Finding Your Break Even Point
Why should you care what your business’ break-even point is? Whatpurpose does it serve to know what it is? More specifically, how do youdetermine which of your business costs are fixed and which arevariable? What costs affect your break-even point the most? How oftenshould this information be calculated? How do you use this informationto better
Shop Financials
"Gap analysis" is a unique process geared toward finding inefficient day-to-day routines or uncovering those that create inefficiencies. Gap analysis measures every minute throughout the day for every person in the company, from executive to entry-level, from start of the day to the end of the day. Any minute found that is not geared toward
Productivity Watchwords For Today’s Business World
Any company with a service department is selling labor. If you have a repair facility and work on cars or trucks, or have a machine shop providing machine work on engines or transmissions, you are selling labor. If you rebuild components for the engine or transmission, you are selling labor. In more accurate terms you
Do You Know What You Are Missing In Business?
Complacency is the "kiss of death" for a business owner. Some business owners have an innate unwillingness to change or to try something new, but the successful business owner wants to know everything about his business. He never says, "Well, that just isn
Know The Gray Areas, Or End Up In The Red
In past "Shop Financials" columns, I have talked about several things companies can do to automate their businesses that will improve their profitability. I have talked about ideas that, if incorporated into a business, will give crucial information for the decision-making process on financial issues. I mentioned statements like, "If you cannot measure it, you
Being Busy Does Not Always Mean You Are Running A Profitable Shop
Implementing proper financial accounting will make that happen What does it take to be successful? There should be a way to accomplish our goals and have fun while achieving them. Imagine this: what if you knew in advance a particular stock was going to double in price over the next year? Would you invest in
Finding Your Break Even Point
Why should you care what your business’ break-even point is? What purpose does it serve to know what it is? More specifically, how do you determine which of your business costs are fixed and which are variable? What costs affect your break-even point the most? How often should this information be calculated? How do you
Cost Accounting In The Shop
Do you feel that your shop has the type ofcontrol over costs, expenses and productivity that it needs tosurvive in today’s market? Do you understand how to calculatethe actual cost of each job that you do and the efficiency thateach of your employees achieves on a daily, monthly or annualbasis? Unfortunately, most shop owners do