[vc_row][vc_column][vc_row_inner el_class=”container”][vc_column_inner][vc_column_text]If you\u2019re struggling to break even in your tradie business, it might be time to take a look at your cash flow. If you want to make sure you\u2019re consistently making a profit, check out the most common cash flow problems to see if any apply!<\/p>\n

Letting late payments slide<\/strong>
\nIf you\u2019re not actively following up on your invoices, you\u2019re more likely to have issues with overdue payments. It can be difficult when you\u2019ve already moved on to the next job, but you need to make sure you\u2019re getting paid on time to keep your cash flow going. Set clear payment terms and schedule your follow ups – automation will be your friend here.<\/p>\n

Growing too fast<\/strong>
\nYou obviously want to grow your company, but you need to do it at a rate that\u2019s sustainable. If you\u2019re investing too much too fast, it could all go down the drain because you haven\u2019t effectively planned your resourcing. If you do want to grow faster, you\u2019ll need to make sure your finances are healthy and you\u2019ve got a bit of cash tucked away.<\/p>\n

Not having a cash buffer<\/strong>
\nIt\u2019s fairly common in the tradie industry to have ups and downs in your workload depending on the season and the demand. This is why it\u2019s important to have an amount of cash available as a back-up in case things don\u2019t work out how you planned. You should have enough to cover your overheads for at least a few months.<\/p>\n

Lower gross margins<\/strong>
\nIt can be easy to offer lower prices to win more jobs, but if you\u2019re getting paid less than you\u2019re spending then of course it doesn\u2019t make sense. Take a look at the total average cost of the jobs you take on, including labour and material costs, and then adjust your pricing accordingly so that you\u2019re actually making money.<\/p>\n

High overhead expenses <\/strong>
\nIt can be easy to forget the everyday expenses of running your business. Phone bills and office stationery can add up quickly if you aren\u2019t aware of what you\u2019re spending. Take some time to track your expenditure on these and see where you might be able to cut back or look for a less costly option.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row el_id=”related-post”][vc_column][vc_custom_heading text=”Related articles” font_container=”tag:h2|text_align:center|color:%2313143e” use_theme_fonts=”yes” el_class=”title my-5″][vc_basic_grid post_type=”post” max_items=”4″ element_width=”3″ orderby=”rand” item=”918″ grid_id=”vc_gid:1626129692426-b610b9be-bc21-10″ el_class=”related-posts mx-auto mt-3″][\/vc_column][\/vc_row][vc_row][vc_column][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

[vc_row][vc_column][vc_row_inner el_class=”container”][vc_column_inner][vc_column_text]If you\u2019re struggling to break even in your tradie business, it might be time to take a look at your cash flow. If you want to make sure you\u2019re consistently making a profit, check out the most common cash flow problems to see if any apply! Letting late payments slide If you\u2019re not actively […]<\/p>\n","protected":false},"author":1,"featured_media":4654,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-4652","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"acf":[],"yoast_head":"\n