4 tips to help tradies improve their cash flowCash flow is an issue for many tradies. To help, here are four ways that owner operators can improve their company’s bank balance and grow their company.

There are plenty of reasons tradies choose to start working as an independent contractor or build their own company. One of the biggest drivers is the freedom you can get from being your own boss and running your business as you see fit.

While this is a great lifestyle choice for many Aussie tradies, there’s no doubt it can lead to some serious headaches. If your finances aren’t in order it will slow down your business and leave you pushing paper rather than getting on with the job.

So how can tradies save money and build a more successful company? Here are four of our top tips.

1. Keep a keen eye on invoices

Sometimes, finishing up with a client’s project is just the start of your work, especially if they drag their heels with payment. In fact, a study from Dun & Bradstreet found that trade payments are the most likely bills to go unpaid, with 37 per cent of respondents delaying these payments first.

Being vigilant with invoices and chasing up payments may not be the most edge-of-your-seat job, but it is essential if you want to enjoy long-term growth.

2. Choose the right equipment

Every tradie knows the value of having the right tools on hand if they want to get the job done right. After all, time is money and no tradie likes being called back just because they didn’t have the right equipment the first time round.

Investing in the best electrical tools and equipment will allow tradies to work smarter and faster, making their life easier and keeping the bank manager happy.

3. Evaluate your expenses

Managing a business requires a lot of discipline, especially around expenses. Using the company credit card to top up your car before a road trip may seem like a good idea at the time, but it can hurt your long-term success when those bills come in.

Staying on top of expenses and ensuring you don’t mix business with pleasure can help you keep your company finances on the straight and narrow.

4. Search for new opportunities

Even if you are a sole operator, you will need to take some time to think about the long-term development of your company. Spending all day on site might seem like a good way to get ahead, but it can cause you to miss valuable opportunities if you’re not careful.

Taking time each week to plan for the future of your business can help you make the most of opportunities that you might otherwise miss.

By evaluating your costs, invoices and equipment, while constantly looking for new opportunities, tradies who run their own business can be sure they have all the ingredients needed for long-term success. What’s more, L&H can help their customers improve these elements. Talk to your local branch today to see how.

Looking for more ideas? Speak to the staff at L&H!

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