What are the most vital key performance indicators for trade business owners that will help optimise profitability, cash flow and business value?
In this following series of videos specifically for tradie business owners, we will discuss the most important key performance indicators and how these metrics can help boost productivity, increase revenue, and improve the business’s overall performance.
In this video, we will delve deep into the first of 5 KPIs for Tradie businesses, which is revenue per technician per day.
What is a realistic revenue target each of your technicians can deliver on a daily basis?
The Revenue per Tech per Workday metric is an important financial KPI that measures the average amount of revenue each of your technicians is billing each workday.
This includes both labour revenue and materials revenue. Find out more in the video below with Elements Advisory Group Manager, Connor Holliday.
KPIs for Tradies – Revenue per Tech per Workday
What is a realistic revenue target each of your technicians can deliver on a daily basis?
The Revenue per Tech per Workday metric is an important financial KPI that measures the average amount of revenue each of your technicians is billing each workday.
This includes both labour revenue and materials revenue.
Why track your revenue per technician per workday?
This KPI enables you to forecast how much revenue your trade business can generate each month based on the number of techs you have on your team.
It also helps you see how you can boost your productivity and profitability.
By looking at this forecast, you can compare it against your actual monthly revenue, and determine if you have too many technicians or too few technicians based on your current jobs.
This is absolutely critical to know because if the business does not have enough technicians available, you are potentially turning away work and giving that revenue to your competition.
To put it simply, by measuring this KPI with other supporting KPIs, you are able to determine if you need more projects to fill potentially underutilised technicians. So then, maybe it’s time to look for new leads.
Or it could be the other way around. Perhaps the business has too much work on, so you need to hire more techs to increase capacity and meet growing customer demands.
Generating more business when you don’t actually have the working capacity to meet customer demands can hurt your reputation, drive away clients, and give away revenue to your competitors.
So it’s important that you have a clear understanding of how much revenue your techs can generate per day to ensure you have the right working capacity to maintain quality service, retain clients, and safeguard your business health in the long run.
We know the influence this KPI has on business performance which is why it’s the first KPI we discuss with our tradie clients. We urge you to consider the Revenue per tech per day KPI for your tradie business too.
Tune in for the next video where we discuss the next vital KPI for your trade business. Watch it here.
Of course, if you need help in analysing your revenue per tech per day, reach out to our team at Elements Advisory Group. Email us at admin@elementsag.com.au or give us a call at 07 3878 9181.
