March 15th, 2010
by Diane Visscher
The requirements for budgeting projects are a lot like budgeting for production except on a grander scale. Plus the process is in reverse order, costs must be calculated first, then sales price.
- Estimates are made and contracts are signed long before any activity is seen on a project. The revenue for a project based business is set before any concrete costs are known. Because of the switch, budgeting cost of goods sold is extremely important.
- Determining how much a project will cost is similar to that of products. Materials for the project will need to be shopped, labor hours calculated, addition of subcontractors also will add into the mix.
- Budgeting for projects can become extremely complicated. If the owner of a project based company is not proficient in estimating, it is imperative that a seasoned estimator is on staff or can be hired on consulting basis.
- After the estimate is finished and the contract signed your gross profit is revenue less cost of goods sold.
Tags: Budgeting, business, business finances, Business Resolution, company vision, goals, organized, Well planned budget.
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March 12th, 2010
by Sue Zepeda
Use your calendar for weekly time mapping
One of my favorite things to do with clients is helping them navigate through the murky waters of overwhelm. Being able to get more done is always a first priority – so I decided to share some secrets.
Time Mapping is a technique highlighted in Julie Morgenstern’s book, Time Management from the Inside Out. It expands on a best practice recommended by nearly all time and task management experts:
•Identify when you’re best at doing something
•Schedule those times throughout the week
So, if your mind is freshest in the morning then try to schedule daily planning and task time in the morning at the same time each day. During your task time, look at your list and see what can be completed in the time allotted.
If you like “open office” time after lunch to be available for coworkers and subordinates, then schedule that time in your calendar at the same time every day. Remember to add in time for checking emails, returning phone calls and other last minute issues that pop up.
It’s obviously impossible to keep the exact same schedule every day; but time mapping will help you to develop the habit of actually doing whatever activity you have scheduled.
Until next time,
Happy Organizing!
Tags: calendar, email, overwhelm, phone, schedule, task, time
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March 11th, 2010
by Sandy Riser
You may have often heard the expression about hunting when referring to sales and marketing. Hunting for potential customers. But what if you are hunting for fish in the forest? Right…you won’t find one!
So when thinking of who you are going to target for sales of your products and services, think about where you find the right people and if what you offer fits their needs. Be objective. One of the biggest mistakes people make is targeting the wrong prospects.
By the way, if you said the words “anyone” or “everyone” in thinking of who you are hunting…stay tuned for how those words can distract you more than anything.
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March 11th, 2010
by Sandy Riser
Employees…where do we start? Let’s start with one of the issues I see most in my coaching practice. I will affectionately refer to it as “Who’s the boss?”
Now I am not talking that we should manage our employees like the military. In addition we are all humans with all the emotions that entails. Our work should be something we are passionate about and so our employees are part of that passion. And last, but not least, no one likes conflict.
But employees who do not understand the boundaries that must exist in a business can eat away at your business. You need to listen, you need to really listen, you need to process, and then you need to form your opinion. But first you need to ask – how does this decision affect the way I want to run the business I started?
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March 9th, 2010
by Sandy Riser
When was the last time you created a new product or service for your business? When was it something no one else was doing?
I read in Break From the Pack about how it should pass the EMBER test. Spend an hour today working on something new for your business and apply the test – you will be glad you did!
(E) Does it make us extraordinary and stand out from the crowd?
(M) Does it matter to clients and get customers excited?
(B) Does it break new ground?
(E) Does it encourage evolvement? Is organized toward making the business evolve.?
(R) Is it real?
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March 9th, 2010
by Sue Zepeda
I recently had the opportunity to write a business article about my personal experience as I took the leap from Stay-at-Home-Mother to Woman Business Owner.
I shared many of my own struggles as I attempted to balance both my family and a growing business. Those struggles have taught me a few important, but basic life lessons which helped push me forward when I felt like I couldn’t take one more step:
- Set clear boundaries
- Be content with “good enough”
- An organized schedule is as important as an organized space
- Keep a sense of humor
I have made more than my share of parental mistakes and have had plenty of bumps along the way these past few years. It helps to remember to keep moving forward, chuckle a little at myself, and remember that life isn’t about being perfect. It’s about being human.
