Are You Reporting Properly?

In my previous article, I discussed the importance of carrying out reports in your agency.

In fact, successful agencies constantly track and report key metrics. It’s what separates a highly profitable agency from those vulnerable to common pitfalls.

?To continue the discussion, here are two other reports you can implement in your agency to ensure it’s heading in the right direction.

?> > > Find out how we can help you grow?successes at?your agency.

?Report #1 - Utilization Rate

When you measure your agency’s utilization rate, you'll find out how efficient certain team members are compared to others.??

Knowing that, you'll be able to make intelligent decisions when it comes to your team. For example, you can better match responsibilities and your team members’ skill sets.

But how do you calculate your utilization rate?

?You simply divide the number of hours spent on billable work by the total work hours charged.?

?Report #2 - Your Blended Rate

?I often see agencies calculate their blended rate without taking into account all of the costs involved.

?But if you want to set your agency up for success, you first need to account for various factors that can affect this metric.

?Here's an example to explain what I mean.

?We recently worked with a client who had set a goal to increase their net profit by 15 and 20% over two years.

?Right off the bat, the goal sounded reasonable. But when we calculated the rate required, we discovered that it’s over $400 an hour!

?Now, why was that rate so high?

?It's because the agency didn't consider all of the general and administrative expenses involved. They were writing off every one in two hours. That made their expected blended rate incredibly high.

?As you can see, having the correct information available at all times can propel your agency to the top.?

?You'll be able to steer clear of the common pitfalls that could lead to the failure of your agency.

?Can you do that?

?And if you're looking for ways to improve your agency now,? Apply to Our Agency Accelerator Program?today.