Australian tradies are generally a hard-working bunch who want to build successful and thriving businesses.
However, many of them suffer frustrations and concerns that make this tough, according to a recent St George Bank survey.
The bank’s Tradie Economy Report surveyed more than 600 Aussie tradies in several fields – including construction, electrical and landscaping.
Some of their top concerns are slow-paying customers, finding good workers, cashflow management, and the ability to pay bills on time.
The research also indicates several other important trends amongst tradies. These include:
- Less than 40% use technology to improve customer service.
- About two-thirds prefer word-of-mouth or personal contacts for marketing, over technology tools such as CRM software.
- More than a half tend to use their own money to fund their business.
- Only about one-quarter have a retirement plan in place, and many are not paying into super funds for themselves.
The survey results also show that while many employed tradies are keen to start their own businesses, they can often lack the skills to make it happen.
Addressing some of the issues
Tradies may be able to improve their chances of business success by taking business management courses, engaging a mentor who is experienced in the same field, and finding better ways to fund their businesses.
Another thing to consider is financially protecting trades businesses through insurance. Tradies can be vulnerable to various risks such as tool theft, equipment damage, and accidents and injuries. This makes it crucial to get the right mix of policies to help keep the business going following or during an unexpected event.