Start from capacity, not demand.
Case study · Budgeting
Every business has a capacity limit: people's hours, machine time, cash, shelf space.
What sets your capacity?
Professional services | Billable hours your people can sustain.
Manufacturing | Machine or line hours, and skilled labour.
Distribution and retail | Cash tied up in inventory, and warehouse or shelf space.
Trades and construction | Crews, equipment and project managers.
Build the target from capacity up.
Measure the real capacity: How much of your constraint you can actually use, at a pace you can sustain. That sets your ceiling.
Fill it with the best work: Rank products, services or customers by profit per unit of your constraint, not by price or sales. In the example, getting this wrong would have cost $259,000.
Close the gap on purpose: Hire, buy, outsource or reprice, each tested against the work it would push out.
In the example: a target the team can actually hit.
Does your target fit your capacity?
Find constraints and check your budget against it.
Let's map it out!
If you're team could find value in this, reach out! Always happy to chat.
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