Tradesmen: increase your turnover without incurring costs
A recent study by ScrewFix suggests that the trades and contractor industries are moving in the right direction in terms of growth and that business is picking up.
The study identified the following:
- 58% of all electricians and other tradesmen believe business will get better for them over the next 12 months
- 62% of tradesman have enough work to keep them busy
- 51% are confident that the economy will continue to improve over the next 12 months
- And for nearly 1 in 5 they have more than they can handle
So how can you benefit from this? By identifying any hidden growth opportunities while avoiding additional expense, all income coming into a business is converted directly into bottom-line profit.
How do you increase turnover without incurring costs?
It may seem aspirational, but creating sustainable growth by incurring little costs can be simpler than you would think. Consider:
- Taking the time to review your business models and management methods
- Find new ways of securing repeat business from the most profitable clients (rather than the largest customers with the biggest projects)
- Invest in skills and quality
- Identify lucrative new markets
- Build long-term relationships to ensure businesses are treated fairly and trusted within the marketplace
- Plan ahead. Consider how you will manage this process. You will also need to check whether your insurance policy covers you for any extra activities you may introduce.
Managing sustainable growth
Whilst planning to grow you need to remember that your changing business may not be covered by your insurance policy for extra activities you introduce. You need to make sure your changing business is still protected. Consider asking yourself:
- Does your business description detail all your activities?
Check your business description on your policy and make sure it remains accurate. If you are diversifying or expanding your activities you may need to get extra cover as this determines the extent of cover provided. Not telling your insurer could leave you underinsured.
- Reading the small print
Although it can be something we just hope is right, reading the small print is really significant when checking your cover. Check the warranties, conditions and exclusions as this can potentially prevent problems with a claim later on.
- Have you considered your staff?
Any organisation with employees is obliged under the Employers Liability Act 1969 to take out appropriate insurance cover to adequately protect the staff within your employment. This also includes apprentices and anyone under your instruction or supervision.
If you are planning any changes within your organisation, we highly recommend giving your insurance adviser a call to discuss your requirements further.
ScrewFix November 2014 Trade Pulse