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  • Atricle Dump - Benchmarking and Best Practice - Utilization Rates

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    Utilization R

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    Benchmarking and best practice is a way for you to measure your success against others who have made the leap into computer consulting before you. By measuring your own performance against industry benchmarks you get an idea of what you need to work on to be successful.

    A key element in your benchmarking and best practice is to look at utilization rates. Your utilization rate is the ratio of how many hours you bill clients compared to how many hours you work in a given period.

    Utilization Rate = Hours Billed / Hours Worked

    The typical benchmarking and best practice comparison is based on a 40 hour work week. If you work 40 hours in a week but only work with clients for 10 billable hours, your utilization rate is 25%.

    Utilization R

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    suring your own performance against industry benchmarks you get an idea of what you need to work on to be successful.

    A key element in your benchmarking and best practice is to look at utilization rates. Your utilization rate is the ratio of how many hours you bill clients compared to how many hours you work in a given period.

    Utilization Rate = Hours Billed / Hours Worked

    The typical benchmarking and best practice comparison is based on a 40 hour work week. If you work 40 hours in a week but only work with clients for 10 billable hours, your utilization rate is 25%.

    Utilization R

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    rking and best practice is to look at utilization rates. Your utilization rate is the ratio of how many hours you bill clients compared to how many hours you work in a given period.

    Utilization Rate = Hours Billed / Hours Worked

    The typical benchmarking and best practice comparison is based on a 40 hour work week. If you work 40 hours in a week but only work with clients for 10 billable hours, your utilization rate is 25%.

    Utilization R

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    Utilization Rate = Hours Billed / Hours Worked

    The typical benchmarking and best practice comparison is based on a 40 hour work week. If you work 40 hours in a week but only work with clients for 10 billable hours, your utilization rate is 25%.

    Utilization R

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    a 40 hour work week. If you work 40 hours in a week but only work with clients for 10 billable hours, your utilization rate is 25%.

    Utilization Rate Benchmarks

    Benchmarking and best practice in the computer consulting industry suggests using a utilization rate of 50% as a minimum tolerance level. This may not be realistic for the first few months of start-up though. What you want to monitor is whether your utilization rate is showing an upward trend toward the benchmarking and best practice standard.

    A 50% utilization rate is a good place to be within six to nine months of launching your business. By the time your business matures, a utilization rate of 75% (30 billable hours per week) is a benchmarking and best practice ideal. Once

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