Blog & Insights

A practice can appear profitable on paper while cash remains tight in reality. When too much value is tied up in unbilled work, growth begins to place pressure on cash rather than strengthen it.

Not all revenue carries the same value. A higher fee project may still produce weak returns if it demands too much time or senior attention. Looking only at revenue can hide this.

Utilisation affects profitability more than many studio leaders realise. If utilisation is too low, salary cost erodes profit. If it is too high for too long, quality, morale and delivery begin to suffer.

A practice can be busy, win awards and still be earning far less than it should. If project margins are not clear, leaders may continue taking on work that looks attractive on the surface but quietly weakens the practice financially.