Mike Andes breaks down how to calculate your team's budgeted hour capacity by multiplying estimated hours per employee by your hourly rate. When you hit capacity, you can either raise prices for more profit or invest in trucks and staff to grow.
Know your budgeted hour capacity, or at least what capacity and number of customers you can take on without completely overworking your crew and overworking your trucks and equipment. Then figure out how many budget hours per month you expect each employee able to perform. Multiply that by your hourly rate, and there's how much labor revenue you can expect of every team member inside of your business. And then, as you go into the spring rush, you need to know what those capacities are. Because if you know what those capacities are, and as you approach those capacities, you'll know that at that point, when you cross capacity, you can either raise prices and make more profits, entering what I call profit mode, or secondly, you can buy more trucks and hire more employees so that you can increase capacity.
