First, a quick programming note: I’ve renamed this newsletter to “Time & Materials”, an homage to the nature of the business I write about most often. It’s apropos given the topic of this week’s newsletter. Time & materials (T&M) projects are the easiest professional services proposals to price, yet they are often where services businesses get into trouble. Labor costs of billable staff are usually the largest single expense category for a professional services company.
This is one of the best overviews of Gross Margin in a consulting/people business. It's such a simple concept, but is so often overlooked with a focus just on revenue growth. Revenue is critical, but without gross margin, you don't have a business and you won't make it up in volume!
This is one of the best overviews of Gross Margin in a consulting/people business. It's such a simple concept, but is so often overlooked with a focus just on revenue growth. Revenue is critical, but without gross margin, you don't have a business and you won't make it up in volume!