133 – Lack of focus on Gross Profit Margin

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“What we measure, we can improve”. Let’s learn how to improve our profit margin in this podcast.

Series: The Top 3 Mistakes Growing Trade Businesses Make
Cohost: Danny Kerr from BT Academy

Let’s assume that we’re all in business to make a profit. So why do so few of us have such a poor focus on our gross profit margin?
In today’s podcast, Danny runs us through the framework that he uses and teaches at BT Academy, with the hope that we start giving it the attention it deserves.

This is part two of the three-part series.
Here is the link to episode one – Attracting the right talent.

Based out of British Colombia, Canada, BT Academy exists to teach businesses how to create a sustainable business structure, using the principles of a franchise model.

Franchises depend heavily on systems and processes, which serves as the fundamental lynch-pin in a franchises ability to operate out of multiple locations while delivering a consistent product/service.

My co-host in this series, Danny Kerr, has a background in franchising. A few years ago, he decided it would be a good idea to educate trade business owners how they can create similar frameworks in their own businesses.

As a result, BT Academy was born and they now help hundreds of organisations, right across Canada and the United States take their businesses to a level that is systemised, profitable and independent of any one person (in most cases the business owner).

In this series, we’ll be talking about what Danny considers the Top 3 mistakes that trade business owners make, from his experience with dealing with hundreds of organisations. Those areas are:

  1. Attracting the right talent
  2. Lack of focus on Gross Profit Margin
  3. The wrong prioritisation of time


If you’re interested in attracting talent, you’ll likely enjoy these past podcasts also:

Lack of focus on our gross profit margin

In the previous podcast, Danny taught us the fine art of attracting the right talent into our organisations. Stemming on from that episode is this one, where he talks to us about the importance of understanding money, cash flow and profit margin.

There’s a misconception that turnover is the goal that we should all be chasing as business owners, however, it couldn’t be further from the truth. Turnover means NOTHING unless there is profit in the business.

Your business might well be turning $20 million a year, however if your profit margin is only $100,000, that business sucks. Totally.

It’s really important that we understand the difference, which is why I am so thrilled to be bringing you this podcast. Not only has Danny shared his knowledge with us, he’s also left behind a spreadsheet that you take and make your own. It’s absolutely genius.

Not only that, he’s offered to spend some time with you, to help you get it set up correctly in your business.

If you don’t take advantage of that, you’re completely crazy.
Also, do something nice for one of your friends. Copy the link to this page and send it to them. 

Just letting you know that BT Academy may send you some more awesome content. If you’re not down with that, don’t fill in this form!
    If you like this content, you should see what else the folks at BT Academy have for you.

I hope you enjoy this episode and once again, PLEASE leave us a review at iTunes | Stitcher | Soundcloud, or YouTube.

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The Site Shed | Listen Notes


The Site Shed is one of the best online communities and podcasts for tradies out there. The free content provided to members is unbelievable - offering invaluable advice to run a successful business, and the community of tradies is truly awesome. Do yourself a favour and check it out.

Peter Cox Business Man

Great work Matt with all the podcasts and the site shed facebook community group. The amount of information that you can learn for free in this space is unbelieveable. It's great to see like minded contractors and trades trying to improve their businesses and also share ideas and help others. Highly recommend. Thanks!

Ben Hern Business Owner

I have been listening to the pod casts for a few months now, I can't get enough of all the awesome content that you guys provide. Especially when you guys deliver it from a trade perspective which helps out a lot. Keep up the good work and hopefully one day I can afford one of the trade training trips.

Ché Henton Customer

I own a construction company,and i love learning how to make my bussiness more competitive,profitable and how to better serve my clients. The site shed is a wonderful place to get invaluable knowledge no matter your trade .

Michael Mullinax Construction Company Owner

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