How To Improve Your Financial Prospects - Without A Struggle
Architecture and Engineering firms are maintaining their profitability, according to the latest Deltek Clarity report into the sector.
But the same report shows that although financially stable, they are working harder than ever just to stay still.
It could be said that the majority of A&E firms are furiously treading water. If you want to improve your financial prospects but can't find the breathing space to do so, then it could be that your 'busyness' is getting in the way of your prosperity.
The truth of the matter is; your financial stability could wane if you don't continue to keep your eye on more strategic matters. And hence, it might pay to step back and observe for a while
But what exactly are you looking for?
Well, as in any service-based company, staff and workforce matters have a lot to do with your firm's financial health. With the average cost to replace an employee over £30k, losing staff is costly business.
Implementing strategies and processes that will help you hold onto your most valued staff for longer could be a rewarding move.
Total employee cost
Of course, it's not advisable to scrimp on your valuable employee's benefits or reduce salaries. Another way of retaining more profit per individual is to introduce ways of increasing your staff's productivity.
If you analyse past data and set productivity-related key performance indicators (KPIs), you will quickly be able to establish who is delivering and who is not. You'll then be in a position to rectify issues.
Improving business development
But even in Professional Services, it's not all about talent. Your best clients may also be missing some well-deserved TLC.
Just make sure you direct it at the right ones.
When time is of the essence, it's important to pick and choose where you focus your attention. Use your business system to identify the projects and clients that have performed well for your firm in the past and make them your priority.
Tightening up on project management
Finally, as a project based firm, you need to know your project managers are capable of keeping activities on track.
With so many variables to consider at any one time, their jobs can be demanding and complex. A centralised and flexible business system that can deliver alerts and highlight concerns from across the entire company will reduce oversight and poor decision-making. Without it things can easily be blown of course, and your profit margin will be carried away with it.
What lies beneath
On the surface, it may be reassuring to think that you're financial situation has been stable year on year.
But is this really good enough?
Working smarter rather than harder is the key to improving your prospects.
Turn to your business platform to find ways of improving your approach to your core business processes - without adding to your workload.
To find out more about the challenges facing the A&E industry and what it is that is affecting the financial prosperity of firms, download the full Deltek Clarity Architecture & Engineering Report.