On this page
- Review outstanding work and prepare a schedule
- Most profitable products/services
- Have the right staff mix for your current workload
February is a good month to look at your work schedule and staff rosters and be clear about which are your best products and services.
What work is coming in and what's your schedule for the month?
A schedule is a list of planned work and work in progress.
If you don't schedule, your work will be held up, delaying payments and cash flow. Customers will also go elsewhere if they don't get what they want when they expect it.
How to do it
- Keep records of all incoming work (include date received, work due, payment received, each process needed to complete the order and the date of process completion)
- Match incoming work to staff
- Look at ways to reduce hours of existing staff or get temporary staff depending on work needs
Keep your costs and payments optimised by:
- watching for staff cost blowouts due to time delays on the project and additional costs not budgeted for
- making sure the invoice goes with the delivery of the goods or service for faster completion of payment
- arranging progress payments for larger projects.
Which products or services sell best, with the highest margin?
If you know what you sell the most of and what makes the most money, you can direct your marketing to those things, which will increase your profit.
How to do it
- Calculate your margins
- Make a list of your best products and services (highest selling and margin)
- Review your marketing plan to find ways to promote these products/services e.g. a small discount for multiple popular items, package less popular items with popular items to increase sales overall
Increase sales of your best products and services by:
- making sure your best items where your customer can see them. This applies to physical location and online stores
- asking your customers why they buy your most popular items. You’ll receive valuable insights that you can use to tailor your services and product lines.
Review staff rosters against sales and projects
You could be wasting money overstaffing in periods with low sales volumes.
How to do it
- Compare staff rosters to sales to get the right ratios (watch out for overuse of casual staff or overtime)
- Hire additional staff on normal rates to save costs.
Make sure you have the right staffing in place with:
- daily rosters that include sales and project times/costs for quick reference each month
- flexible staffing arrangements in place so that staff allocation can be quickly adjusted to changing sales or project volumes.
Want a financial reminder in March?
Sign up for the Small Business Victoria update to receive fortnightly tips, trends and tasks. It will include our handy financial improvement tasks for March.