One of the main reasons most tradies get into business is to earn more money. Yet ironically, financial education is one of the things we were never taught at school. So when we dive into the profit and loss statement, we end up staring at it with a puzzled look, not really knowing whether business is good or bad. Well, there’s no need to get dizzy just by looking at those numbers anymore.
In this week’s podcast episode, Danny Kerr—co-founder of Breakthrough Academy and a repeat guest—joins us once more in the first episode of the “Measuring What You Manage: The Only Way to Run a Profitable Trades Business at Scale” series. Today, we talk about budgeting and how it is essential to be able to interpret and break down your financial data effectively.
In this new fiscal year, nothing could be more important than knowing your numbers. Get into grips with your financials by tuning in to this episode now!
What’s Discussed in This Episode:
- What’s new with Danny Kerr? [02:20]
- The value of sharing learning experiences with other tradies [05:55]
- A brief overview of today’s topic [07:23]
- Learning how to budget should be a tradie’s priority [08:22]
- If your personal financials are a mess, so are your business financials [10:39]
- How Danny learned how to save [11:48]
- The importance of percentages [14:22]
- The little changes you make in your trade can make a big difference [16:05]
- Good budgeting can protect your from unforeseen circumstances [17:43]
- There’s a difference between what’s your account and what you’ve made [18:48]
- Do a proper job costing [20:01]
- How to do budgeting the right way [21:03]
- More, less, or the same? Why? [22:58]
- Once you see a pattern, job costing becomes fun [24:42]
- Turning the budget into bite-sized chunks [26:00]
- It’s essential to also get into grips with your financials [27:57]
- You should invest more in your accounting department [29:50]
- KPIs to track when measuring results [30:16]
- Gross profit is more important that net profit [31:48]
- Most people make between 10% to 20% net profit [33:26]
- If you know your average job size, you can project your budget [34:35]
About the Guest:
Danny Kerr created his own success in life by starting his own trades business and used the profits to buy his first home. By age 20, he had taken a leadership position with a franchise company and grew sales by 225% in one year. He then spent the next 6 years scaling businesses before co-founding Breakthrough Academy as a way to open horizons for other trades entrepreneurs.
Breakthrough Academy now works with over 300 contractors across the continent, managing over $900 million worth of revenue, and was rated Canada’s 16th fastest start-up by MacLean’s magazine in 2018.
- Come and visit my website at (https://www.thesiteshed.com/)
- Check my latest podcast or listen to the previous ones (https://www.thesiteshed.com/podcasts/)
- Tradie Web Guys (https://www.tradiewebguys.com.au/apply)
- Visit The Top 3 Mistakes Growing Trade Businesses Make series with Danny Kerr
- Check out the Scaling Your Business from $500k to $5 Mill series with Danny Kerr
- Profit First by Mike Michalowicz (https://amzn.to/37HjoKs)
- Get in touch with Bookkeeping for Painters (https://www.bookkeepingforpainters.com/)
- Visit the Breakthrough Academy website (https://www.btacademy.com/)
- Reach out to Danny through his email (email@example.com)
Connect with me on LinkedIn. For more podcast episodes, you may also visit my website. Tune in and subscribe to The Site Shed: You can also listen to The Site Shed on Apple Podcasts, Spotify, and Stitcher.
Thank you for tuning in!
If you enjoyed this podcast and this series, please take 5 to leave us a review:
No joke, Danny has left behind FOR YOU the most amazing templates, frameworks and business tools, you’ll likely ever get your hands on.
There’s cut and paste templates for hiring and job posting, there are how to videos to follow and there’s even an absolutely incredible figure tracking spreadsheet that took Danny and his team over 50 hours to create…and a video on how to use it. Amazing!
He’s also made some time in his crazy busy calendar for you to have a chat with him and his team, so you can learn how to apply those documents directly into your business. Again, for FREE.
They’ve also got loads more awesome things that they’ll be sending you, so fill in the form, grab your stuff and claim your calendar spot right now!