Are your jobs or services making money?
Why you need to track job costs
Last week I posted about running an efficient business and part of that is tracking costs relating to your jobs, projects, services or products.
Its something many business owners believe is more effort than its worth, some almost think it’s pointless.
I’m here to tell you why its so important to track these costs to be able to grow your business and make a profit.
Here are the type of numbers you can track:
- Labour time
- Material costs
- Product costs
- Delivery costs
When we see breakdowns in these areas, we can compare back to what we are charging our clients, which provides us with great insights as to what is and isn’t making money.
We can tell:
- If our team needs to be more efficient
- If we are charging the right prices
- Are we buying raw materials effectively
- If we are spending our time wisely
Once we have this information it can guide us on what decisions to make next, for example, charging more or focusing our time on the most profitable services.
Making the right decisions early on or as soon as possible, can save business owners from ALOT of wasted time and running further and further down into the cash flow hole.
Without nailing these numbers there is no possibility to build a successful business (that doesn’t suck all of our time).
So if you’d like to nail your business numbers and feel more in control of where you’re heading, let’s have a quick chat.