRO,” or “Tradify” streamlines operations. These apps facilitate photo uploads, drawing storage, customer information gathering, and seamless task continuation without excessive reliance on calls to you or your admin team.

Taking Action: Your Path Forward

The road to mastering service and delivery begins with prioritising Quality, setting crystal clear Expectations, establishing a seamless Workflow, and implementing Effective systems. By addressing these four pillars, you’re not only creating a robust foundation for your business but also setting it on a trajectory of consistent growth and success.

For a visual representation of how these elements come together, I’ve prepared a downloadable systems flowchart to kick-start your journey toward operational excellence.

tradie service

Mastering Productive Team Meetings

by

Mastering Productive Team Meetings in Your Trades Business

Team meetings—a phrase that can either evoke enthusiasm or a sense of dread, depending on your experience. In the realm of trades businesses, running effective team meetings is often a challenge that business owners grapple with. But fear not, for we’re here to guide you through the art of conducting productive team meetings that yield tangible results. Whether you’re dealing with a small team or a larger crew, these strategies are designed to ensure that your team meetings become a valuable asset rather than a time-wasting chore.

Setting the Stage: The Agenda

The first and foremost rule of thumb when it comes to team meetings is having a well-structured agenda. This agenda serves as your compass, guiding the discussion and ensuring that every relevant topic is covered. Imagine an agenda that’s so clear and concise that anyone, even in your absence, can lead the meeting seamlessly. A monthly or bi-monthly team meeting can be particularly impactful, and giving the opportunity for others to lead fosters engagement and shared responsibility.

Opening on the Right Note

The way you start a team meeting lays the foundation for what follows. Begin by giving every team member a chance to speak individually without interruptions. This provides a platform for them to share their thoughts, concerns, or any work-related matters that might be on their mind. Encouraging an open dialogue from the start sets the tone for a participative and collaborative session.

Celebrating Wins and Direction Setting

Acknowledging accomplishments is not only gratifying but also motivates your team to continue excelling. Use this time to highlight what’s been going well for the business or any significant achievements by team members. Moreover, as a business owner, share the overarching direction of the business. What are the goals? What’s the vision for the next one to two years? This provides a tangible framework for team members to grasp and align themselves with the company’s journey.

Cultivating Your Culture

Addressing culture niggles or issues regarding adherence to the rules of the game is an integral part of team meetings. This is where your culture statement shines. If there are concerns about phone usage, punctuality, or any other behavioral aspect, refer back to your culture statement. This ensures everyone is on the same page and comprehends the values the business stands for. It’s an opportunity to reaffirm and realign with your company’s ethos.

Delving into Operations

Team meetings are also a forum for discussing the operational aspect of your trades business. Share insights about upcoming jobs, customer feedback, and any operational updates that need to be communicated. This segment keeps everyone informed about the nuts and bolts of the business and promotes transparency.

The Key: Regularity and Consistency

The most critical element in the recipe for successful team meetings is consistency. Regularly scheduled meetings that happen without fail keep the momentum going. Even if you can’t be present, having a comprehensive agenda ensures that the meeting continues smoothly. When team members know that meetings are a consistent part of the workflow, they become more engaged and accountable.

Your Meeting Starter Kit

To help you kick-start your journey to effective team meetings, we’ve prepared a meeting starter kit that you can download from the link below. This resource is tailored to trades businesses, offering a roadmap to structure your team meetings for maximum impact. Use it as a catalyst to transform your team meetings into dynamic sessions that drive collaboration, innovation, and progress.

Team meetings in trades businesses are more than just obligatory gatherings; they’re a gateway to fostering a culture of communication, alignment, and productivity. By implementing a well-structured agenda, embracing open dialogue, celebrating successes, addressing concerns, and diving into operational insights, you’re equipping your team to navigate challenges and seize opportunities with collective strength. Don’t miss the chance to elevate your team meetings—grab your meeting starter kit now and embark on a journey of transformative meetings that propel your trades business forward.

