The financial side of running a trade business can be challenging and complicated, but it’s important to get it right otherwise you could end up losing money.  Research by ElectricalDirect found that almost three-quarters (74%) of UK tradespeople don’t feel confident handling their company finances and many have ended up making a loss on jobs because of pricing errors (25%).  While many tradespeople are excellent at their jobs, dealing with finances is a different thing entirely, which is where businesses can fail. One option is to outsource your finances to qualified accountants or to use financial advisers to help you make wise decisions. For example, bfinance.com offers skilled investment advisors to help businesses and individuals alike improve their cashflow. However, there are always ways that individual tradespeople can improve their financial skills and literacy. With this in mind, the electrical retailer has partnered with Rick Smith, Managing Director at Forbes Burton, to share five pieces of expert financial advice for tradespeople as we head into 2023.  “As a small business owner, your income depends on the payment you get from your customers. However, getting funds from your clients on time can be difficult, and this can cause a strain on your mental health and well-being.  “To avoid this problem, it’s best to try and implement a ‘50% up front’ policy. Doing this will help maintain a steady cash flow. It will also help you identify genuine customers interested in your product or services; thus, you save time, resources and money.”  “Your most important asset, as a business owner, is your savings. You can rely on your savings in difficult times or when you need to handle unexpected expenses. Besides that, you can also take a break when you need or want one. It is crucial that you have cash reserves as they allow you to handle these expenses.  “If you want to be comfortable, it is advisable to save 30% of your earnings each month.”  “Tax returns are usually put off for a long time, and you will find this last on the to-do list for most people. Voilà, it’s another year, and you are rushing to submit your tax returns with just a few days to go, which may turn out to be larger than your expectations.  “The easiest solution is to prepare your tax returns as early as possible after April 6th. Doing this will help you handle this critical task on your to-do list efficiently and quickly. Also, it informs you of the amount to pay the following January; thus, you get to avoid any horrible surprises, and you have a lot of time to save if the need arises.”  “We’ve learned from the previous few years that the financial landscape is anything but predictable. Thus, you need to have plans for different scenarios that may happen in 2023 as a business owner.  “How much money have you saved for possible eventualities? What kind of help or options are available? There is no such thing as being over-prepared.”  For expert advice on how to handle your company finances, visit: https://www.electricaldirect.co.uk/blog/financial-expert-shares-top-four-tips-for-electricians    Building, Design & Construction Magazine | The Choice of Industry Professionals

There are over 250,000 self-employed tradespeople in the UK, and as we head into a new year, many will be considering taking the step and setting up their own business.  With this in mind, IronmongeryDirect has partnered with Rick Smith, Managing Director at Forbes Burton, to share some expert tips on how to make sure your new company has the smoothest start possible.  1. Know your costs  Knowing the costs of running the business is the first step on the road to success, and if this stage is missed, then the future of the company is at risk.  Rick says: “Your first goal should be to have three months of running costs in a separate account to give you security.   “Next you should evaluate the true cost of starting up your business. Make sure you have an understanding of the expected running costs, including wages, rent, rates, vehicles and what all this will total in cost per week, month and quarter to trade with no work coming in.   “You also need to know what it is going to cost for things like rent deposits, equipment, tools and supplies for your first few jobs. Remember, at first you may not get paid for quite some time.   “Finally, always price your work according to your figures. If you have the previous few steps worked out, this should be easy and will ensure smooth sailing for the most part.”  2. Remember to focus on the whole business  Many tradespeople will set up their own business because they’re experienced on the job and are confident in their abilities, but the work itself is only one part of running a successful business, and tradespeople also need to learn how to run a company.   Rick says: “A high percentage of our trade clients grow through a demand for their services. Put simply, if you are good at what you do, you will be in demand.   “The problems start when they have to learn how to run a business. Providing a quality service and running the business well are equally important and you can’t do one without the other.   “The business side of it doesn’t always get the attention it requires, which can mean the foundations of the company are weak. A combination of poor systems, processes and financials means cracks will appear and it then becomes a real problem that can spiral.”  3. Implement a sustainable structure  Remembering to divide your time between completing work  and running the business is vital to the company’s survival, so you should ensure that you dedicate time to creating a structure that allows both aspects of the company to get the attention they need.  