Profit per X is a strategic KPI that indicates the potential of the unit of measure that is most constrained in your business.
As an independent coach, Bill’s most constrained thing is the number of days that he can work or profit per day. A laundry delivery service may deal with profit per truck or profit per stop. When you identify and optimize the number of profit per your X, it may be per customer, per product, per transaction, or per job, but whatever it may be, if you can optimize it, you can make a meaningful difference in your growth. Consider the pros and cons of optimizing your per X, and then focus on the one that will lead to the greatest growth. Strategic decisions about how you lead, grow, and scale will come more easily as a result.
Resources:
Scaling Up Summits (Select Bill Gallagher as your coach during registration for a discount.)
Recruiter.com Short List (use code scaleup)
Scaling Up is the best-selling book by Verne Harnish and our team for Scaling Up Coaches (formerly Gazelles). We share how the fastest-growing companies succeed where so many others fail.
Bill Gallagher, Scaling Coach and host of the show, is an international business coach who works with C-Suite leaders to achieve breakthrough growth.
We help leadership teams with the biggest decisions around People, Strategy, Execution, and Cash so that they can Scale Up successfully and beat the odds of business growth. Scaling Up is based on Verne’s original best-selling business book, Mastering the Rockefeller Habits.
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