Strategy is an important aspect for any business, including Tradies. Knowing where you are coming from, where you want to be by a certain time and how to get there separates successful and failed businesses.
You might have just started your trade business or have been in business for a while now, but one of the things that any business owner looks for is profit. Profit is why most people start their own businesses because it comes with early retirement or peace of mind knowing your income is secure.
In the first part of the Break-even series, we discussed what the break-even point is, how to calculate it and the 3 important elements you need to employ to achieve that position. As a quick recap, new businesses might not generate expected income in the short term but can make enough revenue which puts them in a position of not making a loss but not making a profit either. At this point the business can still survive, however, the most preferable outcome is that of making a profit as soon as possible.
Making the decision to start your own business is a bold move that involves risk but can also come with greater rewards. As a potential entrepreneur you need to conduct your market research in order to estimate the size of the potential market, competition and potential sales, as these are some of the factors that will determine your business’ success.
To conclude our blog series into the recent amendments made to the QBCC Act, we will discuss the increased penalties, fair commercial conduct and rectification changes.
Tradies Accountant is a specialised accounting firm that provides bookkeeping, accounting and consulting advice to trade business owners. We have been working closely with shopfitters and builders across Australia over the past year. Through our consulting advice, we have set up a software that allows us to gather benchmarks from shopfitting and builders businesses, we have included four important benchmarks below that will let you see where you are sitting in relation to your competitors.
At Tradies Accountant we have been providing additional services to clients such as upgrading their licence category and helping resolve QBCC audits. We have found that some of the business owners are unaware of their requirements regarding holding a QBCC licence. As a trade business owner and a licence holder, you need to make sure you are compliant with all QBCC licence requirements. Explained below are the two main requirements imposed by QBCC:
Goal setting is more than just giving yourself a to-do list. You should set yourself a really meaningful long-term goal and then break it down into smaller achievable targets. Business owners should articulate this long term goal to the team through various mediums. Having a really well defined vision for the company provides clarity for all of your team members.