Rick says: “If you are an established tradesperson, you should know how to quote and fulfil the work before you even set up a business, but time should be taken to research, get a good understanding and implement a structure to your business that is sustainable.  “The golden rule should be, get the right balance of working in and on your business. Scheduling your time weekly, rather than monthly to work on your business is always a good idea. It may seem like an inconvenience getting in the way of fulfilment of work but is the difference between success and failure in a lot of cases.”  4. Market your work  You could be an incredible tradesperson but getting the word out about your company is something that takes time and specific attention, otherwise you’ll find work difficult to come by, regardless of your skill.  Rick says: “Start by looking at what is working for other people in your position, how are they marketing their business?  “You should consider things like signage on the site of jobs you’re working on, or at least on your work vehicle. You should also make use of social media, like Facebook, where community groups can be especially good at getting word out about your services. You can also use physical marketing, such as printing leaflets and information booklets to distribute in key areas.”  You can read more of tips on how to make the most out of social media here.  5. Build your reputation  Finally, developing a good reputation is key to long term success, and will ensure that you have a growing list of reliable clients.   Rick says: “Word of mouth is always invaluable in spreading the message about your company, and you should always look to provide the highest quality of service to build your reputation.   “Treat your customers well and be polite, do your job to the best of your ability, and don’t be afraid to ask for testimonials and reviews after a job well done.   “If you’re just starting out, you can always ask your clients to pass on the word to their friends and family, which may just lead to you securing new work.”  For expert tips on how to set up a trade business, visit: https://www.ironmongerydirect.co.uk/blog/expert-tips-for-setting-up-a-new-business    Building, Design and Construction Magazine | The Choice of Industry Professionals

Running a business requires cash flow. Sometimes, cash is needed quickly. Whether it’s for sudden expenses or cash flow gaps, a cash advance can help. A cash advance is easy to get quickly, often within 24 hours, and gives you more flexibility to manage your cash flow. But when does your business need a cash advance? Here are seven situations when a cash advance can provide much-needed cash. Unexpected Expenses Unexpected expenses can quickly deplete cash reserves or cash flow. From repairs to contracts, cash advances can help cover necessary expenses quickly. You have to factor in cash advances when budgeting for unexpected expenses. Some cash advance services also offer cash advances as part of their cash flow management plans. Make sure to get the cash advance details in writing, such as repayment terms, cash advance amounts, and cash advance fees. That way, you can plan your cash flow accordingly. And make sure to get cash advances from reputable cash advance services. Some signs of a reputable cash advance service include a straightforward process, cash advance fees outlined in writing, and cash advances with flexible repayment terms. If a cash advance service doesn’t meet these criteria, it’s best to look for cash advances elsewhere. Cash Flow Gap Sometimes, cash flow gaps can squeeze the cash flow of your business. You may have invoices that have not been paid or are delayed, which can create a cash flow crunch for your business. A cash advance can help you bridge the cash flow gap. You can use cash advances to cover cash flow gaps before your invoices are paid. This flexibility makes cash advances an attractive option for cash flow gaps. There’s no need to worry about repayment of the cash advance. Cash advance services will usually let you repay with your next invoice payment or cash flow injection so you can easily manage your cash flow. Growth Opportunities Your business may have an opportunity to expand or grow. But you might lack cash reserves or cash flow to do it. A cash advance can provide the cash quickly and help you take advantage of growth opportunities faster than traditional funding sources like loans. You can use a cash advance to purchase equipment or inventory, hire new employees, or even open a new location. You have to make sure to understand the repayment terms and plan accordingly. And if you need more cash in the future, you can always apply for another cash advance to help grow your business. Unlike traditional loans, cash advances are easy to obtain. Seasonal Peaks Businesses often experience seasonal peaks where their cash flow is higher during certain months or days. A cash advance can help you manage this seasonal peak by providing extra cash to cover expenses during these times. You must ensure that your business can repay the cash advance within the repayment window. Cash advances are usually flexible and will let you repay over some time so that you can plan your cash flow and budget accordingly. Commercial Contracts Businesses may need to pay for commercial contracts or other expenses upfront but need more cash reserves or cash flow. A cash advance can provide the cash needed and help businesses take advantage of larger commercial contracts quickly. You can repay the cash advance within a few months or longer, depending on the terms of the cash advance. Make sure to understand the repayment schedule beforehand and budget accordingly. That way, you can take advantage of commercial