Sometimes it’s not the flashy marketing tactics or expensive tools that win you work – it’s the basics. And right now, far too many businesses are missing out on jobs simply because they’re not getting the fundamentals right.
Here’s a quick reality check!
1. Answer the Phone
It’s staggering how often business calls go unanswered. If someone is trying to reach you, chances are they’re ready to give you work. Missing that call could mean missing that opportunity.
2. Set Up Your Message Bank
This is the second-best job conversion tool under the sun — and it’s shockingly underused. If your phone rings out with no voicemail, or your inbox is full, or you’re relying on a clunky 10-second voice-to-text, you’re turning potential customers away. Set up a clear, professional message bank that invites people to leave their details.
3. Call People Back Promptly
If you’ve missed a call, call them back — and do it fast. A slow response often means they’ve already moved on to someone else. Acting quickly shows reliability and professionalism.
4. Follow Up Quotes
You’ve already invested the time in quoting — don’t let that effort go to waste. A timely follow-up shows you care, keeps the conversation going, and dramatically increases your chances of winning the job.
Back to Basics
These aren’t cutting-edge sales techniques — they’re simple habits. But when done consistently, they can dramatically improve your conversion rate. Get these right, and you give yourself a real shot at growing your business.
Hugh Bowman from ActionCOACH Geelong shares a powerful recruiting principle that should guide every business owner when hiring: You get the people you deserve!
It may sound harsh, but it’s the truth. Struggling to attract top talent? It might be time to take a closer look at leadership and workplace culture.
• Poor leadership drives away the best employees.
• A toxic work environment repels great talent.
• A team full of underperformers makes it difficult to attract high performers.
• Low-quality work fails to interest top-tier candidates.
Recruiting the right people isn’t just about filling a position—it’s about creating a workplace that attracts and retains the best. If hiring the right team feels like a constant challenge, Hugh Bowman can help turn things around.
When it comes to Business Activity Statements (BAS), many tradies assume they need to rely on their bookkeeper or accountant. But the truth is, you can calculate it yourself—and it’s actually pretty simple! By understanding a few key reports in your accounting software (like Xero, QuickBooks, or MYOB), you can stay on top of your finances and be well-prepared for tax time.
What You Need to Know:
To calculate your BAS, there are three key figures you need to check:
1. GST Reconciliation
This report shows how much GST you’ve collected from customers and how much GST you’ve paid on expenses. Your BAS will require you to pay the difference. To find this, simply run the GST Reconciliation Report in your accounting software.
2. Withholding Tax – Payroll Activity Statement
If you have employees, you need to report the tax you’ve withheld from their wages. In Xero, this information is found in the Payroll Activity Statement. Look for the PAYG withholding amount—this is what you need to include in your BAS.
3. Company Tax Instalment Rate
This is an estimate of how much company tax you’ll need to pay each quarter. The ATO usually sends you a letter with your installment rate based on your last tax return. If you haven’t received it, check with your accountant or look it up in your ATO online account. You can adjust this rate if your business income changes significantly.
Check These Reports Before the Quarter Ends! It’s a good habit to review these reports before your BAS is due. That way, you’re not caught off guard by a big tax bill.
If you’re unsure about any of the numbers, double-check with your accountant—but by doing this yourself, you’ll have a much clearer picture of your cash flow.
Need help? I work with Xero, QuickBooks, and MYOB every day, so feel free to reach out if you have any questions.
Hugh Bowman, business coach at ActionCOACH, shares three essential tips to help tradies avoid the shock of a massive BAS bill.
It’s Your Problem
BAS is the business owner’s responsibility—no one else’s. It’s not the accountant’s problem, the bookkeeper’s problem, or a partner’s problem. Business owners need to take charge, put systems in place, and plan ahead to ensure funds are available when the BAS bill arrives.
Ask Your Accountant
One of the simplest ways to stay ahead is to ask an accountant or bookkeeper for an estimate before BAS is due. A good rule of thumb is to check in about three weeks before the end of the quarter for an update on the expected amount. This small step can prevent big surprises.
