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The metric every small business should track
Published about 1 year ago • 2 min read
The most common trap for small business owners is chasing revenue growth while letting margins erode. I saw it first-hand in my family's business years ago: we hire more people, add headcount, and watch payroll balloon, thinking that more people means a more output. But the real path to sustainable business growth is protecting (and growing) margins first and foremost. And the single best metric I have found that that captures this is... (drumroll please): Gross Profit per Employee. This is...
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