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The Costs Of Running A Trade Business

StrategyDriven Managing Your Finances Article | The Costs Of Running A Trade Business

Thinking of starting a business as a tradesperson? Trade businesses include the likes of plumbing, electrics, roofing, tiling, landscaping and window cleaning. They can be a popular business venture for those that have the skills – and they can be relatively inexpensive to start up compared to many other types of business. However, there are still costs that need to be budgeted for if you’re going to start a trade business. Below are some of the costs to consider when running a trade business.

Tools

Perhaps the most important cost to consider is acquiring tools. Pretty much every trade from pest control to tree surgery requires tools. Certain trades are likely to require more expensive tools than others – for example, a decent piano tuning kit can be bought for less than $20, while a decent commercial carpet cleaning machine will cost over $1000 to buy.

Buying used tools could be a way to save money. When it comes to specialist tools that you may only need for one-off jobs, it may make more financial sense to hire them. You can also lease tools, which can be cheaper upfront than buying, but potentially more expensive in the long run.

To work out exactly how much you need to spend on tools, make a list of all the tools you need. Then compare prices online to work out exactly how much all of these tools will cost. If you need to take out a loan, this will help you to know exactly how much to borrow.

Supplies/parts

On top of your tools, there will be ongoing supplies or parts that you’ll need to buy. These will likely vary from job to job and are something you should factor in when it comes to quoting a price.

The internet is one of the best places to look for niche supplies like boiler auxiliary equipment or pressure washing chemicals. More general supplies and parts may be possible to buy from a local store, although you may still find that you access greater discounts online. Some suppliers may even be able to offer loyalty discounts or bulk discounts for supplies and could be worth sticking with.

Travel

You also need to consider the cost of travelling to your clients. This will typically involve owning or leasing a vehicle. Some tradespeople simply use their personal vehicle. However, if your personal vehicle is too small for your tools or not business appropriate, you may have to consider acquiring a new vehicle (a separate vehicle could also give you the option to invest in branded vinyl wrapping).

Each job you do will cost you money in fuel, which is also important to budget for. Many trade companies will only serve customers in a certain area so as not to spend too much time or money travelling to clients. Of course, if your trade is very niche, you may have no option but to cover a larger area in order to source enough customers.

Licensing/certification

Some trades do not require you to have any licensing or certification. In other cases, licensing or certification may be compulsory. It’s worth looking into the regulations of your state to see what the case is.

Most companies need a business license, which can cost between $50 and $550 depending on the state and profession. Certification fees are likely to vary depending on where you obtain them from – in some cases, there may be multiple certification courses that you can take. Some may also have to be regularly renewed, which is something to budget into your running costs.


Insurance

In many cases, it is not mandatory to take out insurance as a tradesperson. An exception is if you hire employees, in which case you are obliged to take out worker’s compensation. You will also need auto insurance for your commercial vehicle.

Other types of insurance may be highly recommended depending on the trade. Public liability insurance is something that most trade businesses should consider taking out. This insurance scheme can help to pay out compensation if a member of the public is injured or their property is damaged as a result of your work. You could also consider insuring your tools against damage and loss.

It is worth taking the time to shop around for insurance as it could save you a lot of money. Some insurers may offer specialist policies catered to the risks of your specific trade. There are also trade business insurance packages that you can take out that combine multiple policies for a discounted price.

Marketing

Marketing is essential for attracting business. You will need to invest some money regularly into marketing if you want to generate customers and grow.

A website is the most basic marketing necessity. You can build a website yourself, or hire someone to build it for you. A DIY website is the cheapest option – nowadays there are drag-and-drop website builders you can use that don’t require any programming knowledge.

There are so many other types of marketing that you can spend money on including social media marketing, SEO, PPC ads, business cards and flyers. It’s worth experimenting with different forms of marketing to see what works. You can hire marketing agencies to help handle marketing for you – in such cases, make sure to shop around to get the best rates.

Tax

Every business has to pay tax on its earnings. You will need to file a tax return each year, which will need to be accurately calculated. You can do this yourself or you can hire an accountant (the latter can save you a lot of time and hassle, but is an extra expense to budget for). At the very least, you should try to invest in accounting software to help make bookkeeping easier.

A benefit of being self-employed is that you get to claim expenses, which can result in tax reductions. This includes all the costs listed above. This is why it’s important to record every expense, so that you can accurately deduct the necessary amount of tax each year.

What Is The Best Insurance For Your Small Package Shipments?

If you have high hopes for entrepreneurial business success then you’re probably thinking of how you could do this. There are so many business ideas out there, and what do you see yourself doing? For many people they’ll opt to sell products. This could be wholesale items, handmade, and the list could go on and on.

If you’re starting a business, you’ll also want to think about the logistics of it, such as shipping. This can include getting insurance from third parties such as www.secursus.com. But before you begin all that, how do you determine the best insurance for shipping packages? How can you feel confident in your choice if it’s something you’re unfamiliar with? Here is everything you need to know!

StrategyDriven Risk Management Article | What Is The Best Insurance For Your Small Package Shipments?

Why should a business owner buy small packages insurance?

