There is a way of ensuring that overhead doesn’t outgrow revenue. I use a KPI with my clients called CORE (cost of overhead relative to execution). This ensures that overhead is captured properly in pricing. This KPI has to be monitored at least quarterly and it can be used to help you forecast as well.
That’s a really interesting way to look at it. I like the idea of tracking overhead against actual production instead of waiting until the end of the quarter to see if profits took a hit. Having a KPI that helps you price jobs correctly and forecast ahead could make a huge difference as a service business starts to scale.
Are you looking to see how it works?
Yes im interested to know more
Here’s my email mailto:[email protected]. Send me a message so we can coordinate a time to meet. This way I can share my screen over a Zoom meeting.
