{"product_id":"time-and-motion-study-owner-makes","title":"Time and Motion Study Consulting Owner Income: $257k Base Year 1","description":"\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\n\n\u003cdiv class=\"double_border\"\u003e\n\n\u003cdiv class=\"card_smpl_header\"\u003e\n\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-plus-icon.svg\" alt=\"Key Takeaways\" class=\"icon_how_to_use\"\u003e\n\n\u003ch3\u003eKey Takeaways\u003c\/h3\u003e\n\n\u003c\/div\u003e\n\n\u003cul class=\"lst_crct_blog\"\u003e\n\n\u003cli\u003ePricing sets revenue before cost control.\u003c\/li\u003e\n\n\u003cli\u003eSold hours matter more than busy hours.\u003c\/li\u003e\n\n\u003cli\u003eComplex projects raise revenue but need tight scope control.\u003c\/li\u003e\n\n\u003cli\u003eReserves protect cash when pipeline gaps hit.\u003c\/li\u003e\n\n\u003c\/ul\u003e\n\n\u003c\/div\u003e\n\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003csection class=\"fml-owner-metric-cards\" aria-label=\"Owner income snapshot\"\u003e\u003cdiv class=\"metric-grid\"\u003e\n\u003carticle class=\"metric-card is-green\"\u003e\u003cspan class=\"metric-icon-tip\" tabindex=\"0\" data-tooltip=\"Year 1 take-home before taxes equals $175k principal pay plus $82k EBITDA distribution; it excludes reserves, payroll taxes, and unpaid work.\"\u003e\u003cimg class=\"metric-icon\" src=\"\/cdn\/shop\/files\/fml-owner-income-kpi-owner-income.svg\" alt=\"Owner income icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003eOwner income\u003c\/span\u003e\u003cstrong class=\"metric-value\" tabindex=\"0\" data-tooltip=\"Year 1 take-home before taxes equals $175k principal pay plus $82k EBITDA distribution; it excludes reserves, payroll taxes, and unpaid work.\"\u003e$257k\u003c\/strong\u003e\u003c\/article\u003e\u003carticle class=\"metric-card\"\u003e\u003cspan class=\"metric-icon-tip\" tabindex=\"0\" data-tooltip=\"Year 1 take-home divided by $795k revenue gives about 32%; this is a planning proxy, not after-tax profit.\"\u003e\u003cimg class=\"metric-icon\" src=\"\/cdn\/shop\/files\/fml-owner-income-kpi-net-margin.svg\" alt=\"Net margin icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003eNet margin\u003c\/span\u003e\u003cstrong class=\"metric-value\" tabindex=\"0\" data-tooltip=\"Year 1 take-home divided by $795k revenue gives about 32%; this is a planning proxy, not after-tax profit.\"\u003e32%\u003c\/strong\u003e\u003c\/article\u003e\u003carticle class=\"metric-card\"\u003e\u003cspan class=\"metric-icon-tip\" tabindex=\"0\" data-tooltip=\"This Year 1 revenue level supports about $257k owner take-home in the model; it assumes the same mix and no tax reserve.\"\u003e\u003cimg class=\"metric-icon\" src=\"\/cdn\/shop\/files\/fml-owner-income-kpi-revenue-target.svg\" alt=\"Revenue for target pay icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003eRevenue for target pay\u003c\/span\u003e\u003cstrong class=\"metric-value\" tabindex=\"0\" data-tooltip=\"This Year 1 revenue level supports about $257k owner take-home in the model; it assumes the same mix and no tax reserve.\"\u003e$795k\u003c\/strong\u003e\u003c\/article\u003e\u003carticle class=\"metric-card\"\u003e\u003cspan class=\"metric-icon-tip\" tabindex=\"0\" data-tooltip=\"Hard because Month 10 breakeven still needs $440k minimum cash and 43 months to pay back, with heavy payroll and upfront capex.\"\u003e\u003cimg class=\"metric-icon\" src=\"\/cdn\/shop\/files\/fml-owner-income-kpi-business-difficulty.svg\" alt=\"Business difficulty icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003eBusiness difficulty\u003c\/span\u003e\u003cstrong class=\"metric-value\" tabindex=\"0\" data-tooltip=\"Hard because Month 10 breakeven still needs $440k minimum cash and 43 months to pay back, with heavy payroll and upfront capex.\"\u003eHard\u003c\/strong\u003e\u003c\/article\u003e\n\u003c\/div\u003e\u003c\/section\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWant to test your owner pay target?