Some people might think that it is not worth buying because they only have a few personal belongings that are worth protecting. Package Insurance is one type of insurance that covers packages and shipments up to a certain value. It provides coverage for the shipment against loss or damage in transit and for the goods within the shipment against loss or damage during storage and transport. This type of insurance can help you out in the event that something does happen and you need to replace your items quickly; a lot of business owners need it.

What factors impact the cost of shipping insurance?

An insurance company will charge a different amount for shipping insurance than the one charged by a carrier. The price difference is based on the company’s risk assessment. Some factors that impact the cost of shipping insurance are:

  • The type of goods being shipped
  • The size and weight of the goods
  • The type of service used to ship the goods
  • Whether or not there is a contract between the buyer and seller

If you’re starting out, there may be a chance that it could be expensive. However, you’ll need to keep your options option and look into different providers.


What does small package insurance cover?

As a business owner who creates and sells products, there is always a chance that during transit something could happen to the package. It could get lost, stolen, or even possibly face some type of damage, It’s clearly not ideal, either. This is why small package insurance is needed for business owners. You won’t have to worry about losing money, and you will still be able to keep solid relationships with customers and clients. It’s going to be up to the insurance company and what they’re planning to offer.

The most common types of small package policies include:

  • Insurance on items valued under $500
  • Insurance on items valued between $500 and $1,000
  • Insurance on items valued between $1,000 and $2,000
  • Insurance on items valued between $2,000 and $5,000

However, keep in mind that it will still vary and this is merely an estimate.

Are there any extra fees?

The most common of these is a broker or destination fee, which usually applies to shipments sent by certain logistic companies like FedEx. These charges vary depending on the size of your shipment and your location. If you are shipping something from one company to another company, you might need to pay a broker fee for each shipment as well as a destination fee for each endpoint. It’s all just going to heavily depend.

5 Steps To Entrepreneurial Business Success

Being an entrepreneur is hard work. It’s a 24/7 job that requires dedication, determination, and a whole lot of caffeine. But it’s also incredibly rewarding, both personally and professionally. If you’re thinking about starting your own business or already running one and looking for ways to increase your chances of success, read on for five tips that can help you achieve your goals.

StrategyDriven Entrepreneurship Article | 5 Steps To Entrepreneurial Business Success

1. Know Your Audience

One of the most important aspects of any business is understanding who your target market is. Who are you trying to reach with your product or service? What needs or wants do they have that you can provide? Once you’ve identified your target market, you can start developing marketing strategies that will resonate with them. Additionally, you should always keep your target market in mind when making business decisions, from pricing to product development.

2. Develop A Strong Brand

Your brand is more than just your logo or slogan; it’s the overall image that you want to project to the world. What values do you want to be associated with your business? How do you want potential customers to feel when they think of your company? Answering these questions can help you develop a strong brand identity that will appeal to your target market.

3. Ensure You’re Insured

No matter how big or small your business is, it’s important to have the proper insurance coverage in place. This will protect you financially in the event of an accident, injury, or damage to your property. For example, entrepreneurs operating in the rideshare or food delivery industry, such as Uber, Uber Eats, Lyft, or Grubhub, should get rideshare car insurance to ensure that their vehicles are insured in the event of an accident. Therefore, it is wise for entrepreneurs to speak with an insurance agent to determine what type of coverage is right for their business.


4. Build A Sales Funnel

A sales funnel is the process potential customers go through as they move from awareness of your product or service to becoming paying customers. The more effectively you can guide prospects through your funnel, the more likely you are to make a sale. There are many different ways to build a sales funnel, so it’s important to find one that will work for your business and your target market.

5. Focus On Customer Retention

Acquiring new customers is important, but retaining existing ones is just as vital to the success of any business. It costs far less to keep an existing customer than it does to acquire a new one, so it’s important to focus on strategies that will keep people coming back. Creating loyalty programs, offering great customer service, and continuously improving your products or services are all excellent ways to ensure that your customers remain happy and engaged with your business.

Conclusion

If you’re an entrepreneur or if you’re thinking about starting a business, use these five tips to give yourself the best chance at success. Being an entrepreneur requires hard work and dedication, but it can be an incredibly rewarding experience.

Taking Your Business to the Next Level: What to Do

StrategyDriven Managing Your Business Article | Taking Your Business to the Next Level: What to DoIt is very common for businesses to plateau once they are past the growth stage. Business owners might find it difficult to grow their businesses beyond certain levels or to even increase their revenues. The good news is that there are a few things you can do to take your business to the next level, unlocking additional opportunities for sales, revenue, and overall business growth.

Leverage Technology

Technology can be a huge help when you are looking to unlock untapped opportunities. It can help you know where you are wasting money and where to spend it to help with customer acquisition and improve your marketing ROI.

Technology, specifically machine learning and artificial intelligence, can be very useful in helping you discover new opportunities in your market. They can help you analyze the data you are already collecting, helping show areas of underutilization and opportunities you are not already taking advantage of.

Use a Different Social Media Platform

Many businesses pick one or two social media platforms and use those as their primary marketing channels. If you are having a hard time growing on social media, you should consider using new platforms.

