Don’t Let the Grinch Steal Christmas

By Jerry Bellune

How can you mess up Christmas?
By failing to track costs, revenue and sales.
To banish the Grinch, invest an hour a week.
Our friend Ruth King advises:
• You don’t have to do the entire hour at once. Just 15 minutes a day can give you the same results.
• Close your door and plan in slow, not busy, times. Ask your colleagues to come back in an hour if they need you.
• Get your kids’ help. Seek their ideas. They will have ideas you’d never think of
The most profitable areas to track are:
• Productivity. For every dollar you take in, how much do you spend on payroll and payroll taxes? This includes field, office and owners’ pay. Don’t include any benefits.
Payroll taxes are FICA, Medicare and unemployment. This percentage should be under 40% of revenue. Aim for 35% or lower.
• Net profit an hour. For each revenue producing hour how much profit do you generate? How much is your net?
• Overhead cost an hour. For each billable or revenue producing hour, how much is your overhead cost? Take your overhead and divide by billable hours.
• Average job revenue.
• Sales closing ratio.
How profitable are your leads?
• Job costs.
Are each of your jobs profitable?
You don’t need an accounting degree, but you will need good records. Your bookkeeper should set up a weekly report for you.
Check your professional association. What are profitable ratios for businesses in your industry? Go to work on those where you are weak.

Special offer
Want a copy of a no-holds-barred business book by 22 successful business owners?
Call Rose at 359-7633 and ask for “Killer Secrets of Successful Entrepreneurs.”
The $27 book is only $20 for you. This offer is good for the next three days only.
Copyright 2017 The Bellune Company Inc.
http://jerrybellune.net/dont-let-the-grinch-steal-christmas/