Insurance 101 for Tradies

At Builtin we deal with thousands of tradies up and down the country, so we know insurance isn’t anybody’s favourite topic! While it’s not something you want to think about, it is something you need to have, and need to have properly arranged.  Having to replace an expensive asset that’s been stolen or damaged, or getting tied up in an expensive liability issue can hammer a small business, not only financially, but they can take an emotional toll on the contractor and their family too.

For larger firms their exposure to risk is greater, as is their capacity to manage it. For company managers and directors, getting the right professional advice and having good risk management practices in place, including insurance cover, is a critical (and legal) duty.

Most of our customers want what we call the “Goldilocks Package”: not too little, but not too much. That’s what we help our customers with every day.

In this article we share some basic risk management questions, as well as the headlines of the key policies contractors need to consider. What you need will vary according to your specific operations and business set up, but this should serve as a good overview to get you started.

Builder giving thumbs up

COVID-19 Update: The independent tradie guide on surviving economic and business uncertainty

It’s been a week since New Zealand went into Level Four lockdown in efforts to stop the spread of COVID-19. As the owner of an independent tradie business, you might have spent the last week trying to sort out a new routine, or maybe you were able to catch up on some rest and family time after a busy summer working in your business.

Due to the impact of COVID-19, New Zealand and the world is experiencing an uncertain and disruptive business climate; now is not the time to hibernate and neglect your business, your staff and your clients. The truth is what you do in the next four weeks could make all the difference – will you be raring to go or scrambling up from the bottom?

I know the real and sad impact of business failure and I don’t want that to happen to you. That’s why I’ve put together a list of tips to help you manage the short-term business issues you are facing, and help you and your team get prepared and ready to go at full speed ahead once the restrictions are lifted.

stressed business owner

How to Handle a Recession

Recent world events surrounding the Covid-19 pandemic has meant that economically we are quite likely to be heading into a recession. Technically that is when 2 consecutive quarters show negative growth. We are not there yet, but the economic effects of the Covid-19 pandemic mean that significant parts of our economy will be in free-fall over the next few months, particularly the service sector. No one knows how long it will last. We can only hope we manage to beat the pandemic within a relatively short space of time, like China has, and we can all get back to business as usual.

In the meantime it is prudent to plan for a period of lower business activity….

Sustainability From a Profit Standpoint

To quote Kermit the Frog, “It’s Not Easy Being Green” That may be so, and it made for a cute song, but it’s much tougher when you are red. By that I mean in the financial red. 

With sustainability being a bit of a buzz word at the moment, I thought I would talk about another type of sustainability you should be interested in. That is your FINANCIAL sustainability. You owe it to your customers, staff and family to be around in the long term. Consistent profitability is vital to help you achieve long term survival.

increase profits

How to Increase Profits in Your Business

One of my core values in what I do is to help my clients improve the profits that their business generates. This starts with some basic education into the various levers that you can pull on in your business to increase revenue and reduce waste in your business. This video starts to look at those levers and how they can be worked together to improve gross profits, and thus improve your life as a business owner.

3 Financial Statements

3 Financial Reports You Should Know

You probably didn’t go into business to read financial statements. You went into business because you are good at your trade and thought owning a business was a better way to make more money. Never-the-less part of owning a business in the construction industry is learning how to monitor the performance of your business so you can know when changes are needed. That’s best practice anyway. This video is about three financial reports you should become familiar with to better manage your business.

Wealth Building Tips from Warren Buffet

If you have never heard of Buffett, Forbes currently ranks him as the third richest man in the world and he is arguably the world’s greatest investor. He has amassed his fortune by making astute investment decisions and investing in businesses.

“You only have to do a very few things right in your life so long as you don’t do too many things wrong.” – Warren Buffett. Here is what you should learn from Buffett:

Have trouble getting paid sometimes?

Have you had trouble to be paid for work completed at times? You do the work to the required standard, or better, but the client still seems to have an excuse not to pay you. Frustrating, isn’t it?
The law may be on your side, but the cost and hassle to exercise your legal rights sometimes seems more trouble than it’s worth. Some clients know this and use this to their advantage.

So, how can you avoid this problem….short of using the Hells Angels as your credit control department.