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Navigating Trade Industry Ecosystems
In the bustling world of the trades industry, the term ‘ecosystem’ has been buzzing louder than ever. You’ve probably rolled your eyes and thought, “Why are these jargon words invading my industry?” and for a long time, I’d have agreed with you. If you’ve been beaten over the head with the importance of fostering a ‘robust trade business ecosystem’, then you probably thought it sounded a lot like high-level business-speak with no substance behind it. However, I’ve always advocated for strengthening business operations by better understanding the business environment we exist within, and over time, I’ve realised that the only way to understand an environment is to understand its ecosystem.
The Trade Business Ecosystem Defined
But what exactly defines a trade business ecosystem, and how much of what we hear is complete nonsense?
Let’s start at the beginning. An ecosystem is a community of living organisms interacting within a shared proximity. It sounds like a science textbook definition, but it perfectly describes the average trade business. From your field technicians to your office staff, your trade business is an ecosystem of individuals who work together to benefit the group.
That’s an incredibly broad definition, granted, and the reality is that your team are only a small part of your broader ecosystem. So, let’s make it easier to understand the bigger picture by piecing together all the smaller parts individually.
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Employees
Your employees are the most immediate and arguably most important part of your ecosystem, and it’s no secret that having a solid network of people you can rely on is vital for success. The unique thing about the trades is that, unlike most other businesses, your employees are split down the middle between the office and the field. In reality, this means that your employee ecosystem is actually two different ecosystems in one. Still, for the sake of simplicity, we’ll lump your admin team and your field technicians together. But regardless of whether we’re discussing the home or away team, it’s important to understand that the employees within your trade business ecosystem are unique. This is because you have direct control over who they are and how they interact with the rest of the wider ecosystem. Through smart recruitment, mentorship, or skill development, you can build a strong employee network and support any growing business in the field service trades segment. But keep this idea of control in mind, as it will be important later.
Suppliers
Next in terms of immediacy is suppliers, the gateway to a more diverse range of products or services that can easily differentiate your business from competitors. Similar to how employees within your ecosystem need time and investment, you also need to nurture the relationships you have with your suppliers. This is twice as important in the current decade, where our old friend digitisation is increasingly seeing business-supplier relationships move to an online space. You still turn up to grab what you need from a supplier in person, and that real-world connection will always be there. But now you send a purchase order via email rather than picking up the phone to order material and have a chat. We’ll get to digital ecosystems in due time, but not without first mentioning the next most important part of your trade business ecosystem after employees (sorry suppliers).
Customers
Customers are the lifeblood of every trade business, so they dominate a large part of your trade business ecosystem, even if they don’t directly influence much outside your profitability and service provision. Your clients are unique because they aren’t a permanent fixture of your ecosystem like a longstanding supplier or employee. Sure, some customer relationships can reach a point of permanency, with longstanding clients often providing a great source of free referrals and advertising. But for the most part, the amount of control you can exert over a customer within your trade business ecosystem is minimal. Sure, you can tempt them with a good deal or make an effort to nurture a deep relationship with them, but you can’t make them hand over a stack of cash and agree to a job just because you ask them to.
Your Trade Business Tech Ecosystem
So now we’ve laid out the main groups that come together to form your immediate trade business ecosystem; let’s add an extra layer of complexity to it all by adding digital change to the mix.
Unless you’re still running your entire trade business using pen and paper, you likely have a digital or ‘tech’ ecosystem humming away behind the scenes of your operations.
When I say ‘tech’ ecosystem, I refer directly to operational software tools. Notice that I said ‘tools’, not ‘tool’, because gone are the days of relying on a single software solution to manage all aspects of your business. Nowadays, businesses often utilise multiple specialised software tools for different functions, such as job management, accounting, or specialised industry-specific tasks. For example, you might use job management software like AroFlo alongside specialised takeoff software like Groundplan and accounting software like Xero or MYOB, each excelling in its respective domain.
This is a basic example of a trade business tech ecosystem, but it showcases how few tools it takes to form one within your business.
Growing Your Tech Ecosystem
And why stop there? As your business grows and evolves, there may be areas where your current operations can fall short. This is where the concept of growing your tech ecosystem comes into play. By integrating specialised software solutions that address specific needs or pain points, you can strengthen your tech ecosystem and create seamless and efficient workflows that set you apart from the competition.
That’s really the entire point of raising the idea of ecosystems within trade businesses in the first place: to showcase how much potential you have as an owner or operator to change how your ecosystem works.
I told you to keep the idea of ‘control’ within ecosystems in mind for later, and this is why. Certain parts of your physical ecosystem cannot be changed or are highly resistant to change. Your ‘tech’ ecosystem is far less rigid, being similar to your employee ecosystem in that you can mould it and change it however you want.
Forging A Competitive Advantage
At AroFlo, when we discuss tech ecosystems, we’re not just talking about integrating software and driving change; we’re talking about giving users the power to mould the digital tools they use to run their business and forge a competitive advantage by doing so. Each decision to integrate a new tool or feature is carefully considered to ensure that it aligns with our mission of empowering businesses in the trades industry.
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But what’s the takeaway from all this talk of employees and ecosystems? It’s that the tech ecosystem within your business is a powerful tool for positive change, one that offers infinite possibilities when it comes to how you want to shape your business now and into the future.
So next time you’re thinking about working on your trades business, consider the current state of its ecosystem and what work can be done to improve it. Whether it’s a new hire, building a larger network of trusted suppliers or integrating specialised software solutions, embracing the power of ecosystems can help your business stay ahead of the curve and thrive in today’s competitive marketplace.
Best of luck out there— and try not to switch off when you next hear the word 'ecosystem'!