Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.
+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
With just about every business now under pressure to lower prices, it is more important than ever for business owners to know their real costs. What are the daily forecasts for your customers and what will you need to satisfy each order? By developing a system of receiving forecasts and then applying needed labor and materials, you will determine your exact costs each day.
To get started, you should ascertain your next-day activity from your customers. Then determine the number of man-hours required for the next day to meet client demand. In allocating labor, you should have just enough employees to get the job done for each customer without overtime. Add the daily cost of materials needed to complete the work.
At the end of each day, look at the number of tasks actually accomplished and compare it to the actual labor employed. If you see discrepancies in productivity, you can adjust as needed.
This daily forecast will give you a more concrete and accurate picture of your business. It will help you identify ways to save money, boost productivity, improve operations, and ultimately compete more effectively.
Chris Carey Advisors
Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.
To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.