Without metrics, you grow to chaos.
Agencies start as one person delivering, then become three people, and suddenly you're chaos. You'll learn utilization rate (what % of people time is billable?), gross margin per project (is the project profitable after your direct costs?), revenue per employee (at what size should you hire the next person?), and churn rate (are you losing clients?). You'll understand pipeline coverage (how many months of work are booked ahead?) and when to hire (when 70-80% of your team is billable) versus when to fire (when someone isn't.
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
Gross margin tells you how much money is left after paying for what you sold. It's one of the most important numbers in any business.
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
Customer acquisition cost (CAC) is the total sales and marketing spend needed to win one new customer. Pair it with lifetime value to assess whether your growth is commercially sustainable.
5 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
Churn rate measures how fast you are losing customers or revenue. It is one of the most important — and most often ignored — metrics for any subscription business.
5 min read · Beginner
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