Essential Metrics For Agency Owners to Track Profitability with Marcel Petitpas

August 14, 2024

Episode 82:

Marcel Petitpas is the CEO & Co-Founder of Parakeeto, a company dedicated to helping agencies measure and improve their profitability by streamlining their operations and reporting systems.

He is also the head strategic coach at SaaS Academy by Dan Martell, the #1 coaching program for B2B SaaS businesses in the world.

In this week’s episode of The Progressive Agency Podcast, I’m joined by Marcel Petitpas to share the importance of understanding your agency’s financial metrics, particularly focusing on delivery margin. We discussed the challenges many agencies face in accurately calculating their profitability and how to overcome them.

Marcel provided practical advice on how agency owners can start implementing frameworks and processes around certain key data points in their businesses to get a more accurate look at how the agency is operating. He emphasized the power of small improvements in utilization and average billable rate to significantly impact bottom-line profitability.

By focusing on a few simple operational levers, agency owners can dramatically improve their profitability without necessarily increasing their revenue or changing their cost structure. Join us to learn how.

What you will learn in this episode:

  • Understanding the crucial difference between net income and delivery margin
  • The three operational levers driving agency profitability
  • Calculating and interpreting average cost per hour
  • The power of improving average billable rate
  • The importance of proper data structuring for accurate financial insights
  • Balancing precision and accuracy in financial metrics
  • Strategies for improving profitability by finding efficiencies in the agency

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