If you make a modest profit and an expense goes up by $1000, guess where it comes from? Profit.
If a $1500 cost is added, guess where it comes from? Profit.
Soon enough, all the profit is gone and you’re losing money. Do that for too long and your organization and everyone in it is gone.
It’s the job of leaders and managers to make a profit; for it is necessary for survival.
Found that out with SOE!
Cash Flow is better than having Profits. Profits seem Awesome. But, in reality having Cash Flow should be the same number as the profit.
I agree completely. Every possible precaution should be taken in making sure that each job is priced correctly with an adequate profit margin. Failing to do that is a sure recipe for failure.