Podcast 209: 5 Ways To Increase Your Profits On Every Job with Diane Gilson (Part 1)
Diane Gilson
Diane Gilson is one of my most popular guests, and in today’s show, we discuss the five ways to increase your profits on every job, ALL without any extra hiring, selling, or having to work harder!
This all starts with the 3-legged stool. If you are new to the show, I’ll start off by explaining this concept, because, as I always say, it’s not about what you make, it’s about what you keep!
So, who’s ready to learn these five ways to increase your profits? Listen in, because I think you’re going to get a lot out of this show!
What you’ll hear in this episode:
The 3-legged stool: you have to sell the work, you have to do the work, and you have to keep score.
Tip #1: Why Job Cost? + Ways to Use Estimate vs. Actual Reports
Running your company without knowing your numbers is unwise and downright dangerous!
Job-costing means you track, and can then SEE, the costs you incur and the income you earn for every job.
You can use “Estimate vs. Actual” reports to:
Spot variances while a job is underway. That means you can correct problems – long before they spin out of control!
Analyze “after-the-fact” results. You’ll be able to see precisely where actual costs were different than anticipated. You’ll be able to use that information to improve your ongoing operations.
Consistently reviewing Estimate vs. Actual reports and use the information to improve internal processes and reduce costs– you’ll earn more WITHOUT SELLING MORE, HIRING MORE PEOPLE, OR WORKING HARDER!
Tip #2: How to Locate and Charge for Lost or Invisible Costs
When you don’t job-cost, it’s easy to miss various Time and Materials (T&M) costs that accumulate on a job.
If you’re job costing, many software programs (such as QuickBooks desktop) will help you easily convert job costs into Invoices.
What happens when you fail to invoice your customer.
When you can invoice based on accurate information, you’ll earn more WITHOUT SELLING MORE, HIRING MORE PEOPLE, OR WORKING HARDER!
Don’t miss Part 2 next week where we cover Tips #3-#5 on ways to increase your profit on every job!
