Tip Sheet: Manage by the Numbers to Increase Profitability


By Rick Gould In the PR agency business, consider a recessionary period to be any point when your operating profit drops below 20% of the top of the line. It may sound harsh, but there is absolutely no reason to generate operating profits under this margin. Based on this, PR agency owners should commit to the practice of managing by benchmarking, a process researched and reported on in StevensGould Pincus' 2008 Best Practices Benchmarking Survey. By knowing the key benchmarks of "Model Firms" and tracking your firm's monthly results against them, you will understand why your firm may not be performing to its maximum capacity. *First, define a "Model Firm": From a financial standpoint, a Model Firm is one that year after year generates operating profits of a minimum of 20% and often in excess of 30%.

Subscribe Now  |  Login


Comments Off

Deals of the Week

Get $150 Off PR News' Big 4 Conference

 big4-180x150-july16
Join PR News at the Hyatt Regency in San Francisco on August 6 for the Big 4 Conference, where expert communicators will share in-depth case studies from their Twitter, Snapchat, Facebook and Instagram strategies.

Use code “150” at checkout to save $150 on the regular rate.

Get $50 off PR News' Social Media Guidebook

book-socialmedia-180x150

This 11-chapter guidebook focuses on communicating in a mobile and social world, winning the attention of audiences, social media listening strategy and technology, social media measurement and so much more.

Use code “50off” at checkout.

Save $100 on a PR News Subscription

cover5.18

 

Let PR News become your weekly, go-to resource for the latest PR trends, case studies and tip sheets. Topics covered include visual storytelling, social media, measurement, crisis management and media relations.

Use code “SUBDEAL” at checkout.

Comments are closed.