Grow your income: run your trades business like a boss.
It’s good to be the boss. You make more money, you don’t have to do the crap jobs, and you’re the guy yelling at people instead of getting yelled at.
Seriously though, we all know that the people making real money in any industry are the ones telling everyone else what to do. It’s not an accident. If you own a business, you have control over every aspect of the operation from quoting to purchasing, hiring and billing. That means you can manage your cash flow, so you come out ahead.
Smart business people set up their operation so that it can grow. Every wealthy businessman got rich by constantly increasing their income. If your profit margin is 30%, it’s better to be making 30% on $100,000 than $10,000. But there’s a limit to growth for most tradespeople who work alone.
You can only increase your hourly rate so much before people will stop hiring you and look for a cheaper alternative. So how do you increase your income? The answer, obviously, is to take on more work. But if you’re a tradesman working by yourself, your revenue capability will always be restricted by the number of hours in the week. The solution to this problem is to be more efficient, or in other words, reduce your labour costs. Remember, profit equals income minus costs. So if you have people working for you who earn less per hour than you do, you’ll be able to take on more jobs, increase your business income but also increase your profit margin.
The way business works means that hiring people is actually an investment, not a loss. As long as the cost of your employee’s work is lower than yours, your profit margin will keep growing. This is the formula every successful business uses to grow. From massive corporations like McDonald’s to factories and big building companies, successful businesses employ people on low wage to maximise their profitability. Who earns the big money? The bosses: builders, CEOs and property developers.
If you want to make big money, you need to run your trades business like a boss. Hiring people to work for you will increase your profit margin and allow you to break through the income barrier of working as a sole-trader.
You can hire short-term contract labourers for as little as $20 per hour, speed up your work schedule and get through twice as many jobs in a week. You might increase your costs by a few hundred dollars a week, but if hiring a labourer means you can double your business income, it’ll be a great investment.
Having trouble finding good labourers? Luckily there’s an app that makes hiring reliable people quick and easy. You can use the Offsida app to hire rated labourers in your local area, for a day or just a few hours. It's a bit like Uber, but for labour-hire. Get it now for free: www.offsida.com/hirers