Introduction
Running a trade business in New Zealand comes with its own set of unique challenges. From managing demanding clients to ensuring projects are completed on time and within budget, the pressures can pile up quickly. Amidst the day-to-day operations, it’s easy to lose sight of the bigger picture — your long-term goals and the foundational elements that drive your business forward.
Small mistakes, when left unaddressed, have a way of compounding over time. A lack of focus in key areas can lead to missed opportunities, reduced profitability, and even burnout. However, with the right strategies in place, these pitfalls can be avoided.
This article will highlight five common mistakes that trade business owners often make and, more importantly, provide actionable solutions to help you steer clear of them. By addressing these issues, you’ll be on the path to building a more profitable and sustainable business.
Mistake 1: Lack of Clear Business Goals
One of the most common mistakes trade business owners make is operating without clear, well-defined goals. Without a clear roadmap, it’s easy to become reactive, focusing solely on putting out fires instead of driving the business forward. This lack of direction can lead to stagnation, missed growth opportunities, and frustration for you and your team.
Why It Matters
Unclear goals can create a ripple effect across your business. Without a clear vision, your team may struggle to prioritise tasks, and resources may be wasted on initiatives that don’t align with long-term objectives. In an industry as competitive as the trades, failing to plan can mean falling behind.
The Solution
Break your vision down into actionable, measurable steps. Start with your long-term aspirations — for example, expanding into new regions or increasing your annual turnover. Then, identify smaller milestones that will help you get there, such as hiring key staff, implementing new systems, or securing larger contracts. Setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals can provide clarity and a sense of direction.
How Rise Advisory Can Help
At Rise Advisory, we specialise in helping trade businesses like yours establish clear, actionable goals. Jerome works closely with business owners to understand their personal and professional aspirations, aligning them with a tailored business strategy. With a structured plan in place, you can move forward confidently, knowing every step is contributing to your growth.
Mistake 2: Overlooking Financial Metrics
For many trade business owners, the financial side of the business can feel overwhelming. As a result, crucial financial metrics like profit margins, cash flow, and overhead costs often go unmonitored. Unfortunately, what you don’t measure, you can’t manage — and this lack of oversight can lead to poor decision-making and reduced profitability.
Why It Matters
Ignoring financial metrics can result in underpricing jobs, failing to account for rising costs, or running into cash flow shortages. These issues can snowball, leaving your business struggling to cover expenses or invest in growth opportunities. In an industry where margins are often tight, understanding the numbers is essential for sustainability.
The Solution
Start by tracking the basics:
- Profit Margins: Ensure you’re making a healthy margin on every job by accurately accounting for costs and labour.
- Cash Flow: Regularly review your inflows and outflows to ensure you have enough working capital.
- Overheads: Identify areas where you can reduce unnecessary expenses without compromising quality.
Investing in accounting software like Xero or using financial templates can help you stay organised and gain visibility over your numbers.
How Rise Advisory Can Help
Rise Advisory provides practical tools and strategies to help trade business owners get a handle on their finances. Jerome offers insights into pricing strategies, cost management, and profit optimisation, empowering you to make informed decisions. With the right support, you’ll have the confidence to take control of your financial health and focus on scaling your business.
Mistake 3: Not Prioritising Leadership Development
In the trades industry, strong leadership can be the difference between a thriving team and one that struggles to deliver. Yet, many business owners fail to prioritise their leadership development, assuming their technical expertise is enough to carry the business forward. While being a skilled tradesperson is essential, being an effective leader requires a completely different skill set.
Why It Matters
A lack of strong leadership can lead to low team morale, high staff turnover, and inconsistent productivity. Poor communication, unclear expectations, and micromanagement often frustrate employees, creating a disengaged workforce. Without a strong leader to guide them, your team may lack the direction and motivation needed to perform at their best.
The Solution
Effective leadership starts with building the right habits and skills. Focus on:
- Delegation: Empower your team by assigning tasks based on their strengths and trusting them to deliver. This frees up your time to focus on strategic growth.
- Communication: Be clear and consistent when setting expectations. Regularly check in with your team to address concerns and offer support.
- Feedback: Create an open environment where constructive feedback flows both ways, helping to identify issues before they escalate.
How Rise Advisory Can Help
At Rise Advisory, Jerome specialises in leadership coaching tailored to the challenges of the trades industry. He works with business owners to develop the skills needed to inspire their teams, resolve conflicts, and create a cohesive work environment. By improving your leadership capabilities, you can build a stronger, more productive team that drives your business toward long-term success.
Mistake 4: Failing to Invest in Technology
In a fast-evolving industry, relying on outdated processes can leave your trade business lagging behind competitors. Whether it’s managing projects, tracking finances, or engaging with customers, failing to leverage modern technology can make scalability and efficiency feel out of reach.
Why It Matters
Without the right tools, your business may struggle with inefficiencies, missed opportunities, and costly errors. Manual processes can slow down operations, create bottlenecks, and make it harder to deliver consistent service. Additionally, customers now expect seamless, tech-enabled interactions, and falling short could damage your reputation.
The Solution
Investing in the right technology can transform your operations and set your business up for sustainable growth. Consider:
- CRM Systems: Tools like HubSpot or Salesforce help you manage customer relationships, track leads, and ensure no opportunity is missed.
- Project Management Software: Platforms like Monday.com or Buildertrend streamline scheduling, task management, and team collaboration.
- Accounting and Invoicing Software: Solutions like Xero provide real-time insights into your finances, making it easier to manage cash flow and monitor profitability.
How Rise Advisory Can Help
Jerome’s expertise lies in identifying and implementing the systems your business needs to succeed. At Rise Advisory, we guide business owners through choosing the right tools, integrating them into daily operations, and training teams to use them effectively. With the right technology in place, you can save time, reduce errors, and position your business as a leader in the trades industry.
Mistake 5: Ignoring Customer Experience
In the trades industry, word-of-mouth referrals and repeat business are often the lifeblood of success. Yet, many trade businesses overlook the importance of delivering exceptional customer experiences. Failing to listen to feedback or provide personalised service can lead to negative reviews, loss of clients, and a damaged reputation.
Why It Matters
Customers are more informed and discerning than ever before. Ignoring their feedback or providing subpar service can quickly tarnish your reputation. In an age where online reviews and social media have immense influence, unhappy clients can significantly impact your ability to attract new business.
The Solution
Improving the customer journey doesn’t have to be complicated. Focus on:
- Listening to Feedback: Actively seek out and respond to customer opinions. This shows you value their input and are committed to improvement.
- Personalised Service: Tailor your interactions to each client’s unique needs. Small gestures, like remembering past projects or preferences, can leave a lasting impression.
- Clear Communication: Keep customers informed at every stage of their project, from initial quotes to completion. Transparency builds trust and reduces the likelihood of disputes.
How Rise Advisory Can Help
Jerome understands that customer retention is just as important as acquisition. At Rise Advisory, we help trade businesses implement strategies to enhance customer satisfaction and foster loyalty. From streamlining communication processes to creating feedback loops, Jerome ensures your business delivers experiences that not only meet but exceed expectations, setting you apart from competitors.
Take Action
Running a successful trade business in New Zealand means avoiding common pitfalls that can hinder growth and profitability. From setting clear goals and tracking financial metrics to embracing technology and prioritising customer experience, these strategies can transform your business into a well-oiled machine.
But you don’t have to tackle these challenges alone. At Rise Advisory, we’re here to help you navigate the complexities of business growth with tailored strategies and expert guidance.
Ready to take the next step? Book a free consultation today to discuss how we can help your business thrive.
