10 x Trade Business Tips from 30 Years in the Industry

Andy
I hate to say it Ange, but most tradies are pretty naive. When we get started, we think I’m good on the tools. How hard can it be running a business? But when things start going sideways, it’s sheer bloody madness and stubborn determination that keeps you going. But you know what? It won’t keep you going for long. 

Ange
Well, we’ve been there, haven’t we? Between running Dr. Drip plumbing for over 21 years and coaching thousands of tradies through Lifestyle Tradie, we’ve seen the good, the bad, and the downright ugly. 

Andy
So in today’s episode, we are sharing 10 of the biggest trade business lessons we’ve learned over the 30 years we’ve been in the industry. The real stuff that’ll help you make money. Get your time back and actually enjoy the business you work so bloody hard to build. 

Ange
All right, let’s get into it. 

Andy
You are listening to The Tradie Show. This is the podcast for trade business and contracting bosses like you who wanna lead with confidence, make more profit, and create a better lifestyle.

Ange
We’re your hosts, Andy and Angela Smith, husband & wife team and co-founders of Lifestyle Tradie. Are you ready to have some fun? 

Andy
Hell yeah!

Did you know Buy4Tradies is a buying group built by Tradies for tradies. They give trade business owners like electricians, plumbers, solar, aircon, and more free access to better pricing with trusted national suppliers. Buy4Tradies is excited to launch some new partner offers packed with even more ways for you to save from materials, fuel, business training, tools, financial and IT services. There’s something for all areas of your business. With Buy4Tradies, there’s no locking contract and it’s totally free to join. So what are you waiting for? Head to buy4tradies.com.au and start saving. Alright, it’s time to kick things off with some Hell yeah wins from our amazing Lifestyle Tradie members.

Hell yeah! These are the legends who’ve been smashing it in their business, proving that small changes can lead to massive results. Hopefully these can give you some inspo on what you can do in your business. Ange, what do we have this week? 

Ange
Well, Andy, we’ve got some great hell yeahs to share today. First up, our big shout out to Courtney and James, Builders in Toowoomba and Queensland. They’re celebrating receiving the award for Queensland Champion in the Australian Achievers Award. And they took their kids off camping at Rainbow Beach to celebrate. 

Andy
That is a great hell yeah. And you know, if anyone’s been listening to The Tradie Show, we talk about awards a lot. They are very important. What is next, Ange? 

Ange
Alright, so next up is Andrea who runs a plumbing business in Brisbane. And she says. Probably the most financially knowledgeable and organized for the end of financial year I have ever been, on top of our numbers and balance sheet more than we have ever been in the past. 

Andy
Know your numbers.

Ange
Totally.

Andy
Has any of you out there ever heard me say that these guys are absolutely nailing it at the moment when you know your numbers, everything changes. That is a big hell yeah. What else have we got? 

Ange
Okay, so Will, who runs a tile and stone company in WA and he says. I doubled my turnover and profit for the fourth year in a row.

Andy
Well, listen, Will is an absolute superstar. He’s all over Instagram. He’s one of the biggest companies now over there in WA. He’s gone from a one two man show and he’s absolutely on fire. His Instagram post, his work that he’s doing is absolutely insane. That is a big hell yeah! 

Ange
Absolutely. And one last hell yeah from Jimmy, who runs a plumbing and excavation business in Outer Melbourne, who says. I had a month off in May for the arrival of our son. We enjoyed some really good family time, and then I backed it up with 120K a month for June, which is great for our little business. 

Andy
That is absolutely huge. You know, some of the biggest moments of your life having a newborn son. Congratulations. But backing that up with an absolutely massive month that is definitely a big hell yeah. And that’s what we’re talking about here. You know, helping tradies take control back at their business, make changes, and see the winds rolling through the door. Alright, let’s kick it off with probably the biggest trap we see tradies fall into being flat out and thinking that means the business is doing great. 

