Chapter 8: Clever Consulting Company

Utilisation Calculator
= insert

This spreadsheet shows the calculations that were

Senior made for Chapter 8 in the book. Feel free to
Partner Consultant Consultant
experiment with different inputs (highlighted in
Total week days 260 260 260 yellow).
Public Holidays 8 8 8
Total Available Days 252 252 252
Less:
Annual Leave 28 21 21
Sickness 5 5 5
Training 3 5 12
Sales Work 45 21 0
Mgmt & Admin 40 25 0
Utilisation Days Available 131 175 214
Utilisation Rate 52% 69% 85% rounded
 hows the calculations that were
ter 8 in the book. Feel free to
different inputs (highlighted in
yellow).
P&L Calculator
Clever Consulting Company

Staff Costs Revenue

Target
Salary Annual Costs Daily Rate Utilisation Days Annual Revenue % Revenue
Partner 5 £ 90,000 £ 450,000 £ 1,500 52% 131 £ 982,500 14.9%
Sr Consultants 10 £ 65,000 £ 650,000 £ 1,000 69% 175 £ 1,750,000 26.6%
Consultant 30 £ 35,000 £ 1,050,000 £ 600 85% 214 £ 3,852,000 58.5%
Total 45 £ 2,150,000 £ 6,584,500

Support Staff 5 £ 25,000 £ 125,000

TABLE 1

Profit & Loss

Revenue £ 6,584,500
Cost of Sales £ 2,150,000
Gross Profit £ 4,434,500
GP% 67%

Gen & Admin Costs

Support Staff £ 125,000
Other Admin £ 910,000 40% % of Wages
Total Gen & Admi £ 1,035,000
Net Profit £ 3,399,500
NP % 52%

Profit Per Partner £ 679,900 Pre-Tax

(Net profit / partners)

Productivity £ 146,322 Excl. support staff

(Revenue / # Staff)

Leverage 8 Excl. support staff

(# of staff / partners)
Utilisation Drop
10%
P&L After Utilisation Drop Revised Revenue Calculation
Target
Profit & Loss Daily Rate Utilisation Days Annual Revenue % Revenue
Revenue £ 5,687,000 £ 1,500 42% 106 £ 795,000 12.1%
Cost of Sales £ 2,150,000 £ 1,000 59% 149 £ 1,490,000 22.6%
Gross Profit £ 3,537,000 £ 600 75% 189 £ 3,402,000 51.7%
GP% 62% £ 5,687,000

Gen & Admin Costs

Support Staff £ 125,000
Other Admin £ 910,000 40% of wages
Total Gen & Admi £ 1,035,000
Net Profit £ 2,502,000
NP % 44%

Profit Per Partner £ 500,400 Pre-Tax

(Net profit / partners)

Productivity £ 11,120 Excl. support staff

(Revenue / # Staff)

Leverage 8 Excl. support staff

(# of staff / partners)
Sensitivity Calculator
Clever Consulting Company

Average Rate Calc Staff Rate Total Av Rate

Partner 5 £ 1,500 £ 7,500
Sr Consultants 10 £ 1,000 £ 10,000
Consultant 30 £ 600 £ 18,000
Total 45 £ 35,500 £ 789

Table - Sensitivities (Utilisation Rates)

Consultants Total days Utilisation Actual Days Income Costs Profit
45 252 10% 25 £ 894,726 £ 3,185,000 -£ 2,290,274
45 252 20% 50 £ 1,789,452 £ 3,185,000 -£ 1,395,548
45 252 30% 76 £ 2,684,178 £ 3,185,000 -£ 500,822
45 252 40% 101 £ 3,578,904 £ 3,185,000 £ 393,904
45 252 50% 126 £ 4,473,630 £ 3,185,000 £ 1,288,630
45 252 60% 151 £ 5,368,356 £ 3,185,000 £ 2,183,356
45 252 70% 176 £ 6,263,082 £ 3,185,000 £ 3,078,082
45 252 80% 202 £ 7,157,808 £ 3,185,000 £ 3,972,808

X Y
10% -2,290,274 5,000,000
20% -1,395,548
30% -500,822
4,000,000
40% 393,904
50% 1,288,630
60% 2,183,356
3,000,000
70% 3,078,082
80% 3,972,808 2,000,000

1,000,000

0
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
-1,000,000

-2,000,000

-3,000,000