Episode 5 of Building Your Multi-Million Dollar Practice focuses on digging into KPIs that measure Profitability and how they impact your clients and your advisory services. We already went over a few of these, so now we’re going to focus on Revenue Per Employee, Cost of Goods Margin, Expense Margin, Net Worth, and Gross Margin.

In some cases, the Revenue Per Employee KPI is really important. For businesses that depend a lot on labor, it is critical to understand how much revenue is being created per employee. This allows us to evaluate the cost associated with each employee against the amount of revenue that needs to be generated from them.

The Formula: (Revenue / Employees)