Welcome to the Operating Leverage Benchmark (OLB).
Please download the below Excel file so you can access the data.
Here are the instructions on how to leverage this tool:
In Step #1 – indicate your current or desired Profit Margin (EBITA) as a number (the sheet will calculate percentages).
In Step #2 – choose any role/function you would consider offshoring. Place a monthly salary in the box that corresponds to a normalized onshore / local salary. This could be what you’re paying today, or what you anticipate paying. Choose as many roles/functions as you would like.
Focus on the two calculated areas for you:
a. Increased annual profits – this is the opportunity cost of profits you would create by shifting these roles/functions offshore. These are $$$ in retained earnings OR your pocket!
b. Additional revenue you’re supporting – this is the headwind of extra revenue you require winning/maintaining each year to breakeven vs. the opportunity cost of shifting these roles/functions offshore. This can create undo pressure on your sales & marketing teams.
When you’re ready, we look forward to reviewing our Mastermind Community with you. You can schedule a call with us here.
Founder, Get Levrg