contracts without worrying about cash flow issues. Tax Payments Tax payments are due on a specific date, and businesses lacking enough cash flow may be unable to make their tax payment on time. A cash advance can help businesses pay their taxes on time and avoid potential penalties. You don’t have to worry about cash flow when you use a cash advance to pay your taxes. The cash advance will be repaid on the due date with no hassle. So if you need help with tax payments, a cash advance can help you pay your taxes on time. Starting a Business Starting a business can be expensive. From equipment to employee salaries, you’ll need cash to get your business up and to run. A cash advance can provide the cash you need quickly, so you don’t have to wait for traditional funding sources. You’ll get to use the cash right away and repay it with your next invoice payment or cash flow injection. It makes cash advances an excellent option for businesses that need access to working capital quickly without having to wait weeks or months. Final Thoughts With a cash advance, businesses can access quick cash to help them with everything from growth opportunities to tax payments. So feel free to use cash advances when you need help with your business finances. But be sure to do it wisely and understand the repayment terms before taking out a cash advance. That way, you can get the cash you need without worrying about potential risks. Building, Design and Construction Magazine | The Choice of Industry Professionals

THE POST-pandemic office needs to be people-centric with businesses creating the best environments for their teams to thrive, according to a panel of industry experts. Speaking at a roundtable discussion hosted by GT3 Architects, the group discussed ways in which their organisations are creating a positive working environment for their teams, and how the increasing demand for high-calibre individuals is establishing a renewed need to look at how the workplace functions. The panel agreed that flexibility and choice are key considerations for both current and prospective employees, as well as having a defined culture that is understood throughout all levels of the business. Michael Simpson, associate director and workplace consultant at GT3 Architects, said: “We can’t rely on data from the pandemic as working from home was enforced, so we’re just now beginning to see trends emerge through our work with businesses looking at their office space. “We’ve seen that people highly value flexibility, not just in terms of working from home versus the office, but also when and how they do that work. The strongest and clearest conclusion is that people want the choice – they don’t want to be told they can or can’t come in.” One underrated benefit of working from the office discussed by the panel, was the so-called “osmosis effect”, where team members share knowledge and experience simply by being around each other and overhearing conversations.  Adam Tarleton, head of construction and procurement at Macildowie Recruitment, said: “Being in the office is particularly beneficial for more junior members of the team, but we’re seeing a lot of candidates that list being able to work largely or exclusively from home as their top priority.  “While there are benefits to this, I think it is maybe a little lost on them that you learn so much just from sitting near other people, absorbing how they interact with each other and simply gaining a better understanding how the business works.” There was cross-panel consensus on the office being the best, and sometimes only, way to ensure effective collaboration and creative thinking, as working from home is often productive but also causes teams to work in silo.  James Garment, director at engineering consultancy Hexa, said: “There’s a bit of a fallacy that just because you’re working from home and ticking off everything on your to-do list, you’re being productive, but when you’re in the office having meetings and talking with the team, you’re not achieving as much as you would like. “The reality is that those in-person meetings and conversations are every bit as valuable as completing everything off your task list, so it’s about that balance and understanding that the perception of “being productive” can be a little bit skewed by traditional thinking.” The location of offices was also identified by the group as a key consideration for staff, with many businesses looking to migrate back into city centres following the pandemic. Mark Tomlinson, director at commercial property agent FHP, said: “The pandemic has made many businesses reevaluate their location. If you look at ten or fifteen years ago, the trend was heavily toward out-of-town business parks, but as people reduce the amount of time they spend in the office, they want their trips there to be as useful as possible. “It feeds into the discussion about flexibility and choice – people want that work-life balance and a city centre location is part of that as it means you can easily head out for lunch, visit the shops and do everything in one place.” Wrapping up the roundtable, Simpson talked about the future of the office, agreeing that there is huge value in location, but that amenities will also play a considerable part in attracting and retaining staff. He said: “We are finding that when we’re working with clients to rethink how their spaces will work, there is generally a shift towards the flexibility of space we discussed earlier, but also towards smaller spaces that are fitted out to a higher specification. “I believe we will get to a point where going into the office will be like going to a high-end hotel, with all the associated amenities you’d expect.” Liz Clarke, associate