CHAPTER 5
Setting a Path to Maximum Profitability
To understand where you are and where you need to go to truly influence the bottom line requires an up-to-the-minute knowledge of your financials. It also requires a financial plan that leverages that data for profitability and growth.
SECTION 6 OF 7
Desired Net Profit
Now, you know what rate it takes so you don’t lose money, but how much should you charge for labor so your company makes a profit? Figuring out that direct labor rate begins with determining your desired net profit.
Net profit equals your profit divided by total sales. For service companies, 25 percent is considered a good starting point. You can adjust to 30 percent or higher as you continue to grow the business.
Table of Contents
1. Introduction
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2. Building a Company for Success
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3. Setting Your Company Up for Success
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4. Driving a Company Culture
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5. Setting a Path to Maximum Profitability
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6. Billing Structure: Determine Your Pricing
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7. Marketing Practices
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8. Call Center Practices
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9. Call Center + Field Practices
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10. Best Practices in the Field
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11. Field + Office Best Practices
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12. Keys to Success in the Office
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13. Management and Office Best Practices
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14. Human Resources
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15. Preparing Your Company For Sale
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