Running a trade business comes with its own unique challenges. Unfortunately, many tradespeople make avoidable mistakes that hinder their success. In this article, we’ll cover seven of the most common mistakes and how to avoid them.
1. Not Charging Enough
Charging too little is a major mistake that can lead to burnout and financial instability. While it may seem like a way to attract customers, underpricing often results in not covering the costs of materials, overhead, or labor.
Instead, calculate the full cost of each job, including time, tools, and travel, and make sure you’re charging for your expertise.
Instead, calculate the full cost of each job, including time, tools, and travel, and make sure you’re charging for your expertise.
2. Ignoring Bookkeeping
Many tradespeople operate their businesses without tracking their finances, leading to a lack of clarity on profitability. Proper bookkeeping helps you track income and expenses, making it easier to file taxes and prepare for future growth.
Consider using accounting software like QuickBooks or Xero to stay organized.
Consider using accounting software like QuickBooks or Xero to stay organized.
3. Poor Customer Communication
Customer service doesn’t end with the completion of the job. If you don’t communicate effectively with your clients, you risk losing their trust. Keep clients updated throughout the job process, and always follow up to ensure satisfaction.
Using a CRM system or even simple email templates can help automate customer communications.
Using a CRM system or even simple email templates can help automate customer communications.
4. No Online Presence
In today’s digital age, not having an online presence means missing out on many potential clients. Create a website and claim your Google My Business listing to improve your visibility. Utilize social media to showcase your work and engage with the local community.
5. Doing Everything Alone
Trying to handle every aspect of your business—marketing, bookkeeping, and client management—on your own can quickly lead to burnout. Delegate tasks or hire help to focus on what matters most—doing the work you love.
6. Ignoring Follow-Ups
Don’t let your leads go cold. After completing a job, follow up with clients for feedback and ask if they need any further services. A follow-up can often result in repeat business or referrals.
7. No Plan for Growth
Without a roadmap, your business can stagnate. Set goals, track your progress, and adjust as needed. Whether you want to increase your service offerings or hire additional help, having a growth plan will guide you.
Final Takeaway
Avoiding these common mistakes will put you on the path to success. Stay focused, organized, and customer-oriented to see your trade business grow.