Follow the work from acceptance to delivery
Write out the steps in one order or project: answering questions, preparing goods, doing the work, reviewing, packing, delivering and following up afterwards. Then note the materials, time and external service costs involved in each step.
A service business may have no box costs, but it has time spent in meetings, checking files or collecting revision requests. A product business may have protective packaging and handling charges outside the purchase price of the goods. Following the process helps identify items to investigate further.
Separate costs that grow with the work from recurring expenses
Some costs increase when sales or orders increase, such as materials, packaging or per-transaction fees. Others must be paid even in a month with no work, such as rent or recurring service charges. Keep them separate so that you know what you are comparing.
The amount left after costs that increase with the work is not yet net profit, because other expenses remain. Do not judge the whole business’s viability from the difference between selling price and the cost of the goods alone. State the cost-allocation method and assumptions clearly.
Give the business owner’s time a place in the table
If you do the work yourself, record the time actually spent on each activity. Not paying an additional salary immediately does not mean that time has no limits. Time records help show how much work you can take on and which steps consume the most capacity.
You do not need to begin with a perfectly accurate labour rate for every minute. Start by recording the actual time spent and separating routine work from occasional tasks. Then agree how to use the information in the analysis according to its purpose.
- Product, material and packaging costs
- Fees and external services under their actual terms
- Time spent working, meeting and reviewing
- Recurring items and items arising only on certain jobs
Do not draw conclusions from the easiest order
Compare jobs that use different resources, such as standard work and work requiring additional information preparation, or regular delivery and delivery with special requirements. Use actual records if available, and explain why you selected those examples.
Testing how higher costs or longer working time change the outcome can help frame questions. However, sensitivity and scenario analysis depend on the chosen package. Not every service includes an Excel model or advanced analysis methods.
Prepare the information before asking what price to charge
Gather the quotations, fee terms, time records and sales data you have. Separate verified figures from estimates and identify the decision the information needs to support, such as changing a process, revising a package or assessing capacity to take on work.
Bringing this information to a Fastwork discussion helps define the feasibility study more precisely. The analysis still depends on the information and assumptions; it is not a guarantee of profit, a price suitable for every market or future returns.
Your next step
Choose one real job and list what happens from the start through delivery. Separate per-order costs, recurring expenses and time spent before concluding that the entire difference from the selling price is profit.
