For those who don’t know me, I’m not only a tax consultant, accountant, financial planner, mortgage broker but I’m also a property developer and I love the property market.
My strengths are that I’m great with numbers and I like working on ways I can make more money without working any harder and I guess so do most. So when people talk to me about making money, I start the conversation by asking them, how they are doing it now and then ask, why are you doing it that way and have you thought about doing it a little bit differently?
So today I want you to think how do I do it differently?
Many tradie business owners think you need to increase sales to make more money. But often that’s too difficult, especially in the short term.
Rather than thinking increasing your sales why not think, how I can increase profit instead because profit is what’s left after paying all your expenses. So how do you create a way to increase profits without increasing prices? Whilst keeping the same customers, the same level of physical sales, the same systems, not adding anymore staff or incurring any extra overhead costs, still working out of the same premises and capacity—isn’t that a thought?
So, instead of reinventing the wheel, let’s look at everything you have in front of you, let’s get people motivated and driven to do things better. Let’s look at increasing profits by increasing productivity.
Okay, what’s my point?
Let’s look at the targets you are setting your staff, and what sort of incentives have you got in place?
Instead of paying your staff on an hourly rate, offer your staff a fixed dollar amount per square metre instead. For example if you are landscaper, roof tiler, concreter, painter or any trades where your work is measured by the square metre rate this could work extremely well for your business. Along with this, set targets so that final amount would not be paid until signed off to the standard that you have agreed to with your staff and the client.
By adding a decent carrot for your staff to go after; it has been proven, that staff are more motivated and driven. It’s like they have their own little business within the business if that makes sense? All of the sudden they get to the job earlier than normal, take shorter breaks and make quick precise decisions to get the job done earlier than expected. All whilst not affecting the end result. You’ll have happy clients, happy staff and more money in the bank.
The outcome produces brilliant results
- Productivity increases dramatically.
- Quality gets better and better, (no need to go back and fix anything).
- Staff take-home more money. (happy staff)
- You can increase your profits by at least 20% per job.
- Knowing the fixed $ amount of profit per job also allows to plan better.
- Grab a free copy of my EBook
- Grab a bunch of solutions to some of the most common business problems
- Join the Business Optimiser Group to connect with people who want more from their businesses
- Join our Profit Multiplier Program and be a Case Study
