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Being productive in a trade business is about working efficiently in order to reach your business goals. It’s easy to just get stuck in ‘work horse’ mode but making a plan to be more productive is important for longevity and growth.
As a business owner, increasing productivity will help to not only save your business money, but assist with bringing in more revenue too. You and your team can enjoy the benefits of a productive business, with less stress and an even workload.
In this blog we will get into the finer details of why productivity is important, and what business planning you can do to improve in this area.
As a trade business owner, one of your top priorities will be bringing in as much revenue as possible.
With so many outgoing costs and potential unknowns for every job you take on, it can be easy to get bogged down with what’s in front of you, rather than focussing on the bigger picture.
An increase in productivity can provide your business with:
Being more organised with day to day tasks like admin work will actually free up your labour time so you have the capacity to take on more clients and grow the business.
Spending a bit of time ensuring the money coming in outweighs the money going out is imperative if you want to make a profit.
An example of this is assessing how much you are charging for the job versus what the job is costing you in labour and materials. Repeatedly undercharging clients is a recipe for disaster, but correct quoting is easily sorted!
Your business should be making you money, not costing you money, so checking your operational costs regularly is extremely important.
Aside from the obvious things like labour, you should also look at assessing costs such as leased building spaces, storage unit costs and smaller miscellaneous items that can add up over the financial year.
Directing the use of your personnel and tools to the right jobs will ensure you aren’t wasting resources for something that ultimately won’t bring profit.
Growing your business can be not only about quantity but also variation.
You may have a niche speciality or knowledge that could be utilised in a new business offering, but without the time to explore the option, it can go nowhere.
Most trade businesses are constantly purchasing products and materials for every job, even when it’s not necessary.
A bit of time organising your existing stock can mean less purchasing, and less time going in and out of your local merchant!
Whether you work with a team or you are a one-man band, a productive business assists with providing a balanced workload and far more enjoyment on the job.
The first step to improving productivity is identifying which areas need work.
It’s a good idea to consider whether any of these areas could be improved:
Labour is a big outgoing cost, so always consider who should be completing each task. Consider how long the job would take a junior or senior to complete, if you can afford a margin of error, and whether outsourcing it might be worthwhile
Allocating the wrong person to a task can take you over the quoted timeline, risks mistakes being made and can push back the rest of the project if more senior people are spending too much time on small tasks.
Setting time aside to check-in is relevant whether you work with others or you are a sole trader. Mental health is a huge contributor to how well you can perform at work, and neglect of self-care can result in burnout.
Make some time to understand what good mental health looks like, and always reach out for help if you need to.
Being a hands-on person, this is probably the last thing you want to be doing, but creating good admin practices can actually reduce the amount of time you spend pushing paper!
Record the hours on the job as you go, rather than having to try and remember further down the track when it comes time for invoicing
Plan upcoming jobs, e.g. who will be doing what and the resources you will need. Scheduling in advance will save you time having to make last-minute calls and plans!
Scrambling to get a place on key safety or speciality courses will take up unnecessary time, so booking well in advance is a good idea
Checking PPE stock and placing orders in advance of requirements will ensure jobs aren’t delayed by not having the right safety gear.
Having good cash flow is imperative for any business. Get your invoicing, quoting and expenses done promptly and accurately by setting time aside regularly.
Quoting should be done by experienced people, to ensure you don’t have to cover costs that weren’t stated originally. Get these to potential clients quickly, so they don’t go elsewhere!
If numbers and paperwork aren’t your forte, consider hiring an accountant or administrator who can get all of your ducks in a row faster so you can get back to the job site!
Once you’ve gone through the process of quoting and sorting your labour, the last thing you want is to realise you don’t have the right tools to complete the job.
Whether the tools are being used on another project, or you just don’t have the right tools full stop, hiring gear has so many benefits for your trade business:
Having to purchase tools at short notice can be a crippling cost, and if you won’t need the tool long term you won’t be getting a good return on that investment.
Hiring tools saves you money and ensures you are only paying for the tool for as long as you need it.
Driving around town trying to find the tool you need or ringing around asking to borrow tools just isn’t practical.
Hiring tools is easy to do online, by phone or in a Hirepool branch.
Realising at the last hurdle you don’t have the right gear will no doubt push back your job, annoy your client and affect future project timelines.
Consider pre-booking hire gear at the early stages so you can start on time, which is a great way to be productive.
Upgrading to newer forms of tech can increase productivity by having everything stored, scheduled and easy to find.
This is a great way to get your meetings scheduled in, with reminder notifications so you don’t forget!
Have your important dates saved, such as when you need to complete training and do your monthly invoicing!
Apps that allow you to write to-do lists will help you stay on top of all the little parts of business management like admin work.
Using an app that allows you to scan and upload receipts immediately will save you time rummaging in your glove box for missing bits of paper!
Do your timesheeting via an app, so you can track on the go.
Get your bills paid on time to keep your working relationships in top shape, by using an accounting app that also takes the guesswork out of it all.
If you or your client don’t have time for an in-person catch up about the job, video calling apps are a great way to connect and stay on the same page.
Video apps are also a good way to stay in contact with your team.
Finding a worksite can be tricky especially in newly developed areas or more remote locations.
Save yourself time and navigate with a map view or voice instruction app.
Some businesses can struggle when work starts to bottleneck. Everyone wants their new deck before summer, and their roof watertight before winter, which inevitably creates a lot of busyness for trade businesses, putting a strain on resources.
Sitting down to decide when you can realistically take on more work, when or if you will need more people and what equipment you might need will help to alleviate a lot of stress during busier times.
When work is busy, it’s easy to throw the leftover materials in the back of the van or into the workshop and worry about it later, but that can be a mistake when it comes to keeping track of stock.
You could be saving money by using materials you already have, plus an excess amount of stock has to be stored which could incur you more costs than is needed.
Rummaging to find what you need takes up precious time so implement some organisation to get working faster.
Containers or built-in shelves will help you work efficiently to see what you have already.
A spreadsheet showing what tools and materials you have is helpful if you have lots of stock, and reduces over purchasing.
Make it a regular job to sort through your stock so the job doesn’t become too overwhelming. Shout the team some pizza and beer and you will be done in no time!
Setting time aside to stay on top of goals rather than scrambling when things go off the rails is a good way to be productive. Have regular meetings and schedule time for business development if you are a solo trader.
Stay up to date by marketing on social media, set yourself some sustainable development goals, and be sure to circle back to track progress.
Having a marketing plan is a great way to grow your trade business and hit your goals.
Book everything you need in advance of that upcoming job, then simply pick up from your local branch or get it delivered. Saving time on the job has never been easier! Discover more trade guides and resources over on our Trade Hub.