Your Self-Imposed Profit Ceiling

If all your billable people work the maximum number of billable hours, you can hypothetically achieve your minimum profit margin. But no more than that. No amount of hard work, innovation or dedication will help you beat this figure, because you’ve defined your inventory as buckets of hours, of which there is a finite and limited supply. In effect, professional firms operating on the hourly rate system have a self-imposed ceiling on profitability …