There are numerous reasons why business fail and these can include lack of planning, poor financial management and leadership, lack of profits or marketing strategy, just to name a few. In order to survive, a trade business owner needs to ensure that all the business functions are getting full attention. However, playing the jack of all trades within the business can lead to important business functions being unattended to.
Running a small business can be less complicated when you have a few clients, and everything is easily manageable including job scheduling and making payments for raw materials and tools. However, keeping track of these small daily transactions will start requiring more of your time as your business grows.
Tradies spend a lot of time getting work done on various projects for clients with the goal of business growth and profitability. Business growth and profitability are closely related, on the one hand, growth requires a tradie to be in control or have oversight of the various business functions and profitability on the other hand, is as a result of sound financial management principles.
As your trade business grows, there will be a need to add new team members in order to service new and existing clients. Potential employees will come from different backgrounds and with different levels of experience. As the business owner, you need to be sure that the people you are hiring add value to your business.
From 1 July 2019, tax and super information needs to be sent to the ATO each time payroll is run and employees are paid. The new reporting requirement is called Single Touch Payroll (STP) and is currently available through most payroll, accounting and business software.
As we fast approach the end of the financial year, did you know that as a trade business owner, you can legally minimize your taxation liability by seeing a professional adviser.
It is common in business that clients may sometimes delay in paying what they owe you or even fail to pay up. The question then is, what can a tradie do in a situation where a customer fails to pay. One way to protect your business is to demand payment up front which can work for some clients but then you might end up losing business to other businesses that offer better payment terms. However, another means of protecting your business against bad debts is to get credit insurance. Credit insurance covers your business, so that you still get paid even if they go under or fail to pay you.