Every entrepreneur needs to be proactive in identifying problems plaguing their firm and prioritizing improvements to bottlenecks that slow down work and lead to budget overruns. Planning is vital for any project yet many firms fail to have a sound, well-researched estimate and this can lead to incorrectly calculated project fees and business losses. A firm's culture is hugely responsible for its smooth functioning and success, and takes years to form and implement based on owners' willingness to improve systems and processes to increase employee engagement and productivity. Skill training can build a team of skilled and profitable project managers as most come from technical backgrounds and focus least on financial management skills. Employee turnover is very costly and failing to retain good employees can cause client dissatisfaction

2. Every entrepreneur needs to be proactive in
identifying underlying problems that are
plaguing the firm and prioritize improving the
operational bottlenecks that slow work down,
and lead to budget overruns. One can
contribute to a substantial increase to the
bottom line and help the firm’s project
managers to perform more efficiently.
Here are the list of risk involved in Project
Profitability ,

3. Planning is the vital part of any project and
any good project starts with an estimate, yet
many firms fail to have a sound well-
researched estimate in place. One such
example could be- Using standardized
estimating practices, such as Top-down
estimating without verifying the necessary
breakdown of costs. This can lead to project
fees to be incorrectly calculated and hence
business may suffer a huge loss.

4. A firm’s culture is hugely responsible for the
smooth functioning and success of the firm.
The daily operations are impacted by the
culture which is driven in a firm.
The culture, in any firm, takes years to form
and implement. It also depends a lot on the
owners and their willingness to improve their
systems and processes in order to increase
employee engagement and productivity.

5. Most Project Manager’s belong to technical
backgrounds and prefer to focus on
delivering high-quality projects, client
satisfaction, and meeting deadlines. While
they might be responsible for many financial
management aspects of a project the least
focus is paid to get them trained in these
skills.
Skill training and development can go a long
way towards building a team of skilled and
profitable project managers.

6. Employee turnover is a very costly human
resources expense. The cost of turnover
goes way beyond just the expense of
recruiting and training a new staff person in
a position.
Failing to retain good employees can also
cause client dissatisfaction and potentially
losing them to competitors as most of the
clients don’t prefer a frequent change of staff
members.

7. Optimum utilization of people’s skills, talent
and time are one of the keys to your firm’s
success. It all starts by regular tracking and
management of resources and ensuring that
the right people are doing the right jobs.
While most financial management reports
focus on performance in the past, the key to
effective resource management is to be able
to forecast the future.

8. Taking all of this data into account and
determining efficient Resource Planning
systems can help you provide much-needed
idea and visibility about your three to six
months (at least) future resourcing
requirements, and save your firm money by
ensuring that hiring decisions are made at
the right time.