Make your margins on junior staff

You make a margin on every hour your employees and contractors work. The more hours your staff are working, the more income you make. However, the margins change with the experience of your staff.

Keep in mind the following:

• The market sets the price for your services and products.
• The first rule of business is to buy low – sell high.
• There is a higher profit margin to be made from junior staff.

The basic leverage model is to set up the work flow and work processes so that the least experienced staff can do the bulk of the work with supervision and quality control from the most experienced staff.

As a business founder you will probably be tempted to do everything yourself. This makes a lot of sense in the early stages as the only thing that is free is your time.

When you grow – think about how you can use junior staff to do the job.