A tradies guide to budgeting

Let’s face it, at the end of the day we’re all trying to save a few spare quid where we can. One of the easiest ways to actively start being money wise and working smarter not harder with your hard-earned tradie keepings is by having a budget in place.

We take a look at some of the simple steps you can follow to set up a budget for your tradie business and make it work for the long run.

1. The first steps

Setting aside some time to focus on a budget and what it might entail doesn’t need to be a time-consuming and boring process. It can be something that you incorporate into your weekly list of tasks, chipping away at it bit by bit.

Some of the things you can look at in those early stages include:

• Upcoming and planned expenses for your business
• Saving money on your trade business expenses
• Forecasting expenses and income over time frames

2. Areas to focus on

A budget can encompass many aspects of your business, so to help keep it simple, why not break it down into key areas to focus on. Every business is different, but these are some of the typical financial areas a trade business will focus on.

• Your business expenses- things like wages, tools, marketing, training and education costs, etc.
• The cost of your home loan if you have purchased your business premises or lease if renting
• Utilities- water, internet, electricity, council rates for example
• Any financial debts and obligations like business loans, mortgages and credit cards
• Vehicle- up keep, fuel, and financial commitments if applicable

3. Establish savings goals

Just like any other area of your business, it is important to research and set up some financial goals to help your trade business. Maybe you have it in your sights to expand your team by hiring more staff, or maybe you’ve been eyeing off a new tool of trade that will be a game changer, whatever your goal is, it’s important to try and make it happen.

Whatever your dream is, make sure that you are taking the right financial steps to help you achieve it along the way. If you’re feeling a bit lost and unsure on how to achieve this that’s where our next point can help-hiring the expertise of professionals.

4. Look at getting professional advice

There are many various options available when it comes to getting advice and guidance with your tradie business finances. Whether it’s financial planning for tradies or sitting with an accountant or business coach to give some guidance, there are options out there to get you on track.

While you may need to fork out some funds to help support your professional advice and expertise, it is an investment that may help you create a secure and successful financial future of your tradie business.

5. Make apps and tools your friend

These days there seems to be an app or tool for just about everything right? So, it makes sense that finances and budgeting are two hot areas that have apps of their own.

Apps are designed to make the process of tracking your outgoing and incomes in one central location so you can become more financially aware of where your money is actually going. They can also help when it comes to forecasting your income when you enter the details of quotes and jobs that you may have lined up.

Check out tools and programs which are available to help with invoicing and payments to help make your life a bit easier. A lot of these programs work off a subscription service and can easily export any key data across to your accountant when required.

6. Food for thought

If you take a moment to think about how much you spend on takeaway lunches, snacks and even coffees everyday it may come as a shock as to how much you are actually spending. The convenience of grabbing something on the go is definitely appealing, but your bank account may be saying otherwise.

Being prepared and packing your own lunches, snacks and making a coffee for the road is a small step that you can take to have a big impact on your hip-pocket. Even gradual changes will start to help your bank balance look a bit healthier.

7. Get a better deal

Shopping around for the best deal on things like your supplies, loan rates, utilities and saving on your business insurance, may take a little bit of research in the short term, but can have a great impact on your tradie business budget.

Don’t be afraid to ask for a better deal, to see if there are any discounts if you buy in bulk, loyalty or can price match a competitor. What may have worked for your business a few ago isn’t always going to be the right product or service for your business now.

Insurance for your tradesmen business

Getting your tradesmen business insurance needs sorted doesn’t need to be costly process. With BizCover, we make the process for tradies and sole traders looking to get things like their Public Liability insurance* sorted a drama-free experience. Jump online or give as a bell to see how we can help to protect your tradie business in minutes.