DOWNLOAD YOUR TEAM MEETING AGENDA GUIDE HERE

team meeting

Dealing With Non-Billable Hours

by

Navigating Non-Billable Hours in Trades Businesses

In the world of trades businesses, where every minute counts, the concept of non-billable hours looms as a challenge that can significantly impact productivity and profitability. These non-billable hours encompass tasks that don’t directly contribute to generating revenue—activities that can often slip under the radar but play a crucial role in the overall functioning of the business. Today, we’re delving into this aspect and presenting a unique approach that can transform the way trades businesses address non-billable hours.

Before we dive into the strategy, it’s important to acknowledge that non-billable hours are more than just a minor inconvenience. They can encompass various activities, from administrative tasks and travel time to training sessions and project planning. While these tasks might not result in immediate revenue, they are undeniably essential for the smooth operation and growth of a trades business.

Reverse Thinking Strategy

Now, let’s talk about the reverse thinking strategy, a powerful concept that flips the traditional approach to non-billable hours on its head. Rather than solely focusing on the billable hours that your team is clocking, the reverse thinking approach shifts the spotlight onto the hours that aren’t billable. It’s a shift from “How much can we bill for?” to “How can we minimise non-billable hours?”

Consider the scenario of a plumbing business. Imagine there are four team members: Tim (the owner), Rob, Blake, and Luke. Instead of dissecting the billable hours of each team member, the business adopts the reverse thinking strategy to address the non-billable hours.

Tim, for instance, spends 1.5 hours on non-billable tasks. Rob’s non-billable hours amount to 1 hour, while Blake and Luke each have 0.5 hours. These hours could involve tasks like quoting, administrative duties, cleaning, or even training, which might not directly translate into revenue-generating work.

The pivotal step here is to recognize the importance of allocating a portion of non-billable hours to job-related activities. In this example, the plumbing business mandates that all team members, apart from half an hour, must dedicate their non-billable hours to job-specific tasks.

To implement this strategy effectively, the business utilises a job management system. This system not only helps differentiate billable and non-billable hours but also aids in tracking how non-billable hours are allocated.

Moreover, communication plays a significant role. The team members are educated about the reverse thinking strategy and the necessity of minimising non-billable hours. It’s a collective effort aimed at boosting productivity, enhancing the business’s performance, and ultimately contributing to its success.

Tracking The Progress

Tracking progress is another crucial component. The business employs a whiteboard to visualize and update the non-billable hours allocation on a weekly basis. This transparency not only keeps everyone accountable but also fosters a culture of productivity and responsibility.

The reverse thinking strategy offers a fresh perspective on tackling non-billable hours in trades businesses. By actively managing and allocating these hours to job-related tasks, businesses can strike a balance between essential non-revenue-generating activities and revenue-generating work. It’s a proactive approach that not only optimises productivity but also drives growth and efficiency. If you’re intrigued by this strategy or have implemented a similar approach, we’d love to hear your feedback. Let’s work together to empower trades businesses for a more productive future.

Find out more by grabbing a copy of my two Wealthy Tradie Books

wealthy-tradie-books-banner

Creating a Positive Culture in Your Trades Business

by

Creating and Sustaining a Positive Culture in Your Trades Business

In the dynamic world of trades businesses, the significance of cultivating a thriving workplace culture cannot be overstated. A healthy culture not only enhances productivity but also reduces employee turnover rates and fosters an environment where everyone can thrive. So, how can you build and maintain an exceptional culture that resonates with your trades business? Let’s explore some actionable steps and insights that can make a substantial difference.

Documenting Your Culture

The first step towards establishing a great workplace culture is to document it. This involves putting your culture’s values, norms, and expectations in writing. While this might sound like a formal process, it’s crucial for ensuring that every member of your team understands and embraces the culture you aim to foster.

In the context of trades businesses, where practicality is often favoured over elaborate corporate jargon, adopting a point-by-point, rule-based approach tends to be more effective. Addressing specific areas of concern such as start and finish times, phone usage policies, vehicle protocols, and sick leave procedures can set clear expectations and minimize misunderstandings.

Tackling the Sore Points

We’ve all encountered scenarios where employees start off strong but gradually slip into behaviours that compromise their performance and dedication. Punctuality begins to waver, and standards begin to dip. To counteract this phenomenon, having your culture documented and accessible becomes invaluable.

