One of my clients had finally found a great employee! This guy’s work using an excavator gave the customers amazing results and freed up valuable time for my client…but something was off.
One of my clients had finally found a great employee! This guy’s work using an excavator gave the customers amazing results and freed up valuable time for my client. He also always showed up for work (yes, on time) and he got along well with the other workers. He was a blessing!
But something was off.
We realized the production was down and the profits were getting lower. Cash flow started getting tight.
My client’s first thought was to blame it on the winter season and recent bad weather. Therefore, the profits should be down, right?
WRONG! The company was currently booked out three months, and last winter was more profitable. So it wasn’t for a lack of jobs or the type of jobs.
???
We realized that even though this worker was a skilled machine operator and reliable, he worked too slow to keep up production. What would normally take three days, was taking anywhere from 5 to 7 days. Thanks to knowing our numbers, job costing and keeping impeccable records – we could see it was taking longer to finish jobs, and that it was slower productivity was killing the profits.
Even my client, the owner of the company, didn’t notice productivity was slower. How is that??
Well….when you’re busy and overwhelmed with all it takes to manage jobs and two different crews, it’s hard to notice even the slightest bit of change until you’re off course and it your bank account balance hits you in the face.
Lesson: Time IS Money! If you can’t measure it, you can’t manage it. Steer your business with slight turns headed in the right direction.
Learn how we can help you track, measure and manage your money. We also manage crew members, customers, vendors and machine maintenance to create more income, eliminate chaos and profit leaks, and free up your time.
Call Precision Contractors Solutions at 828-279-8213, and ask for Amy.
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