Last week, one of our new Private Coaching clients went through their 2nd Two-Day Business Transformation session with me.
We created a 3-Year Vision Story and Roadmap to DOUBLE their revenue. Their question was, “Do we have the right number of employees?”
I told them that I have a Business Success Dashboard that I review weekly to see exactly where my business stands. It includes some easy-to-use Metrics that tell me whether we are on track or not.
One of the key metrics is Revenue Per Employee. It tells you whether you are operating efficiently or not. It tells you whether you have too many employees. And, it tells you when you should consider hiring.
You want to be running in the $300,000 to $400,000 Plus range. Above $400,000, you are operating efficiently. Below $300,000, you want to understand why.
Is it lack of systems and processes? Is it the wrong people? Is it the right people in the wrong roles?
Take your last 12-month revenue and divide it by all your people, including you.
That’s your Revenue Per Employee – a key metric to the health of your business.
Then, create your Team Efficiency Plan!