There is a dangerous sentence we hear from business owners all the time: ‘We’re at capacity.’
Sometimes they are right. But often, when we look under the bonnet, the business is not really at capacity. It is full of bottlenecks, rework, low-value tasks, the wrong work mix, weak systems, unclear delegation and pricing that means everyone has to be flat out just to make the numbers work.
That is where Revenue per Employee is so useful. It is one of the 7 Key Numbers we use in a Business Diagnostic Review, because it tells you whether the business is scaling properly or simply adding people and cost.
Who this is for
- You have a team and feel like everybody is busy, but profit is not where it should be.
- You are wondering whether to hire, but you are not sure whether the current team is being used properly.
- Your business has grown, but the owner is still dragged into too many approvals, fixes and escalations.
- You suspect there is too much rework, admin, low-value work or ‘we’ve always done it this way’ inside the business.
- You want growth, but not at the cost of team burnout or more stress.
What you will learn
- How to calculate Revenue per Employee and understand what it is really telling you.
- Why Revenue per Employee is a truth teller for bottlenecks, rework, work mix and underused capacity.
- How to tell the difference between a genuine capacity problem and a systems problem.
- How to lift output through standardisation, delegation and better flow.
- How better revenue mix, clearer scope, team training, decision rules, automation, standardisation and weekly capacity reviews can all improve output per head.
- How to build a simple capacity plan using three words: stop, simplify, assign.
Why attend
If your team are flat out but the bank balance is not improving, working harder is probably not the answer. Hiring may not be the answer either. The first step is to understand where the capacity is being lost and what needs to change before you add more cost.
Date / time / platform
Wednesday 15 July, 10:00am, live on Zoom. Register even if you can’t attend live and we’ll send you the replay.
Jon Davies is the founder of Jon Davies Accountants, a Liverpool-based accountancy firm working with ambitious owner-managed businesses across the UK. JDA helps six and seven-figure turnover businesses improve profit, cash and control through practical numbers, plain English advice and regular accountability.
Reserve your free place now. If you want your business to produce more without simply adding more people, this session will help you see where to start.
Reserve your place here