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It’s mid July and you know what that means…if yours is like most firms, you’re half way through your fiscal year!
You should have your financial results for the first 6 months of the year in hand, or at least soon to be received from your bookkeeper/accountant. Are those results aligned with your profit plan for the year? If you recall from my ‘Profit Plan’ post back in January, if yours is a ‘Strong’ firm…
- your Net Fee should be around $150,000/FTE
- your Payroll should be approximately 50% of your Net Fees
- your Operating Expenses should be about 25% of your Net Fees, AND
- your Operating Profit should be about 25% of your Net Fees
- additionally, your pipeline for the next 12 months should total a bit more than your annual Net Fee.
Check out the ‘Thinking’ tab on the Strong Practice Strategies website here for more detail.
Are you on track?
Do you need to make adjustments?
For more detail on how these key measures interact to result in a strong practice, check out my book, Scoreboard Your Practice: 7 Numbers to Understand Your Design Firm’s Financials (Available at Amazon).
Be Strong, Rick