Trades and Construction Businesses See Spike In Profits Despite Uncertain Economic Times
- Written by PROTRADE United's Co-Founder and Managing Director Jason Loft
Australia's number one coaching and mentoring organisation for trades and construction businesses, PROTRADE United, has reported that businesses in the sector are experiencing an increase in annual income and gross profit margins despite the ongoing challenges of economic uncertainty, fluctuating interest rates, housing market trends and the cost of materials.
Results from a recent survey of trades and construction businesses in Australia found that 100% saw an increase in profit margin after receiving professional advisory support.
The survey, which was conducted by PROTRADE United, also revealed that 96% of trades and construction businesses saw an increase in annual income, with 60% of those surveyed reporting more than an 11% increase in annual income, and some as high as 51% increases in annual income.
PROTRADE United Managing Director Jason Loft said the significant improvements in profit margin and annual income indicate that despite the industry-wide concerns and challenges, businesses in the sector can continue to thrive and maintain stability if they are equipped to weather the storm.
“It’s no secret that the trade and construction industry has taken a hit, which has impacted businesses and the end consumer. At PROTRADE United, we help talented tradies take their businesses to the next level with our coaching and mentoring programs and guide them through the various challenges they are facing, or may face in the future.”
“Seeing small and medium businesses thrive as a result of our specially designed programs is an incredible feeling. We ensure our clients are financially prepared for the perfect storm by encouraging them to operate their expenses and adjust their pricing strategy quarterly. This system has enabled small businesses in particular, to create security cashflow funds and remain profitable during increasingly challenging times.”
“Whether they have been in business for 12 months or have a long-term established company, we provide a variety of practical programs, designed to equip owners with the necessary business skills to thrive and the survey results are a testament to that.”
Following the results, PROTRADE United’s Managing Director, Jason Loft, has shared his top five tips to help budding business owners overcome similar challenges:
Work smarter not harder - having the necessary people and procedures in place will help your business run smoothly. As a business owner it’s natural to want to tackle everything yourself, but learning to let go and trust your workforce will allow you to focus on growing the business.
Control your controllables - get into a routine of checking your figures at the end of each month and ensuring you’re always keeping track of what you’re spending versus what you have coming in. There’s always ways to be smart with your money so make sure you recognise the gaps and overspend on aspects of the business than you need to.
Retention over recruitment - holding onto employees saves time, energy and money, overall improves workplace satisfaction and also supports profit. Being an employer of choice and delivering a superior employee experience that workers choose over other employment choices helps to create credible and secure workplaces that people want to work with and for.
Take time out - you can’t be the best if you’re not feeling the best. Running your own business can consume you, so it’s important to take a step back and enforce a healthy work life balance in your routine.
Know your market - it’s a competitive industry that is constantly facing challenges. You need to stay on top of the latest news and ensure your business is moving in the right direction including current trends, economic challenges and climate considerations.
PROTRADE United has advised more than 3,900 trade and construction business owners and its extensive coaching and mentoring programs provide businesses with the tools, resources, information and connections to create consistency of results and long-term stability.
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