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-owner-calculator\" aria-label=\"Time and Motion Study Consulting Owner Income Calculator\" data-locale=\"en-US\" data-currency=\"USD\" data-default-scenario=\"base\" data-export-filename=\"Time and Motion Study Consulting Owner Income Calculator.xlsx\" data-source-site-name=\"Financial Models Lab\" data-source-site-url=\"https:\/\/financialmodelslab.com\" data-source-page-title=\"Time and Motion Study Consulting Owner Income Calculator\" data-note-title=\"Planning note:\" data-note-text=\"Research-based planning estimate only. Actual owner income depends on project mix, staffing, taxes, reserves, and timing. It is not guaranteed salary, tax advice, or owner distribution advice.\"\u003e\u003cdiv class=\"fml-owner-card\"\u003e\n\u003cheader class=\"fml-owner-header\"\u003e\u003cdiv class=\"fml-owner-heading\"\u003e\n\u003cp class=\"fml-owner-eyebrow\"\u003eOwner income calculator\u003c\/p\u003e\n\u003cp class=\"fml-owner-intro\"\u003eEstimate owner take-home and the target-pay gap from revenue, margin, costs, reserves, and target pay.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-scenarios\" aria-label=\"Income scenario presets\"\u003e\n\u003cbutton class=\"fml-owner-scenario\" type=\"button\" data-scenario=\"low\"\u003eLow\u003c\/button\u003e\u003cbutton class=\"fml-owner-scenario is-active\" type=\"button\" data-scenario=\"base\"\u003eBase\u003c\/button\u003e\u003cbutton class=\"fml-owner-scenario\" type=\"button\" data-scenario=\"high\"\u003eHigh\u003c\/button\u003e\n\u003c\/div\u003e\u003c\/header\u003e\u003cdiv class=\"fml-owner-layout\"\u003e\n\u003cform class=\"fml-owner-inputs\"\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eMonthly revenue\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Monthly sales before expenses. Use the average operating month, not a peak project month.\"\u003ei\u003cspan role=\"tooltip\"\u003eMonthly sales before expenses. Use the average operating month, not a peak project month.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-owner-field=\"monthlyRevenue\" data-owner-kind=\"money\" data-owner-label=\"Monthly revenue\" data-owner-note=\"Monthly sales before expenses. Use the average operating month, not a peak project month.\" data-low=\"66250\" data-base=\"211000\" data-high=\"470917\" name=\"monthlyRevenue\" type=\"text\" inputmode=\"numeric\" value=\"211,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eGross margin\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Share of revenue left after direct service costs like travel, software, referrals, and documentation.\"\u003ei\u003cspan role=\"tooltip\"\u003eShare of revenue left after direct service costs like travel, software, referrals, and documentation.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-percent\"\u003e\n\u003cinput data-owner-field=\"grossMargin\" data-owner-kind=\"percent\" data-owner-label=\"Gross margin\" data-owner-note=\"Share of revenue left after direct service costs like travel, software, referrals, and documentation.\" name=\"grossMargin\" type=\"range\" min=\"0\" max=\"100\" step=\"1\" data-low=\"82\" data-base=\"86\" data-high=\"88\" value=\"86\"\u003e\u003coutput\u003e86%\u003c\/output\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eLabor cost\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Monthly payroll and contractor cost before owner pay.\"\u003ei\u003cspan role=\"tooltip\"\u003eMonthly payroll and contractor cost before owner pay.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-owner-field=\"laborCost\" data-owner-kind=\"money\" data-owner-label=\"Labor cost\" data-owner-note=\"Monthly payroll and contractor cost before owner pay.\" data-low=\"60000\" data-base=\"82000\" data-high=\"170250\" name=\"laborCost\" type=\"text\" inputmode=\"numeric\" value=\"82,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eFixed overhead\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Rent, insurance, IT, admin, and other recurring overhead.