Number Of Employees

Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners.   These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.

How do you know if you’re over or under staffed? If sales are increasing, are you hiring too many people, or not enough? If sales are decreasing, are you cutting too many people, or not enough? My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. Revenue per employee is the quantitative measure one uses to determine if they have the right number of employees. The metric is calculated by taking your revenue, and dividing it by the number of full-time employees or full-time equivalents, which basically means counting a half-time person as a half a person, and then comparing this result to your historical numbers or industry averages. And remember, the most successful business owners know their numbers!

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