Tradie Business 101: How to Improve Productivity

About the Author: Ashley Thomson
Ashley Thomson

Productivity is a Common Challenge for Tradies

If you’re a small-to-medium business owner in the trades or service industries, you’ve probably faced the challenge of improving productivity. Whether you’re a plumber, electrician, or builder, juggling heaps of tasks while maintaining high standards can be overwhelming. You’re not alone; a report from Master Electricians Australia on key trends reshaping electrical contracting highlights the importances of productivity for electricians. I know it’s similar for other trades and construction service businesses too.

How do I know? I’m a seasoned tradie business coach, electrician business coach and Managing Director of Tenfold Business Coaching. As a firm of business coaches and mentors, we specialise in helping owners of small-medium businesses in the trades streamline operations and boost productivity. In this post, I’ll give you some practical, actionable strategies we use with our clients to help you enhance productivity in your business.

Understanding Productivity

Before I explain the strategies, let’s be clear about what productivity means in the context of a tradie business. Productivity is about getting more output from the same input – or even better, less input. For tradie businesses that means more billable hours and therefore more profit with the same amount (or less) of labour and materials. Productivity = Profitability

I’m not a fan of cliches (in fact, I’m known in my team for mixing my metaphors – bird in the hole, anyone?), but here’s a cliche that holds true: Productivity is not just about working harder, it’s about working smarter. This means optimising your processes, using your resources (labour, materials, admin time) efficiently, and ensuring that your team is well-supported to do what’s expected of them.

7 tips for tradies to improve productivity include identifying where your business is leaking time (and money), and how to avoid mistakes.

7 Tips for Improving Productivity in your Trades Business

Your tradie business might specialise in commercial maintenance, or you’re the go-to crew for construction projects , or you are trusted by homeowners and agents to fix residential issues. Despite these different niches there are commonalities when it comes to improving productivity.

Here are my top 7 tips for improving productivity in trades businesses:

  1. Assess Your Current Processes for Time Leakages
  2. Get the Right Tools to Improve Productivity in Your Tradie Business
  3. Train your Team: Upgrade their Skills and Knowledge
  4. Support and Reward Productivity
  5. Set Productivity Benchmarks and Goals
  6. Communicate Effectively for Positive Changes
  7. Monitor, Adjust and Improve – and Repeat

As I explain each of these in detail, I encourage you to think about how it applies to your business. If you’re a plumbing contractor, think about how you’re tracking call backs. If you’re an electrical contractor with crew in vans, think about how your team prepares for a job BEFORE they hit the road. You get what I mean. So with that in mind… start at the start: your current processes.

1. Assess Your Current Processes for Time Leakages

Improving productivity starts with a thorough evaluation of your current workflow. This process involves taking a step back and closely observing how tasks are performed from start to finish. Identify any bottlenecks that slow down the process or unnecessary duplications that waste time and resources. Spotting these issues is crucial for laying the groundwork for more efficient operations.

I recommend my clients conduct a thorough audit of their processes. Begin by mapping out each step in your workflow, from the initial customer inquiry to the completion of the job. By completion, I mean the very last time one of your technicians leaves the client’s site.

By documenting every action taken, you can clearly visualise the entire process. This mapping should include who is responsible for each task, how long each task takes, and any tools or materials required.

Using tools like flowcharts or project management software, such as Trello or Asana, can be incredibly helpful. Flowcharts provide a visual representation of your workflow, making it easier to spot inefficiencies. Project management software allows you to track tasks in real time, set deadlines, and assign responsibilities. This not only helps in identifying bottlenecks but also ensures that everyone on your team is on the same page.

Involve your team in this audit process to gather feedback from your technicians, your admin team members who schedule jobs and order materials, and your subbies. Your crew on site and in the office often have valuable insights into what works and what doesn’t, highlighting issues that might not be immediately apparent to you since you’re off the tools. Their input can help you identify additional areas for improvement and ensure that any changes made are practical and effective.

Finally, remember that this is not a one-time exercise. Continuously monitor your workflow and be open to making adjustments as needed. Regular reviews help ensure that you are always moving towards greater efficiency and productivity. By maintaining a cycle of assessment and improvement, you can create a more streamlined and effective operation that benefits both your business and your customers.

2. Get the Right Tools to Improve Productivity

Technology can be a game-changer for improving productivity in your business. From project management software to mobile apps that can track time on site, calls backs and toolbox meetings, the right tools can help you manage tasks more effectively and efficiently. By automating routine tasks and centralising information, you can save time and reduce the risk of errors.

As a tradie business coach, I often suggest to business owners that they explore specialised software like ServiceM8 can simplify job management and invoicing. ServiceM8 allows you to schedule jobs, dispatch workers, track job progress, and send invoices directly from the field. This not only saves time but also ensures that nothing falls through the cracks. By integrating customer management and job tracking into one platform, you can improve efficiency and provide better service to your clients.

For office admin and project management planning, tools like Trello or Asana can help with task management. These platforms allow you to create and assign tasks, set deadlines, and track progress, ensuring that everyone on your team is on the same page. They also offer features like file attachments, comments, and notifications, which enhance collaboration and keep projects moving forward.

Incorporating these tools into your workflow can transform how you manage your business, leading to increased productivity and better overall performance. Technology, when used effectively, can streamline operations, improve communication, and free up your time to focus on strategic growth.

For more insights on how technology can boost productivity, check out Xero’s guide on increasing productivity.

3. Train your Team: Upgrade their Skills and Knowledge

Your team is your greatest asset. Again, another cliche. And again, another one that holds true – remember your business when it was just you? Not much chop, if you’re being honest. Like most tradies who have backed themselves, you probably first felt like a “real” business owner when you hired your first employee.

