Today I want to share a story with you that might just change the way you think about consulting and skilled trades profitability.
I recently had an experience with a physiotherapist that got me thinking about my role as an accountant in the lives of my clients, and how it’s not so different from the physio’s role in my life. So, buckle up and prepare for a healthy dose of humor and insight as we dive into this tale of pain, hard work, and, ultimately, success.
Picture this: I’m lying on a physiotherapist’s table, hoping to get some relief from the nagging pain in my arms. The physio looks me in the eye and says, “Andrew, I’m not going to do the work for you. I can only advise you on the exercises that will make you feel better. You have to do the hard work.” It hit me like a bolt of lightning – this is exactly what I do for my clients!
As an accountant and consultant, I often meet skilled trades business owners who are struggling to turn a profit. They come to me, expecting me to wave a magic wand (or calculator) and instantly solve all their problems. The truth is, like the physiotherapist, I can only advise you on the “exercises” – the steps you need to take to improve your profitability. You, the business owner, need to be willing to do the hard work.
So, what does this hard work look like? Here are a few “exercises” that I prescribe to my clients to help them on their journey to increased profitability:
- Track and analyze expenses: It’s no secret that you need to know where your money is going in order to cut costs and make more profit. Keep detailed records and review them regularly to identify areas for improvement.
- Improve invoicing and cash flow: Late payments can seriously hurt your bottom line. Implement a solid invoicing system and follow up on overdue payments. Remember, cash flow is the lifeblood of your business.
- Invest in marketing and advertising: As much as we’d all like it, clients won’t just magically appear on our doorstep. Allocating resources to marketing and advertising can attract new clients and help grow your business.
- Hone your pricing strategy: Are you charging enough for your services? Evaluate your pricing strategy to ensure you’re not leaving money on the table or driving clients away with exorbitant rates. I know it is a crazy thought, no one cares how long it takes, and don’t want to pay you by the hour.
- Embrace technology: Streamline your operations with the latest tools and software. This can help you save time and money, allowing you to focus on what you do best – your skilled trade. Tools like Jobber or Housecall Pro are great options for many home service businesses
The road to profitability can be a challenging one, but it’s not impossible. If you’re willing to put in the hard work, the rewards are worth it. Just like my experience with the physiotherapist, seeking out a consultant is only the beginning. Together, we can identify the best “exercises” to improve your skilled trades profitability, but it’s up to you to put in the effort.
So, what are you waiting for? Complete a Getting to Know You Questionnaire, and let’s get started on your journey to a more profitable skilled trades business. And who knows, maybe my arms will be better by then too!
