How to lose £25,000 without noticing.
You’re sweating your tits off, literally. Your back feels like you’ve been bent over one too many times — and most clients are bending you over by not paying on time, if at all.
Just another day in the life of a trades business.
At the end of the month, you check your business account and wonder: Where the fk has all my money gone? Or maybe you don’t even notice, you just keep plodding on, aimlessly.
Here’s the truth: Many trades businesses are losing £25,000 or more every single year without even realising it. That’s money that should be paying down debt, funding growth, or letting you finally breathe a bit easier.
So how does it happen?
Quoting to Win, Not to Earn
Most trades fall into this trap: shave a couple of hundred quid off a quote just to “get the job.” Do it once — no big deal. Do it 50–100 times across the year? That’s £20,000 gone.
Why it happens:
Fear of losing work to competitors.
No proper job costing system in place.
Thinking busy = profitable.
How to fix it:
Start costing jobs properly. Factor in labour, materials, overheads, and profit up front. Add a contingency. Tools like Tradify or Fergus make this simple — or use a structured spreadsheet. A profitable job beats three loss-makers every time.
Treating the Business Like a Personal ATM
One of the biggest hidden drains? Treating the business account like a personal cash machine. Fuel here, a takeaway there, trainers for the kids, a “holiday” written off as entertainment. Before you know it, you’ve blown thousands.
Why it’s dangerous:
Destroys cashflow.
Creates tax headaches.
Could amount to fraud if HMRC looks closely.
How to fix it:
Separate your finances. Pay yourself a set wage or dividend and keep personal spending away from business accounts. Set up bank app alerts so you see every transaction.
Ignoring Systems and Software
You’ve signed up for QuickBooks, maybe even Tradify. Great. But here’s the problem: you’re paying for them and never logging in. Everything’s scribbled on a bit of paper or buried in your head alongside 350 other things.
The cost of winging it:
Lost invoices.
Jobs not billed in full.
No idea which jobs are profitable.
Errors and unexpected costs.
How to fix it:
Commit to using the tools you’ve already paid for. Block 30 minutes a week to check QuickBooks. Open Tradify every morning. These aren’t just admin — they’re your eyes on the money.
P*** Poor Time Management
How much time do you waste every week? Running back to Screwfix, answering clients at 10pm, driving across town because something wasn’t organised. That time isn’t free — it’s money.
Why it adds up:
Every wasted hour could have been billed.
Chaos stops you taking on profitable projects.
Stress rises, mistakes multiply.
How to fix it:
Plan jobs properly. Order materials in advance. Block time for admin. Use scheduling tools. The more organised you are, the more money you keep — and the less stress you carry.
Staying in “Tradie Mode”
You started as a tradesperson, not a business owner. But once you run a company, the job changes. Stay in “tradie mode” and you’ll always be chasing your tail.
Tradie mode looks like:
Driving the van 10 hours a day.
Jumping from job to job without thinking.
Dodging the numbers because they’re “boring.”
Living week to week instead of building a business.
Wasting half a day on low-value tasks like surveys or measures.
How to fix it:
Shift into a business-owner mindset. That means:
Learning the basics of turnover, profit, and cashflow.
Watching YouTube videos or taking courses on trades business management.
Working on the business, not just in it.
How to Stop Losing Money and Grow Your Trades Business
If you’re serious about fixing this, you don’t need another BS promise of “100 leads a week.” You need clarity. You need systems. You need support from someone who’s been there and understands the stress of running a trades business.
That’s why I created the Trades Business MOT — a health check of your entire business:
Money – find where you’re bleeding profit.
Jobs – review your project systems.
People – subcontractors, CIS, payroll.
Clients – quoting, payments, communication.
Compliance – VAT, insurance, paperwork.
👉 One-off fee from £750. One clear report. One action plan that actually makes sense.
Give me a shout: daniel.hunter@building-businesses.co.uk