By clarifying expectations about crucial aspects such as work hours and behaviour protocols, you can prevent the erosion of standards that often creeps into a business. Imagine having a clear policy on start times that’s not only communicated but also visibly available for everyone to see. This not only reinforces discipline but also acts as a reminder of the standards that the business upholds.

Integration into Training and Communication

While the documentation of your culture serves as a foundation, integration is key. Every new team member should be introduced to your culture as part of their training process. It’s an opportunity to emphasize the values that underpin your business and lay the groundwork for consistent behaviour.

Moreover, effective communication is a linchpin of sustaining a positive culture. If there are any changes or updates to your culture’s guidelines, everyone in the business should be promptly informed. Whether it’s through regular meetings, digital channels, or internal announcements, keeping everyone in the loop ensures that the culture remains alive and relevant.

A Culture Template for You

To facilitate this process, we’ve prepared a culture template that you can readily download from our website. This template is designed to cater specifically to trades businesses, offering a structure that’s easy to understand and implement. By entering your details below, you’ll receive immediate access to this valuable resource that can act as a catalyst for transforming your workplace culture.

In conclusion, building and maintaining a strong culture in your trades business requires dedication, clarity, and consistency. By documenting your values, addressing potential challenges, and integrating your culture into every facet of your business, you create an environment that not only drives productivity but also nurtures a sense of purpose and unity. Remember, a thriving culture is an investment that yields dividends in the form of engaged employees and sustainable growth.

Don’t miss the opportunity to enhance your trades business’s culture. Unlock the culture template by clicking here to download then you can embark on a journey of positive transformation today.

team players

 

Should Trades Businesses Charge Call-Out Fees?

by
Hugh Bowman discussing call out fees

Should Trades Businesses Charge Call-Out Fees?

Picture this scenario: you run a trades business, and the debate about whether to charge customers a call-out fee is a constant thorn in your side. It’s a predicament that countless tradespeople face, and the truth is, not many customers relish the idea of a call-out fee. So, where does that leave us? Let’s delve into this contentious topic and shed some light on the matter.

For instance, imagine you’re at the helm of a trades business that tackles a handful of small projects each day. Say your charge-out rate per hour stands at $100—an amount determined by meticulous calculations or industry standards. This rate is meant to cover various overheads, including holidays, sick leave, superannuation, and other costs for your team.

Now, here’s the crux of the issue: how much do you charge during those hours that your team isn’t directly on-site? Let’s say they’re only on-site for four hours. If you bill exclusively for those hours, what about the time they spend driving, running errands, and handling tasks not related to the project at hand?

It’s a dilemma that most small trades businesses grapple with. Those “off-site” hours are laden with various activities—washing equipment, visiting suppliers, fetching parts, and tidying up after a day’s work. The question then becomes: who foots the bill for these activities? This is precisely where the concept of call-out fees enters the picture.

When explaining the rationale behind call-out fees, you’re essentially elucidating that it encompasses more than just driving to the location. It’s about compensating for the non-project-related activities that contribute to the smooth functioning of your business.

Guidelines For Billable Work

Here’s the bigger query: How do you establish clear guidelines for what constitutes billable work and what falls under ancillary tasks? This is where the notion of billing rules comes into play. Establishing a set of rules that delineate what is attributed to the job and what pertains to other activities is crucial.

In fact, some businesses go the extra mile by compiling a comprehensive list of billing rules. These guidelines provide a structured approach for your team to discern what should be accounted for in a job’s billing and what should be attributed to tasks like workshop duties or non-productive time.

For those intrigued by how this is executed, you’re in luck. We’ve prepared a downloadable resource that outlines a sample set of billing rules. This resource not only empowers you but also serves as a training tool for your team members, ensuring transparency and consistency when it comes to charging for your services.

The call-out fee conundrum is no small matter for trades businesses. Striking the right balance between charging for on-site hours and compensating for the intricacies of running a business is a challenge that requires careful consideration. By implementing well-defined billing rules, you not only clarify expectations for your team but also establish a fair system that respects the diverse aspects of your trades business.

Find out more by grabbing a copy of my two Wealthy Tradie Books

wealthy-tradie-books-banner