employee experience and margin

Leverage and Packaging Your Expertise

In this section, the speaker talks about leverage and how it can increase profitability in a business context. The speaker also discusses ways to package your expertise to sell it as a product.

What is leverage?

• A lever is like a seesaw that increases input force.

• Leverage creates mechanical advantage.

• In a business context, leverage means working smarter or creating tools to do work better.

Increasing Profit Margin While Billing by the Hour

• Increase hourly rates by getting rid of low hourly rates and focusing on higher ones.

• Decrease costs across any unbillable activity such as admin or expensive office space.

• Sell more hours by hiring employees and selling their hours.

Packaging Your Expertise

• Package your expertise in different ways instead of packaging it as some number of hours worked.

• Price the outcome that the buyer wants rather than pricing your hours or code.

• Three ways to package know-how:

• Sell your brains, not your hands

• Create products

• Offer services with guarantees.