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Profitable Bids and Project Management

Merager Financial Solutions Boulder Colorado
Profitable Bids And Project Management

  ~ April 2019 ~

Welcome to the Merager Financial Solutions LLC newsletter. We're so happy you are here! Each newsletter provides a wealth of knowledge and inspires business growth.

Long-Term Bid Awareness

 

We often think of creating a bidding process as something that will help with current project bids. Though that’s clearly an important benefit, the primary benefit comes over time when we have a history of bids to reference that allows us to see our patterns of successes and errors, so that we can adjust future bids for greater accuracy and profitability. The best project management systems, for current and future uses, track each of the critical tasks for a new project. By creating a project that includes every task and all dependencies (one task must be completed before another task can start), we can schedule each task, move dependent tasks if a previous task is delayed, and calculate costs for delays or bonuses for finishing ahead of schedule.


TAKEAWAY: Planning in advance, with the correct amount of detail, guarantees greater profitability.

Creating a Bid and Managing a Project


As a business strategist who’s also a certified project manager, here are my top ways to create a successful bid and manage a project:
1. Business practice
     a. Record as many projects as possible
     b. Keep detailed and accurate records

2. Creating a bid
      a. Get accurate business requirements
      b. Get your bid team together to create an accurate list of tasks to complete the project
     c. Record the cost for each task
     d. Create task groups, where appropriate
     e. Negotiate for on-time bonuses
     f. Negotiate to remove time slippage penalties
     g. Include the profitability based on value added
3. Project management
     a. Create a project plan with accurate dependencies
     b. Assign each task to a person or team
     c. Keep track of time worked by requiring daily or weekly time recording
     d. Review progress often, both financially and operationally
     e. Update the project plan often for accuracy, with an eye to removing dependencies
     f. Create incentives for workers to meet deadlines
     g. Understand present profitability


TAKEAWAY: Strong project and cash management gives us correct opportunities to reward workers as they create additional value (finishing work early, doing demonstrably better work or finding a better approach) while ensuring that the project’s profitability remains solid.

Each Task in a Project Has Its Own Profitability


Project management is clearly an important part of making sure profitability is as great as possible for a company, but cash management within the bid makes profitability possible. If we have done our project
management work correctly, we will know the profitability of each completed task. We can also know who our key workers are on the project, make sure that their efforts are properly rewarded, and we may have the additional opportunity to recognize top people that can serve as leads, and mentors, to bring up the overall productivity now and in the future.

TAKEAWAY: Don’t have people standing around getting paid while bonuses slip and penalties loom.

If you need assistance with anything we’ve discussed here, let’s talk so you can reach your financial goals, growth, and revenue. Spend your time doing what you do best and make more money by having us solve your most pressing financial issues.

Admit Success And Prosper

Merager Financial Solutions Boulder Colorado
Admit Success And Prosper

  ~ March 2019 ~

Welcome to the Merager Financial Solutions LLC newsletter. We're so happy you are here! Each newsletter provides a wealth of knowledge and inspires business growth.



I’ve seen so many businesses that are on the brink of greatness and only need the company leader to see that greatness. Staying small is a powerful self-fulfilling prophecy. 

When should your company break free? Here are several indicators that your company is well positioned for expansion:

1. You have clients waiting for your company’s services.
2. You have a complex business model that would be difficult to replicate.
3. Your clients trust you, so you have many long-term business relationships with them.
4. Your product or service is appreciated by clients.
5. You expect your marketplace to change soon and provide a unique opportunity.
6. You have solid business practices that are strictly followed.
​7. You have responsive customer service.
8. MOST IMPORTANT: You have a complete understanding of your company’s financial resources (both quantity and quality).

If you see your company in any of those indicators, you are in elite company. You’ve provided a desirable product and have been a reliable business resource for your clients. They like having your company around!  

TAKEAWAY: Further success is only possible if you hire other experts to take on the increasingly complex aspects of your company. Having a financial strategy is absolutely essential, and we are here to help you make that happen. We can create this for you right now!


Tips for Success


Tip #1

Every business owner should always know which products or services are making the highest NET profit. To know true profitability, every relevant aspect of the business should be integrated into product profitability. This includes machinery, marketing, staffing and the materials themselves.

Tip #2

Your financial reports are your most valuable asset as you grow your business. Knowing where you’ve been is the secret sauce to understanding where you can go. Having a budget and cash projection are the keys to discovering where you can go.

Tip #3

Will you ever need a business loan, seek investors or want to sell your business? If so, having at least three years of reliable financials that match the story that you’re telling these financial professionals is a requirement. The deal will stall, or not go anywhere if these aren’t in place. Hint: They will ask for your tax returns and financials for those years, and they should match.



