Mike Andes (YouTube) argues businesses — especially home services selling labor — must define capacity as the number of budget hours they can schedule. Capacity is determined by trucks and employees; operators should calculate how many budget hours they can complete before a busy season (e.g., spring rush) to avoid overbooking schedules and causing burnout.
What can we do to ensure that you don't have bad customers lead to the failure of your business? Now, I believe a business is ultimately defined by what its capacities are in terms of budget hours on the schedule comes to home services. We are selling labor and your the amount of budget hours your capacity is determined by how many trucks and employees you have or trucks and employees you have. The more work can be done, you need to find exactly how many budget hours you can complete before you go into the spring rush, so that way you can actually plan for it and not overbook your schedule and lead to a massive amount of burnout.
