We are giving you a completely free tool which will change your life forever!
To all Contractors and Subcontractors!
We are giving you today a completely free tool which will change your life forever!
How often have you ended up with a loss-making “profitable” project?
That is right; the project can be profitable and loss-making for your business if you are not careful. The bigger the project, the higher the risk.
Here are the points:
· If your project makes £ 200K gross profit in six months, and your overheads in that period exceed that value (overheads mean all admin and fixed costs not related directly to a project), that project will be loss-making!
· Consider how much costs must be covered by the project profits? If a baker bakes bread, he will not survive when he sells ten loaves of bread/month, even if the gross profit margin is 80%!
· Gross profit margin is a clever ratio of the gross profit divided by sales. It will always be smaller than your markup.
· How big is your project? What is the company capacity left? It is worth considering whether the project must cover all your overheads or only 50%. To what capacity do you use your resources for this project?
Our calculator will answer the above points quickly, allowing you to do what-if analysis.
In return, I ask for your feedback. Comment below, send us an e-mail, call us, and submit a smiley face!
We are here to help and support the construction SME sector! We are here for YOU.
