The Numbers Are Going Up – 2020
Hang on a second, the numbers ARE going up!
Over the last few years we are constantly hearing this as a passing comment and as for THIS we are referring to the multiple of staff Salary vs Revenue produced.
The HIGHEST we have heard is “4 TIMES”. That is for 100k Salary your staff should bill 400k revenue.
The Reasoning: Technology is helping us get more work with less staff.
Does this mean, principle delegation is a given and advisory is a given, no “if, buts, or maybes” in the profession?
Our Opinion: I think it might be a resounding ‘YES’. And therefore, as we have been told to do over the years, one has to now train staff better, train oneself better, learn ‘modernised’ computer skills, cross-cultural management skills, a myriad of other soft skills and any other skills relating to communication one can think of. On top of this maintain compliance to stay in the profession and competitiveness.
Exciting times for some… I’m just going to look over there for others.
In speaking with Dale Crosby of High Tech Soft Touch and MergeAsisst, he mentioned the numbers don’t meet the current industry benchmarks. This raises the question in our minds. Why? We have seen the numbers and it’s achievable, therefore is it a dream benchmark that is now becoming a reality? The jury is out our side… but not for long.
What do you think? Does this sound right in your Firm? Do you think it will add long-term value? (all comments are kept private)
Now What: If it is a YES, act on it now, look for holes in the pitch, use other people to help change so one maintains the relation (that’s what advisors are for).
Let’s Talk Market, Let’s Talk Options – Discretion ensured
Magnus Yoshikawa 0408885944
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By the way, if you can help us… we are seeking:
Vendors wishing to / pondering a phase out in the next 2~5 years
Vendors with REVENUE between 500k and 10m+
Merger Candidates with REVENUE between 3m and 10m+