Section 16 · Buy back entrepreneur time

The Manager Maths

What the manager really costs you, where your labour sits against the numbers James has given for your sector, whether there's room to hire, and what you get back. Six figures you already have. The rules are his.

“For every £10,000 worth of salary you’re paying out, add another £3,000 for your cost of employment.” James, 26 Jan 2023, The True Costs of Running a Business

1Monthly management accounts“What’s your monthly profit and loss”

2Average customer value“What’s your average customer value”

3Labour to turnoverThis tool. The third of his three KPIs.

His three KPI rule, in the order he gave it on 31 May 2021 (Payroll Advice for Business Owners) and again on 6 Jul 2021 (Business Management Tips 2021).

Your numbers

Annual figures, from your last set of accounts. Everything updates as you type.

Sector

Your industry standard, if you know it

James hasn’t put a labour number on this sector. His rule: find out what it is for your industry standard and have that on a dashboard (6 Feb 2020).

Annual turnover

Annual payroll

Gross salaries, the whole team, before employer’s NI and pension.

Headcount

Average salary

Payroll: £0.

My payroll figure already includes employer’s NI, pension and the rest, so don’t add James’s 30% to it

The manager you’re considering

Salary

Your week, hours

Operating: the day to day, admin, checking and chasing, firefighting. The stuff the manager would take.

Growing: sales, marketing, innovation, opportunities, direction.

Everything stays on this device. Nothing is uploaded and there is no account. Your figures are saved in this browser as you type, so you can come back to them.

Draft wording, for James to approve. The 30% rule, the sector figures and every line in quotation marks are James’s, dated in the list above. The connecting sentences and the verdict headings were drafted by Test Tube Marketing.