Episode 25: Overheads aren’t the enemy
When the vast majority of Plumbing, Electrical, Glazing, Tiling, and other similar service based trades businesses want to increase profit, they look at the overhead costs and find things to cut. But is that really the best option? In almost all cases, trying to reduce overhead costs is the enemy of progress because when you’re running too lean you don’t have the necessary infrastructure to grow or operate at a high level.
Think of it like this, when you were setting up your business you brought a vehicle, any tools you needed, materials, a laptop for admin, and you weren’t concerned with the overheads because you knew you needed to spend money to make money, you believed in yourself to make that money back. So what happened? Don’t let that mentality change. When it comes to growing your business, scaling, reducing the reliance on you as the owner, you need to have the same attitude toward those costs.
In this episode you’ll learn why overheads are not the enemy and how they can be used to sculpt your business into whatever you want it to be. You will learn about the overhead range and where you want to be so that you are getting the most out of your business. Remember, reducing overheads actually comes at a cost of its own, which is all explained in the episode, if you don’t get this right it will eat into your growth, your profit, and your time.
WHAT YOU’LL GAIN FROM IMPLEMENTING TODAY’S PODCAST:
- A new lens to look at overheads
- An understanding of the overhead range
- Maximization of the return you get from your business
WHAT YOU’LL GAIN FROM IMPLEMENTING TODAY’S PODCAST:
- How to value your business and what the numbers mean
- How to make your business more valuable and attractive to buyers
- The risks that you need to avoid so the value isn’t effected
LINKS MENTIONED IN THIS EPISODE:
- Book a FREE 15-minute call to learn what coaching could do for you business
- Join our FREE private community of trades business owners in our Facebook group
- Subscribe to our YouTube Channel
- Get a copy of the Profitable Tradie book
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