Your margin is time multiplied by rate. Optimize both.
Professional services scale through people and pricing. You'll learn utilization rate (what % of your time is billable vs admin/business development?), realisation rate (what % of your standard rate do you actually collect?), and revenue per employee (are partners pulling their weight?). You'll understand client profitability (some clients are loss-makers because of support overhead), and how to manage pipeline (predictable revenue comes from having consistent deal flow).
Part of this AskBiz Academy learning path.
AskBiz Academy
Part of this AskBiz Academy learning path.
AskBiz Academy
Employee utilisation rate tells you how much of your team's paid time is being spent on productive, billable, or value-adding work. Here's how to measure and improve it.
4 min read · Beginner
Revenue per employee measures how efficiently your business generates revenue relative to its headcount. It is one of the clearest indicators of operational leverage.
3 min read · Beginner
Net profit margin is what's left after every cost has been paid. The ultimate measure of whether a business is actually making money.
3 min read · Beginner
CLV is the total revenue you expect from a customer over their entire relationship with you. It changes everything about how you think about acquisition costs.
4 min read · Intermediate
Part of this AskBiz Academy learning path.
AskBiz Academy
Average deal size is the mean value of your closed deals. Segmenting it by customer type or product line reveals where revenue growth leverage is greatest.
4 min read · Beginner
Follow this learning path to master professional services: utilization & margin.
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