the episode

I spent the early part of my career in manufacturing. One of the most important lessons I learned was that of capacity.  When you know how much you can produce you can set realistic targets for your our sales team, making sure they don’t  sell more than you could produce. At the same time you don’t want them selling so far below your capacity you are sitting around twiddling your thumbs. 

Understanding your capacity is gives you tremendous control over your pricing. If you’re bumping up against your capacity constraint, don’t add another employee. Just raise your price. Now you make more money and actually do less work.  Capacity Planning is just one element of your overall business plan. 

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