Simply working harder isn’t always the most effective way to boost the earning power of your trades business. Rather, work smarter and embrace these six simple techniques to boost your revenue and put more money in your back pocket.
1. Bring in new business
The digital age has completely changed how trades businesses must market themselves. Your online presence is key to attracting new business, so investing in a professional website is essential. Embracing the latest search engine optimisation (SEO) techniques to ensure your site ranks highly on Google searches is also crucial. Also, it’s also worth using social media to connect with potential new customers and showcase your latest work.
2. Embrace time-saving technology
There’s a wide range of software solutions available that will save you significant admin time and allow you to go out bringing in new business. QuickBooks Online, for example, is a complete cloud-based accounting solution that will handle everything from invoicing to payroll and tax reporting.
3. Retain good staff
Don’t invest in training top staff only to lose them to your competitors. Keeping your top performers close will save you recruitment costs. Make an effort to communicate with your team so they know what’s expected of them. Acknowledging good work and offering development pathways within your business to help them advance their careers are two key elements for retaining good staff.
4. Produce accurate quotes
The quoting process is vital to winning new business. Quote too high, and you might fail to secure the job. Quote too low, and you’ll be left with disgruntled customers when your invoice arrives. It’s important to remember that your potential customer isn’t an expert in your trade. Producing detailed quotes to help them understand exactly what the job entails and where you’ll add value that your competitors might not will avoid unpleasant misunderstandings.
5. Get paid on time
Late payments can cause havoc on your cash flow and leave you without the funds to cover your expenses. Don’t rely on paper-based bookkeeping or your memory to identify and chase overdue invoices. Apps like QuickBooks Online can automate your invoicing process and will accept a wide range of payment types, including tap-and-go credit card and PayPal transactions for instant payments.
6. Find new revenue streams
Do you have untapped revenue streams in your business that you could unlock to make extra money? Consider making better use of infrequently used factory or workshop spaces, and even machinery, by renting them out. Also think about selling any surplus materials from finished jobs to other trades businesses or home renovators.