This Ratio is SUPER IMPORTANT in Your Business #smallbusiness #makemoremoney

An owner at Augusta Lawn Care was thinking about buying out another lawn care business. The business was doing about 48,000 in monthly revenue, but they had three non revenue producing employees and only five revenue producing employees out in the field. Most home services you got at least have two employees on the field to one person in the office. Ideally I like to see that number closer to three or even four employees out in the field doing work for every one person in the office. If you can get that above five, that that ratio starts to look really good. And those are the most profitable home service businesses that I've seen. In this case, over 35% of revenue, about $15,000 per month was going to just the salaries of the non revenue producing employees, the admin and the general manager. That business will almost never make money.