Imagine you are the owner of a shiny, bright new cafe? How would you decide your opening hours? Well you could look at what all of the other cafes do and follow the trend.
Or you could do what this cafe does and close for lunch!
Yes, you did read that correctly. No, I couldn’t quite believe it either.
Let’s think about this in terms of the costs of the business
Cost of the food
Heating and lighting
Rent, rates and water rates
Other fixed costs like accountancy, food hygiene certificate etc.
By closing for lunch, what does the owner actually save in costs? Well only the staff wages, cost of the food and some light and heat.
If he stayed open then presumably he would have more customers. It’s a very simple calculation to make. It is worth staying open for longer if the value of your … Read More »
We all know that poor time management is important. But if we really accounted for our time in the same way that we did every other cost we would probably be in for a shock. According to research by global consulting firm Bain & Co and enterprise analytics company VoloMetrix, company executives receive 30,000 external communications a year compared with 1,000 in the 1970s.
The research revealed big productivity losses related to time management because businesses to not track and monitor employees’ time as closely as they track other resources, such as capital.
Do you record time spent as a cost against individual sales in your P&L or does it just fall into the salaries line in your overheads? Knowing how much time directly supports your sales is a critical performance measure. So if you already do this where does the rest … Read More »