Lockdowns be gone….
Hopefully we are all moving to a position where we can go back to work and start making a dollar or two to make up for the recent difficulties here in New Zealand.
Yes, you are right in your thinking, some businesses have done well during the Covid crisis, but sadly others such as the Trades are unable to get out there and make some money.
Sure, some trades can do those “emergency call-outs” but let us be fair, there are not many of those!
So here are two questions for you:
- When you go back, will you be busy?
- And if you are busy, are you going to actually make any money?
I ask these because so often we see good Trade businesses extremely busy but with no cash.
I have had a great month, been flat out”, mmm, got no cash left over.
If you have been there or currently are in this space, keep listening.
There are a few potential issues:
- No Cash Flow: That means money not coming in fast enough, or leaving your account to fast. None left to pay the wages, the rent, the suppliers
- And the other reason: What is your price? By that I mean what do you “sell” yourself for”?
- You are in a labour-based business, sure you can add a margin on the timber, or the plumbing parts but basically you are a labour business. So, what is your price? How do you justify your price? Is it right? Is t too cheap? Is it too expensive? What does the market say? Do you know what the market rate actually is?
So, I ask again: What is your price? This is not just about your labour rate. It is everything you do. Do you price to be the cheapest or do you price to be the best. You cannot be both – ever.
I ask these questions because we see this every day. Incorrect margins, limited understanding of emotional price points, no back-costing, no budgets, zero cash flow, paying suppliers too slow or too fast. Stress, stress, and more stress
- How fast do you invoice once the job is finished?
- Do you control your financials or does your accountant talk to you every six months?
- Do you know what is happening in your business every week?
You cannot measure the success of your business by seeing how much money is in the bank. Most of that may not be yours: It is there for the suppliers, the wages, insurance, rent, vehicle loans and so on it goes….
If you want to fix the business then call us.
We will NOT give you a silver bullet and make you millions overnight. That is just not possible, unless you win Lotto.
What we can do is help you understand what running the business is all about, get you on track, AND help get you to a better position.
Give it a try. It works. We have hundreds who say it does…
What is your answer? Keep doing what you are doing now, or make a change?
Contact Us…. you will wish you had done it earlier.
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