No, it really is not easy, and not just in a crisis. We probably do not have to tell you this because you will certainly have enough experience of your own. But how to stay well clear of red numbers? The Business 2 Community website discussed this issue in a recent article.
1. Do not push your team to keep the schedule
Anyone who has ever worked on a generally challenging project knows that it is not always possible to do everything on time. Monitoring time more than performance will be reflected in the results. Instead, set a rather more pessimistic time span and start work on important tasks sooner. Also make sure that you have set a clear and timely communication policy in order to know about any problem.
2. Do not lower your standards
Times are hard but continual discounting of your services prevents long-term development and creates confusion in your reports. If you cannot sell your project otherwise, maybe it is time to rethink your services and their value in relation to the market. Instead of discounts, rather offer something extra for the original price.
3. Stop reserving time internally
A project may easily get out of control, but reserving more time to eliminate all project bugs will soon distract you from the project's profitability. You should rather identify the time that you cannot charge, ideally with the help of the project consultant and solve invoicing with the project manager. Thus, you support greater transparency and traceability of the project time schedule, which is hardly billable.
4. Do not forget to charge extra costs
The printing of numerous documents and other extra costs the project requires have to be invoiced, along with the markup. These extra costs include travel expenses which, for longer projects, may be considerable. Many businesses fail to take account of this and, despite the time cost of people working on the project, thus reduce their profitability. Define cost parameters in relation to the total project costs in the contract.
5. Specify the exact scope of the project
Agree with the client at the very beginning on the desired outcome within the set framework of the project. Ensure all possible misunderstandings are in the plan and budgeted for. This way you will avoid non-billable hours of working for what the customer expects but for which you had not planned.
6. Additional services
More extra hours and additional discounts. Make sure you know who your major customer is who will ensure a return on your investment.
7. Include inflation in the price
Companies sometimes forget about external factors that can affect their situation. Macroeconomic conditions, including inflation, also need to be included in corporate plans and possible additional business costs.
So in what numbers are your ongoing projects currently operating?
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