Episode #802 - Why Your Business Isn't Growing And How To Fix That with Alan Pentz

The first thing you need to understand in business is to measure the efficiency of the labor you're employing on whatever tasks you're employing it on. The second issue is a little more about your leadership team and that kind of thing. But the first is really like, am I employing the right mix of labor to make money off of what I'm doing? And so Greg Crabtree has a simple calculation called his labor efficiency ratio. And so you should be making $2 in revenue. Greg usually takes out subcontractors and materials from that. But either way, it depends a little bit on the business. But basically, you should be making $2 in revenue for every dollar in labor you pay. And that's pretty universal across businesses. And so I urge all business owners to start there. Like, is the labor you're employing getting you the revenue you require to run a profitable, decent business? And so that's like the first thing.