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 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 you get higher than that your quality of life begins to suffer. The huge invoice payments coming in are great but the resulting burnout and stress are not worth it.
The Bottom Line on Benchmarking and Best Practice Utilization Rates
It is important to measure your performance against others in the industry. A benchmarking and best practice comparison, particularly with utilization rates, is a great place to start. Your ideal rate will vary depending on the phase your business is in, but remaining within the benchmarking and best practices range is a good indicator of sustainable business operations.
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Performance Management Best Practice
Directories should play a major role in your SEO efforts, well, at least the big and important ones, for the following reasons:
- Listings within major directories provide "context" to search engines. For example, if your web site is listed in the Open Directory Project under the category Pets -> Weird Pets -> Blue Cats, search engines will assume your web site has something to do with blue cats. Your web site and pages will be indexed faster and might have a better ranking in search results for specific terms (in this case, “blue cats”).
- Major directories (such as Yahoo! Directory, ODP, Jayde etc.) have high page ranks and as long as you obtain a non-reciprocal listing from them, paid or unpaid, your page rank will benefit greatly.
- Major directories are often replicated by other web sites (think of ODP, with hundreds of copies) which means that a listing somewhere in such a major directory will cause listings in all replica sites, contributing towards your link popularity efforts and boosting page ranks.
- The ODP (Open Directory Project) feeds results to Google, AOL, AltaVista, Lycos, Netscape - once again, a presence in ODP can get you quite far.
Submitting to Directories
As with most good things in life, you need to make efforts to get into quality directories. Although detailed instructions on how to submit your web sites are always provided by the directories, there are certain aspects to consider before you start hunting for directories and submit your web sites:
- Start with Yahoo! Directory and the Open Directory Project: being listed in the two of them is worth more than being listed in all other directories together! You will find soon enough that, unfortunately, being listed in these two is the hardest thing to do: Yahoo requires a $299 annual fee for regular web sites (only non-commercial sites qualify for a free listing) and $600 for adult sites, while ODP is free but you need A LOT of luck to make your way into it. ODP is so large yet is strictly human edited, which means the waiting time for a listing can extend to even years! Make your duty as a SEO worker and submit your web site, but don't get your hopes too high, unfortunately.
- Religiously follow the submission guidelines provided by directories: read them as many times as you need to make sure you will not upset its editors by submitting your site the wrong way, with inaccuracies, the wrong description style, or to the wrong category.
- Try to find niche directories if your web site's content is suitable for that. For example, if your web site covers Marketing topics, focus your efforts into finding a Marketing-only directory (such as MarketingWHO.com) and submit your site there: search engines love links from sites relevant to yours!
- You will probably come across many directories with paid inclusions: use your common sense to appreciate if it's worth it or not. A good criteria is to check their Google Page Rank: if it's at least 3 levels higher than your site's Page Rank, it's probably worth spending the money for the inclusion fee. However, do look for directories with a flat, one-time fee rather than recurring monthly or annual fees: you'll end up spending less money!
In the end, remember a simple rule: if it's too easy to get into a directory, it's probably not worth the effort to get into it in the first case.
Both Joshua Feinberg & Otilia Otlacan are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.