How much revenue should your team be generating?

By August 11, 2016 September 10th, 2018 Business Planning & Strategy, Staff

REVENUE GENERATION BY YOUR TEAM

Here are some questions that most business owners face on a regular basis:

  • How much revenue should my team be generating?
  • How do I set performance targets for my team members?
  • Can I give everyone a pay raise?
  • How do I incentivise and reward my staff?
  • How do I set a sales budget based in reality for the coming year?
  • Can I afford to put on a new team member?
  • How do I know how to set my hourly rates for client work?

Common questions, but they are often answered based on a gut feeling rather than hard data. Being accountants and consultants you can imagine how we feel about that!

The good news is that we’ve got a simple solution that will answer all of those questions and more. This brilliant creation of ours is called our staff capacity calculator. Flashier name pending. Whilst we don’t want to give away all the mystery here in a blog post, what the calculator does, in a broad sense, is as follows:

  1. Outlines your team and their cost to you (i.e. resource cost)
  2. Probes the issue of profitability and return on investment
  3. Calculates hourly rates and the billing capacity of your team

The resulting data can then be used for a wealth of activities within your business, such as:

  • Set Key Performance Indicator targets for your staff
  • Set a realistic budget and sales forecast for your business
  • Set charge rates for your clients based on science and data
  • Understand the profitability of each team member

Further work can then be done around working on your budget, measuring and incentivising team members … the ways in which this work can benefit your business are (almost!) limitless.

Wages are usually the largest item of expense for service-based businesses yet many business owners don’t spend the time to figure out exactly what their return on investment ought to be. Working through the calculator with one of our experienced business consultants will give you the surety you need to plan, execute and succeed in your business.

If you’ve got issues in your business you don’t seem to be able to get on top of, why not get in touch? Not only do we provide a full suite of bookkeeping and tax services here at Generate, but we’re also able to help with business coaching, strategy workshops, business plans and much more. You name the problem and I’m sure we can help.