Start a Tax Account
Setting up a separate tax account—preferably with another bank that earns interest—ensures money is available when it’s needed. Regular contributions should be made throughout the quarter using one of two methods:
Fixed Amount: If past BAS amounts are consistent, simply divide the typical BAS bill by 13 and transfer that amount weekly.
Percentage of Sales: If income varies, a better approach is to allocate a percentage of sales. For most businesses, this falls between 15-17%. Each week, multiply total sales by this percentage and transfer it into the tax account.
By implementing these strategies, business owners can avoid last-minute stress and confidently cover their BAS obligations.
For help determining the right percentage for a business, or if there are any concerns about being underprepared, Hugh is available for support.
This session is your first step toward financial freedom and living life on your terms. After the session, Hugh will personally connect with you to discuss how the Wealthy Tradie Program can help you achieve your goals.
Are you ready to make your business work for you—not the other way around?
Running your own trade business can feel like an endless grind. You put in long hours, but are you truly getting ahead? If these challenges resonate with you, it’s time to make a change:
– Are you unsure if your business is building wealth for you and your family?
– Do you feel like your hard work isn’t being rewarded?
– Wondering if you’d be better off working for someone else?
– Haven’t had a decent family holiday in years?
– Struggling to find time for your kids’ sports or family events?
– Unsure when or how you’ll ever retire?
– Lack a clear plan for superannuation, investments, or your financial future?
You’re not alone—and there’s a solution.
Join Our Wealthy Tradie Information Session
What You’ll Learn
This free online Zoom session will introduce you to the Wealthy Tradie Program, a proven personal wealth system designed to help trade business owners:
– Be smart with the money you earn.
– Pay off your home ASAP.
– Spend more time with family.
– Buy investment properties or a workshop for your business.
– Know exactly how much to pay yourself and save for big costs.
– Build financial security so you can retire rich, retire young, and have fun along the way.
Strategies to Boost Quote Acceptance Rates in Your Trades Business
Picture this: you’ve meticulously prepared a quote for a potential client, factoring in every detail to provide a comprehensive estimate. You send it off, waiting eagerly for their response. But more often than not, that response might be an objection. These objections can become stumbling blocks, hindering the acceptance of your quotes. Yet, fear not, for there’s a way to navigate these objections and significantly enhance your acceptance rates.
Understanding the Obstacle
In the realm of trades businesses, objections to quotes are a common hurdle that can leave business owners perplexed. Handling objections effectively is a skill that can dramatically influence your success. Many business owners, however, find themselves uncertain about how to address objections, which often leads to hesitancy in following up with potential clients.
The truth is, tackling objections head-on is a game-changer. Even if you address objections with a success rate of around 70%, you’ll witness a substantial improvement in your quote acceptance rates. This transformation isn’t just about increasing numbers—it’s about honing your communication skills to create a bridge between potential clients and your services.
The Objections: Breaking Them Down
When potential clients respond with objections to your quote, it’s not a closed door—it’s an opportunity. Objections can manifest in various forms. Some common objections include:
Price Concerns: “Your quote seems a bit steep.”
Time Doubts: “I’m unsure about the time frame you’ve provided.”
Decision Hesitation: “I need more time to think about it.”
It’s crucial to remember that objections are a natural part of the decision-making process. They indicate interest and engagement, rather than rejection. What truly matters is how you navigate these objections.
The Art of Agreement and Scripted Responses
The first golden rule in addressing objections is agreement. When faced with an objection, begin by acknowledging the potential client’s concern. Agreement establishes a rapport and demonstrates that you’re attentive to their needs.
For instance, if the objection is about the price, your response might be: “Yes, I understand that the quote might appear high. Are there any other aspects that you’re considering?”
Following agreement, having scripted responses ready is a lifesaver. Scripts provide you with a strategic framework to guide the conversation. With scripted responses, you can pivot the discussion from the objection towards finding a solution that aligns with the potential client’s needs.
