If you are an electrician then there are a number of ways you could be making your business more profitable, many of them don't take much time to implement and have worked well for other electricians.
Here are some examples;
Improve your cash flow management.
By improving cash flow you increase the opportunity to provide more flexible payment options to customers, making your company more attractive to them. This can be particularly useful when tendering for contracts.
Read more in our blog on cash flow management here - www.matrix-accounts.com/tradespeople-5-ways-to-improve-your-cashflow
Take advantage of new EICR rules for landlords.
From July this year landlords will need to provide a satisfactory electrical condition installation report (EICR) to all new tenants, a new report will be required every five years. For existing tenancies this law comes into effect from April next year. Previously, many landlords didn't provide a satisfactory EICR to tenants as it wasn't a requirement for the majority of tenancies (only properties specifically licensed by their local authority required one). Therefore many landlords and letting agencies will require the expertise of electricians and will be actively looking for reliable electrical contractors.
Speak to some local letting agents particularly those will a large turnover of tenants. You could perhaps even run a marketing campaign targeting landlords.
Ensure you are claiming the correct expenses to minimise your tax liability.
This one seems obvious but it is important to ensure you claim the expenses your entitled to in addition to avoiding incorrect expense calculations and making incorrect claims. Tax errors result in penalties, additional admin and the wrath of HMRC! This is money you could be spending on your business. Speak to an accountant to ensure your accounts are correct and submitted on time.
If you are sub contracting work from another company then make sure to register for CIS.
Where sub contracting work it is important you are registered with HMRC for the Construction Industry Scheme or CIS. If you are not registered then the company or individual sub contracting the work out to you will take CIS deductions at the higher rate - typically around 30%. However, if you register for CIS then the deductions will be taken at the standard rate - typically around 20%. A significant saving.
Read more about CIS here - www.matrix-accounts.com/cis-construction-industry-scheme-for-contractors-and-sub-contractors-faqs
Niche your marketing.
A little left field but "niching" your marketing can produce great results. Targeted adverts attract the attention of customers far more than generalist adverts. In addition, by focusing on a particular customer you will become more knowledgeable about that sector which will impress potential clients.
A good example could be a focus on completing electrical works for landlords and lettings agencies. You will become familiar with rules such as providing tenants with 24 hours notice of visits (except in emergencies), collecting and returning keys to the agency as well as rules around emergency call outs. If you wanted to offer emergency call outs you could even suggest that all emergency electrical works are automatically forwarded to you directly from a letting agency. The more you know about a sector the more impressed that clients will be as they won't have to spend time providing guidance.
Matrix Accountancy Services specialise in helping tradespeople with their accounting and have over six years of experience working with tradespeople.
Contact firstname.lastname@example.org or call 07914 794744.
More information - www.matrix-accounts.com/tradespeople