4 lessons to ensure project profitability

Project profitability should be one of the main objectives for any business, regardless of its size or revenue. With a good profit margin, it is possible to invest in new equipment, employees or anything else.

To ensure good profitability, you need to do two things: know how to correctly price projects and eliminate all unnecessary costs. So, regardless of the size of the job, the results will be epic.

Continue reading this post and learn 4 tips to ensure project profitability. Happy reading!

1. Price your projects correctly

The profitability of projects does not only depend on cutting expenses, but also on knowing how to price the work you set out to do. Bob Fifer, an American economist, says that it is necessary to know how to charge as much as possible without losing a single customer.

But how to do this efficiently? The secret is to do good market research. Ask customers who are part of your target audience what amount they are willing to pay for the execution of a certain project. Get as much feedback as possible.

In addition, it is also possible to set prices based on competition. Do a good analysis of your competitors, see the prices they charge and what benefits they offer. This monitoring can be done via social media, the website or through mystery shoppers.

2. Thoroughly plan key activities

Having good planning is essential to guarantee a profitable and successful project, after all, without this, everything can go wrong and the results will be catastrophic. Planning is knowing what to do, how to do it and when to do it, always focusing on the desired results.

This is the first phase of any project management, and in it one must look for possible solutions to the client’s problem and raise the resources that will be used for its execution. The better planned, the better and more profitable the project will be.

This planning requires a good schedule of key activities, creating a clear and realistic step-by-step process. This way, it is possible to avoid errors, optimize results and increase the profits involved with the work that will be carried out.

3. Eliminate all unnecessary costs

It is really essential to know each cost involved, as this means you can manage them individually and, if necessary, eliminate them to guarantee a better profit margin.

Already project management, costs can be specially divided into: labor costs and material costs. Understand each one better:

• labor costs are those that involve the professionals who work directly with the project, such as: salary, salary charges (vacation, thirteenth, FGTS, etc.), uniforms and training;
• Material costs are those that involve items that need to be used directly to carry out the project, such as parts, products or components. Everyone must be identified.

Eliminate as many costs as possible, as long as this does not influence the final quality of the work and does not interfere with the agreed deadline for delivery.

4. Personally monitor the execution of the steps

Furthermore, it is necessary to follow the stages of the project being carried out and make sure that everything is going according to plan. This makes it possible to mitigate errors and, consequently, expenses related to the matter.

To achieve this, it is essential to have a good project management system, which offers a dashboard and continuous reports. With the software, it is possible to monitor delivery progress, costs and workers involved with the activity.

These are the main lessons to ensure project profitability. Correctly price your work, eliminate all unnecessary expenses, thoroughly plan key activities and monitor the execution of the steps. Thus, profit is guaranteed.

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