When managing a consulting agency, there's always a constant feeling that our current methods for measuring profitability just aren't giving us the whole story.
Marcel Petitpas, CEO and Co-Founder of Parakeeto, experienced this very issue while running his own agency. Luckily, he didn't just sit back and accept the status quo. Instead, he set out to find a better way.
Get ready to discover what he did to streamline their operations and reporting systems to improve profitability. He found a better way to help agencies double their profits and simplify their operations by providing the financial insights that Ops leaders need to make informed decisions.
The conversation touched on insightful topics like:
- Power of tracking operations data [09:15]
Learn why tracking data from your operations is much simpler and more valuable to make decisions on for capacity, hiring, and profitability than the financial data you get from your accountant.
- What metrics do you need? [16:54]
Discover which metrics you need to track to get a clear picture of your performance if you use value-based pricing or T&M.
- A deeper understanding of your P&L and operational metrics [21:02]
Exploring the 3 pieces of operational metrics to track gives you many more insights than just your P&L.
- Automated utilization and capacity management [24:56]
Find out the issues agencies and consultancies encounter when tracking capacity and utilization. And you can implement a much simpler way to track utilization immediately.
Streamline your business with a tool for tracking the operational metrics [30:48]
Learn how to maximize the efficiency of your business by implementing a powerful tool for tracking your operational metrics. Streamline your processes and easily make data-driven decisions, leaving no room for guesswork or wasted effort.
Key Quotes:
- Revenue and Profits: “You want to keep at least 50% of every dollar that you are responsible for earning from a client. If you get to keep less than 50%, it's going to be really hard to be profitable because usually you're going to spend another 30 on overhead.” [35:45]
- Average Cost Per Hour: “The way to lower your average cost per hour is to standardize what you do, create better documentation, create better processes so that you can lower the level of judgment that's required, which generally lowers the level of experience that's required, which generally allows you to access lower cost labor to do more of the work on a client engagement. ” [37:03]
Resources:
Marcel Petitpas on LinkedIn | Instagram | Facebook
Parakeeto - Agency Profitability Toolkit
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