Partners & Principals in Profitable Professional Service and Consulting firms know these rules and metrics:
- 2080 Baseline
- 3x+ multiple
- Utilization rate
- Realization rate
Every month these firms update the answers to the following questions:
- What is the revenue generating capacity of our current team?
- How do we know when we can add staff and maintain profit margin goals?
- How do we know when we should reduce staff to avoid losses?