Are all your project profitable?
Today I’d like to talk to you about profitability.
I’d really like to ask those service based businesses out there to go back and take the time to reflect on the jobs they’ve done in the past. And for each of those jobs, rather than just focusing on our profitability of our business as a whole, really try and look at each individual project and the profitability on those projects.
I want you to be honest about your assessment on what you did well, what resources you utilised on that, and whether they were the right resources? And were they really needed on the project?
What could you do In future to make that job more profitable for you?
And I really challenge you to do this, because I think its so easy for us to focus on the profitability of our business as a whole, and assume that every new job or new client we take on is going to increase the profitability of our business. But that is not true!
There are only certain projects that we can really, really strengthen, structure or improve and should take on. If we get those to be more profitable our business would naturally grow to be more profitable.
So, take the time to assess your past to help you protect your future.