Manage Money in MEP- Business

 It is very necessary to track the money spent in the contracting Business if we want to survive. 

Drop Drop makes the ocean.

This is the age of competition. There are Many brands, many people and many ideas. Everyone has their own level of profit making strategies. But with so many competitors, Many companies signs the contract with very low margin of profit so that they can engage their employees in at least some of the works.

It is very necessary to understand where the money is going and what value it gave. we should constantly evaluate the expenses dividing them into various categories like Transportation, Material Purchase, Site expenses, and also billed and not billed. It helps to analyze where the money is spent and if more money is spent, we can reduce it by re-designing the process, say 6-sigma. For example, if more money is spent in transportation than expected, analyze the reason behind it. Are you always supplying the less materials than ordered in site? if it is so, make a habit of sending materials in one lot. Same transportation can bear the cost and reduce overall Expenses. Also, for example, constantly understand the availability of materials in the suppliers, so if it is not sufficient at the last time, you won't have to fall for the higher price. You can arrange somehow if you know beforehand.

If the company is without cash, then remember it is not going to last. Money for company is like a blood is to a human.

Planning is necessary.

Constantly revisit the material suppliers if lowest price is available in next vendor. Go to the lowest.