Empowering Potential Clients to Explain
In the art of objection handling, giving potential clients room to elaborate is invaluable. Allowing them to voice their concerns not only helps them feel heard but also equips you with vital insights. Letting them explain their hesitations opens the door to a deeper understanding of their perspective.
Once they’ve expressed their concerns, you can directly address the objection. With a well-crafted response, you’re not just responding to their objection—you’re tailoring your message to their specific worries.
Elevating Your Success Rate
Dealing with objections upfront is a masterstroke that can revolutionise your sales approach. By embracing objections as opportunities for meaningful conversations, you’re building trust, credibility, and rapport with potential clients. Each objection handled with finesse becomes a stepping stone towards increased acceptance rates.
If you’re eager to delve into a more detailed framework for handling objections, you’re in luck. We’ve prepared a comprehensive script that you can request to have sent to you via the webform below. This resource equips you with the tools to navigate objections effectively, transforming them from barriers into gateways of success.
Objection handling isn’t about overcoming hurdles; it’s about building bridges. In the world of trades businesses, objections are a precursor to acceptance. By mastering the art of agreement, scripting responses, and empowering potential clients to share their concerns, you’re setting the stage for a more profound connection that transcends mere quotes. Don’t miss the chance to transform objections into opportunities—grab your script and embark on a journey of elevated quote acceptance rates today.
Get a Free Copy of my Script to Boost Quote Acceptance Rates
Scripts provide you with a strategic framework to guide the conversation and increase your success rate.
Mastering the Art of Following Up on Quotes: A Comprehensive Guide
Discussing the topic of following up on quotes might not ignite excitement for everyone, but let’s face it, this aspect of business is often the key to success. How you follow up on quotes reflects not only your dedication but also the integrity of your promises made even before the quote was given.
The Neglected Follow-Up: A Common Misstep
The frustration around this topic is undeniable, as many tradespeople admit to the occasional lapse in follow-up efforts. However, any level of follow-up is a step in the right direction. At the very least, remember to touch base with potential clients – a simple act that sets you apart.
The timing of your follow-up is essential. The consensus among businesses is to wait between three and seven days before reaching out after sending a quote. While larger projects might warrant a bit more time, quicker responses are expected for smaller jobs. Striking a balance between patience and proactiveness is key.
The Who and How of Follow-Up
Now, who should take charge of follow-up? Ideally, it’s you. As the business owner or someone well-versed in sales and your trade, your personal touch has immense value. Your familiarity with the project and your ability to address any queries or concerns directly can make all the difference.
Alternatively, delegating follow-up to someone in your office is a viable option. However, this must come with a crucial caveat: ensure that the follow-up person is armed with a script or guideline to ensure a polished interaction. A mere “Do you want to proceed with the quote?” won’t cut it. Clients need to feel they’re in capable hands.
Unveiling the Effective Follow-Up Process
The process of follow-up isn’t confined to a single interaction; it’s a series of steps that speak volumes about your professionalism and commitment. Here’s how a well-orchestrated follow-up typically unfolds:
Inquiry Initiation:
When an inquiry comes in, it’s the beginning of a potential client relationship. Engage them in a phone call to discuss their needs and understand their expectations.
Information Exchange:
Following the initial call, email them relevant materials – past project examples, team details, or any other pertinent information that showcases your expertise.
Pre-Site Communication:
Before you head to the site, whether for an estimate or inspection, communicate with them via a call, email, or even an SMS. This reiterates your commitment to the project.
Site Visit:
Conduct the on-site visit and gather all the necessary information for a comprehensive quote.
Providing the Quote:
After preparing the quote, ensure you communicate clearly when they can expect to receive it.
Follow-Up:
This step is pivotal. The manner in which you follow up reflects your professionalism. Remember, a well-prepared quote holds the promise you’ve made.
The Sales Process as a Framework
However, the follow-up process doesn’t stand alone; it’s a part of a broader system – the sales process. Every interaction, from the initial inquiry to the final follow-up, forms a cohesive structure that shapes how potential clients perceive your business.
