Thoughtful Thursdays – How much is it really costing you?
If you are not sure or have not confirmed information recently, it will be beneficial for your business to block off time for the purpose of examining and analyzing your business operations processes.
The cost of delivering products and services is fraught with opportunities that if unchecked can negatively affect the profitability of your business.
If you are a small business owner, there is a likelihood you are performing many if not all business tasks yourself. This is not unusual, but you want to be knowledgeable about true costs of delivering your offering.
Oversights are common when it comes to the value of one’s time. It is helpful to assign tasks to job functions even if there are not yet people in place and cost out the time taken for each step in your operations processes based on current acceptable rates. This will give you a realistic view of actual costs associated with labour.
On top of these costs are costs of the business owner (you) and those who may not contribute directly to the costs of sale.
Add to this time it takes for tasks you may be taking for granted, such as travel time, rework or redoing things more than once.
You may be surprised to find out that it is costing more than you thought to run the operations part of your business.
Being aware of all operational costs will facilitate the process of developing a sustainable profitable pricing model as well as the confidence to present it to your customers.
Good selling,
Richard
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