February 12, 2020

Making a Profit in a Skilled Trades Business

Small Business

Making a Profit in a Skilled Trades Business

Your business in the skilled trades is probably not making the profit that it could or the profit that you deserve. The truth is that there is more to making a profit in a skilled trades business than doing the work right. You need to market yourself to find work. You need to know how to bid jobs so that you not only get the work but do the work for a profit. You need to be able to see what your costs are and control them. And, you need to develop a mindset that makes profit a habit instead of a dream.

Marketing Your Skilled Trades Business in the Internet Era

Just a generation ago you got work when someone found your business in the Yellow Pages. Today, they pull out their smartphone and search on the Google search engine. They use terms like electrician Kansas City area, HVAC downtown Kansas City, or plumber West Bottoms Kansas City. You get their business if your name shows up on the Google “Three-pack” that displays with the search results. To make that happen you need what is called local SEO. That involves setting up a search engine optimized website. For help knowing what to do and how to do it, contact us at Exigo Business Solutions in the Kansas City area.

Marketing Your Skilled Trades Business in the Internet Era
Marketing Your Skilled Trades Business in the Internet Era

For Better Control of Your Finances, Outsource Your Bookkeeping

Doing the books for your business should not just be a passive undertaking where someone writes down numbers, adds and subtracts, and shows if you had a profit or a loss. All of those numbers represent what is going on in your business. If your bookkeeping is not providing insight into how to improve your business and your profits, you need a different bookkeeper. Exigo Business Solutions is the top accounting firm in the Kansas City area and will help you with reports that tell you which jobs are the most profitable, which expenses can be but, and how you should manage cash flow and allocate cash along the way.

Profit as a Habit in the Skilled Trades
Profit as a Habit in the Skilled Trades

Profit as a Habit in the Skilled Trades

You make be making a profit your skilled trades business or not. If there is a profit, it may come and go. That situation can be improved by how you do the books. At Exigo Business Solutions in the Kansas City area, we use a bookkeeping method called Profit First. With this system, you allocate profit, twice a month, to a segregated bank account. You do the same for owner’s pay, taxes, operating expenses, and other categories as needed. The point is to allocate for profit first and the exercise the discipline needed to both control expenses and find the best paying work. You will see your profit account get bigger and bigger. You will get better control your cash flow, budget more effectively, and learn to take the best paying jobs first while turning down work that does not provide you with a profit.

Contact us today at Exigo Business Solutions for help making a profit in your skilled trades business.

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