Over a long enough period of time all costs are variable, in the short range some costs are not variable with volume while others are. Prime examples of variable costs are fuel costs and direct labor costs. Some portion of labor may be fixed in the near term while other components are variable. … Read more >
It is obvious that lower turnover keeps training costs low. But turnover is also reflective of other issues in an organization. Is the work environment a place where employees want to get away from? Is the pay scale competitive? Is your hiring and screening process weeding out those who can’t cut it in your work place? … Read more >
All firms have employees whose efficiency can directly impact the bottom line. One only needs to watch a construction project with workers standing around to understand efficiency. (In defense of my contractor friends, those guys will often be needed for another phase and having them ready to work is more efficient then stopping the project waiting for them to arrive.)
Having a team of people whose skills are properly matched with the work is the key to labor efficiency but that isn’t always possible. … Read more >
The term EBITDA stands for Earnings before Interest, Taxes, Depreciation and Amortization. The measurement is not an accepted metric in audited financial statements but is widely used as a substitute measurement for a company’s cash flow.
By adding back interest, EBITDA removes financing expense from a company’s profit and loss statement. … Read more >
Having the right people implies having the skills on your team that are needed to meet your customer’s needs and also to grow your business. These skills include both the tangible knowledge skills and the attitudes needed to take your business to the next level.
As someone who supports multiple businesses on an as-needed basis, I want to emphasize that not all skills necessary for your business need to come from employees. … Read more >