Last Thursday Ray and his wife Susie came for a home visit. A few drinks on the deck of my golf course clubhouse then some Pizza.
I coached Ray and his team from 2010 – 2014. In 2010 he was around less than $1M in revenue and his time was maxxed out. In 2013 we helped him hit $1.1M profit. In that 4 year period we changed a lot – workflow, pricing, marketing, sales, teamwork and importantly the use of Ray’s time.
He has been making >$1M profit every year since 2013 as a sole owner.
This year’s update. Ray got his personal ‘working IN’ time down to 1 hour per week (a weekly management meeting – no client work at all) and he spends the rest of the time in business development growing the firm. He loves small $5k clients so he spends his week bringing on more and more of them. This current year is a record year with $3M revenue (team of 12) and $1.8M profit. His “Profit Time Index (PTI)” score is around $36,000. Profit / Partners IN time = PTI
Other than sales there are 2 main things that Ray focuses on.
Average hourly rate (all hours worked + client hours). Every week he measures it and it is reported to the team and analysed.
Themes. Ray and his team have an annual theme that involves a trip as a team. There is minimal work involved on the trip. The team member may bring their Partners but the Partners pay their own way. The reward metrics have been based on either profit, revenue or AHR all hours worked (revenue). Even in Quarantine times they were able to get to a resort Island as a team last month. Goal achieved. Next years theme is a trip to the Australian outback.
Ray and Susie lead a VERY comfortable lifestyle. Nice cars, house, cool boat and investment properties. They are driven by lifestyle not scale.
All the development work we did years ago with them has stuck.
Like Ray, with every coaching relationship there will be a point ‘you’ve got it’ and you don’t need us anymore. Typically your implementation roadmap score will be 320+ and your PTI score will be >$5000.
Then come visit for a drink at the clubhouse and tell your story. That’s what it’s all about.
If you want to be like Ray and build a business that provides plenty of profit and plenty of time then watch this video on how to do this.
All the best,