Simon Collard’s Post

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"Annoyingly Useful" Remote Agency CFO and author of Agency Finance Explainer "Where Is The Money" . I make complicated Agency numbers simple and help Agency Owners manage, grow (and sometimes exit) their businesses

5 things you should know about Revenue Per Head for Agencies. - It’s a bespoke target 🎯 It needs to be calculated for each individual agency; never adopt a generic target. - Once you’ve got your RPH target then cross check against your ratecard and utilisation targets. It needs to be achievable at a sustainable utilisation - It’s an overall target and will take into account count all headcount (permanent and freelance) whether they fee earning or not. - I would work out a revenue target for fee earners (rate x utilisation x days). This will help with recruitment. - it’s main use is to check on progress. A more immediate guide to profitability is the ratio of people costs to revenue. But RPH can track progress on how successful we have been on selling, pricing and delivery. Want to check on your Revenue Per Head and what it says about your Agency? Always happy to talk.

Jack Longman

I Help B2B Business Leaders Get The Social Advantage 💥

5mo

Great post Simon. Question, if it should be a bespoke figure, how do you get to a target that is right for your agency?

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