Ebasiness consulyant, writer about e business skills ans solution.
Wherever, many peoples are working for a long time to get income, without thought to use theire skills to make e busines less hard.
In my first steps, in online business, I thought that I will insert ads to have money, without have idea about knowledge or skills .
So, you are a services company, billing other people for your employees’ time. You are looking at advertising in training. How will that investment ever pay off?
The range of effectiveness of developers and teams is much broader than the range of billing rates. While effectiveness can easily vary by 10x, a team charging a 50% premium has a tough sell. In addition, the range of salaries is also wider than the range of billing rates.
Here’s scenario 1: the senior team (the numbers are roughly in range but may vary in your situation).
Revenue: 5 people @ $2000/day = $10K/day
Cost: 5 people @ $1000/day = $5K/day
Net: $5K/day (minus a whole bunch of other stuff)
Now you invest $50K in improving the skills of the whole team. Your billing rate of $2K/day is already at the high end (let’s assume), so there’s no way to increase your profit. If the team learned something valuable, then they’d be able to do the same job with 4 people next time, earning less money, not more. From a narrow-minded perspective, the $50K just got put on a bonfire.
Let’s say you want to increase your revenue and profit. It’s hard to find senior people but it’s easy to find junior people. Here’s scenario 2: senior-led junior team.
Better revenue: 2 people @ $2K/day + 10 people @ $1200/day = $16K/day
Slightly worse cost: 2 people @ $1K/day + 10 people @ $500/day = $7K/day
Much better net: $9K/day net income (again, minus a bunch of stuff)
For the services company, this is a win–more revenue, more profit. And there’s no need for training. Some of the juniors will go off and learn on their own, and they’ll be next year’s seniors.
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