Just shoutin out to any guys out there with WC business with more than 1 employee…whats your final profit before tax per employee?
For example if you have a yearly net profit of 70,000 and employ 3 guys…then you divide that 70,000 by 3…then you can see that each employee makes you 23,000 profit.
I find that this method is effective in evaluating how strong or well managed a business is regardless of how much longer one has been in the WC business.
So if there’s some big shot company with profit of 300,000 and employing 10 guys then his PPE (PROFIT PER EMPLOYEE) IS 30000
Then take a smaller guy who is relatively new to the business and his net profit IS 150000 but only employs 3 guys then you can see his PPE is 50000.
So although the big shot makes more money it is clear that the smaller will soon over take him as he runs his business much more effectively
its a good way to look at the future of your business
Maybe some of you guys can compare you PPE figures and we can see who manages their wc business most effectively(only for fun ha!!;))…regardless of how long anyone have been in the game or how much work they get
In case your wondering I’m a one man show myself but hopefully will be employing soon
Looking forward to hearing from you guys:cool: