Rick had run his plumbing business for twelve years and had never been busier. He had two utes, a full diary and a phone that never stopped ringing. Yet every month, he wondered where all the money had gone.

One Saturday, Rick was watching a nature documentary with his son. A lion ignored a rabbit darting past but sprang into action when a herd of zebras appeared. “Why didn’t it chase the rabbit, Dad?”  “Too much running for a small meal, mate.”  That’s when Rick realised something. He’d been chasing rabbits in his own business.

On Monday, he reviewed his jobs. Small call-outs were eating up hours in travel, quoting, administration and chasing payments, and some barely made a profit. Meanwhile, his most profitable work came from two local builders and a body corporate manager. They provided regular jobs and predictable schedules, and they paid promptly. Those were his zebras.

Rick made some changes. He introduced minimum call-out fees, stopped quoting on jobs that were unlikely to go ahead, and referred unsuitable work to another plumber. He focused on building relationships with customers who valued his service and paid reliably.  Importantly, he didn’t abandon every small job. He simply made sure each job was worth doing. 

Twelve months later, his turnover was virtually unchanged, but his profit had improved, his debtors had fallen and he was spending more evenings with his family. Being busy doesn’t necessarily mean being profitable.

Take a look at your own business. Which customers generate your best returns once you allow for all the time and costs involved? Which jobs keep you busy without contributing much profit?  Sometimes, growing a better business isn’t about doing more work.  It’s about choosing the right work.

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