Positioning your actions is crucial. When quoting, if you promise to reach out within a specific timeframe to discuss the quote and clarify doubts, this commitment sets the stage for a seamless follow-up.
The takeaway here is that while discussing follow-up strategies is vital, understanding the broader context – the sales process – is equally essential. To help you on this journey, we’ve prepared a downloadable sales process template tailored for trade businesses. Click the link below to access this valuable tool, designed to not only guide your follow-up efforts but also enhance your overall business approach.
In conclusion, mastering the art of following up on quotes is more than just a task; it’s an embodiment of your dedication and professionalism. Utilise these insights, and remember that the true essence of follow-up extends beyond the quote itself – it’s a part of the comprehensive sales process that propels your business toward success.
Click here to download our specialised sales process template, and embark on a journey to optimise your approach to client interactions.
Your success begins with these foundational steps. Happy quoting and following up!
Understanding Cost of Sales: A Valuable Tool for Tradie Business Owners
In the world of business, knowing your numbers is crucial for making informed decisions and ensuring profitability. One essential aspect of financial analysis is the “Cost of Sales,” which plays a significant role in helping tradie business owners comprehend their financial performance and make strategic choices. Let’s explore what Cost of Sales is, its purpose, and how it can aid tradie business owners.
Cost of Sales, Explained:
The Cost of Sales represents the direct expenses incurred to produce the goods or services sold by a business. For tradie businesses, these costs typically include materials, wages, subcontractors, equipment rentals, and permits related to completing specific projects or jobs. Essentially, it encompasses all the direct costs associated with providing the services or products that generate revenue.
The Purpose of Cost of Sales:
The primary purpose of Cost of Sales is to enable business owners to gain a clearer understanding of their financial performance by separating direct expenses from other operational costs. It helps in evaluating the profitability of each job or project, making better pricing decisions, and predicting the impact of changes in sales volume on the overall profitability of the business.
Understanding Cost of Sales with an Example:
Let’s consider a simplified Profit and Loss (P&L) statement as an example. The P&L consists of three key components: Sales, Cost of Sales, and Operating Expenses.
Sales: This represents the total income generated by the business from its services or products.
Cost of Sales: This includes the direct costs incurred to deliver those services or products, such as materials, labor, subcontractors, equipment, and permits.
Operating Expenses: These are the fixed costs that remain relatively constant, regardless of changes in sales volume. Examples include rent, utilities, insurance, and administrative expenses.
For instance, suppose a tradie business with $100,000 in sales incurs $50,000 as Cost of Sales and has fixed operating expenses of $25,000. The calculation would look like this:
Sales: $100,000
Cost of Sales: $50,000
Operating Expenses: $25,000
Profit: $100,000 – $50,000 – $25,000 = $25,000
The Impact of Sales Growth:
Now, if the business experiences a doubling of sales to $200,000, the Cost of Sales would also likely increase the same ratio to $100,000. The fixed operating expenses would remain unchanged at $25,000. The revised calculation would be:
Sales: $200,000
Cost of Sales: $100,000
Operating Expenses: $25,000
Profit: $200,000 – $100,000 – $25,000 = $75,000
The Significance of Cost of Sales:
As seen in the example, analysing Cost of Sales helps business owners predict the impact of changes in sales volume on profitability. By separating out direct expenses from fixed operating costs, tradie business owners can make more accurate pricing decisions, assess project profitability, and identify areas for cost optimisation.
For more insights on profit and loss, be sure to explore my other videos on the subject.
How Can You Be Making A Profit But Not Have Any Cash?
As a tradesman or small business owner, you might wonder how you can make a profit, yet still have no cash available. It’s a common concern, and I’m here to simplify the explanation.
Let’s say your profit and loss statement in Xero or another accounting system shows a profit, but your cash is low. The reason for this disconnect is that your profit and loss statement doesn’t include certain essential factors that impact your cash flow. These factors are:
Taxes: Any taxes you pay, like instalment tax or withholding tax, don’t show up in your profit and loss statement. This means the money goes directly out of your account.
