Managing your trades and construction business
21 September 2022
Completing the work you do for your customers is important, but so is understanding the fundamental facts and figures about your business. Identifying ahead of time the various risk or opportunities through business reports is key to a successful business.
The information outlined below is to point out the areas in your business which you need to know and understand, and areas where seeking expert help could benefit you greatly.
Profit and loss compared to your budget
Set a budget at the start of the year and track how you are performing as the year progresses. Ongoing measurement is key to understanding how successful your trades business is against your objectives.
Understanding profit is one thing but do you understand how your cashflow is tracking? Understanding the impact that the timing of payments and receipts can have is going to help you better manage your business.
Using the budget you’ve created, map out what your predicted cashflow is over the year to help ensure you are ready for any months that you might be stretched
Are your customers paying on time? It is important for cashflow to chase up overdue payments, put payment plans in place or stop the job if the client isn’t paying. Are you managing your own payments to maximise the cash flow in your business?
Understand which jobs and/or employees are profitable and the drivers of business success. And when you understand the drivers, you can adjust the way you're running your jobs.
Personal and business financial planning
As well as the management of your business, it is also important to understand how the growth of your business can impact your personal wealth and assets – having a professional help you manage your financial affairs for personal growth is part of the overall approach you should be taking in business
It can be difficult and overwhelming to wrap your head around all the areas of your business, as well as deliver your service to your customers. Findex has extensive experience working with trades businesses and knowing the specific needs of the industry.
Join us on 4pm Wednesday, 12 October at Geelong West Cricket Club, Victoria, for a night of information and networking with our experts in trades and construction business, and other business owners. Find more information here.
If you can’t join us please contact our team of experts and we can provide you with a business coaching session to help guide you through management reports and personal wealth information so you can get confident in your business and personal wealth journey.