Let’s look at product management for inspiration. Let’s say we are making widgets. If our cost for making the widgets is higher than the price we can sell them for, would it make sense to keep making the widgets? I think not! Then why are we doing this in the consulting world? We sometimes have [...]
All posts tagged project profitability
Why keep a client that’s not profitable?
Posted by abaksoft on June 1, 2011
http://blog.abaksoftware.com/2011/06/01/why-keep-a-client-that%e2%80%99s-not-profitable/
The Small Business Profit Kit is Now Available!
The new small business profit kit includes articles about business success and a simple method for determining billable rates for professional services businesses. In this kit, we propose a cost-based approach along with simple sensitivity analysis tools that allow small professional services businesses to determine the fair price for their billable time. It is our [...]
Posted by abaksoft on January 26, 2011
http://blog.abaksoftware.com/2011/01/26/the-small-business-profit-kit-is-now-available/
About Gut Feelings, And Why You Need Time & Billing Software
We had a client who signed on to us because he and his associate could not agree on what was most profitable in their business. While one thought one type of contract was most profitable, the other associate believed it was something else entirely. The problem was: they were both basing their conclusions on their [...]
Posted by abaksoft on December 8, 2010
http://blog.abaksoftware.com/2010/12/08/about-gut-feelings-and-why-you-need-time-billing-software/
Billable time: how much is your time worth?
Deciding how much to charge for our time is always a tricky thing: if we charge too much per hour, we will lose clients. If we charge too like per hour, we won’t make enough to cover our costs. Too often, we choose how much to charge for our services based on industry standards, our [...]
Posted by abaksoft on December 1, 2010
http://blog.abaksoftware.com/2010/12/01/billable-time-how-much-is-your-time-worth/
Hunting for project revenues: billable hours
While evaluating projects for the entinre department or the entire business, we can assess their importance regarding the business revenues. With a pie chart showing billable hours per project, we can see which projects make the most of our revenues. From this information, we might want to ask ourselves if it’s ok that one project [...]
Posted by abaksoft on November 25, 2010
http://blog.abaksoftware.com/2010/11/25/hunting-for-project-revenues-billable-hours/
Time Is The Product, Profit Is The Goal
It seems in manufacturing, business managers are used to having metrics like product line profitability, expected revenue from sales, breakeven points, and the like. In professional services businesses, the same performance metrics can still be obtained, if we use time (and billable time) as our product, and resources as our product lines. As we can [...]
Posted by abaksoft on November 16, 2010
http://blog.abaksoftware.com/2010/11/16/time-is-the-product-profit-is-the-goal/
Project Cost & Profitability: Are You Turning A Profit?
In the world of professional services, time is your product. There is no inventory, no production line, and no factory. It can be hard to know how well (or how poorly) you’re really doing. Money might be coming in, but are your turning a profit? Is Mr. Big Client really bringing in big profits? Is [...]
Posted by abaksoft on October 19, 2010
http://blog.abaksoftware.com/2010/10/19/project-cost-profitability-are-you-turning-a-profit/
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