Introduction
New Zealand’s trade industry is fast-paced and highly competitive. Consequently, business owners are forced to juggle numerous responsibilities, from client management to financial planning. However, one aspect many may overlook is viewing their business as a true asset — one with the potential to grow in value over time. Beyond generating regular income, a well-managed business can offer long-term wealth, stability, and even a legacy.
Treating your business like an asset means investing in its future, whether that involves keeping skilled staff, leveraging financial tools, or building an effective, sustainable structure. The right approach not only ensures operational success today but also increases your business’s worth tomorrow. This article will explore practical strategies to strengthen your business’s foundation, turning it into a valuable asset that contributes to your financial future and, ultimately, secures your family’s and employees’ futures as well.
The Value of Employee Retention
One of the biggest assets any trade business can have is a team of dedicated, skilled staff. Retaining experienced employees reduces the time and resources spent on recruiting and training new staff, helping maintain productivity and consistency in client services. Furthermore, a loyal workforce preserves company knowledge, creating a stronger, more cohesive team over time.
Employee benefits can be a powerful tool for retention. By offering benefits such as health insurance, life insurance, income protection, or trauma cover, you send a message that you value your employees’ wellbeing. Life insurance, for instance, offers peace of mind to employees with families, while trauma cover can provide financial support during unexpected health issues. These benefits create a sense of security, which in turn fosters loyalty and helps employees feel supported both at work and in their personal lives.
For example, consider an electrical services business that offers a well-rounded benefits package. Employees know that they and their families are protected, which reduces turnover and boosts morale. Implementing these benefits may initially seem costly, but the long-term return — in the form of a more engaged, stable workforce — is invaluable, particularly in an industry where skilled tradespeople are in high demand.
Watch the video below to hear Dominic Bish from Bolster Risk Management speak on how offering benefits such as health, life, and trauma insurance can make a big difference in retaining skilled staff and building a loyal workforce.
Upskilling and Training
For trade businesses looking to grow their value, investing in employee development is essential. Upskilling your team ensures that your business can tackle more complex projects, adopt new technologies, and deliver higher-quality work. When your team grows in knowledge and expertise, so does the capacity and quality of your services — an invaluable asset in the competitive trades market.
Promoting a culture of ongoing learning within your business also establishes it as a “learning organisation.” This is crucial in industries like plumbing, carpentry, or electrical services, where innovations in tools, techniques, and safety standards are constant. When employees are encouraged to continually learn, they are more engaged and capable of bringing new ideas to the business, allowing it to evolve and adapt to industry demands.
Moreover, the return on investment (ROI) from training is multifold. A plumbing firm, for instance, might train employees on the latest water-saving technologies, which could set the company apart in a sustainability-conscious market. These employees work more efficiently, serve clients better, and ultimately improve profitability. Upskilling also shows employees that the company is committed to their growth, increasing their loyalty and reducing turnover, while simultaneously making your business more attractive to new, talented professionals.
Securing the Future of Your Asset
For New Zealand trade businesses, succession planning is vital to safeguarding the business’s value and ensuring its continuity. Without a structured plan, a business might struggle with leadership transitions, risking operational disruptions that can diminish its value. A solid succession plan not only supports business continuity but also strengthens the business as a long-term asset.
Developing a succession plan involves several key steps. First, conduct a thorough evaluation of the business’s needs and identify critical roles essential for continued success. Next, decide whether succession will be internal or external. Internal succession involves grooming existing employees for leadership, which preserves company culture and smooths the transition. On the other hand, external succession—hiring outside talent—can bring fresh perspectives and skills into the business, often beneficial if the business needs revitalisation.
Consider the example of a local carpentry firm that started succession planning early. By investing in leadership training for a skilled senior carpenter, they ensured a smooth transition when the founder retired. This early planning protected the firm’s reputation and retained customer loyalty, maintaining the business’s value as an asset.
Building a Strong Brand
A strong brand is more than just a name or logo; it’s a valuable asset that increases your business’s worth and attracts clients, partners, and potential buyers. In the trades industry, where competition is high, a well-established brand differentiates your business from competitors, making it a long-term asset.
Building a brand involves establishing trust and loyalty with customers. Providing high-quality service, consistently meeting client expectations, and communicating your business values build customer trust. When clients know they can rely on you, they’re more likely to return and recommend your services, leading to sustainable growth and profitability.
Brand equity—the value associated with a strong brand—can also open up new opportunities, such as expansion into different markets or attracting investors. A well-known Auckland plumbing firm, for example, capitalised on its brand equity by launching a separate consulting service, leveraging its reputation to attract new clients. This strategy strengthened its position and made the business more attractive for future buyers, proving that brand equity is indeed a significant asset.
Here’s what Marty Neumeier (Apple, Netscape, HP, Adobe and Google) has to say on branding.
Enhancing Operational Efficiency
Investing in technology is essential for trade businesses aiming to increase productivity and add value. With the right tools, such as project management software and CRM systems, businesses can streamline operations, maintain customer relationships, and track progress. Technology not only makes daily tasks easier but also enhances the business’s overall worth as an asset.
Automation is a key area where technology shines. By automating tasks—such as scheduling, invoicing, or inventory management—businesses can save time, reduce errors, and lower overhead costs. This efficiency frees up time for the owner to focus on strategic growth, enabling more effective decision-making. For example, automated customer follow-ups ensure clients stay informed, boosting customer satisfaction without manual effort.
Finally, scalable systems prepare a business for growth. Establishing repeatable processes means the business can expand without sacrificing quality. As processes become more refined, the business’s intrinsic value increases, making it more attractive to potential buyers or investors.
Your Business as a Long-Term Asset
Treating your business as an asset transforms it into a long-term source of value. By focusing on employee retention, skill development, succession planning, brand building, and adopting technology, business owners create a robust, profitable operation that’s attractive to future investors or successors.
Your business is more than just an income source—it’s a valuable asset for your financial future. Start building its worth through strategic improvements in team management, brand strength, and operational efficiency. Ready to secure sustainable growth and stability? Reach out today to explore how to maximise your business’s value and ensure a profitable future.
