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.
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.
Working Less: The Key to Achieving Work-Life Balance for Tradie Business Owners
Are you struggling to find a balance between work and personal life? As a tradie business owner, working long hours and sacrificing important family moments can take a toll on your happiness and well-being. Let’s look at effective strategies for working less while maximising productivity. By establishing clear rules and boundaries around your time, you can achieve a healthier work-life balance and prioritise what truly matters.
The Challenge of Overworking
Many tradie business owners find themselves working excessively, compromising their personal lives. They may miss important family events, such as their children’s activities or school pickups, leading to feelings of regret and dissatisfaction. The crux of the problem lies in the absence of time management rules. While they may start their workday early, lacking discipline around time leads to staying late onsite to finish off jobs or retreating to their home office after dinner to do bookwork. To break free from this cycle, it’s crucial to establish firm rules regarding working hours and commitments. By doing so, you regain control over your time and create space for what truly matters.
Setting Clear Rules
The first step is to set clear rules around working hours. You have to expect there are times when they are broken but there starts the slippery slope of continuing to do it. I recommend setting a maximum number of times per fortnight or month.
Personal experiences can drive the realisation that strict rules around working hours are essential. For instance, my personal journey began when I had five young children, all close in age and on certain days I had to be there for when they came home from school. . This necessitated a fixed schedule to ensure I could be there for them when they needed me. Establishing clear rules regarding your working hours and commitments helps you prioritise the most important aspects of your life. By adhering to these rules diligently, you maximise efficiency during work hours, allowing for quality time with family and personal pursuits.
The Power of Discipline
Discipline plays a vital role in achieving a healthy work-life balance. As a tradie business owner, it’s crucial to remain committed to your established rules and boundaries. By being disciplined about when you work and ensuring that everything else aligns with those commitments, you can make the most of your working hours. Delegating tasks, outsourcing, or simply letting go of non-essential activities become viable options, enabling you to focus on high-priority tasks. Embracing discipline empowers you to work efficiently, freeing up valuable time for family, personal hobbies, and self-care.
Working less while maintaining productivity is not only possible but essential for tradie business owners seeking work-life balance. By setting clear rules and boundaries around your working hours, you regain control over your time. Embracing discipline and adhering to these rules allow for efficient use of working hours, leaving space for cherished family moments and personal endeavours. Remember, by working smarter, not harder, you can achieve greater satisfaction and fulfilment in both your work and personal life.
Hiring an Admin Person for Your Tradie Business: When and Why?
Many tradie business owners often wonder when the right time is to hire an admin person. It’s a common question that arises when businesses are in the growth phase or have just started out. Often, the concern revolves around affordability. However, from a strategic perspective, NOT hiring and admin person is holding the owner and the business back.
Let’s explore the benefits of hiring an admin person and discuss when it’s the right time to bring them on board.
The Value of Time
By employing an admin person for a significant portion of the work week, you can regain valuable time to focus on more critical activities. In just a couple of months, the admin person’s support should allow you to reclaim additional days that can be utilised more effectively, whether it’s generating income or tackling essential tasks. As a tradesperson, your expertise lies in your trade, not in administrative tasks like bookkeeping. Allocating these responsibilities to an admin person who excels in such areas ensures that the work is performed efficiently and allows you to concentrate on activities that align with your skill set and income potential.
Leveraging Expertise
As a plumber, electrician, or any other tradie, your primary income comes from performing your trade. However, tasks such as bookkeeping or administrative duties might not be your strong suit. Hiring an admin person allows you to tap into their expertise, ensuring these critical tasks are handled proficiently. Rather than spending time on activities that aren’t your core competency, you can entrust them to someone who specialises in those areas. This not only improves the quality of the work but also enhances overall business efficiency, as the admin person can devote their full attention to these tasks.
Delegating and Expanding Responsibilities
Once you’ve hired an admin person, you can gradually delegate various activities, freeing up your time to focus on more crucial aspects of your business. To assist you in this process, I have prepared a list of tasks that you can delegate or train your admin person to handle effectively. By downloading this list (available at the end of this blog post), you can identify specific areas where their support can make a significant impact. Furthermore, as you become accustomed to working with your admin person, you’ll likely identify additional tasks to add to their responsibilities, creating a dynamic and productive working relationship.
Employing an admin person for your tradie business can be a game-changer. It allows you to regain valuable time, leverage your expertise, and focus on income-generating activities. Instead of trying to handle all aspects of your business, delegating administrative tasks to a skilled professional empowers you to excel in your trade and drive business growth. If you’re interested in exploring the possibilities of hiring an admin person, download the list of activities that you can delegate and maximise the potential of your business.
Are you looking for ways to accomplish more tasks efficiently in your day? Allow me to introduce you to a powerful tool called the default diary. Let’s delve into the concept of a default diary, which can help you optimise your time management without the need for delegation. By implementing this simple yet effective strategy, you can enhance your productivity and streamline your workflow as a tradie business owner.
The default diary is a valuable tool among many others that can revolutionise how you utilise your time. Its principle is straightforward: dedicating uninterrupted blocks of time to specific activities significantly enhances your productivity. For instance, if you often find yourself conducting quotes throughout the week, you may experience disjointed workflow and inefficiency. With a default diary, you assign a fixed time for tasks like quotes. When clients inquire about quotes, you can respond by saying, “We handle quotes on Tuesday mornings. Does that work for you?” By scheduling activities in your default diary, you establish a consistent routine that optimises your time and improves your efficiency.
