Category: Virtual CFO

Keeping Your Small Construction Business on Track in 2025

2025 continues to challenge the Australian construction industry. With stubbornly high material costs, ongoing labour shortages, and tighter lending conditions, small construction businesses are feeling the pressure. In fact, ASIC reported that over 1,700 construction-related companies entered external administration in the year to March 2025, making it one of the most affected sectors in Australia.

And it’s not just about the money. The physical demands of the job, the paperwork mountain, and the mental load of running a business are pushing many sole traders and small operators to the edge.

But here’s the good news—there are practical steps you can take to stabilise and future-proof your construction business. Here are seven strategies that could make all the difference:

1. Spread Your Risk

Relying on one major client might feel secure—but it’s a risk you can’t afford. If that client pauses or cancels work, your income stops cold. Aim to work with a mix of clients, even smaller ones, to smooth out the peaks and troughs.

2. Diversify Your Income

Offering just one type of service—like renovations or new builds—can limit your earning potential. Consider complementary services like maintenance, project management, or energy-efficient upgrades to add extra income streams.

3. Take Control of Costs

With steel, timber, and fuel prices still elevated, now’s the time to scrutinise your outgoings. Can you negotiate better supplier deals? Buy in bulk? Improve scheduling to reduce downtime? Even small savings can protect your cashflow.

4. Build Strong Relationships

Long-term success in construction hinges on relationships—both with clients and your suppliers. Reliable trades, consistent delivery, and proactive communication help you win repeat business and secure better terms.

5. Use Tech to Save Time

There’s no shortage of tools to help you ditch the admin grind. Automate quote follow-ups, track timesheets, manage jobs, and chase invoices using apps like ServiceM8, Tradify, or Xero Projects. Less admin = more building = more money.

6. Tap into Government Support

There are grants and tax concessions available for small construction firms, including the Instant Asset Write-Off (up to $20,000 for eligible assets) and apprentice wage subsidies. Not sure what you qualify for? Ask us—we’ll help you apply.

7. Don’t Burn Out

The long hours and relentless pressure can take a toll. Remember: a profitable business isn’t worth it if it costs you your health. Schedule downtime, seek support, and set boundaries to protect your wellbeing.

Let’s Build a Stronger Business Together

We know construction is tough right now. But you’re not in this alone.

At BusinessSpark, we work closely with trades and construction clients to improve cashflow, streamline systems, and grow profits—without burning out in the process.

Whether you’re a sole trader or a small team, let’s talk about building a more resilient business. Book a chat with our friendly team today.

How Smart Businesses Use Data to Keep Their Cashflow Healthy

When it comes to running a busy veterinary practice, recruitment agency, or construction business, cashflow is the lifeblood that keeps everything ticking over. Yet for many small business owners, managing it can feel more like crossing a creek in gumboots after a storm—messy, unpredictable, and a bit of a gamble.

The good news? Your own business data holds the key to making better financial decisions and keeping your cash position strong, no matter the season.

Here’s how data-driven decisions can help you stay in control.

1. Smarter Cashflow Forecasting

Using forecasting tools like Reach, Spotlight, Float, Calxa or Fathom, you can turn your historical accounting data into powerful projections. Whether you’re planning for the next hire, ordering materials for a big job, or covering school holiday gaps in clinic staff, a visual forecast gives you clarity about what’s coming in—and what’s going out.

For recruiters, this might mean planning around slow invoice payment cycles. For vets, it’s about anticipating when pet insurance payouts lag. For tradies, it could mean bridging the gap between progress payments.

2. Inventory Insights that Free Up Cash

Data analytics helps you spot trends in your stock usage or consumables. Instead of over-ordering or running short, you can find your ‘sweet spot’—keeping enough stock on hand without tying up precious cash.

💡 Vets can monitor pet food and medication sales. Construction firms can track material usage across jobs. Recruiters might spot trends in candidate placement times or advertising ROI.

3. Understand Your Most Valuable Customers

Drilling into sales or project data can highlight your best-performing clients and sectors. This helps you focus marketing and service efforts where they’ll deliver the best return.

💡 Is a particular client or industry giving you consistent, profitable work? Double down. Are some always slow to pay or high-maintenance? Time to reassess.

4. Confident, Competitive Pricing

Want to raise your prices but unsure how it’ll land? Data can give you evidence-based confidence. Reviewing your margins, market rates, and conversion data helps you price your services profitably—without pricing yourself out of the game.

💡 Recruiters can analyse placement fees vs time-to-fill. Vets can assess consultation fees vs overheads. Builders can price labour and materials dynamically based on project type.

5. Pinpoint Cost Savings

A good review of your business costs can uncover savings you didn’t know were hiding. From software subscriptions to overtime blowouts, data tells the real story.

💡 Are you paying for job ad platforms you barely use? Are fleet running costs creeping up? Are your team costs aligned with your billables?

Let’s Make Your Numbers Work Harder

The right data doesn’t just give you a snapshot of where you are—it helps you steer the ship towards where you want to go. If you’d like help setting up cashflow forecasts, spotting opportunities in your numbers, or simplifying your financial reports, we’re here.