Managing the company’s finances is a very big challenge, but of paramount importance for success. In the business world, those who work their recipes better, achieve better results. These tips are valid for freelance electrical professionals and even for those who work with a formal contract. It is more important to know how much you spend than how much you earn.
In this article, we will present you important points that must be worked on, so that you can generate more revenue just by improving the management of your business. Know what they are now!
Understand the concepts
It is very important to know what is billing, what is profit, what is expenses, etc. For many people, billing and profit are the same, and following this thought they end up making a serious mistake.
Revenue is the total amount collected by the company over the given period, one month, one year, two years, etc. The profit is the positive balance of this business in this period, but what do you mean the positive balance?
This part includes expenses. The entire process of running a business generates expenses. When we subtract all expenses from the value obtained in the invoicing, we obtain the profit when the value is positive or the loss when the value is negative. An electrician, for example, who works as a freelancer has several expenses, see some examples of these expenses:
- Exchange of worn tools;
- Fuel for travel;
- Consumables (electrical tape, terminals, clamps etc.);
When the value is negative, the dreaded debts start to appear, something totally unwanted in the history of any company or self-employed. To avoid them, it is necessary to detect the losses early on. From there, it is necessary to establish priorities and reorganize investments.
When a debt arises, it can easily lead to another and so on until it becomes an irreparable situation. Therefore, it is very important to make a conscious and meticulous budget, looking for exactly the best investment.
Keeping your personal finances up to date is critical. Usually, people have difficulty in this aspect and this is easily reflected in the management of their business.
Leaving the results clearly and objectively facilitates the monitoring of this financial situation, allowing to analyze the future possibilities of the enterprise. When this works in harmony, it is possible to plan new investments without running the risk of affecting daily accounts.
When shopping is where most mistakes happen. Before buying new products or services you should think about whether they are really necessary and whether the benefits they will bring are worth the investment. It is always good to have good tools for example, but the time to change a tool in good condition that is servicing the service with one with more technology must be well evaluated, one must imagine how long this tool will pay off and if pay.
Cost reduction is a way of generating revenue, but it should not interfere with the final investments in your work. Try to reduce unproductive costs, that is, costs that do not translate into gains for the business. Observe the waste of raw materials and consumables. As simple as it may seem, these simple changes make a huge difference in the long run.
Manage your time
This tip is mainly aimed at the self-employed worker. People who work in this way have tremendous difficulty organizing their time and with that, they end up losing chances of generating more revenue.
Either the person works less than he should, or he works incorrectly. There are many benefits to working your own hours, but this can be a disadvantage if the person does not police himself correctly.
A good way to organize your time and obligations is to create a weekly or even monthly spreadsheet. In addition to helping you organize, this worksheet will not let you forget any important work or activity.
Organize your schedule so that, for example, you only have one day a week to make budget visits, another day to search for materials in stores, etc. With scheduled visits and materials listed, trace an efficient route to save time and fuel.
To increase your revenue you need to work effectively, this way you will get more customers. To be able to increase the number of clients you must think about a good presentation of your work, a marketing action is important.
Investing in good equipment that favors the provision of your service is essential. If you have good tools, you will certainly serve your customers better and solve the problems presented more effectively.
Take courses related to electrical, keep up to date and this will certainly be a differential in your service provision. To conclude, always remember to present an honest job and not to enter the wave of abusive values. Win customers with your competence! Believe me, the benefits will be much better.