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Managing a profitable agency in 2024: the keys to mastering time management

85% of your agency’s profitability depends on effective time management of your projects. Even though many executives recognize its importance, few implement an effective optimization strategy.

Real-time access to schedules and individual tasks facilitates coordination and improves productivity. Overcoming these emotional and technical challenges is essential to capture the right metrics, avoid resource waste, and enhance your agency’s profitability.

Based on feedback from thousands of agencies we have supported, we have identified four essential steps to master time management within your organization.

Measure profitability in real-time: is your agency making money?

Traditional tools like Excel or Google Sheets are convenient, but they quickly reach their limits when a team rapidly grows from 5 to 20 employees. Data entry becomes a challenge, requiring simplification to effectively manage the expansion.

Transform quotes into billable time instantly upon approval and integrate them directly into your schedules. This automation simplifies the process and saves valuable time for every team member.

Monitor your project performance in real-time to determine if you are selling at a loss or profit right from the quote generation stage. This gives you the opportunity to renegotiate with clients or activate progress billing to better manage your cash flow.

Introducing the right management tools can transform your agency’s daily operations, simplifying tasks and providing a clear view of essential metrics for effective oversight. The experience of Pop for You (a Humanskills group entity with over 400 employees) demonstrated that implementing and utilizing a tailored solution significantly improved its efficiency and profitability.

The first step to running a profitable agency is underway: you have mastered the effective intricacies of introducing precise, concise, and efficient tools and processes.

Refine your billable time ratio: billable services are essential for profitability!

Optimize your profitability by refining the billable time ratio: aim for 70 to 80% billable time to ensure sustained profitability. When non-billable activities such as marketing or accounting accumulate, they can eat into your profits. Precise and real-time tracking of this ratio helps you quickly adjust the balance between billable and non-billable tasks.

If your utilization rate falls below 70%, it often indicates an overload of non-billable tasks. In this case, it is crucial to readjust your operations to increase the billable portion, either by boosting sales or by reducing internal projects that consume too many resources.

Conversely, a rate above 80% may indicate good profitability but also a possible underestimation of costs or underinvestment in key areas of your agency.

Ensure that each team member works on tasks that maximize added value for your business. A detailed analysis by skill can reveal inefficiencies, such as developers spending too much time on support rather than active development.

By adjusting these ratios, you can significantly improve your overall profitability.

Ultimately, maintaining a clear and continuous view of your billable versus non-billable services is essential to quickly identify areas for improvement and adjust your business strategy accordingly.

An essential harmony between production and sales force

Aligning production and the sales force is crucial to maximize your agency’s profitability. Once you have mastered the management of billable services, ensuring perfect coordination between staffing rates and sales becomes easier with the right tools.

Time allocation plays a crucial role, but closely monitoring your staffing rate to maximize team utilization and stimulate the sales force is equally important for profitability. It is essential to maintain a sales pipeline aligned with the agency’s overall schedule so that production capacities and commercial prospecting needs are clearly visible.

Anticipating staffing needs is crucial; knowing in advance if you need to hire external skills or use internal resources can greatly influence your profitability. Perfect harmony between the sales force, production capacity, and staffing is the key.

Successful synchronization not only meets client expectations by allowing you to adhere more strictly to project deadlines but also optimizes the use of all your resources. This enables you to increase sales and plan necessary recruitments, thereby directly enhancing your profitability.

Managing your cash flow to perfection

Many agencies only have a visibility of 1 to 2 weeks on their schedule, risking their financial agility and ability to invest confidently.

Anticipating your Working Capital Requirement (WCR) flows is crucial to successfully navigate financial challenges, allowing you to finance projects, reinvest, and maintain operations without fear for your company’s financial future.

To master this management, it is essential to forecast and adjust your production capacity in real-time, maintain commercial responsiveness, and continuously analyze data with intelligent and predictive tools. This includes monitoring gross margins and WIP (Work In Progress).

By centralizing your company’s data on a single platform, you benefit from accurate and realistic tracking, thereby simplifying the management of your Working Capital Requirement (WCR). Effective management of these elements ensures the financial health of your agency, supporting its growth and providing peace of mind for your teams in project management.

In this context, using an appropriate management tool becomes indispensable, not only to simplify daily operations but also to ensure sustainable growth for your business.

Furious, the essential co-pilot for executives committed to profitability

Furious is the indispensable co-pilot for executives engaged in a sustainable profitability approach. You can automate most of your processes, from transferring signed quotes into your schedule to automatic invoice reminders, thus eliminating repetitive tasks.

With Furious, you have real-time access to crucial information for optimal management of your agency, thanks to a platform offering more than 200 business widgets. Our intuitive interface simplifies project management, whether for single structures or multi-agency setups.

Ask yourself the right questions: Is each of my projects profitable, including pre-sales? Is my staffing adequate to meet demand profitably? Are my sales processes sufficient to support our growth?

Already adopted by thousands of clients including agencies, IT services companies, consulting firms, engineering companies, and SMEs, Furious replaces an average of seven traditional tools and reduces the time spent on administrative management by 20%.

Ready for takeoff? Test Furious for free now by requesting your demo!

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