Free micro lesson

What three things should trade business owners focus on to grow in 2024?

To break out of a flat business cycle, trade business owners need to reflect on and improve three areas: their operations, their finances, and their personal performance. Understanding your profit and loss every month lets you make small improvements that compound into real growth and eventually free up your time. Prioritising sleep, nutrition, exercise, mindset and relationships keeps you sharp enough to make the big decisions that move the business forward.

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Why does doing the same thing every year keep your business flat?

If you react to situations as they happen rather than proactively driving the business, you end up in a cycle of busy periods and quiet periods that average out to roughly nothing. You have a good month, then a slow month, and a line drawn through all of it is flat. The only way to break that pattern is to deliberately apply pressure in the right area of the business at the right time.

Proactively getting new clients or hiring a new person forces growth. New clients create demand that pushes you to hire. Hiring creates capacity that forces you to fill it with work. Either move generates the kind of productive pressure that shifts the business forward rather than keeping it in equilibrium.

How do you use reflection on your operations to plan ahead?

Look back at the previous year and identify when you got busy and when you went quiet. Once you can see that pattern, you can plan to apply the right type of pressure at the right time rather than waiting for circumstances to push you around. That awareness turns reactive firefighting into a deliberate growth strategy.

The start of a new year, after a break, is one of the best times to do this. You have some distance from the day-to-day grind and can see the shape of the year more clearly than you can when you are deep inside it.

Why can you not just let your accountant handle the finances?

Relying on your accountant to tell you once a year whether you did well means you spend twelve months making decisions without the information you need to make them well. By the time you find out something is wrong, a full year of damage is already done.

Greg Allan describes working flat out for an entire year, six-plus hours a day, most days of the week including weekends, and finishing with roughly two thousand dollars in net profit. That works out to less than a dollar an hour. The only way he found out was by checking his profit and loss. Without that check, he would have kept going the same way.

How does checking your profit and loss every month actually change things?

When you close off your finances at the end of every month, you can see exactly where the business stands and make small corrections before problems compound. Those micro-improvements add up to significant growth over time.

With reliable numbers you can also forecast with confidence. You can work out what hiring someone will cost, how much extra revenue that person should generate, and how much time you get back to spend on higher-value work. That chain eventually leads to being able to hire an operations manager and admin support, which is what Greg describes as operational time freedom.

What does personal performance have to do with running a trade business?

You cannot make clear, confident decisions when you are run down. Greg points to five areas to focus on: sleep, nutrition, exercise, mindset, and relationships. Getting on top of those means you show up to work energised and in a state where you can back yourself to hire a new employee or take on a big client.

This is not about waiting until the business reaches a certain size before you look after yourself. The business depends on you performing well now, so prioritising your own health and energy is a business decision, not a luxury.

How should family fit into your planning?

If you have a partner or kids, the time you spend with them needs to be part of your plan, not whatever is left over after work. Greg makes the point that a business can take far longer to grow than you expect, and if you put family time on hold until you reach some future milestone, you risk missing years you cannot get back.

Even thirty minutes of uninterrupted time each day with the people who matter is worth scheduling deliberately. The business is the vehicle for a better life, not a reason to postpone it.

Also asked

Questions this lesson answers.

What happens if you keep doing the same thing in your trade business every year?

You stay in an equilibrium where busy periods and quiet periods cancel each other out and overall growth stays flat. Reacting to situations rather than proactively driving the business means you keep getting the same result. Breaking out requires deliberately applying pressure in a specific area, such as pursuing new clients or making a hire, to force growth in that direction.

How often should a trade business owner check their profit and loss?

Every month. Closing off your finances monthly means you can trust the numbers and make decisions based on them. Leaving it to an annual review with your accountant means problems can run for a full year before you know they exist, and by then the damage is already done.

What are the five personal performance areas Greg recommends focusing on?

Sleep, nutrition, exercise, mindset, and relationships. Greg's position is that you need to be performing well personally to make confident business decisions. Showing up run down means you are less likely to back yourself on the bigger calls, such as taking on a major client or hiring a new employee.

What is operational time freedom and how do you get there?

Operational time freedom is the point where you have enough profit to hire an operations manager and admin support so the whole business is covered without you doing everything. Greg describes getting there by making monthly profit improvements, using that profit to hire people, freeing up time to focus on higher-level tasks, and repeating the cycle.

I worked flat out for a year and made two thousand dollars
From 3 Things To Focus On So You Can Kick Off 2024 With a BANG 💥
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3 Things To Focus On So You Can Kick Off 2024 With a BANG 💥

  • Close off your profit and loss every single month so you can trust the numbers and spot problems early.
  • Understanding your profit and loss monthly lets you make micro improvements that compound into major growth and operational freedom.
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