Ange
Just because your phone’s ringing and you’ve got jobs booked back to back does not mean that you are actually making any money. We see this all the time with tradies that come to us for help. They’re busy, but when we dig into the numbers, they’re barely breaking even.

Andy
We were the same with Dr. Drip at one stage two. I mean, I remember looking at my calendar thinking we are absolutely smashing this. We are killing it. We have so much work. I just couldn’t believe how much stuff we’re coming through the door. But then we actually checked the bank account and I was like, hang on. Where is all my cash? 

Ange
So the reality is if you are not quoting properly tracking job costs and watching your margins, you could literally be working your butt off for free or worse, losing money. 

Andy
So the number one tip here is being busy is not the goal, being profitable is. Start tracking your numbers properly. Know your charge hour rates. Understand your overheads. Otherwise, you are just running around in circles, making no money. 

Ange
Okay. So number two might be hard to hear, but your team is never going to care about your business as much as you do. 

Andy
Yeah, and probably fair enough too. It’s not their business, it’s yours. But here’s the thing, if you are turning up late, you are really stressed, you are highly unorganized, you are cutting corners, what do you think your team’s gonna do? Exactly the same or much, much worse. 

Ange
Exactly. Your attitude sets the tone. If you want your team to care, show them what caring actually looks like. Be clear with your expectations and lead by example. If you want them to turn up on time, finish jobs properly and treat customers with respect. You’ve got to do the same. 

Andy
And at times I’ve had to learn this the hard way. I used to get frustrated with my boys as well, thinking that they weren’t pulling their weight, but when I actually looked in the mirror, I realized I wasn’t exactly setting the bar that high either. 

Ange
At the end of the day, leadership starts with you. 

Andy
Alright, number three, and it’s a biggie and I’ll be the first to admit I learned this the hard way. It’s all about learning how to quote properly. 

Ange
Yeah, so quoting properly is we’re so many tradies come unstuck. You’re just trying to win the job, so you undercut, you drop your price and before you know it, you’re working for nothing. 

Andy
I remember back in my early twenties, a long, long time ago, I was working with builders and I had no real idea how to quote properly at all. I just chuck a number together, send it off, and think, oh, hopefully I can make some money from that.

Ange
Ooh, classic inexperienced tradie. 

Andy
Yeah, and I’ll never forget this one job. I, I put in a price with a builder and he rings me and says, Andy, your price has come in so high, and I’m like, oh, how far off am I? And he said, you’re about five grand. If you can drop five grand, the job is yours. Guess what I did? I dropped five grand and there’s no doubt about it, I made no money. I went negative, not a single cent. And back then I just didn’t know any better. I thought winning work meant success because at least I had a job to go to tomorrow. 

Ange
Oh, and that’s the trap, right? 

Andy
Oh, it’s crazy.

Ange
It feels good at the moment, but long term, it’s killing your cash flow. 

Andy
Absolutely. And what I didn’t understand back then was that you actually have to make a profit to survive.

Ange
Surprise, surprise.

Andy
Yeah, I know. It’s crazy. A lot of people just don’t realize this, but it sounds obvious, doesn’t it? But back then, I had no clue. 

Ange
So the tip here is simple. Stop winging it and know your numbers. Quote properly and price for profit. Otherwise, you’re digging yourself into a hole. 

Andy
Yep. You’re not in business to stay busy. You are in business to make money. So tip number four is especially for you, if you are smashing it out on the tools five or six days a week, then quoting and invoicing at night, you can’t grow if you are stuck on the tools full time. Spending all day on site, then heading home, shoveling some dinner down your throat, and then sitting at the kitchen bench quoting to 11 o’clock at night is just not sustainable.

Ange
Well, it’s also not sustainable for the rest of the family. It’s like you are there with us in body, but you are not there at all. 

Andy
Yeah. One of our members, Paul, was recently sharing on one of our podcasts. When he first joined us at Lifestyle Tradie, he wasn’t just sitting at his desk at night. He was literally falling asleep at his desk every single night. Like, how crazy is that? 

