Advice from CEO Jon Mailer, PROTRADE United, trades and construction business advisory and coaching partner to Dahlsens
As the end of the year approaches, it could be time to consider the results you would like to produce both in your business and personally for the 6-12 months ahead.
The reality is, over 90% of business owners don’t really have any clear idea about the results they would like to produce in the month ahead, let alone the next 12 months. Many are clear on what they ‘don’t’ want! If you aren’t in the 10% of businesses that have clear, written, and specific goals, then the following could be of benefit.
It has been said that your daily habits reflect how you invest your time and energy, and therefore the quality of your focus. If you start to live your daily habits and they are aligned with your priorities and goals, you could accomplish and produce the results you are looking for.
The following is a 5-step approach to achieving your goals in the year ahead, or in any area of your life. Grab a pen and paper and answer the following questions.
- What are the specific results you want to experience?
- What are the key ingredients required to create this?
- Determine the priorities
- Know the specific actions
- What are your daily habits?
For inspiration, below is an example for Peter, who runs his own electrical business.
1. Specific Results
#1 objective this year is to manage his cash flow much better than in previous years. His specific goal is to always have $50,000 in his trading account.
2. Key Ingredients Required
- Monthly cash flow forecast
- Invoice as soon as possible after the job is complete
- Increase his prices
- Consistent gross profit margin
- Improve job/labour productivity
- Follow up debtors promptly/automated
- Put aside an allowance for profit first
- Monitor profitability of all jobs
3. Main Priorities
- Review invoicing and debtor management systems and procedures
- Review pricing model
- Renegotiate terms with suppliers
- Redo contract with a review on payment terms with customers
- Choose a job management software that syncs with Xero
4. Specific Actions to Take
- Schedule 1 hour weekly to work on financial systems
- Implement an automated debtor follow up software
- Set up separate bank accounts for tax, profit, salaries
- Implement team KPI’s on productivity
5. Daily Habits
- Check cash flow forecast
- Ensure invoicing has been completed and sent off for complete jobs
- Read up on financial awareness
In this case, the daily review of cash flow forecast, ensuring that invoicing is on time and the profitability of each job is within range should only take 20 minutes, however, the discipline to do this daily will be reflected in producing key results in the long term.
Although business is not easy, it can be kept simple.
Chief Executive Officer
Interested in hearing first-hand from PROTRADE UNITED?
You’re invited to join the next online training session in the series:
How to Win Quality Quotes and Projects at Higher Margins
When: Tuesday 11th October, 5-6pm AEST
How: Register with PROTRADE United by clicking here:
During this value-packed session, discover:
- The 7 steps to creating a professional conversion process that will increase your win ratio, with quality jobs
- The high-performance technology that will eliminate price shoppers and time wasters
- Why 73% of quotes are won or lost even before you discuss your service or price
- Powerful value-add strategies that will provide strong margins on each quote
- How to educate potential clients on why they should choose your business
- A step-by-step approach to streamlining your quoting processes, freeing up your time and energy.
Join PROTRADE United CEO Jon Mailer, a nationally recognised source when it comes to managing your business and your life through uncertain times.