9 Comments
Jan 4, 2021Liked by Loren Feldman

I always ask owners how many employees they have and what are there annual revenues. Revs/employee is a very simple calculation and tells you something about how the business operates.

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Jan 6, 2021Liked by Loren Feldman

We've been doing this calculation for years now...but as a product based company, there are better measures of efficiency for us...such as inventory turns or book-to-bill rations (orders on the books for future delivery vs. what we are shipping today)...still revenues per employee is an interesting measure in terms of hiring plans

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author

Interesting. Can you give us an example of what it tells you?

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Jan 4, 2021Liked by Loren Feldman

For companies like mine, their general state of health. I ask everyone I meet so have amassed a decent size sampling. $100k/person or less correlates with low wages, and a lot of other bad things. $150,000/person is the beginning of a stable prosperous company. The number for domestic manufacturers I have spoken to rarely exceeds $200,000 person. There are many factors that can shift the number, particularly outsourcing production and significant automation.

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Jan 6, 2021Liked by Loren Feldman

I am not sure if this is relevant, but in the UK we would look at £100,000 per employee as a reasonable benchmark. We are in the Fire & Security install/service industry.

Thinking about the US, would your averages vary by region?

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Jan 4, 2021Liked by Loren Feldman

Just a few of the questions I'm pondering at this moment:

Do you establish a plan and goals for the year? Written? Tracked?

Tips for working with a spouse or other family? Particularly a spouse!

At what point did your business offer health insurance to employees? Relatedly, how does insurance through the Affordable Care Act compare to private insurance?

What are the considerations for enabling employees to earn/buy equity in the company?

How to handle a bogus lawsuit or unemployment claim?

What expenses that are partially personal (car, phone, travel) do you put on the business?

Have you ever hired an SEO person who delivered timely and consistent results?

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author

Thanks, Liz! We will definitely be tackling these in upcoming episodes.

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Jan 3, 2021Liked by Loren Feldman

Q: Who drives the culture in your company...you (the business owner and/or chief executive or others members of your team? Can a business ever get to the point where the leaders are not the ones sitting on top of the corporate pyramid but rather the rank-and-file members of the team?

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What is the calculation for # of employees considering that some are part-time and Obamacare defines full-time as 30 hours but most would consider 40 hours full-time?

How many employees do the companies compared have?

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