We go into business because we want to serve others and because we want our business to serve us and our lifestyle. To ensure that we have a business that supports us financially it needs to be profitable, there is no way around it.
There are 5 common mistakes trade and construction business owners make that deprive them of profit and a lifestyle they dreamed of when they started their business:
- Not knowing their business numbers
- Not knowing their profit margin
- Not knowing the difference between profit margin and mark-up
- Not knowing their overheads costs
- Not knowing how profitable each job is
The best way to improve overall profitability and profitability of each job is to simply measure it.
The reality is that most small business owners do not have time to look at financial reports, don’t know how to start or simply don’t know what the business numbers mean.
Profit and Loss Statement, profit margin, mark-up and overheads? I know it doesn’t sound like very exciting stuff to look at.
That’s understandable as most tradies are probably not interested in having an accounting degree.
Plus establishing processes to measure job profitability requires some expertise and following them is time consuming without the right technology.
The good news is that at Clearly Profitable, out team can set up and support you with the processes and technology necessary to measure your profits and once you start looking at the numbers with our guidance it will all make sense in no time. Once the numbers all make sense you now have the tools to make the best decisions about the financial future of your business and to make it clearly profitable!
Book a free 15 minutes strategy call to find out how we can help you build a great business that serves YOU and your lifestyle.