Haus Advisors

The Effective Billing Ceiling

A packed schedule and a light one can bring in exactly the same money, so being busy isn't the same as being paid.

Chart: The Effective Billing Ceiling. A packed schedule and a light one can bring in exactly the same money, so being busy isn't the same as being paid.
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The mechanism

The chart sets two agencies as two blocks of the same size. Agency A looks healthy with a full calendar, but a fifth of the work gets done and never charged, so it only keeps 60 percent of what it could. Agency B bills fewer hours but charges and collects every one, and it also lands at 60 percent. Both collect the same slice - so chasing a fuller calendar while unbilled work leaks away just means working more to end up in the same place.

Part of Persistence. Infrastructure that keeps growth compounding past founder heroics.