Running your own small business means you get to call the shots, but let’s be real, it’s not all sunshine and rainbows.
One of the biggest headaches for small plumbing businesses is keeping the finances in check. You’re bustling as hard as you can on jobs, chasing clients, scheduling appointments, and returning calls. With all that chaos, it’s no wonder invoices slip through the cracks and go unpaid. Then, you’re left with a mess of overdue bills and a cash flow disaster. Enough excuses. Get your act together and take control of your finances before they control you.
Research shows that unpaid invoices can sink your business fast. If you have one payment default, you’ve got a 24 per cent chance of going under within a year. Two defaults? That risk jumps to 42 per cent. Three defaults, and you’re looking at a 62 per cent chance of insolvency.(1) Those unpaid invoices add up, and they add up fast.
Dan Pollard, founder, Fergus, said, “This is what tradie business owners get wrong: they try to handle all the business admin themselves, even when they have no experience and sometimes no clue. Most plumbers spend four years doing an apprenticeship to master their trade. Running a business is a whole other trade on its own. And finance? It’s one of the trickiest parts to nail down. Get it right or watch your business struggle.”
The good news is that there are ways plumbers can lower their financial stresses and keep a closer eye on unpaid invoices so that cash is where it should be: in the working capital.
Here are four practical approaches to take within your business:
Trim the fat
Want to get your costs under control? Start cutting out unnecessary expenses. Costs pile up fast, and if you’re not watching the books, you’ll spend more than you make. Check your weekly expenses religiously. Make it a habit to cut one cost completely every fortnight. Talk to your suppliers and haggle for better terms. Keep an eye on your service pricing—compare it to competitors and market rates to stay competitive without slashing your profits.
Dan Pollard said, “You’ll find way more unnecessary expenses in your business than you expect. Ignoring these money drains won’t grow your business, they will just dial-up your financial stress.”
Get real about budgeting
Hate budgeting? Tough luck. If you don’t know your expenses, can’t tell if you’re overspending, how many jobs are lined up, or whether you have enough working capital to cover the month, you’re in for a world of hurt—fast. Budgeting means more than just tracking income and expenses. It’s about setting up a budget and forecasting future cash flow. This lets you spot financial bottlenecks and plan ahead. Monthly or quarterly financial reviews will help you tweak strategies and manage debts more efficiently.
Invest in tools that can do the work for you
Want to run a successful tradie business? You need the right tools—the digital kind. Smart job management software designed for tradies can transform your financial management and operational efficiency. These tools help you schedule jobs, dispatch technicians, track time, and manage inventory in real-time. Most importantly, to cut down on financial stress, this software integrates with accounting systems to streamline billing and invoicing, keeping your financial data accurate and up-to-date.
The secret sauce: right tools and admin together
Now that you have the right tools it’s time to get in the right people—admin staff. Using the software manages the paperwork and information efficiently, while admin staff ensure everything runs smoothly, bills get paid on time, invoices are sent and followed up, and the business keeps moving forward.
Dan Pollard said, “The real secret to my success? Combining the right tools with the right admin staff. Having smart job management software and skilled office personnel working together from day one was a game-changer. This combo allowed us to streamline operations, stay on top of invoicing, and keep the cash flowing. By investing in both technology and human resources, we created a balanced approach that supported sustainable growth and reduced financial stress.
“It’s time to get smart or get left behind. You don’t need to be an expert in everything to run a successful tradie business; you just need to use your brain. Know what needs to be done, but leave the ‘how’ to the experts. Use job management software to handle the numbers and get your finances right. With smart financial tools and solid business habits, you can build your business, worry less, and watch your cash grow. Quit trying to do it all yourself. Get smart, use the right tools, and let the experts handle the rest.”
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