Turnover is the biggest hidden expense in a firm. Most of this hidden expense comes from not understanding your profit margins and people metrics. How can firms start to make a strategic plan for a better sustained financials?
Welcome to the second season of Architecture 5 10 20! I’m your host, Guy Geier, Managing Partner of FXCollaborative Architects in New York. Guests from a wide range of backgrounds and experiences related to the built environment will come to share their thought leadership. Our conversations will start with understanding how they arrived at what they’re doing now. More importantly, we will focus on discussing their vision for the future, looking out 5, 10, and 20 years.
Today, we are joined by Stephen King, an entrepreneurial powerhouse with an unparalleled passion for propelling businesses to new heights. From pioneering internet based accounting services to spearheading growth force, his expertise has played a pivotal role in reshaping financial and growth strategies for architecture, engineering, and other professional services firms. He is also the founder & CEO of GrowthForce.
Listen as we discuss the ways firms can navigate profit margins and people metrics. Stephen understands the unique challenges firms face, providing the tools and insights necessary to navigate those challenges to thrive. We talk about financial concepts, such as Fully Loaded Labor Costs, People Cost, Gross Profit Margin, and Net Labor Multiplier.
As we conclude this conversation with Stephen King, his expertise takes center stage, illuminating a path to financial clarity for architecture and other professional service firms. His insights lay the foundation for firms to decode their data, make informed decisions and increase profits, while also streamlining overhead costs. By embracing his strategic insights, architecture firms can chart a course towards success, avoiding the frustrations of misaligned financials and focusing on achieving design’s full potential.
Time stamps:
[01:09] – Stephen King recalls how he entered the financial industry.
[04:06] – Stephen talks about navigating profit margins and people metrics.
[05:59] – Do you know your Fully Loaded Labor Costs?
[08:13] – Turnover is the biggest hidden expense in a firm.
[10:01] – Stephen encourages you to look into your profit goals.
[12:45] – How can firms start to make a strategic financial plan?
[15:21] – Stephen explains gross profit and why it’s important to know.
[17:56] – What should firms do after each job?
[20:55] – Stephen shares the common qualities and strategies of financially sustained firms. PART 1
[23:47] – Stephen shares the common qualities and strategies of financially sustained firms. PART 2
[25:29] – Understand the relationship between your people cost and gross profit margin.
[27:09] – Stephen talks about the Net Labor Multiplier. What is it?
[29:06] – Stephen says there are three ways to increase profit. Which is most important for firms?
[31:27] – Thank you Stephen for reminding us that we can chart a course towards success, avoiding the frustrations of misaligned financials.
