Discover simple ways to grow profits and cash flow in your trade business. If you are a builder, plumber, electrician...in fact any trade business owner - this is for you.

1. Five Ways to Boost Profits
& Maximise Cash Flow

2. Today…
1. Be Open – take notes, ask how?
2. Participate – share
3. Contribute & Win…
4. Tools to significantly increase cash flow
5. Simple Steps to increase profits
6. Link to slides – slideshare.net/trade insights

3. Who is PROTRADE United?
We believe in a united and collective approach
to help you find an even better way to run your
trade business…
Trade specific solutions in…
• Strategy – income, cash flow, profit, team development
• Accounting – financially well organised, minimise tax,
• Marketing – online & offline
• System Integration – streamline IP into the cloud & protected

4. Why PROTRADE United?
Ultimately for 3 reasons…
1. To give you the luxury of an unhurried life
2. To raise the standards of trades and related
service businesses around Australia
3. Decrease the anxiety and depression related
deaths amongst trades

5. Who’s in the room…
• Builders who contract to developers
• Builders - residential
• Builders - commercial/industrial
• Other Trades - contract services
• Other Trades - independent work
• Design/engineers
• Manufacturing
• Suppliers

6. Challenges…

7. Does it get any easier?
Don’t wish it was easier.
Wish you were better.
Jim Rohn…

8. Are you prepared to change?

9. Psychology vs. Skills/Ability

10. Adapt the ideas…
To suit your business and
target customer…

11. To think about…
• If you don’t understand your numbers you don’t
understand your business.
• Understanding vs. Doing
• Mange your money wisely and you will have more
money to manage.
• 80/20 – Emotion vs. Mechanics
• Money management is all about managing your
emotions

12. The Oh C&%# moment!
PROFIT & LOSS STATEMENT CASHFLOW STATEMENT
Income $200,000 Cash Received $150,000
Less: Less:
COGS (Materials) $120,000 COGS (Paid for) $90,000
GROSS Profit $80,000 GROSS Profit (received) $60,000
Less: Less other outflows:
OVERHEADS $50,000 OVERHEADS $50,000
BAS (previous quarter) $30,000
LOAN REPAYMENT $10,000
Total $30,000 Total -$30,000

13. The Oh C&%# moment!
PROFIT & LOSS STATEMENT CASHFLOW STATEMENT
Income $200,000 Cash Received $150,000
Less: Less:
COGS (Materials) $120,000 COGS (Paid for) $90,000
GROSS Profit $80,000 GROSS Profit (received) $60,000
Less: Less other outflows:
OVERHEADS $50,000 OVERHEADS $50,000
BAS (previous quarter) $30,000
LOAN REPAYMENT $10,000
Total $30,000 Total -$30,000

14. What are the consequences?
• Stress – Loss of Sleep, Relationships
• Reputation/Integrity
• Staff leave
• Credit rating
• Insolvency/Closure
• Bankruptcy

15. Income vs. Profit vs. Cash Flow
vs. Equity

16. 1. Understand the causes
2. Create a cash flow philosophy
3. Create separate buckets
4. Get super profitable
5. Increase money coming in
6. Delay money going out
7. Prepare for shortfalls
The Steps to Take…

17. 1. Understand the causes?
• Poor Awareness/Money Management
• NO measurement/understanding
• NO cash flow projection
• Unaware of break even
• No cash reserves
• Undisciplined spending/SMTHYE!

18. 1. Understand the causes?
• Declining sales
• Declining profit margins
• Not charging enough
• Too much WIP (Work In Progress)
• Poor efficiencies/inefficient team
• Lack of KPI’s
• Poor Productivity/Focus

19. 1. Understand the causes?
• Delays in getting money in
• Delayed invoicing
• Poor payment terms
• Bad choice of clients
• Paying suppliers too quickly
• Overheads too high
• Excessive interest
• Poor business model

20. What is NOT the magic solution?
More income is NOT the magic solution
–just the same challenges with more
zeros!

21. 2. Philosophy…
• Belief System (B.S.)
• BRULES around money
• Win : Win or NO deal – Fair Exchange
• Philosophy
• Psychology
• Money flow and allocations

22. 3. Managing the flow…buckets
A suggestion…
Gross Profit
(Real Income)
Pay Your Profits 5 -20%
Group Tax, Super, GST
Training – You/Team 5%
Team Wages – including you
Essential Running Expenses
Non-essential Suppliers
Cash Surplus

23. What has been valuable?

24. 4. Get Super Profitable
• Get more clients/customers
• Increase average job value
• Increase prices/charge out
• Add MASSIVE value = repeat & referrals
• Increase efficiencies/productivity – track &
measure
• Let go of non performers
• Select better customers/sack slow payers
and difficult customers

25. 4. Get Super Profitable
Improve efficiencies/productivity
• Job Management Software
• Track budget hours to actual – use of time
• Use sub contractors – if legal
• Role of team – Get or Keep
• Implement KPI’s
• Offshore non productive tasks

26. 4. Get Super Profitable
Select Better Clients/Customers
• Sack the slow payers – they are not worth the
headaches
• Check credentials with new clients before accepting
credit terms
• Debtor insurance?

27. 5. Get Money in Faster
• Firm up payment/trade terms with customer
• Deposit - use mobile payments/EFT
• Regular progress payments
• Invoice/Payment on completion - Mobile payment/EFT
• Make it easy for clients to pay
• Incentivise to pay early/on time
• Sell off old inventory
• ASK if necessary

28. Invoicing System
• Job Management Software
• Immediately on job completion – KPI’s
• Follow up – automate, where possible,
• Track slow payers
• Have a debt collector on hand and use them – follow
through with our word
5. Get Money in Faster

29. Automate…

30. • Take full advantage of terms – don’t pay too soon
• Negotiate payment terms with suppliers
• Communicate always – if there is going to be a delay
• Review ALL expenses quarterly
 Insurance
 Electricity/Phone
 Salary/HR – Get or Keep
6. Delay Money Going Out

31. 7. Prepare for shortfalls
• Not if, when
• Apply for overdraft/credit in advance
• Credit card (caution)

32. Get a great team around you
• Book keeper
• Accountant
• Coach
• Mentor
• Peer Group
• Never stop learning

33. What has been valuable?

35. What ACTION will you take?

36. It’s interesting you know…
Most of business owners will…
• Hear what we say,
• Understand it intellectually,
• Agree with all the principles,
• Get excited about what’s possible
• KNOW that it is the thing they should do, yet…

37. Do nothing!
What gets in the way…
LIFE
!

38. Which leads to?

39. Your opportunity to get clear
Complimentary Strategy
Session
• Where you are
• Where you want to be
• The Game Plan to get
your there…

40. Participant or Spectator…?