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Profiting from Project Conclusion, Part 1

Profiting from Project Conclusion, Part 1How you end a project helps determine not only profitability on that job, but profitability on future jobs with the same client/customer. Lessons learned during closing out will also affect profitability on similar jobs with other customers. How much money are you leaving on the table?

And what about cash flow during the job? Are you counting on a great conclusion and wrap-up to ensure you aren’t still asking about the unpaid invoice six months from now?

Do you know the major reason businesses fail or have to lay people off? Or can’t make necessary capital expenditures? Or undertake new, lucrative work? Or (make a list)? Poor cash flow!

Before we discuss how to wrap up a job, let’s look at what you can do to maintain cash flow. When the job is done, you’ve got to de-staff it and reassign people; you have many other “clean-up” tasks and resource-related tasks that you don’t do during a job. But this does not mean you should wait until you’ve finally completed the post-job punchlist before taking care of your cash flow concerns.

Have you ever felt like your customers confuse you with a bank that makes interest-free loans? If you’re not billing them as the job progresses, you’re training them to treat you that way.

Break the job into billable “mini-jobs” with clear completion points.

Part 2 » | Source: Mark Lamendola | Mindconnection