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The Numbers you need to know Blog Post

The numbers YOU need to know about YOUR trade business

Jan 31, 2022

This week we are going to talk about figuring out exactly what you want to know about your trade business in order to increase your spare time, grow your profit and create a saleable asset.

Knowing your Destination is only half of the battle, Creating the Roadmap is the key to get there.

How do you know what is possible if you don't have any information?  A large number of small trade businesses are in this position, not knowing how to forward plan because they have no idea of what is possible.  The only way to find this information is through INFORMATIONAL BOOKKEEPING.  Not just punching in the numbers for the tax man, but carefully planning the type of data you input in order to get the information you require. 

The first step is to decide what information you would like to know.  This in itself can be daunting.  How do you know what you don't know??? 

So initially you will need to be brainstorming areas in your business you think you may be able to save money. These can include:

  • Office staffing
  • Office supplies
  • Material costs
  • Labour costs onsite
  • Motor vehicle costs
  • Fuel costs
  • Staff amenities
  • Sundries/Consumables

Next think of all the different types of jobs you make money from.  These can include:

  • Appliance Installations
  • Faults
  • Repairs (or part replacements as we prefer to call them)
  • Preventative Servicing
  • Switchboard Upgrades
  • Floor Sand & Varnish
  • Floor patching
  • Bathroom Tiling
  • Whole home tiling
  • Etc.  There are infinite possibilities here depending on the individual business

Then there is the different levels of profit

  • On the whole job
  • On types of jobs
  • Of the business as a whole
  • Before your fixed expenses and after your fixed expenses

And how do we want to increase it

  • Reduce unnecessary office staffing hours through automation
  • Reduce material costing through smart buying
  • Increase trade staff onsite productivity
  • Increase pricing on all jobs/products
  • Increase pricing on some job types or products
  • Reduce fuel expenses
  • Increase advertising 
  • Try different marketing endeavours (yes advertising and marketing are very different)
  • Increase your leads
  • Increase your conversion
  • Try and brainstorm some of your own

If you aren't actively thinking about these things you aren't running your business, your business is running YOU.

The right information is so important to make calm, considered and profitable business decisions.  During this week I challenge you to work on your lists brainstorming all that you can and then next week on the blog I'm going to go through some of them and discuss further how to implement informational bookkeeping in order to increase your business spare time, grow your profit and create a saleable asset.  Click here to download your FREE Brainstorming your Numbers Worksheet to help keep you on track!

In the meantime if you want to get a more in depth and step by step instruction on how to implement these changes head over to my 'Decrease Wasted Time' course and start your business growth journey today!

See you next week!

Cheers

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