Ange
You know what? I also worry about how good his work was too, right? 

Andy
Rubbish. 

Ange
When you are running on empty, mistakes are almost unavoidable. Jobs get under quoted, paperwork falls behind, and forget trying to work on improving the business because you are just stuck reacting to fires all day long.

Andy
If you don’t step back and start managing your time better and implementing systems. You are gonna be stuck invoicing at night forever. 

Ange
That doesn’t mean you have to go cold Turkey off the tools overnight, but you are going to have to start carving out time, even just a few hours a week to focus on the business side of things.

Andy
Listen, if you stay stuck on the tools forever, you’ll stay stuck in survival mode forever as well. 

Ange
Alright, let’s talk about customers, because not all customers are good customers. Some of them are time wasters and some are serial tire kickers and some will haggle you down on price, then still complain when you do the job.

Andy
When we all started our business, we just took on every job that came our way. It didn’t matter how painful the customer seemed, we’d say yes because we thought more work meant more money, but we spent way too much time on jobs that weren’t profitable with customers who drained the life out of us. 

Ange
Yeah, you know what the big shift was learning to spot the red flags early. If someone’s already asking for discounts before you’ve even quoted, or they’re micromanaging you before you’ve even started, it’s usually a sign they’re going to be hard working. So tip five here is to be selective. Focus on A grade customers who value what you do and are happy to pay for it.

Andy
Quality customers equal a quality business with way less stress. 

Ange
Okay. Number six is a big one, and something most trade business owners ignore for way too long. Systems beat memory every single day of the week. 

Andy
Oh, Ange, you are speaking my language. I could write a speech on this, then a book, and then make a movie all about systems. Systems are just so impactful on your business, and if your business is still running out of your head, you are making it way harder than it needs to be. Let me tell you. 

Ange
All right. I have a question for you then, Andy. 

Andy
Okay. Let’s go. 

Ange
What would you actually systemize first? 

Andy
Uh, I’d definitely start with the simple things like how we answer the phone, how we order materials. How we feed the information back to the office, because between the tradies out in the field and the office, there’s a lot of moving parts there that go bad. Then I move on to systemizing processes for quoting, invoicing, following up leads, collecting money, doing all the stuff that everyone should do, and basically stuff that you do repeatedly, almost every day, not just you. But the entire team has to do this. 

Ange
Look, so many tradies resist this because they think they have it all under control in their head, but what happens is stuff goes missing, quotes don’t go out, invoices go unpaid, and the team relies on you for anything and everything. And while that’s nice for your ego. It’s shortsighted and it won’t help you grow as a business and it won’t help you grow as a leader. 

Andy
I remember back in the good old days, as they say, and we didn’t have a job management system while using these GLA job cards and we went from an incredible business to a business that was totally outta control with too many staff and everything was just going amiss. I think most of you have heard our story, and I remember just sitting back thinking, how the hell do you run a business? Like how does this work? How does McDonald’s do it with 15-year-old kids? And I’m thinking about it. They’ve got a process and everyone does it the same way every single time. Then I looked at a couple of franchises and they were doing the same, and then on the weekend you wouldn’t believe it. It was, Formula One was on, and I’m watching the tv watching these cars come into Pit Lane. They’re filling the car up with petrol. They’re changing the tires. They’re doing the brake pads. In under two seconds and then they’re out again. And I’m like, hang on, hang on. This is what we need to be doing in our trade business, having proper systems that start the same way every single day. We talk at the flow of a job, and once you put this stuff in place. Customers were happier and profit was consistent.

Ange
So the tip here is to stop winging it. Get your system sorted before your business falls apart. 

Andy
Alright, let’s rip into marketing for tip number seven. Usually when we ask tradies about marketing, the first thing that most of them say is, oh, nah, we don’t do much marketing. It’s all word of mouth. 

Ange
Okay. So look, word of mouth is definitely great. It means you’re doing something right for your customers to recommend you, but here’s the problem, just because you are busy from referrals doesn’t mean you’re making money.

