Rob Howard has one simple metric for measuring the financial health of his business: profit per hour per client.
Tracking that metric has changed how I evaluated and measured my own business and has become something I incorporate into my clients’ businesses as well.
It's not something you have to look at every day, but keeping track of this one metric will help you grow in a sustainable and financially healthy way.
Key Takeaways:
- What Rob considers to be the key metrics to measure for service business owners and how he determined which metric to measure the financial health of a business
- What's happening behind the scenes for Rob to actually get to this profit per hour per client
- How the number of dollars you made and the number of minutes you spent are data points where there is enough quantity to make real decisions based on them
- What tools Rob is using to collect data or measure his metrics
- What metrics he has consciously chosen not to track or pay attention to and some of the mistakes he has made with tracking metrics
Can you build a business based on… “calm?” On Beyond Margins, host Susan Boles looks beyond the usual metrics of success to help you build a business where calm is the new KPI. With over 15 years of experience as an entrepreneur, CFO, and COO, Susan shares the business strategies that lead to a business with comfortable margins—financial, emotional, energetic, and scheduling margins. Join her and her guests as they counter the prevailing “wisdom” about business growth, productivity, and success to provide a framework for making choices that align with your values and true goals. Episode by episode, you’ll get a look at the team management, operations, financials, product development, and marketing of a calmer business.