I can’t tell you how many of my clients inform me that they calculate their billable hours monthly or bi-weekly. Here’s the problem with that method:
In order to successfully track your growth, the data is difficult to read because you’ll have to wait an entire month before you can determine what the previous month’s earnings looked like. I always say that your business is “two weeks away from a turn around.” Building up your referral base doesn’t happen overnight. It takes time to convert referral sources into actual, billable clients where you can earn money.
So if you calculate the billable hours weekly, it’s easier (and more beneficial) to track those figures. I can’t stress this enough—if you’re currently tracking your billable hours monthly, please stop, and change it to the weekly model! This will help you make the adjustments you need in a more timely manner to ultimately grow your business.
In a nutshell, here’s why a weekly billable system works best:
- It keeps your finger on the pulse of your business – Knowing exactly how successful (or unsuccessful) your business is allows you to quickly make the necessary changes to increase your marketing efforts. These metrics might even tell you to pull back on your marketing strategies. Either way, weekly billable hours directly impact your company in a near, real-time fashion. If we know that we’re not doing well, we can immediately start to invest in training and consider alternative advertising methods. Waiting for two weeks or a month to pass drastically slows down our reaction time to solving operational issues.
- Your business is more effective – When you’re aware of your revenue week-to-week, you’re officially in the driver’s seat. You can easily adjust your goals and strategies and make the necessary changes to give your business the desired growth it needs. This is truly the best way to measure your company’s success.
Calculating your billable hours on a weekly basis is a win-win strategy. You’re simultaneously growing your business, increasing profits and helping your clients in the communities you serve. You’ll also be able to sleep well knowing you can cover payroll, which makes every business owner happy.
So there you have it, friends! Join Professor “H.” next time on “A Drink with the Hurricane,” and hear more tips on how to blow away the competition!