Read the entire article: http://bit.ly/Women-in-Business.
I would love to hear how you have coped with your own balancing act between work and home. Perhaps you will inspire other women business owners to “hang in there” along the way.
Until next time,
Happy organizing!
Tags: balance, business, organized, small business, stay-at-home-mother, women, work
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March 4th, 2010
by Sandy Riser
I have been talking about Getting Things Done and I thought I should share with you the book by the same name that really got me moving (some would say obsessed!) with the notion that the holy grail of time management can be had.
I like his approach and some of the ways he suggests to implement it. Read it and find out what works best for you. There are at least four things in there you can do to get more of what you want done!
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March 1st, 2010
by Diane Visscher
Budgeting gross profit for retail is probably the least completed of any industry, but still extremely important.
- As with the production industries, companies that resell tangible items must know what price the market will bear for their products. Determining a sales price can be any method, from an in depth market study, to a simple exercise in shopping your competitors.
- Next you will need to know how many of your products you will be able to sell in each of the next twelve months. Again what the market will bear.
- If your company is in resale, your cost of goods sold is the price you can obtain inventory, plus any carrying costs. Carrying costs can be interest to finance the inventory, the warehouse to hold the inventory and freight to transport the products to the warehouse.
- To determine revenue take the number of units you will be able to sell each month times the market price you have determined.
- For the cost of goods sold the calculation is the number of units sold each month times the cost to product one unit.
- Now subtract the monthly cost of goods sold from the monthly revenue to obtain the gross profit.
Tags: Budgeting, business finances, Business Resolution, company vision, goals, small business, Well planned budget., work smarter
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March 1st, 2010
by Diane Visscher
This week we are going to cover calculating gross profit for companies that manufacture products.
- As with the service industries, companies that produce tangible items must know what price the market will bear for their products. Determining a sales price can be any method, from an in depth market study, to a simple exercise in shopping your competitors.
- Next you will need to know how many of your products you will be able to sell in each the next twelve months. Again what the market will bear.
- Step three is determining how much it costs to produce the products you sell. This will include materials, full burden (taxes and benefits) labor, depreciation of equipment, supplies, full burden support labor…. This list can be much longer depending on your industry. You can find industry information at a site like Prime Industry Reports.
- If your company is in resale, your cost of goods sold is the price you can obtain inventory plus and carrying costs. Carrying costs can be interest to finance the inventory to the warehouse to hold the inventory and freight to transport the products to the warehouse.
- To determine revenue take the number of units you will be able to sell each month times the market price you have determined.
- For the cost of goods sold the calculation is the number of units sold each month times the cost to product one unit.
- Now subtract the monthly cost of goods sold from the monthly revenue to obtain the gross profit.
Tags: business finances, Business Resolution, company vision, goals, small business, Well planned budget., work smarter
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March 1st, 2010
by Diane Visscher
Budgeting gross profit for products, services, retail or projects each have different requirements. Let’s start with services this week.
- In the service industry your time and your employees’ time is what’s for sale. Once you know what the market will bear for your services you can attach a billable rate to yourself and each employee.
- Next you will need to know how many hours are available to bill out. When calculating this number consider things like travel time, company meeting time and any other functions that might need to be performed by yourself or employees that cannot be charged to your customers.
- Now that you have total billable hours and rates for yourself and employees put the two together for each month. This will be your total gross revenue on a monthly basis.
- Cost of Sales is the next component of gross profit. How much will you pay each person? You can incorporate payroll taxes and benefits in this number or these costs can be included with overhead. I would suggest that you follow what is typical in your industry. You can find industry information at Free Industry Reports, or for more in depth information Prime Industry Reports.
- To finish calculating your gross profit, subtract the monthly cost of sales from the monthly total revenue.
Tags: Budgeting, business finances, Business Resolution, company vision, goals, small business, Well planned budget., work smarter
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