So you want to make more money in 2018?
Each month your bank account gets bigger, fed by a tidy flow of cash. Steadily increasing from a trickle to a raging river. Your 'Profit Game Plan' is strong enough that it won’t fail. Even when things go wrong, like if the economy crashes or you lose your biggest clients. It just keeps churning profit out, month after month, year after year.
Can this really be true?
Well, we don’t know what’s going to happen in the next year. We know there will be highs and lows, situations you have control over, and a few you can’t control.
Every winning sports team has a game plan, enabling them to play to their strengths while taking advantage of the oppositions weaknesses. It’s exactly the same in your tradie business. Without a game plan, you will not win. You won’t really get where you want to be. It’s that simple.
So as a business owner, what’s your game plan for the coming year? Picture it. Can you see clearly where you want to go? How to adjust when needed?
How to ensure you’re on the right track
When creating your 'Profit Game Plan', look at the whole business, not just one part. Your financials, marketing and sales, your staff and how you handle your time. All these factor into your success. Start by taking stock and assessing where you are now. Then look at where you want to be. What do you want from your business in the next year? How much turnover do you want? How many clients? What kind of jobs? How many hours do you want to work in a week?
Once you’ve decided how much profit you want to make this year, all you need to do is focus on the drivers of profit in your business, to get more.
Ever wondered what really drives profit in your tradie business?
I’ll walk you through it:
- Margins: Have target margins when quoting so that you are not taking jobs where margins are too low (fact: margins are what drives profit).
- Know your numbers: You’ve heard this before, but what does it really mean? It’s knowing how much you're making every month, how efficient your staff are at getting the jobs done, if you are on track with your budgets, how much cash is left after everyone is paid?
- The right jobs: Know which jobs you are making money on and which ones you are not. Hunt for the right kind of work where the real money is.
- Cash flow: Adopt solid cash flow systems that keep money in the bank when you need it.
- Control: Control jobs from start to finish (tracking costs on jobs and fix the ones light on profit before it's too late).
These are the proven game changing strategies from the tradie profit playbook. How do I know? Because as a trades business coach, I’ve used them with tradies I work with to get the real results. Like Caleb of Mt Grey Builders who increased profit 209% while slashing his working hours, and Grant & Sally of Stewart Contracting who improved profit 186% in just 9 months.
A practical, well-executed game plan will make the difference between just another frustrating year or one of your best.
by Daniel Fitzpatrick