Investing in your team’s skills and development can significantly enhance productivity. Regular training sessions improve their technical abilities and also boost morale and job satisfaction. When employees feel that their role development is a priority, they are more likely to be engaged and motivated, leading to higher levels of performance.

I coach my clients to organise regular training sessions and encourage continuous learning. This can involve technical skills training to keep up with industry standards, safety workshops to ensure best practices, and soft skills development such as communication and teamwork. For instance, a landscaping business that regularly trains its team on the latest techniques and customer service skills will see improved quality of work and client interactions.

Encouraging a culture of continuous learning by providing opportunities like online courses, certifications, or attending industry conferences can show your team that you value their growth. This not only improves productivity but also helps in retaining talented employees.

4. Support and Reward Productivity

A positive work environment can do wonders for productivity. When your team feels valued and supported, they’re more likely to be engaged and motivated. This increased engagement translates into higher levels of performance and efficiency.

As an electrician business coach, I often suggest to business owners that they focus on creating a supportive and collaborative culture. This involves recognising and rewarding hard work, which can be as simple as acknowledging achievements in team meetings or offering performance bonuses. Such recognition boosts morale and shows employees that their efforts are appreciated.

Encouraging open communication is another critical aspect. Creating an environment where team members feel comfortable voicing their ideas and concerns fosters trust and collaboration. This can be achieved through regular check-ins, team meetings, and an open-door policy.

Providing opportunities for professional growth is also essential. Offering training programs, career development opportunities, and pathways for advancement not only enhances skills but also demonstrates a commitment to the team’s future. When employees see that their growth is valued, they are more likely to remain loyal and motivated.

By focusing on these areas, you can create a work environment that not only boosts productivity but also enhances overall job satisfaction and retention.

5. Set Productivity Benchmarks and Goals

Clear goals and expectations provide direction and purpose, which are essential for a productive work environment. Ensure that each team member knows their responsibilities and what is expected of them. When everyone understands their role and the broader objectives, they can align their efforts more effectively.

I recommend my clients to set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals for their team. These clear, well-defined goals help in maintaining focus and measuring progress. For example, instead of a vague goal like “improve customer service,” a SMART goal would be “reduce customer response time by 20% over the next three months.”

Regularly review these goals and provide feedback to keep everyone on track. This might involve weekly check-ins, monthly performance reviews, or casual one-on-one conversations. Regular reviews ensure that progress is being made and any obstacles can be addressed promptly. Providing constructive feedback helps team members stay motivated and understand how their contributions impact the overall success of the business.

By setting clear, SMART goals and regularly reviewing them, you create a structured environment where your team can thrive, boosting both productivity and morale.

6. Communicate Effectively for Positive Changes

Effective communication is key to a productive workplace. Streamline communication channels to ensure that information flows smoothly and efficiently. Clear and consistent communication not only prevents misunderstandings but also fosters collaboration and a sense of teamwork among your staff.

As an electrician business coach, I often suggest to business owners that they implement regular team meetings and check-ins to help keep everyone aligned and informed. These meetings provide opportunities to discuss progress, address any issues, and plan for upcoming tasks. They also foster a sense of camaraderie and shared purpose, which can enhance overall morale and productivity.

In addition to regular meetings, consider setting up channels for different projects or departments within your chosen communication tool. This way, team members can easily find relevant information and contribute more effectively. Encouraging open communication and providing supporting platforms can transform how your team collaborates and operates, leading to greater efficiency and productivity.

7. Monitor, Adjust and Improve – and Repeat

Improving productivity is an ongoing process that requires constant attention and flexibility. Regularly monitor your progress and be open to making adjustments as needed. This proactive approach ensures that you can address any issues before they become significant problems and continuously improve your operations.

I recommend my clients use key performance indicators (KPIs) to track productivity and identify areas for improvement. KPIs provide quantifiable measures that can help you understand how well your business is performing in various aspects, such as job completion times, customer satisfaction, and revenue growth. By regularly reviewing these metrics, you can pinpoint specific areas that need attention and take corrective action promptly.

As an example, tracking job completion times can reveal inefficiencies in your workflow, allowing you to make necessary adjustments to improve turnaround times. Similarly, monitoring customer satisfaction scores can highlight areas where your service may be falling short, enabling you to make improvements that enhance the customer experience.

Regularly reviewing these metrics helps you stay proactive and responsive to changes in the market and your business environment. This continuous improvement cycle not only boosts productivity but also ensures that your business remains competitive and capable of adapting to new challenges and opportunities.

Case Study

An electrical contractor based in Melbourne struggled with inconsistent job completion times, poor communication, and an overwhelming administrative burden. By seeking guidance from me, Ashley Thomson, an electrician business coach, Jake was able to transform his business. We started by evaluating his current processes and implemented ServiceM8, a specialised software for trades, to streamline job management, scheduling, and invoicing. This significantly reduced errors and improved coordination.

Additionally, we introduced regular team huddles and used Slack for real-time communication, which enhanced teamwork and efficiency. Monthly training sessions also boosted the skills and morale of his team. As a result, we saw immediate improvements in productivity, better communication, and a reduced administrative load, allowing him to focus more on growing his business. This targeted approach not only improved his operations but also fostered a positive work environment, setting the stage for long-term success.

Wrapping it up: Taking the Next Steps

By taking these steps, you’ll position your business for long-term success. Improving productivity is essential to driving productivity. By assessing your processes, leveraging technology, investing in your team, fostering a positive work environment, setting clear goals, streamlining communication, and continuously monitoring progress, you can create a more efficient and productive workplace.

Remember, every business is unique, and there is no one-size-fits-all approach to improving productivity. If you’re unsure where to start or need tailored advice, give us a call at Tenfold and we can chat about what could work for your business.