Cash flow and profit

Your job looks profitable. Did you count your own time?

Quoting, ordering and supervision use the owner’s time too. Make that work visible before deciding a job has delivered a worthwhile return.
Corporate Recovery Partners
construction business owner checking a diary and timesheets in a site office; illustrative AI-generated image
01 / 05

Your working week does not end at the site gate

The installation is finished, the supplier bills are recorded and the job appears to have made money. Yet you spent evenings preparing the quote, mornings collecting materials and hours answering questions. None of that time appears in the job review.

An owner can choose to perform this work personally. The useful question is whether the price makes that choice sustainable. If the business only looks attractive when your contribution is treated as unlimited and free, the job report is missing information you need for the next quotation.

02 / 05

Start with a record of the work

For one recent project, reconstruct your involvement from the diary, emails and job records. Separate estimating, procurement, travel, site supervision and administration. Mark uncertain entries as estimates. The purpose is to understand the workload, not create a false record of precisely measured hours.

Then record the same categories as you work on the next project. Include time spent on quotations that do not become jobs in a separate category. Otherwise, loading every unsuccessful quote into whichever project happened to win can make that project's result misleading.

Source: Business.gov.au: Choose a pricing strategy

03 / 05

Give the time a clear meaning

An internal allowance for your work is a planning tool. It is not automatically an additional accounting expense, a wage entitlement or a tax deduction. Keep it separate from amounts already recorded in payroll or other accounts, and ask your accountant how the business's actual arrangements should be treated.

Choose an explicit basis for the planning allowance, such as the realistic cost of obtaining comparable help. Write down the assumption and what it includes. Do not add an owner's allowance on top of the same salary already included in job costs or overheads. That would count the cost twice.

04 / 05

Identify the work that keeps expanding

Look at which activities took longer than expected. Was the quote prepared from incomplete information? Did several small material collections replace one organised delivery? Were you supervising two projects whose schedules repeatedly clashed? These are questions to investigate, not evidence that a particular person is at fault.

Choose one change you can test on the next quotation or project. You might allow more time for a site inspection, arrange a single ordering review, or make one person responsible for gathering questions before a scheduled discussion. Compare the time needed afterwards rather than assuming the change has saved money.

A useful time record also distinguishes work you want to retain from work another person could reasonably perform. Check the actual availability and cost of that help before assuming delegation will improve the result.

05 / 05

Use the result before taking on more work

A job may contribute to the business while still demanding more owner involvement than you can provide across several projects. Look at the total coming workload as well as each job separately. A full diary of unpaid coordination can restrict your ability to quote, supervise or resolve problems elsewhere.

Today, add your recorded involvement to one completed job review and identify one assumption to change in the next estimate. Keep actual costs and planning allowances visibly separate. If high turnover is leaving little return for the work you put in, contact CRP about turnaround support. Bring the job costing and a short record of how your own week was spent.

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