Builders and tradies in Aotearoa have experienced a busy period with a thriving renovation market and a high number of new homes being built. However, there are indications of a slowdown in the sector as consents seem to have reached their peak. If you’re a builder or tradie concerned about operating during a downturn, here are some tips to help your business not only survive but also thrive in a lower-demand environment.

1. Diversify your services: 

Evaluate which types of projects are the most profitable for your business. Consider expanding your services or targeting specific clients in those areas. Focus on maximising the potential of projects that offer the healthiest profit margins.

2. Pursue government or council contracts: 

Even during economic downturns, government and local council projects continue. Seek opportunities to secure work from these clients and build a strong reputation with them. While they may not always offer the highest rates, they provide a steady stream of work and financial stability.

3. Target high-end projects: 

Individuals who construct unique architectural homes and commercial buildings often have significant financial resources and are willing to pay a premium for quality products and services. Although they might cut back on certain aspects during a recession, they still invest substantial amounts in realising their grand designs.

4. Reduce costs: 

Look for ways to minimise expenses by streamlining your systems and processes. Find efficiencies that save both time and money. For example, using inexpensive mobile tablets for on-site decision-making can help reduce costs, as mentioned in Westpac’s recent report on the sector.

We can assist you in boosting revenue and reducing costs: We understand the challenges faced by builders, tradies, and construction companies. By analysing your accounts, we can collaborate to identify new revenue streams and identify areas where expenses can be minimised. Our goal is to help your business thrive even when others are facing difficulties.

If anything is keeping you up at night: Don’t hesitate to contact us. Reach out via phone, email, or text. We are here to support you.

Your Outside Team

Need a bit of assistance with your business? Contact an Outside Accounting team member today and learn more about our fixed fees. You won’t regret it.

Aside from business consultation, we are business accountants Wellington who offer accounting, bookkeeping, payroll services designed to help you achieve greater financial success.

You can click here to speak to a business, accounting and bookkeeping firm. We will give you a call to know more about your needs. We will explain to you how we can improve your business.