Know Your Numbers, Grow Your Business: Financial Strategies for Trades

The Hidden Costs of Disorganized Financials

The conversation kicks off with a candid admission from Stephanie Allen: her company once had the "messiest books of all time." This is a situation many business owners can relate to, but Meaghan Likes is quick to point out the serious consequences. 

When your accounting system doesn't align with your operational software, like ServiceTitan, you're likely overstating your revenue, paying too much in taxes, and making decisions based on inaccurate information.

Meaghan even shares a bold experiment she conducted at a recent trade show: offering a $100 bill to anyone who could prove their accounts receivable in their accounting system matched their ServiceTitan data. The result? Not a single person could claim the prize. This starkly illustrates a widespread problem in the trades industry – a disconnect between operations and financials that costs businesses dearly.

The Shift from Reactive to Proactive Decision-Making

So, what's the solution? According to Meaghan, it's about shifting from a reactive to a proactive mindset, using data as a "crystal ball" to guide your business. Instead of waiting until the end of the month to see if you were profitable, Meaghan advocates for daily monitoring and forecasting.

"I think a lot of people use data to react and I'm trying to shift them," Meaghan explains. "One of our core values at Likes Accounting is to be proactive. We have a responsibility to pull out that crystal ball with everything that we know today... to make sure all of my companies will close profitably."

This proactive approach allows business owners to pivot quickly, make informed decisions, and ensure profitability, even in a challenging market. It's about taking control of your financial destiny, one month at a time.

Building Leaders and Managers for Sustainable Growth

Financial clarity is only part of the equation. Sustainable growth also requires strong leadership and effective management. Meaghan shares a crucial lesson she learned: investing in leadership development without also investing in management training is a recipe for failure.

"That shit takes time," Meaghan says bluntly. "Building a leader... takes time."

She emphasizes the importance of creating a "sandbox" for your team to play in and win, with clear accountability and transparency. This means teaching your leaders how to manage their teams effectively, driving the results that your financial data is tracking.

Embracing Technology and Getting Back to Basics

The conversation also delves into the role of AI and technology in the future of the trades. Meaghan's advice is simple: "just start." Whether it's using AI to analyze call data or leveraging the full power of your existing software, the key is to not get left behind.

However, she also stresses the importance of not overcomplicating things. At the end of the day, success in the trades often comes down to mastering the fundamentals.

"Just do better than you did today, tomorrow," Meaghan advises. "And if you can get each of your technicians to do slightly better than they did yesterday, like, this is how we win in our own business, against ourselves."

This episode is a masterclass in financial strategy for the trades, offering a wealth of actionable insights for any business owner looking to build a more profitable and sustainable future.

Ready to take control of your financials and drive your business to new heights? Listen to the full episode with Meaghan Likes and Stephanie Allen on YouTube!

Meet Your Hosts

Jennifer Bagley
Jennifer Bagley is the CEO and founder of CI Web Group, an AI-enabled marketing agency helping home service businesses achieve exceptional growth. With over 15 years of experience, she has led companies to significantly increase their leads and revenue through innovative strategies and emerging technologies. Her 12 Step Roadmap to Accelerated Results is a trusted framework for HVAC, plumbing, and electrical companies looking to expand their markets and achieve lasting success.

Chuck Staszkiewicz
Chuck is an accomplished entrepreneur and growth strategist, renowned for scaling All Hours Plumbing into a $20 million industry leader before its successful sale in 2023. A co-founder of The Opus & Golds Group, he helps companies grow through innovative strategies and operational excellence. Through his work, Chuck continues to inspire entrepreneurs to achieve their highest potential.

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