When you are in a professional services business you only have one thing to sell and that’s your time. Whether that’s your own time, your staff or time you have equipment being used you need to know on a day to day basis that you are making a return on your business investment. Not only that, you need to manages cashflow so you can make payroll and cover other expenses.
In this professional services environment there are 3 metrics which I believe are key to enabling you to achieve this. They are utilisation, billing and time write offs. There are a few other metrics you would keep an eye on, but I believe that a professional services business can be defined in these terms. Here is why and how you would accomplish this.Read more