Having managed to set up an engineering firm, one of the challenges you will be facing is that of maximizing the firm’s revenues. If an engineering firm doesn’t generate reasonably high revenues, it won’t be sustainable. An engineering firm has to generate enough revenues to cover its operating expenses, and leave some profit for the owners. Therefore the question on how to maximize your engineering firm’s revenues is bound to be an important one. All said and done, there are 3 main ways in which you can maximize your engineering firm’s revenues, namely:
- By taking up more projects: this is where you focus on volumes, in your bid to maximize your engineering firm’s revenues. So you bid for as many projects as your engineering firm can handle. The amounts you stand to earn per project may be modest. But if the number of projects is huge enough, the total earnings should be quite good.
- By taking up bigger projects: bigger projects are likely to pay more than smaller projects. Therefore if you take up just a few big projects, you may be able to maximize your engineering firm’s revenues. You may actually end up earning more this way than you’d have earned, if you took up many small (and hence low paying) projects. The key to success here is to network with the people who are likely to help you win the major projects, which tend to pay very well.
- By charging more for projects: sometimes, you may realize that your engineering firm simply doesn’t have capacity to take up any more projects. Yet you want to maximize the revenues. In such cases, the best option for you would be to charge more per project. For if you are taking up as many projects as you can, yet you are not maximizing your revenues, it means that you are probably not charging what you ought to be charging per project. Sometimes, your charges per project may be so low that you’d simply be better off folding up the engineering firm and finding a job at, say, UPS. That way, you’d at least be assured of visiting www.upsers.com (that is, after undergoing the UPSers registration process), and finding an assured paycheck. That would surely be better than running a loss-making engineering firm.