director and head of people at GT3 Architects, added: “The pandemic accelerated a shift in how businesses operate, and the dynamic between employer and employee has changed significantly because of this. This is massively impacting how businesses attract, retain, and ultimately support their staff, and the conversation around the table today has illustrated the importance of the workplace offering in creating a team that works.” The roundtable was chaired by Liz Cartwright (Cartwright Communications) and also featured: Neil Harrison (Arup), Jenny Keen (Marrons Planning), Alex Jones (Chord Consult), Tom Huffsmith (The Island Quarter), Jerry Major (Willmott Dixon) and Geoff Tindsley (EDGE). GT3 Architects puts it people at the forefront of its projects, with this roundtable event helping to facilitate deeper conversations to influence the design process. By bringing together local leaders and business owners, GT3 hopes to create an opportunity to learn and inspire a different way of working. To be part of the conversation, register your interest at info@gt3architects.com to be notified of the next roundtable event.  Building, Design & Construction Magazine | The Choice of Industry Professionals

Whether your company focuses on design, construction, or both, you may be looking for ways to improve. That can mean many different things, you might improve your revenue, your customer service, the quality of your products, or much more. Below are a few ways you can go about making these improvements. Identify Existing Problems Whatever your industry is, the first step in improvements is to identify any problems that you’re already aware of existing. This should go beyond your own assessment; you should try to survey staff and customers as well. The reason this is such an important first step is twofold. First, you don’t want to make the mistake of fixing something that is actually working fine. Second, you don’t want to neglect obvious problems in favor of rooting out more obscure ones. This latter action is also important, but it should only happen after obvious deficits are addressed. Additionally, there will always be problems, like an economic recession that you cannot control so identifying and fixing the ones you can should be a high priority. Tech Solutions for Your Fleet Fleet management can be a challenge for most construction companies. Whether it is keeping costs down, managing staff that may be temporary or dispersed geographically, staying on top of compliance, ensuring safety, staying on top of maintenance, or preventing theft and waste, there’s a lot that can go wrong in this critically important area. Tech solutions have gone a long way toward streamlining fleet operations and making it easier to track and manage issues in this department. When it comes to compliance, tachograph management can be an excellent solution. Among its other offerings are instant analysis, live tacho status and remote downloads, allowing you to ensure compliance with one streamlined system instead of trying to accomplish different tasks across several more complicated systems. Improving Productivity The great thing about looking to improve productivity in this industry is that you can work with very concrete measures of what constitutes being productive. Maybe it’s how quickly a section of roofing is installed or how precisely the initial estimated work time is followed. However, there are also challenges. It’s essential to follow construction site safety rules and above all else, safety has to trump productivity. The supply chain may be out of your control. Sometimes, the only solution is hiring more workers, and you may struggle to find the ones with the skills you need. Yet there are things within your control that you can focus on, such as advance planning that identifies the most logical and efficient order in which work needs to be done. You should also make sure that your workers are fully trained and have what they need to complete their work. Set Goals Think about where you want your company to be in a year, five years, and ten years. Make your goals specific and measurable. Think about what kind of profit you want to show in the year ahead and work backwards from there to accurately calculate expenses and better understand the bids you need to make in order to achieve that goal. It can be tempting to bid low in order to get certain jobs, but you will ultimately undercut your ability to work effectively and grow your business with this mindset. Building, Design & Construction Magazine | The Choice of Industry Professionals

Boosting efficiency offers benefits for business owners across all industries. If you run a construction firm, it’s advantageous to take steps to iron out inefficiencies, streamline processes and increase productivity. This guide highlights effective ways to build a more efficient construction company.  Review and update technology and machinery Technology is advancing at lightning speed, offering business owners new opportunities. It’s not always possible to invest in every innovation, but it is beneficial for company bosses to review and update technology periodically. New technology can enhance operations and improve performance while saving time and money. In some cases, upgrading tech can also help building companies to diversify services and gain a competitive advantage. Carry out annual audits and research developments. Identify opportunities that are relevant to your key business objectives and focus on cost-effective tech that will make a positive difference to your employees and your customers.  