Debtors: If you have unpaid outstanding invoices from completed work (receivables or debtors), it can tie up your cash. Even though you’ve earned the money, you haven’t received it yet.
Loans: Payments for loans, like those for excavators, trucks, or vehicles, don’t appear as expenses in your profit and loss statement. They go towards reducing your debt, which affects your cash flow.
Stocks: Buying more stock than before can also reduce your available cash.
So, while your profit may look good on paper, these factors can affect your actual cash flow. Remember, most trades businesses use accrual accounting, meaning income is recorded when the work is done, not necessarily when the money is received.
If you need more information, I have other videos that explain profit and loss in greater detail. Feel free to check them out!
Mastering Customer Selection: How to Attract and Retain the Best Clients
In the realm of business, not all customers are created equal. Some are a delight to work with, while others can be a constant source of frustration. As entrepreneurs and business owners, we all strive to attract the best customers – those who value our services, pay promptly, and make collaboration a breeze. But how do we identify and secure these coveted patrons amidst a sea of potential clients? Let’s delve into the art of customer selection and explore the strategies to ensure you’re working with the cream of the crop.
Defining Your Best Customers
Before we can embark on the journey to attracting the best customers, we need to define what these “best customers” actually look like. Imagine clients who not only appreciate your work but actively refer others to your business. These clients are the ones who never question your invoices, meet their payment deadlines, and maintain a harmonious working relationship. In a word, they’re your raving fans. So, how do you ensure you’re targeting and nurturing these golden clients?
The “A,” “B,” and “C” Customer Classification
To streamline your customer selection process, consider categorizing your clients into three distinct groups: “A,” “B,” and “C” customers.
“A” Grade Customers: These are your raving fans – the clients you dream of working with. They value your services, refer others to your business, and make your job a pleasure. They are easy to work with, flexible, and always prompt with payments. Cultivating strong relationships with your “A” grade customers should be a top priority.
“B” Grade Customers: These are the middle-of-the-road clients. They provide work, and while they might not be as enthusiastic as your “A” customers, there’s still potential to elevate them to that level. Invest time and effort in understanding their needs, exceeding their expectations, and converting them into loyal advocates for your business.
“C” Grade Customers: Unfortunately, every business encounters the dreaded “C” customers – the ones who drain your resources, test your patience, and rarely align with your vision. They demand excessive attention, pay late (if at all), and overall, create more headaches than value. While it might be tempting to take on “C” customers, doing so can divert your energy from nurturing your “A” grade relationships.
Strategies for Attracting and Retaining the Best Customers
Define Your Ideal Client Profile:
Create a clear picture of your ideal customer. What industries do they belong to? What challenges do they face? Tailor your marketing efforts to attract clients who align with this profile.
Leverage Customer Data: Analyze your existing customer base to identify trends among your “A” grade clients. Use this information to refine your targeting strategy and seek out similar clientele.
Craft Compelling Value Propositions: Clearly communicate the benefits of working with your business. Showcase how you can solve their pain points and provide exceptional value.
Prioritise Relationship Building:
Invest time in building strong connections with your “A” grade customers. Show genuine interest in their success and make an effort to exceed their expectations.
Streamline Communication: Make it easy for potential clients to reach out and learn about your services. Use your “A” grade client insights to craft messaging that resonates with them.
Empower Your Team:
Share your customer classification system with your team. This way, they can help identify and prioritize the best clients, ensuring a consistent approach to customer selection.
Selecting the best customers for your business is not just about generating revenue; it’s about creating a fulfilling and prosperous working environment. By defining your ideal client profile, differentiating between customer grades, and implementing targeted strategies, you can attract and retain the clients who truly value your services. Remember, fostering a strong base of “A” grade customers not only sustains your business but also opens doors to more referrals and growth opportunities. So, take the time to identify and prioritise your best customers – your business will thank you for it.
