STOP! and start tracking your contractors!
Do you use sub-contractors in your business? If so, do you track the time spent and the efficiency of your sub-contractors?
The Challenge…
I had a client who thought she had a reasonably good idea of how much time and how efficient her sub-contractors were in the work that she was giving them to do. However when we actually sat down together and started crunching the numbers, we realized that they were spending three times the amount of time that she originally thought they were spending to do the work that she was giving them. Obviously this means that they are charging her three times as much to do the work, which was severely draining on her cash flow and her profit.
The Result…
Once she started tracking it and asking them to give her the information relative to how much time they were spending on each job that they were doing for her, the time her sub-contractors charged dropped significantly.
Why were her sub-contractors doing this to start off with? Simply because she let them. She wasn’t tracking the time they were spending and she wasn’t measuring it. This is a great example of why it is really important that you track the time spent by your sub-contractors in your business and make sure that they are efficient and they are giving you value for money.
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