Andy
I talk to a lot of tradies and they’ve got heaps of word of mouth, and when I start going through their numbers, guess what? They are going broke. They sit down at the end of the year to check their P&L, and they realize they’re actually going backwards or scraping by next to nothing. 

Ange
And that’s because not all customers are equal. So just because someone refers to you doesn’t mean they’re the right fit for your business.

Andy
Exactly. And here’s another myth while we’re at it. Not all marketing is good marketing either. If you are chasing residential customers. Why would you waste your time posting on LinkedIn? It just doesn’t make any sense. 

Ange
Well, I guess it’s like fishing for barramundi and a freshwater creek in the middle of New South Wales.

Andy
I love barramundi and I’ve caught some big ones in my day. I’ve always headed up with a few of my mates up to the Northern Territory chasing them. My biggest one is a 97 centimeter. I haven’t cracked a hundred yet. One of the boys got a 120 centimeter barrer. Wow. That was an absolute cracker. But when you hook one of these, it is absolutely crazy. They hit you hard, they jump in the air, they fight like hell. And you know what? You never forget it when you get your first big barrer. That is for sure. 

Ange
Let’s bring it back to marketing. You’ve gotta fish where your ideal customers are. So otherwise, you’re just throwing out bait and hoping for the best.

Andy
So here is the tip. Stop relying only on word of mouth. And if you do get customers this way, make sure you qualify them to see if they’re the right fit for your business. Stop wasting time and money in the wrong places. You need to know who your A grade customers are. Figure out where they hang out and put your marketing dollars right there.

Ange
You’ll catch way better customers and make better money. 

Andy
Hell yeah. 

Ange
Alright. Let’s move on to tip number eight because this one is the killer of more trade businesses than just about anything else. We’re talking about cash flow. 

Andy
Oh, yeah. Cashflow is a silent killer to most businesses, and you can have jobs booked out for weeks, even months. But if the money’s not coming in fast enough, you’ll struggle to pay your team. You’re gonna struggle to pay your suppliers, and you’re gonna not be able to pay yourself. 

Ange
You know what? We’ve seen this with plenty of tradies, and we’ve personally lived this ourselves and had to dig ourselves out of a hole. It’s not fun. 

Andy
Yeah. And there were times with Dr. Drip, I’d be sitting at the kitchen table juggling bills, just wondering which supplier I could pay first. And which one had to wait another week, and I was trying to hide that as well. I was actually taking money out of my mortgage to prop up the business when things got really tight, which was something that I know you didn’t know about back in the day, Ange.

Ange
Mm, yes. I do remember that all too well when it finally came out.

Andy
Yeah. And it was stressful as hell. You know, the constant pressure of wondering if you’re gonna make payroll, constantly juggling Peter to pay Paul. It sucks the joy out of running a business. I can tell you now, if you’re a business that just isn’t making money, you’re losing the passion for it because it’s just a grind and you’ve got no reward at the end of the day.

Ange
Yeah, I couldn’t agree more. It’s imperative you know your numbers. You’ve got to stay on top of invoicing and chase payments fast. Keep a close eye on what’s coming in and what’s going out. 

Andy
At the end of the day, cashflow is the lifeblood of your business. Ignore it, and your business will bleed out. Alright, tip number nine is especially for the husband and wife team, and let’s be honest. Even if your partner doesn’t officially work in the business, they’re still in it with you. 

Ange
Yes. Good sentence, Andy. We know firsthand running Dr. Drip together when the business was stressful, it affected everything, our relationship, our family time, even just enjoying a weekend barbecue became hard work when the business wasn’t running well.

Andy
Yeah, it’s really easy to fall into this trap where you’re both running around assuming the other person knows what’s going on. Then you wonder why are you arguing about money or why that quote didn’t go out when you should be having family time. 

