These aren't theories. They're the same frameworks I use with real clients to find money they didn't know they were leaving on the table. Read them in order—each one builds on the last.
Floor Rate
→The minimum you must bill just to break even. Your $25/hour employee actually costs $38/hour. Here's why.
2The Survival Number
→What the business needs to stay alive—before you take a dime. Fixed costs, owner's draw, and what's actually left.
3Utilization
→The silent killer of margins. Your team looks busy, but how much of that time is actually billable?
4Realized Rate
→What you actually collect vs. what you think you charge. Scope creep and fixed fees are margin killers.
5Capacity & Scaling
→When to hire, who to hire, and when NOT to hire. Hint: fix utilization before you add headcount.
6Client Profitability
→Not all revenue is good revenue. Your biggest client might not be your most profitable.