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Emphasising Results Over Income: A Strategic Approach for Tradie Business Owners

December 23, 20232 min read

Emphasising Results Over Income: A Strategic Approach for Tradie Business Owners

Introduction: Reframing Business Goals

In the competitive world of trade businesses, setting effective goals is key. However, a common pitfall is focusing excessively on financial targets like turnover, overlooking the essential aspect of profitability and meaningful business results. Learn more about setting effective business goals.

Understanding the Core Issue: Income vs. Result

The Misplaced Focus on Income: Many tradie business owners aim to expand their teams or hit specific turnover targets. While these goals are important, they often overshadow the real objective - profitability. Read about the importance of focusing on business outcomes over financial input.

Profitability as the True North: Rather than fixating on turnover, consider your target profit margin. This approach allows you to reverse-engineer your goals, determining the necessary turnover and workforce to achieve your desired profitability.

Focusing on Profit: A Practical Example

Case Study - Achieving $100,000 Profit: Let's say your goal is a $100,000 profit. Knowing your gross margins, you calculate the required turnover to reach this profit, perhaps a million dollars at a 10% profit margin. Discover your own gross profit margin using our numbers that count workbook.

Workforce Calculation for Turnover: For a million-dollar turnover, you might need four tradespeople, each contributing a significant portion to this goal. Remember, hiring additional staff is a step towards achieving profitability, not the final goal itself.

Embracing Vulnerability in Business

Acknowledging Challenges: Admitting knowledge gaps or seeking help is often seen as difficult, particularly in industries valuing self-reliance. 

Humanity and Humility in Business: No one can know everything in business. A belief to the contrary can be a significant barrier to growth. Read about the role of humility in successful business leadership.

Navigating Business Uncertainties

Business: A Box of Chocolates: Running a business involves dealing with unforeseen challenges, such as sudden market shifts or technological disruptions. Learn how to navigate these challenges effectively.

The Value of Expertise and Support: Surrounding yourself with experienced professionals offers invaluable insights and guidance. Understand the importance of having experienced mentors in business.

Collaboration and Strategy Sessions

Open Invitation for Collaboration: If you're a tradie business looking for strategic guidance, consider this an open invitation to collaborate. Organising a strategy session can be a significant step towards refocusing your goals from income to impactful business results.

Strategy Sessions Tailored to Your Needs: These sessions provide an opportunity to assess our potential collaboration. They are designed to help you refocus your business goals towards profitability and strategic outcomes, ensuring more meaningful and lasting success.

Conclusion: Focusing on What Truly Matters

Shifting your focus from income to results is essential for sustainable business growth. Emphasising profitability and strategic outcomes over turnover or staff numbers can lead to more meaningful and lasting success.

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Paul Rogers, Tradie Coach

Paul Rogers is a renowned author and tradie coach, best known for his book "Get Off The Tools". He is the founder of "Tradie Coach, Tradication and The Business Prophet", a coaching and consulting company that helps tradespeople and small business owners transform their businesses into highly successful and profitable enterprises. With over two decades of experience in the trade and construction industry, Paul has a wealth of knowledge and expertise in business management and growth. He has worked with hundreds of business owners, helping them overcome the challenges they face and achieve their full potential. Paul is passionate about empowering tradespeople and small business owners to take their businesses to the next level. He is a sought-after speaker, delivering inspiring and thought-provoking workshops and keynote presentations to audiences around the world. Through his coaching and consulting services, as well as his best-selling book, Paul has helped countless business owners achieve their goals and build the successful businesses of their dreams. Whether you're just starting out or looking to take your business to new heights, Paul Rogers is the expert you can trust to help you get there.

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