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Digg it UP - What Are the 4 Reasons Why Service Businesses Aren't Profitable
Do you believe in the power of the mind to help treat physical problems? Do you believe your subconscious holds the key in getting rid of unwanted habits? Do you have the desire to help people? If so, a career as a hypnotherapist may be the career you’ve been searching for.As more and more people understand the power of the human mind in solving life’s problems, the demand for qualified hypnotists and hypnotherapists increases. And, no wonder. The range of issues aided through the use of hypnosis is astounding. Thi
Now compare the hourly rate with what your pay in wages
During my career, I have worked with a variety of organizations that display any number of management styles. These varying styles contribute greatly to the corporate culture as well as to the ultimate productivity of individuals and departments.It is clear to me that empowering employees, departments and any group of employees improves performance and increases organizational effectiveness. It can also create a great deal of stress and havoc if management does not totally or consistently buy into this philosophy or man
Let's look at the facts.
To increase profit margin (not turnover or sales) there are really only 4 main areas you can.
1. First of all are you measuring how many hours you are billing customers for, compared to how many hours worked? I've found dozens of businesses who don't invoice more than 80% of the work performed for customers, in other words their profit will be down 20% of what it should be.
You can find this out simply by measuring how many man hours all your team work in a week then see where each persons time was spend, on what job, with what customers. Then see if all were invoiced for all of the time spent with them.
2. Work out your actual hourly rate per person per hour. To do this look at your total turnover for the week and divide that by total number of hours man worked in the week. This will tell an important story.
Now compare the hourly rate with what your pay in wages p
Fund raising can be done either in a small or large scale. Students in school can organize one to fund the camping trip while NGO’s do this to help the poor or the sick.It takes a lot of hard work to be able to put everything together. This involves a lot of manpower and planning until the event is finished.But if the individual wants to help raise funds for a certain cause, there is a simpler way of doing it. The fundraiser can be done online which gets the message across the state and also to different countries
To increase profit margin (not turnover or sales) there are really only 4 main areas you can.
1. First of all are you measuring how many hours you are billing customers for, compared to how many hours worked? I've found dozens of businesses who don't invoice more than 80% of the work performed for customers, in other words their profit will be down 20% of what it should be.
You can find this out simply by measuring how many man hours all your team work in a week then see where each persons time was spend, on what job, with what customers. Then see if all were invoiced for all of the time spent with them.
2. Work out your actual hourly rate per person per hour. To do this look at your total turnover for the week and divide that by total number of hours man worked in the week. This will tell an important story.
Now compare the hourly rate with what your pay in wages
Two of my customers happened to meet in my office a few days ago. And, just by chance, they got talking about the problems that they experience when trying to phone their bank.Now I do not want to shame the bank by naming them. The complaints have already been made known so let’s give them a chance to fix the problem. However, the experiences of these people does make interesting reading. Especially if you are considering introducing a call centre system.One of these customers, Brian, wanted to speak to his ba
You can find this out simply by measuring how many man hours all your team work in a week then see where each persons time was spend, on what job, with what customers. Then see if all were invoiced for all of the time spent with them.
2. Work out your actual hourly rate per person per hour. To do this look at your total turnover for the week and divide that by total number of hours man worked in the week. This will tell an important story.
Now compare the hourly rate with what your pay in wages
When discussing the coming franchising of all the Worlds nations starting with third world nations to bring them into the first world many have asked why? Why franchise the World? Are we franchising the World for franchising sake? Or is there a purpose and if there is a purpose do we have any buyers or customers and who might sign up for the first franchise?Well, first this is not franchising for Franchise sake really, in fact franchises do better thru team work, both the franchisor, the brand name and all the franchisee
2. Work out your actual hourly rate per person per hour. To do this look at your total turnover for the week and divide that by total number of hours man worked in the week. This will tell an important story.
Now compare the hourly rate with what your pay in wages
Logos are everywhere to be seen... rather, we can even call them omnipresent! Wherever we go, we find ourselves literally surrounded by logos. Be it our homes, office, restaurants, market, shopping malls, roads................ you name it and it's there. Since the Industrial Revolution, there has been a sea change in the commercial outlook of the world. Rapid industrialization led to the emergence of corporate organizations and business houses; all striving to make their products popular in the common market. The present centur
Now compare the hourly rate with what your pay in wages per hour. Include taxes, superannuation and workers compensation insurance. Typically a rule of sum is that wages amounts to 28%-35% of the turnover of most businesses, so that means you hourly rate per person (from the turnover divided by total hours worked) needs to roughly 3 times more than the average paid to your employees.
In other words, if you make $60 per person per hour over the whole week in turnover, your wages should be less than $20 per hour paid, or preferably $17 per hour.
When you have measured the total turnover in a week and hourly rate earned per person for the week, start to look at where the profit really comes from by breaking this into different services offered and what turnover and hourly rate you make in each of those areas.
This is how to find hidden profit in a service business faster than anything you will ever see!
You will find areas where you make no profit at all
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