Business Plans for Tradies
Why do I need a business plan for my trade business?
It would be extremely unusual for you to start a building project without a set of plans to guide you in its construction. These plans are usually very comprehensive and come with a long list of specifications.
Why is it then that most people attempt to build their business with no plan?
Have a Plan and Implement It
A business plan acts like the rudder on a ship. It helps to keep you on course for where you want to go, helps make minor course directions when external forces push you off your path and helps keep you away from dangers. But it can be confusing. Google “business plan template” and you receive about 1.5 Billion results! Total overwhelm and most plans don’t suit your average Kiwi tradie. That is why I typically use a simple 1-page or 2-page plan model for my clients. It provides the longer-term direction you need but is also useful in focusing on the short-term actions needed to make real progress.
The best plans are useless however if they are consigned to the bottom draw and seldom, if ever, referred to. A plan won’t magically make your business grow by sitting in a drawer. It must be implemented, adjusted, actioned and updated on a weekly, quarterly and yearly basis. It should be a systematic process that ticks along on a regular basis, not just a 1-off event and then forgotten about.
Confident But Not Cocky
Being in business, especially construction, is not for the faint hearted. It is a hard, risky business and sometimes hard, risky (but not too risky) decisions need to be made. Making those decisions and bringing people with you requires a level of confidence. Making no decision in a situation can often be worse, so the ability to gather the necessary information, seek others’ opinions and then make a decision is vital to keep your business moving forward.
Having a plan with a clear Vision and Mission to guide you will also help. Part of the decision-making process is checking whether this particular decision will be taking you off course or helping you to stay on course. Having the right level of confidence will help push back against overly demanding customers who are attempting to drive down your price and deny you a fair profit. You need to have the confidence to hold a sustainable price or walk away.
But you need balance. Letting your ego get in the way can be as bad as being too meek and not making a decision. The best business owners I see are those who are confident, but not cocky. The sign of a good leader is someone who can park their ego, be more humble and seek the opinion of others. Someone who takes the blame on themselves when things go wrong and praises the team when things go right.
“Whether you think you can or think you can’t, you’re right”. – Henry Ford
To find out more about how to operate and improve your trade business, contact Andy Burrows from The Trades Coach. Email andy@tradescoach.co.nz or call 027-6886721.