Delegation is critical


As each company grows, the type of confidence needed for success changes.  The confidence that serves the beginning company is much like an explorer, where the search is one of matching the company with clients that need that specific product or service.  Once we have a solid company, we need the confidence to fully embrace the larger market that clearly needs this same service or product, but we must shed the thought that we can do everything in a complex organization.

TAKEAWAY:  We can manage the financial side of your business while you create growth and make even greater profits for yourself.

If you need assistance with anything we’ve discussed here, let’s talk so you can reach your financial goals, growth, and revenue. Spend your time doing what you do best and make more money by having us solve your most pressing financial issues.

Just a bookkeeper

Merager Financial Solutions Boulder Colorado
Is your bookkeeper a storyteller?

  ~ February 2019 ~

Welcome to the Merager Financial Solutions LLC newsletter. We're so happy you are here! Each newsletter provides a wealth of knowledge and inspires business growth.

Quick question: If you were asked to to fully describe your business, would you be at a loss for words?

Most business leaders would be, because there are so many moving parts. Vendors, clients, expenses, income, long-term liabilities, assets, business loans, aspirations, employees, taxes... The list could go on almost endlessly.

Here's the thing: Your business' story should already be captured in your financials. Wait, you might say. My financials are just a bunch of numbers that make my eyes roll up into my head... The truth is that if your financials are crafted correctly, they should tell the tale of your company with the same clarity that you could say in words.

If you ever want to sell your business, get investors in, convince a bank to give you a loan or even just know where your business is at the moment, you need a well-crafted set of books that accurately tells your company's story.

TAKEAWAY: Your company's books are its story. It's just told with numbers as placeholders for the human story behind them.

A bookkeepers job

Bookkeepers should double-check for any unusual transactions, enter any complex accounting entries, reconcile the bank accounts and keep a watch to not overdraw the company checking account.

Bookkeepers are not responsible for advising a company leader on *how* to use the resources in place and will typically choose to not affect the course of the company with the big picture. The bookkeeper's "lane" is typically quite narrow.

So you want to launch a new product?

Maybe not today, but someday you will. Make sure you have the knowledge infrastructure in place well before you need it.

Tax time, eh?

As you move through the year, keep in the back of your mind that tax season can be painful. Or it can be as easy as turning over your books and the tax part is just a matter of putting it together. 

TAKEAWAY: It will cost much more to have a CPA fix mistakes at tax-time than to have it done well during the year. Use that money for a nice dinner out, instead!

If you need assistance with anything we’ve discussed here, let’s talk so you can reach your financial goals, growth, and revenue. Spend your time doing what you do best and make more money by having us solve your most pressing financial issues.

Keep More Money

Merager Financial Solutions Boulder Colorado

Keep More Money

  ~ January 2019 ~

Welcome to the Merager Financial Solutions LLC newsletter. We're so happy you are here! Each newsletter provides a wealth of knowledge and inspires business growth.

Here's a critical question:  What's the one thing that can make 2019 the beginning of your company's best years? Focus on what you do best, delegate the rest.

I've worked with so many companies that are literally making a fortune, but don't see the desired growth in their profit margin. Why does this happen? As the Leader of your company, you are really good at what you do. But like most leaders, you probably find yourself spending too much time on the internal aspects of your company, taking you away from what you really do best.

What I do best is I find opportunities for growth, increased profits and reduce unnecessary spending. I take a deep dive into your company's financials to give you the critical information and planning support to reach your goals.

Strategic tips overlooked by most businesses


  • Make sure your invoice is paid within sixty days
    • Once an invoice goes unpaid for sixty days, a client will question the company's professionalism and wonder if they actually want the money
  • Get a professional payroll-processing company
    • Paying a company to disburse your payroll and pay your taxes is a great money-saver
  • Closely monitor your company's expense accounts and reimbursements
    • Expense accounts can quickly get out of control and certain reimbursements can trigger an audit
  • Make sure your bookkeeper has strategic oversight
    • Not integrating your company's strategy into your books is a direct threat to your company's well-being
    • Unreliable financials are the result of relying too heavily on accounting software
  • Save money at year-end by creating financials that are optimized for your tax preparer
  • Don't rely on your tax-preparation firm to identify operational problems and opportunities
Also, don't forget to take care of yourself! A well-rested and focused business leader is a company's greatest asset.

I'd love to hear about your successes as you implement these tips.

If you need assistance with anything we’ve discussed here, let’s talk so you can reach your financial goals, growth, and revenue. Spend your time doing what you do best and make more money by having us solve your most pressing financial issues.