Gio_GRFT on the Trade Legends Podcast "Why 99% of Trades Businesses Fail"

I’ve lived the “busy but broke” cycle. We doubled headcount and turnover, then hit the wall—cashflow strain, quoting pressure, and stress.
I later built and exited my own plumbing & heating firm, then moved into partnerships and M&A.
Here’s what actually sinks most trades businesses—and how to set yours up to win.

7 pitfalls that drain profit

1. Chasing turnover over profit

   Growth without foundations = stress, rework, weak cash, and thinner margins.

2. Guesswork pricing

   If your rate doesn’t recover labour, overhead, and target profit, you’re subsidising customers.

3. Cash terms that make you the bank

   No deposits, back-end heavy invoices, and vague payment terms cripple cashflow.

4. Hiring before systems

   People don’t fix chaos—process fixes chaos. SOPs, job cards, checklists, photos, and handovers first.

5. No single source of truth

   WhatsApp + whiteboards leak money. Run quotes → scheduling → POs → time → invoicing in one system.

6. Compliance cliffs

   Legal structure, insurance, CIS, and VAT planning need designing in—not reacting to when you hit thresholds.

7. Feast-and-famine marketing

   When busy, you stop marketing; when quiet, you panic. Create a weekly drumbeat so the pipeline never dries up.
   
   

The set-up that works

• Choose the right structure early. Sole trader vs Ltd has tax, liability, and brand implications later.

• Price properly. Define a charge-out rate with utilisation, overhead recovery, and profit target baked in.

• Write cash terms you’ll enforce. Deposits on acceptance, staged invoices on milestones, instant pay options, and automated reminders.

• Systemise before you scale. One platform. Standard job packs. Before-during-after photos. Clear sign-offs.

• Track reality, not vibes. Job profitability, quoted vs actual hours, and a weekly cash map.

• Market every week. Reviews, quote follow-ups, local partnerships, and 2–3 useful posts a week.

• Use tech (and a little AI). Scheduling, quoting, materials lists, travel planning, and tidy documentation can all be streamlined.
  
  

The 90-day fix

Weeks 1–2: Numbers

• Build your charge-out rate and minimum viable margin.

• Make a 12-week cash map (in/out by week). Set/communicate terms.

Weeks 3–4: Systems

• Pick one job-management platform and move in.

• Create SOPs: job card, install checklist, sign-off, photos required, snag/return rules.

Weeks 5–6: Cash discipline

• Deposit → stage → final. Turn on instant pay + reminders.

• Stop work rules for overdue balances.

Weeks 7–8: Sales hygiene

• Quote templates with Good/Better/Best options.

• Add credibility blocks: accreditations, warranties, T&Cs, next steps.

Weeks 9–10: Capacity & staffing

• Plan labour weeks, holidays, training, and subbie overflow.

• Weekly job P&L (quoted vs actual).

Weeks 11–12: Pipeline

• “Rule of 5” each week: 5 follow-ups, 5 review requests, 5 local touches, 5 partnership nudges, 5 posts.

Bottom line: Profit is designed, not discovered. Small systems, done every week, beat big heroic pushes.

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