One essential aspect of tech updates is embracing construction budget software. This software ensures accurate financial planning by automating calculations, minimizing the risk of errors in budget estimates. Real-time updates and collaboration features facilitate instant access to the latest budget information, fostering effective communication among team members.  The software’s ability to track and monitor costs throughout the project lifecycle enhances decision-making by comparing actual costs against budgets and identifying areas for optimization. Moreover, construction budget software contributes to resource optimization by analysing historical data and project trends, leading to more efficient resource management. Work with other businesses Outsourcing and business partnerships have become increasingly commonplace in recent years. In industries like construction, where many workers are self-employed, workforces are more fluid and flexible and projects involve multiple components and teams, it’s beneficial to work with other businesses and recognise the potential benefits of outsourcing. Teaming up with other companies and hiring agencies that specialise in specific jobs or areas can optimise outcomes and increase efficiency. From hiring expert machinery movers and companies that provide portable toilets to working with designers and roofing and plumbing businesses, it’s often advantageous to create contact networks. Search for reputable agencies that have experience within the industry, read client reviews and testimonials and meet with representatives. Outsourcing offers an alternative to recruiting employees and it can help business owners to access skills they don’t have in-house and save time. If you’re looking to attract new customers and raise brand awareness, for example, you might want to consider outsourcing digital marketing. If you don’t have an accounts department or an IT team, outsourcing accounting and IT support is a good idea.  Use data and analytics Business owners have access to more data than ever before. Collecting and analysing data offers a raft of benefits for construction companies. Using analytics and feedback, you can monitor market trends and identify new opportunities and learn more about your customers and target clients. You can also use data to make decisions rather than acting on thoughts or impressions and you can highlight strengths and weaknesses. Another key benefit of analytics and data collection in the construction sector is highlighting transparency. In a society where reviews are increasingly influential, it’s crucial to be able to back up claims and deliver on promises. Accurate, up-to-date data enables company owners and project managers to analyse portfolios and projects continuously and provide customers and partners with facts and figures.  Construction budget software integrates data analytics to enhance project management. These tools analyse performance metrics such as budget adherence, cost overruns, and resource efficiency, providing valuable insights into project health. Utilizing historical data, the systems perform trend analysis, aiding in pattern identification and informed decision-making. The software facilitates cost variance analysis by comparing actual costs with budgeted amounts, highlighting areas for adjustment or cost-saving opportunities.  Resource optimization is achieved by analysing usage patterns across project phases, enhancing overall efficiency. Analytics capabilities also extend to risk assessment, identifying potential risks and supporting the development of mitigation strategies. Customizable reports and dashboards visualise key performance indicators and project status, fostering effective communication and decision-making. Increasing productivity Increasing productivity is closely linked to boosting efficiency. There are two key factors to consider when discussing the productivity of construction firms: the workforce and the role of machinery and technology. Investing in new technology and taking advantage of innovative, efficient machinery, systems, software and vehicles can make a huge difference to output and save a substantial amount of time and money. It’s also critical to invest time and effort into the workforce. Low morale can impact productivity, damage business reputation and increase the risks of delays and setbacks.  To encourage productivity within your team, it’s essential to recognise the importance of looking after employees and motivating them to give every job their all. Reward loyalty, set competitive rates and salaries, communicate with your team and try to encourage progression and development.  Establish clear objectives Confusion and a lack of clarity can contribute to inefficiency, mistakes and delays. If you run a business, you should establish clear company objectives and priorities and ensure that every member of staff is aware of business goals and targets. Outline individual objectives for each project and communicate openly with your team. Every member should be aware of their responsibilities as an individual worker and as part of the team. Issue instructions, double-check that everyone is aware of what they’re doing and update progress. Use software and project management tools to track performance and record updates and organise regular in-person or virtual meetings to bring different teams together.  Efficiency is key in the construction industry. Optimising efficiency can save time and money and help you provide a superior service for your customers. To build a more efficient construction company, it’s advantageous to review and update technology regularly, work with other businesses and agencies and use data and analytics. Take steps to increase productivity and establish clear objectives.  Building, Design & Construction Magazine | The Choice of Industry Professionals