Increase the Profitability of your Projects in 6 Steps

ProbitabilityProjects profitability is a major concern for all types of companies working in “project mode”, such as web developers, marketing agencies, designers, architects, etc. Today, we want to take a look to some of the keys that we consider fundamental to improve the profitability of projects in 6 “easy” steps:

  • Devise a plan and set a realistic budget. Trying to make a project profitable without estimating each and every one of the costs that you can incur in is a chimera. Do not fool yourself and review earlier projects to learn from your mistakes in estimating. This will prove of great value in achieving your objetives.
  • Choose the best resources at the best price. It may seem impossible but it is not. Sometimes we find more economical human or material resources if we know what we are looking for and where to look. If, in addition, we indicate priorities for different tasks in the planning, we can assign the more skilled and expensive resources to the most critical tasks without reducing at all the overall quality of the project.
  • Record what is happening. It is essential that all team members engage in recording the evolution of the project. They must update -using the chosen tool- the degree of progress of tasks, effort, incurred costs, etc. Without this information it is impossible to know what is going on and fix what is wrong.
  • Perform continuous monitoring. One of the most significant costs -although frequent- comes from having to repeat project phases or tasks due to execution errors. The later you detect the error, the greater the cost of correction so it is essential to closely follow what is going on in the project in terms of performance, cost, schedule, etc. so it is possible to correct deviations as soon as they are detected.
  • Evaluate what happened at the end of the project, calculate profitability and identify the errors. Continuous learning is the key tool to improve the management of your projects and allows you to correct mistakes in the future either in the planning, budget estimates or deviations in project execution.

What do you think? Would you add any other element to consider? We are looking forward to hear your comments! ;-)

We’d like to encourage you to try Doolphy and find out how it can help you to manage your projects more efficiently and, above all, more profitably ;)

 

Up With Your Projects!

4 Responses to Increase the Profitability of your Projects in 6 Steps

April 26, 2012 ·

Well said. And I like the evaluation part a lot. Many of us take steps to increase profitability but we do not really look back and check if our efforts are really paying off.

Anonymous
May 2, 2012 ·

Thanks for your comment!

We totally agree with you. Any action is useless if you do not measure their results.

Up With Your Projects!

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