Blog
Welcome to my Blog Page. These posts seek to cover the broad panoply of issues, conundrums and thoughts that occupy the professional service entrepreneur’s mind.
A combination of extracts from my guides and current musings (often provoked by recent happenings at the great companies I now advise to), my aim is to inform and motivate all those who seek to build high performing teams and successful businesses.
I also enjoy responding to specific reader questions … so please feedback and let me know where you would like my mental meanderings to wander to next.
The ‘Multiple’ component of a firm’s valuation
So, having in previous articles, covered the importance of profit as a core component of value, let’s turn now to the ‘Multiple’ component of the typical valuation formula. As I mentioned in an earlier piece, once profitability is under control this should be the key aspect of value on which you turn your managerial focus. Of […]
Measuring Utilisation
Following on from my previous blog, it should be becoming clear by now that setting, and then managing towards, the right utilisation target(s) for your business is a key management issue. The topic can be obfuscated with multiple definitions and treatments; as such, you should aim for two principles when you discuss utilisation within your […]
Optimising your Profit
So, improving profitability is about managing your margin, productivity and leverage in an optimal, balanced way. But, what does this mean in practice? Let’s take each in turn. Firstly, margin. The truth is that margin, in a business that sells people’s time, is primarily about productivity and leverage (as the main cost will be salaries […]
Profitability explained … to owners of professional service firms
Profitability Explained It should be clear to you from my previous blog posts, if indeed it needed reinforcement, that profitability (and profit growth thereafter) needs to become your fixation if you are ever to build a company with value. As the old maxim goes: Revenue is Vanity, Profit is Sanity, Cash is Reality. In […]