Ange
Yeah. Look, if you are the wife or partner listening to this right now, I know you may not have actually signed up for this, and suddenly you find yourself knee-deep in maybe invoicing, chasing payments and keeping the admin side afloat. But the tip here is really simple. It’s to make sure you’re communicating. Be really clear on the roles you have and remember, it’s our business, not just his or mine. 

Andy
Working together can be tough, but when you get it right, it can actually make the business stronger and your life a whole lot better. 

Ange
Okay, let’s move on to final tip number 10. There’s no magic finish line. You are never gonna wake up one day and think that’s it. Business sorted. No more challenges. 

Andy
No, you’re never gonna think that. And even now, after decades of running our own businesses, we still face new challenges. I think you just learn how to adapt to these challenges. You don’t take them so personally and you have steps in place. You find the challenge. You understand the challenge, you build a scenario, how to fix the challenge, and we just get on with it. Don’t get caught up in the drama and just knock it out of the park. And you can only do that when you have the right foundation set up in your business as well. And you know, the biggest one and the one that you and I always talk about, Ange, is when we have our businesses running well, it gives us the freedom to choose.

Ange
Exactly. It’s all about creating time for yourself and your family. We all only have 24 hours in a day, and we only have one life. So make sure you have profit in the bank and know that the business can run without you or set it up to ensure that you don’t have to be there 24/7. 

Andy
So the tip here is stop chasing the idea that everything’s gonna be perfect. Focus on progress and start putting the right systems and strategies in place so you can build a business that gives you the lifestyle that you actually want. 

Ange
Well, that’s what Lifestyle Tradie is all about, right?  We’re a coaching program and a community built specifically for trade business owners just like you.

Andy
If you wanna make more profit, get your time back and take control of your business. Well, we are right here. We have been for 16 years. Just waiting for the moment You are ready to come and join us. How about you check out the link in the show notes below, and let’s have a chat. 

Ange
We’d love to help you.

Andy
It’s Tradie Dilemma Time brought to you by Buy4Tradies. It’s the buying group helping tradies like you save serious coins on materials, fuel, vehicles, tools, and other services. If you’re not using it, you are probably paying too much. This is our Q&A segment where you let us know what you are having trouble with in your business. And we’ll give you our best advice to sort it out.

Ange
Okay, so today we have a question from Jimmy who runs a roofing business in New South Wales and he writes, one of my guys has a bit of a bad attitude lately. Nothing major, but enough that it’s starting to affect the rest of the team. How do I pull him back into line without it turning into a blow up?

Andy
Yeah. This is, um, an interesting one. I, I’m always a believer that when you sense something isn’t right with one of you guys, it’s probably better to move faster than slower. I just pull him aside and say, Hey, buddy, to sort, oh, check in, see how life is at the moment, what’s going on, what are you up to? How’s work going? And just get a really good understanding of where he’s at, if he’s normally a good worker. But something’s really changed. A lot of the time, it’s the old saying, it’s not you, it’s them, but they have a bit of an understanding of what is going on in their world. You know, I’ve had this many times, they’ve broken up with a girlfriend, something’s happening at home with their parents. There’s a lot of issues that can be happening behind the scenes. Now, I know as business owners, we don’t wanna bring that into the business. You know, that’s your business, leave that out of work. I think most tradies, they wanna feel like you do care. So pulling ’em aside, having a coffee with them, getting a bit of understanding of what’s going on is really gonna help you understand and give you a chance to fix it as well if you can.

Ange
Yeah, I couldn’t agree more. And sometimes I would even say that they don’t even realize they’ve bought a bad attitude into the workplace. So it is a good idea to jump quickly. And although you may feel that this is confrontational, it’s actually not. It actually just opens their eyes as to the effect that they have personally brought to the business and now is actually affecting the team. Thanks for writing in and sharing your dilemma, Jimmy. Remember, if you have a question or dilemma in your business, reach out to us and let us know what we can help you with. 

Andy
Subscribe to The Tradie Show, wherever you get your favorite podcasts. Rate and write us a review or for more information about Lifestyle Tradie, head to lifestyletradie.com.au.