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In a recent episode of The Site Shed, host Matt Jones welcomed financial expert Ellen Rohr, a long-time advocate for business owners in the trades industry. If you’ve ever felt lost when looking at your business financials, you’re not alone. This episode was all about simplifying financial success—breaking down what really matters: sales, profit, and cash flow.
Ellen, who started in the trades world alongside her husband, has spent decades helping business owners gain financial clarity. She has seen firsthand how ignoring financial fundamentals can lead to burnout, stress, and even business failure. But don’t worry—this conversation wasn’t just about doom and gloom. Instead, it was a roadmap to understanding the few key numbers that drive real success.
The Power of Knowing Your Numbers
Most trades business owners excel at their craft but struggle with the financial side of running a company. Ellen shared how she once thought “working harder” would solve all business problems, only to learn the hard way that without the right numbers, you’re flying blind.
One of the biggest takeaways? You don’t have to be an accountant to understand your business financials. But you do need to know:
- How much money is coming in (sales)
- How much is left after expenses (profit)
- How much cash is in the bank (cash flow)
By tracking these three simple figures, you can stop guessing and start making data-driven decisions that actually grow your business.
Meet Ellen Rohr: A Financial Expert in the Trades
Ellen’s journey into the world of business finance was anything but traditional. She didn’t come from a background in numbers. Instead, she found herself married to a plumber, struggling to keep their business afloat. When her husband’s business partner passed away due to stress-related health issues, it was a wake-up call. She realised that financial literacy isn’t just about making money—it’s about protecting your well-being and future.
From there, she immersed herself in understanding financials, learning from top mentors, and eventually becoming a sought-after expert in the field. Today, she helps business owners across the trades industry take control of their financial health and build businesses that actually support their lives.
Sales, Profit, and Cash: The Three Pillars of Business
Ellen’s financial philosophy is refreshingly simple. You don’t need to track dozens of metrics—just three.
1. Sales: The Lifeblood of Business
If you’re not making sales, your business isn’t moving forward. Every trades business needs a reliable way to generate leads, convert them, and close deals. But making sales is just the beginning. You need to ensure they are priced correctly.
2. Profit: Charging More Than It Costs
Many business owners undercharge, fearing they’ll scare off customers. But as Ellen pointed out, you must charge more than it costs to deliver your service. Otherwise, you’ll be working hard just to break even (or worse, go into debt).
3. Cash: The Oxygen of Your Business
Profit is great, but if the cash isn’t hitting your bank account, it doesn’t mean much. Ellen highlighted that many businesses go under not because they’re unprofitable, but because they run out of cash. Getting paid on time and managing expenses smartly is key to staying in business.
Key Takeaways
- Numbers Don’t Lie: If you’re unsure about your financial situation, start tracking sales, profit, and cash consistently.
- Raise Your Prices: Many tradies charge too little—know your worth and price accordingly.
- Get Paid Faster: The longer you wait to collect payments, the harder it is to keep cash flowing. Stop working for customers who don’t pay on time!
- Seek Financial Mentorship: Even if you’re not a “numbers person”, you can learn the financial basics to keep your business profitable.
Conclusion
Ellen Rohr’s wisdom in this episode was a game-changer. Business finances don’t have to be complicated. If you focus on sales, profit, and cash flow, you’ll be in control of your business rather than letting it control you.
So, what’s your next step? Take a look at your numbers and make a commitment to better financial habits. After all, the difference between a struggling business and a thriving one often comes down to just a few key numbers.
Ready to dive deeper into these topics? Don’t miss out on our full podcast episode with Ellen Rohr. Click the button below to start listening!
Resources:
- Join a transformative experience on the World of Titans- register at https://bit.ly/WorldofTitansAU
- Check out Where Did the Money Go? – download for free at https://ellenrohr.com/
- Get social with Ellen on Instagram and LinkedIn at @ellenrohr
- Stay connected with Ellen at [email protected]
- 🛠️Ready to bring AI into your trade business? Discover the future at tradiehub.net!
- Join a global community of 6000+ trade professionals https://www.facebook.com/groups/TheSiteShed
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