In Maps We Trust ... Do You?
In this issue…
Informed decisions will make you money
436 words, total reading time under 2-1/2 minutes
Last week, we talked about the importance of having a capable Navigator for your company’s reporting systems. The analogy being, good reports are like a map – they show you where your company is, and where it’s been. Knowing your current position is incredibly important for charting your future course. Assuming, of course, you know where you want to go.
Right there is a lot of what you need to become a proactive manager: a known destination (goals) and a known position. These two points on your map inform how you will move your company forward. Informed decisions usually produce good results.
Example Case Study Your company has a goal to achieve $3 million in revenues over the coming 12 months. You have produced $2.7M revenues over the past 12 months, with 9 technicians on staff. How many more techs will you need to get to $3 million? The map helps us figure it out. We make calculations against our current position, and then project those to our future position…
Map of Current Position
Last 12 months’ Total revenues $2.7M
Last 12 months’ Labor Rev. $800K
Total Techs on Staff 9
Calculations (current position)
Labor Revenues % of Total 29.6%
Labor Revenues per Tech $88.9K
Projections (future position)
Target 12-month revenues $3.0M
Labor Target at 29.6% $888K
Techs req’d at $88.9K per 9.9
The calculations produce a quantified conclusion: to produce $888K in labor revenues, you’ll need to hire one more tech. But what if we could squeeze some additional productivity out of each tech? Then we might not need to hire another tech. A strategy worth exploring, don’t you think?
Here’s what greater productivity might look like…
Target Labor Revs $888K
Target Revs per Tech $100K
Techs Required 8.9
If you can increase tech productivity by less than $1000 per month per tech, you won’t need to hire another tech. Which gives you two strategies to choose from: 1) hire another tech, or 2) undertake an initiative to increase tech productivity, which would help you grow your business at a lower cost. With a good map, it’s an informed choice. What would your choice be?
Without a Trustworthy Map? You’re guessing. And without a map we’d guess that your guess would be to hire another tech. Clearly, the wrong guess. Stop guessing. Adopt a management system that, with a good Navigator, will help you clearly see and understand your current position. Manage your business like never before, and make more money than ever before.
We’ve shown hundreds of company how. We can show you, too.