How much room do you have to grow your business and increase your profit?
I was talking with a new client last week, who was concerned about growing their business and resourcing it correctly. We did a quick calculation, and worked out that the business was currently operating at about 40% of its potential capacity.
That means that they could grow by a factor of two-and-a-half without changing their cost base, which is interesting, given that everyone in the business is “busy”!
Obviously, there are a number of implications here:
First, there are some massive inefficiencies in the business right now, which need fixing.
Secondly, just imagine the impact on profit as a result of fixing these inefficiencies.
Thirdly, there’s now a pretty big motivation to make some positive changes!
When did you last work out the capacity of your company, and how much room do you have to grow your business?