Streamlining Meetings and Business Tasks
Utilizing a default diary can also help you streamline meetings and important business tasks. For example, you can designate a specific time each week, like Monday mornings or Friday afternoons, for team meetings to discuss project updates and site work. Moreover, you can allocate time for essential business activities that often get overlooked, such as business planning, marketing, or system design. By reserving a specific time slot, like Friday mornings, you can prioritise these tasks and ensure they are consistently addressed. Communicating your default diary to your team or admin staff will help everyone understand your availability for particular activities, allowing for smoother scheduling and improved productivity.
Tailoring the Default Diary to Your Business
The beauty of the default diary lies in its flexibility. You can customise it based on the unique needs and size of your business. For instance, if you operate as a two-person team, you might allocate more time to working on the tools, while still dedicating specific blocks for crucial business-related tasks. On the other hand, if you have a larger team, you may assign specific days for managerial and administrative duties, allowing you to focus solely on the business’s growth and development. By aligning your default diary with your business requirements, you can strike the perfect balance between on-site work and essential managerial responsibilities.
Implementing a default diary can revolutionise your time management as a tradie business owner. By strategically scheduling activities and dedicating uninterrupted blocks of time, you can enhance productivity and streamline your workflow. Whether it’s conducting quotes, holding team meetings, or working on vital business tasks, a default diary ensures consistency and allows for effective planning. Take advantage of the power of the default diary and witness the positive impact it has on your productivity and overall business success.
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Three Essential Tips for Delegating Tasks as a Tradie Business Owner
Delegation is a crucial skill for any business owner. By effectively assigning tasks to others, you can free up valuable time and focus on high-priority activities that drive your company’s growth. Let’s explore three practical tips to help you determine which tasks to delegate. These guidelines will enable you to streamline your workflow, increase efficiency, and ultimately maximise your business’s potential.
Avoid What Drives You Nuts
As a business owner, it’s essential to recognise your strengths and weaknesses. If there are tasks that consistently frustrate or overwhelm you, chances are you’re not the best person to handle them. By delegating these tasks, you can ensure that they are performed by someone who excels in that particular area. This will not only alleviate your stress but also yield better results. Remember, focusing on activities you enjoy and excel at will allow you to leverage your skills effectively and achieve optimal outcomes for your business.
Automate Repetitive Tasks
Repetitive tasks can be time-consuming and monotonous, preventing you from dedicating your energy to more strategic endeavours. Look for opportunities to systematise these activities and delegate them to capable individuals. By creating clear processes and guidelines, you can empower your staff to handle these tasks efficiently. Automating or outsourcing repetitive tasks will not only save you time but also enable you to focus on more value-added responsibilities, such as business development, innovation, and client management. Embracing delegation in this context allows you to optimise your business’s productivity and drive growth.
Evaluate the Cost of Delegation
Consider the financial implications of delegating certain tasks. Reflect on the value of your time and the potential returns you could generate by concentrating on higher-level activities. If you find yourself engaging in tasks that could be performed by someone else, determine the actual cost of delegation. For example, if you spend time procuring supplies for your team, consider hiring someone to handle that task at a fraction of your hourly rate. Similarly, outsourcing bookkeeping or administrative duties can be cost-effective compared to the value your expertise brings to the business.
By delegating low-value tasks that fall below a specific dollar rate, you can ensure that your time is optimally allocated to tasks that yield higher returns.
Finding the Right Balance: How Much Time Should You Spend Working on Your Business?
As a tradesperson-turned-business owner, it’s natural to find joy in the hands-on work of your trade. However, for your business to thrive and achieve long-term success, it is essential to dedicate sufficient time to working on your business rather than just in it. Let’s now explore the importance of allocating time to focus on the growth and development of your business. By striking the right balance between working on and in your business, you can unlock its full potential.
The Love for Your Trade:
Many business owners are drawn to their trades due to a genuine passion for their craft. The immediate gratification of performing tasks and earning money can make it tempting to spend most of your time on the tools. However, it’s important to recognise that working on your business is equally vital for its long-term success. It involves tasks that may not offer immediate rewards but contribute significantly to growth and profitability.
What Does Working on Your Business Entail?
Working on your business means focusing on activities beyond the physical tasks of your trade. Here are a few examples:
a. Job Management Systems: Optimising and configuring software systems like “Simpro” or “Fergus” to enhance efficiency and streamline operations.
b. Defining Culture: Developing a strong organisational culture that attracts and retains the right employees, fostering a positive work environment.
c. Pricing and Recruiting Systems: Analysing and improving pricing strategies or implementing effective recruitment processes to support business growth.
These tasks, while not as immediately rewarding as hands-on work, are crucial for expanding your business and maximising its potential.
The Importance of Time Investment:
Working on your business is the key to accelerating its growth rate. The more time and effort you invest in improving systems, refining processes, and building a solid foundation, the faster your business will progress. These endeavours are the limiting factors that determine your business’s ability to scale and thrive.
Determining the Right Balance:
The amount of time you should allocate to working on your business depends on various factors, including the nature of your trade and the size of your team. While there is no definitive answer, here’s a general guide:
a. A 2/3 man business: probably needs at least 4 days a week on the tools
b. A five man business: Suppose you own a business with a team of approximately five employees. In that case, it is advisable to limit your time on the tools to no more than three days a week. Dedicate at least two days to working on your business, focusing on crucial growth-oriented tasks.
c. A ten man plus business: the owner shouldn’t be working on the tools at all (except for training staff) but should be running all aspects of the business.
Finding the right balance between working on your business and working in it is essential for the sustainable growth of your tradie business. While it’s tempting to get on the tools your business will require more of your time on the business the more your business grows.
