Hello, everyone.

This is Enta.

I previously wrote a post on Ameblo about how to create a working budget.

How to Create an Operating Budget, Part 1

How to Create an Operating Budget, Part 2

The way things are done varies from company to company, doesn't it?

That's fine in itself, but the fact is that there are bosses who nitpick that budget...

I heard about it lol

The budget isA budget that at least makes an effortIn that case, it doesn't matter if it drops by 1% or 5%.

This aggressive budget is important, but what exactly are we targeting?

Based on my own experience, I determine material waste, select subcontractors, set prices, establish the minimum cost, and generate a profit for the company.

In that context, how can we ensure we stay on budget, and have we set an appropriate loss rate?

The result was a 3% drop... Isn't that great!?

If the construction project costs 10 million, 3% of that is 300,000.

Sure, depending on the contract amount, 3% is a lot, but,

Given that it was an ambitious budget, these are excellent results.

It’s important to always set an ambitious budget, and this is the result of the site supervisor taking on the challenge.

A long time ago, I once got into an argument with my boss, but,

When profits fell by about 4%, I was told to write a report explaining the reason for the decline.

Naturally, I’m writing this to point out that the loss rate was a bit too lenient, but,

I was told to write about how to prevent the numbers from dropping in the future and how to generate a profit.

So, I wrote, “Set the loss rate to 8% and the profit margin to 4%,” and turned it in lol

Of course, an employee who’s so cocky would get scolded, but since I was in a go-getter phase at the time, I was just on a roll lol.

In the end,If you underreport on-site loss rates and cost calculations, you can inflate profits on paper as much as you want.Right?

You wouldn't be happy if your boss praised you and raised your evaluation using such underhanded methods, would you!?

It’s bullshit that cost calculations and actual budgets change just to please the boss.

And bosses who don't recognize employees who take the initiative like that are total jerks, lol.

Let's keep taking on challenges and pushing forward!

See you later