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Now Playing The Other Side Jason Derulo

Stop stressing and get organised: four important business lessons for all tradespeople

Posted: Tuesday, September 7th, 2021

If you’re tradesperson you’ve probably thought at least once ‘there must be an easier way to make a living.’

Working on the tools during the day, followed by evenings and weekends quoting for jobs or catching up with paperwork leads to most tradespeople working 40-and-50 hours a week.

Some tradespeople will tell you they’re working closer to 90 hours a week.

And then there is the holiday situation. Or rather, the lack of it. Few (if any) tradespeople take the ‘statutory’ 28 days a year, and even when they are away it is common for them to field calls and emails from clients.

But something has to give – you can’t work around the clock, with no breaks indefinitely. (And even if you can, what about your family?)

As Craig Wilkinson, head of Elite Business Academy (EBA) said when appearing on the Heating & Plumbing Show, hosted by Andy Cam, “many tradespeople are busy fools.”

Recalling his own experience running a small building firm Wilkinson said, “from the outside”, it looked like he was doing great. He had nice offices, vans with this name on and a full order book.

“But the business was killing me. I was that busy fool, I was working 90 hours per week, I was on the tools, I was doing pricing, quoting, paperwork in evening, I was out at weekends looking at jobs,” he added.

Long hours, combined with the stress of running and managing your own business goes some way to explaining the sector’s mental health crisis.

According to the Office of National Statistics, one construction worker takes their own life every day in the UK.

A bounced cheque from client and subsequent cash flow crisis proved to be a turning point in Wilkinson's life and business. “I just broke down in tears because of the stress. The financial strain had just got too much,” he explained.

“I just thought what am I going to do now? I have nowhere to turn, I can’t even afford to pay my lads… you feel like such a failure,” he added.

After 12 years running his own business, Wilkinson brought in a business coach. Over the next two years, he turned his building business around and eventually sold it. Shortly after, he opened the Elite Business Academy.

Here are four key lessons that Wilkinson learned along the way:

1 – Ask for money: Many tradespeople are nervous about asking clients for money. Well, you need to get over it. Don’t use your earnings, or savings to finance a client’s project. Ask for a deposit upfront to start the work which should at least cover your materials costs.

2 – Understand the numbers in your business: You don’t have to be an account, but you do need to stop ‘winging it’ and understand the basic numbers on a spreadsheet – costs, revenue, breakeven point and profit and loss.

Do not run the company finances from one current account. Set up different accounts for VAT, and other operating costs. Only when you’ve factored in your costs, will you have an accurate idea of what you can afford.

3 – Systemise your business: It is “almost a crime” to not look at ways that technology can help your business, said Wilkinson.

Look at technology and ask, ‘how can this make my life easier, and increase my productivity?’ There are numerous apps out there that will capture sales information, generate marketing emails, automate billing, and streamline certification processes.

4 – Find and hire good people: This is never as easy as it sounds, particularly with the ongoing skills shortage, but having trusted people is vital to grow your business and reduce your stress. You can’t do everything on your own – you need good people.

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