EP #20 – Running A Business Or Just Doing A Job? Why Tradesmen Fail To Grow

Overview

You’ll encounter lots of hurdles running a business, and the key to growth is all about how you overcome them. But you need to ask yourself: Am I running a business or have I created a job for myself?

Join host Tulloch Priest and find out how you can bring your business to the next stage in this week’s episode with Doug D’Aubrey from ETC Limited.

Listen to the episode:

Highlights

When you first start your business

• Things can often seem rosy to begin with, but at about 18 months reality can kick in. (1:25)
• It’s easy to forget about tax when you first start, as well as insurance, replacement tools, and so on. (2:20)
• Running a business has a series of financial commitments that are hidden at first. (3:45)
• An accountant is not managing your finances. They are there to determine from your accounts and all the work you’ve done how much tax you need to pay. (4:50)

When reality sets in

• It’s crucial to figure out some goals and do some progression and financial planning. (7:10)
• Get some help or support if you’re not experienced with running a business. You can be a phenomenal tradesperson but find running a business difficult. (8:05)

Are you running a business or is it just a job?

• If you aren’t interested in growing your business, you’ve got a job. But if you want to run a business, it’s important to consider all the other moving parts outside of the jobs. A balance between all these things is what allows your business to grow. (16:30)

Breaking through ceilings

• When you start a business, you’re spending less time doing what you were trained to do. The same goes for when you hire more staff. (8:45)
• It’s good to start as a sole trader, but as soon as you start employing people you should form a limited company. (11:00)
• Taking on someone who works on the tools will increase business activity but increase the amount of admin – but you also have to have enough work for them. Subcontracting can be a good way to bridge the gap. (12:30)
• If you love working on the tools, it’s probably smarter to bring someone in to do the admin side of things. You could also look into getting a virtual assistant for a more cost-effective option. (14:05)