Many business owners in the trades see their sales grow every year. Even with high revenue, the money left in the bank often stays the same. It can feel like you are working harder just to stay in the same place. This feeling of stress usually comes from not knowing exactly where the money is going.
The end of the year is a good time to stop the cycle of working hard for very little reward. To move away from confusion and toward a business that pays you well, there are two simple things to do this week.
Review Your Last Five Jobs
High sales can hide the fact that some jobs are actually losing money. When the crew is busy, it is easy to think every job is a success. Looking at the numbers will show the truth.
Compare the hours you planned for the job to the hours your team actually worked. If the actual hours are much higher, the pricing needs to be updated.
Look for extra work that was done but never billed. Sometimes small tasks are finished for a client without adding them to the final invoice. This takes money directly out of the profit.
Check what you paid for materials and outside help. If their prices went up but your prices stayed the same, the business is losing money on every project.
Check Your Monthly Bills
Small costs can add up to a large amount of money over a full year. In a busy business, these costs are often ignored.
Look at every monthly bill or subscription. If a service or software is not used every week, it is best to cancel it.
Look at the repair records for trucks and tools. If a machine breaks down often, it might be costing more to fix than it is worth.
Look at how supplies are bought. Finding ways to reduce waste or get better prices can save a lot of money without needing to find new customers.
Building a Better System
Solving these problems now helps create a business that is easy to manage. Instead of waiting until the end of the year to check progress, start looking at a few key numbers every week.
Track how many bids turn into real jobs.
Measure how much work the team finishes each day.
Focus on the types of jobs that leave the most profit for the business owner.
A business should work for the owner by providing a clear path to financial security and a life with less stress.