Running a business can be complex. So many numbers, so many people and so many general things to consider. We understand it can be complicated and you’re not alone in feeling perplexed by it all. Below are a couple of pointers that we hope will help you find your feet and better understand your business.
Clarity from knowing your numbers
Knowing your numbers is critical to run and grow your business. It’s the crucial starting point to many exciting beginnings in your business. As the saying goes, if you don’t know your numbers, you don’t know your business. Many businesses improvise when it comes to numbers because looking at them can uncover unpleasant truths to the business. But looking at them can also uncover gold!
Numbers can be a complex topic, but for this post, we’ll keep it simple. Knowing simple numbers like your cash flow, GST, net profits, expenses (equipment, supplies, salaries) can be foundational in helping you take your business to where you want it to go. It will ensure you aren’t undercharging because you know what you need to be aiming for.
From knowing these basic metrics, you will be able to understand what your goals are and what you need to do to reach them.
We touch on this more in the video below:
Accurately account for labour:
Many businesses are skeptical about using an average allocated time for a job because it can sometimes be hard to determine a set number. But as FlatRateNOW CEO Marcel explains in the video below, the law of averages win.
If you allocate 3 hours to the job and it takes you 2 hours, fantastic, bank that hour. Because there will be a job in the future that takes you 1 hour longer than quoted, since you’ve banked 1 hour from a previous job, you’re okay.
You can adjust labour hours in FlatRateNOW to match the needs of a quote - we know there are many reasons as to why you’d need to do this! Click here for instructions on how to adjust your labour rates.
We touch on this more in the video below:
Labour Rates - Glass Ceiling
It’s important to charge labour rates that are suitable for your business. We see many companies charging rates based on what they are told competitors are charging.
Whilst it may feel like a good idea to shortcut and use your competitor's labour rates at a discount, it’s far more important than you are charging to factor in your business situation.
Your business has its running costs and goals, so why wouldn’t you charge out at the rate that will ensure you cover those running costs and lead you to your goals?
By using someone else's labour rate, you are placing yourself and your company under a glass ceiling. How can you truly believe in the labour rate if it’s not yours? Your customers are smart enough to know when you don’t.
We touch on this more in the video below:
