The Site Shed
TSS 261 - Budgeting - Knowing Your Numbers & Establishing a Great Sales and Financial Plan
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The Site Shed
TSS 261 - Budgeting - Knowing Your Numbers & Establishing a Great Sales and Financial Plan
Aug 26, 2020
Matt Jones - Trade based business enthusiast

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:

  1. What’s new with Danny Kerr? [02:20]
  2. The value of sharing learning experiences with other tradies [05:55]
  3. A brief overview of today’s topic [07:23]
    • If your personal financials are a mess, so are your business financials [10:39]
  4. Learning how to budget should be a tradie’s priority [08:22]
  5. How Danny learned how to save [11:48]
    • 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]
  6. The importance of percentages [14:22]
  7. There’s a difference between what’s your account and what you’ve made [18:48]
  8. Do a proper job costing [20:01]
    • More, less, or the same? Why? [22:58]
    • Once you see a pattern, job costing becomes fun [24:42]
  9. How to do budgeting the right way [21:03]
  10. Turning the budget into bite-sized chunks [26:00]
    • You should invest more in your accounting department [29:50]
  11. It’s essential to also get into grips with your financials [27:57]
    • Gross profit is more important that net profit [31:48]
    • Most people make between 10% to 20% net profit [33:26]

Have a conversation with us! Go to tradie.wiki/pod and book a call.


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Connect with me on LinkedIn. For more podcast episodes, you can also visit our website.

Thank you for tuning in!

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