Unfair Advantage - Blog

Am I normal? How much profit you should make, and other yardsticks for consultants

29 June 2017 |

Category: Advice

|
Author: Elisabeth Geake


Are you charging your clients too little - or too much? Getting the profit margin right can be a balancing act when you’re setting up a company, or starting a new line of business. But don’t spend ages wondering what you can, and should, charge: there are rules of thumb for this, and for many other aspects of consultancy.

They apply regardless of variations in the types of clients you serve, the sort of work you do, and where you’re based.

You’re probably measuring at least a few of these:

  • Utilisation
  • Sales gap vs target
  • Net Promoter Score
  • Staff satisfaction score
  • Cashflow
  • Ratio of staff to associates/freelancers

But do you know what ‘normal’ looks like?

Download our free white paper to find out the ratios we think you should be aiming for, and the default settings that we’ve seen in successful firms. We cover measures that will help you keep clients, employees and investors happy, and include guidance on calculating cost rates for consultants and directors.

Metis-infographic-small.png

 How come we’re so sure?

Metis was built by a small team of entrepreneurs who have founded, grown and sold companies. We know what it’s like to manage all stages - from when there are just two of you, to when you’re dealing with hundreds of people in multiple teams. Along the way we learned that, whilst everyone has their own ways of doing things, there are some fundamentals that make all the difference between awesome and average.

When we sold our companies we’d still not found software that really helped us run our businesses, so we created Metis. Our software is the distillation of all that we learned, and bottles not only the tools we wish we’d had when we were running our businesses, but also some of the practices that we saw the very best firms and agencies using.  

The numbers you’ll see in the white paper are the result of our combined years of experience. Download it now.

Join the conversation