Doing so allows you to open up your business to new customers, and you can then start marketing them to turn them into leads. It also gives you more points of engagement with past and potential customers. This is especially important if you are already reaching them in other ways and on other platforms and are having a hard time converting them.

Ask for Outside Help

Sometimes business owners do not seek outside help because they know understanding the businesses at the level they do gives them an insight into how to grow it. This level of involvement can be a disadvantage because such business owners do not see what changes they can make or strategies they can employ to help their businesses grow because they think they know it all.

Sometimes it is good to take a step back and ask for outside help. The help should come from someone with extensive experience in running, managing, and growing businesses and who has done the same with many businesses. A business expert like Rami Cassis helps decision-makers and CEOs with strategies, expertise, and tools that help them take their businesses to the next level.

With such a partner providing their expertise, business owners and other stakeholders can get out of their own way and let the expert guide their business to the next level.


Build a Skilled Team

Sometimes, lack of growth or plateauing is caused by not having the right people in the right positions. A strong team comprised of people in positions that leverage their skills, experience, expertise, and knowledge can help your business expand, set new goals, and achieve them either in the mid or long term.

Remember that you do not always have to hire new people to see growth, an audit can help you discover people who would be incredibly helpful but who are being underutilized in their current positions.

Growing a business or taking it to a new level when it has hit a plateau can be difficult especially when you think there is nowhere else to go. However, there are always additional growth opportunities — you just have to know how to unlock them.

Personal Sacrifice: Financial Decisions for Entrepreneurs

Entrepreneurs are often lauded for their innovative ideas and risk-taking spirit, but the importance of financial management for entrepreneurs is often overlooked. Financial stability is essential for those without a safety net, which can be the difference between success and failure.

Several statistics underscore the importance of financial management for entrepreneurs. For example, according to a study by The National Small Business Association, 60% of small businesses fail due to economic reasons. Furthermore, a survey by Forbes found that 78% of failed startups cite financial instability as the main reason for their failure.

Financial stability is crucial for entrepreneurs. There are several things that entrepreneurs can do to improve their financial footing, such as creating a budget, tracking expenses, and maintaining a healthy cash flow. By taking these steps, entrepreneurs can improve their chances of success and avoid costly mistakes.

However, there is no denying that entrepreneurs must make a few sacrifices to achieve financial stability. There will be times when you have to put your business interests ahead of your personal ones. Here are a few financial sacrifices that entrepreneurs have to make.

Social Activities

Social life is one of the first things entrepreneurs have to give up. With all the time and effort required to get a business off the ground, there is simply no time for socializing. Moreover, you might be spending a lot of money on those social activities, making it more challenging to improve financial management.

It doesn’t mean you must become a hermit; you can still find time for your friends and family. However, you will have to cut back on activities that take up a lot of time, such as going out to bars or clubs, attending parties, or taking vacations.

In addition, you may have to spend less time with your loved ones while working on your business. This sacrifice is not easy, but it’s important to remember that your business is your priority. Your family and friends will understand if you cannot spend as much time with them.

Luxury Items

Another thing that entrepreneurs have to give up is luxury items. When starting, it’s important to focus on the essentials and forego unnecessary purchases. You might give up your expensive car, designer clothes, and other luxury items.

It cannot be easy to let go of these things, but it’s important to remember that your business comes first. Luxury items are a waste of money when trying to improve financial management.

Moreover, luxury items can make it difficult for you to relate to your target market. If you’re trying to sell a product or service to middle-class consumers, they’re unlikely to relate to you if you’re driving a Bentley. Luxury items can also make connecting with potential partners and investors difficult.

While you don’t have to give up all your luxury items, it’s important to be mindful of your purchases. Ask yourself if an item is essential or if you can live without it.

Mortgage or Rent

Another financial sacrifice entrepreneurs make is giving up their mortgage or rent. This can be difficult, but freeing up money for your business is often necessary. Homeownership means going into debt, which can be a challenging situation for entrepreneurs.

Giving up your home can be a considerable risk, but it’s one that you may have to take if you want your business to succeed. If you’re not ready to give up your home, consider renting it out and living elsewhere.

Fortunately, you can also partner with a company that assists in home mortgage for entrepreneurs. This service can help you save money to invest in your business. If you cannot afford monthly home ownership and rent payments, you can stay with family or friends until your company is more established.


Retirement Savings

One of the entrepreneurs’ most prominent financial sacrifices is giving up their retirement savings. This is a difficult decision, but getting your business off the ground is often necessary.

Retirement savings are significant but are not as important as your business. Do it if you need to use your retirement savings to finance your business.

Of course, this doesn’t mean you should empty your retirement account. You should only use what you need and make sure you have a solid plan to replenish your savings once your business succeeds.

The Bottom Line

Financial stability is essential for entrepreneurs. There are several things that entrepreneurs can do to improve their financial footing, such as creating a budget, tracking expenses, and maintaining a healthy cash flow. However, there is no denying that entrepreneurs must make a few sacrifices to achieve financial stability. There will be times when you have to put your business interests ahead of your personal ones. By taking these steps, entrepreneurs can improve their chances of success and avoid costly mistakes.