\"\u003ei\u003cspan role=\"tooltip\"\u003eRent, insurance, IT, admin, and other recurring overhead.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-owner-field=\"fixedOverhead\" data-owner-kind=\"money\" data-owner-label=\"Fixed overhead\" data-owner-note=\"Rent, insurance, IT, admin, and other recurring overhead.\" data-low=\"12050\" data-base=\"12050\" data-high=\"12050\" name=\"fixedOverhead\" type=\"text\" inputmode=\"numeric\" value=\"12,050\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eMarketing\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Monthly sales spend, lead gen, and referral spend.\"\u003ei\u003cspan role=\"tooltip\"\u003eMonthly sales spend, lead gen, and referral spend.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-owner-field=\"marketing\" data-owner-kind=\"money\" data-owner-label=\"Marketing\" data-owner-note=\"Monthly sales spend, lead gen, and referral spend.\" data-low=\"3750\" data-base=\"7083\" data-high=\"11667\" name=\"marketing\" type=\"text\" inputmode=\"numeric\" value=\"7,083\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eDebt service\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Monthly loan payment. Use 0 if you have no debt.\"\u003ei\u003cspan role=\"tooltip\"\u003eMonthly loan payment. Use 0 if you have no debt.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-owner-field=\"debtService\" data-owner-kind=\"money\" data-owner-label=\"Debt service\" data-owner-note=\"Monthly loan payment. Use 0 if you have no debt.\" data-low=\"0\" data-base=\"0\" data-high=\"0\" name=\"debtService\" type=\"text\" inputmode=\"numeric\" value=\"\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eTax reserve\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Percent of profit set aside for taxes before owner pay.\"\u003ei\u003cspan role=\"tooltip\"\u003ePercent of profit set aside for taxes before owner pay.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-percent\"\u003e\n\u003cinput data-owner-field=\"taxReserve\" data-owner-kind=\"percent\" data-owner-label=\"Tax reserve\" data-owner-note=\"Percent of profit set aside for taxes before owner pay.\" name=\"taxReserve\" type=\"range\" min=\"0\" max=\"45\" step=\"1\" data-low=\"18\" data-base=\"20\" data-high=\"25\" value=\"20\"\u003e\u003coutput\u003e20%\u003c\/output\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eReinvestment reserve\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Percent kept in the business for growth and cash buffer.\"\u003ei\u003cspan role=\"tooltip\"\u003ePercent kept in the business for growth and cash buffer.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-percent\"\u003e\n\u003cinput data-owner-field=\"reinvestmentReserve\" data-owner-kind=\"percent\" data-owner-label=\"Reinvestment reserve\" data-owner-note=\"Percent kept in the business for growth and cash buffer.\" name=\"reinvestmentReserve\" type=\"range\" min=\"0\" max=\"35\" step=\"1\" data-low=\"8\" data-base=\"10\" data-high=\"12\" value=\"10\"\u003e\u003coutput\u003e10%\u003c\/output\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eTarget owner pay\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Target monthly owner income used to calculate the pay gap.\"\u003ei\u003cspan role=\"tooltip\"\u003eTarget monthly owner income used to calculate the pay gap.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-owner-field=\"targetOwnerPay\" data-owner-kind=\"money\" data-owner-label=\"Target owner pay\" data-owner-note=\"Target monthly owner income used to calculate the pay gap.\" data-low=\"10000\" data-base=\"20000\" data-high=\"35000\" name=\"targetOwnerPay\" type=\"text\" inputmode=\"numeric\" value=\"20,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/form\u003e\n\u003caside class=\"fml-owner-results\" aria-live=\"polite\"\u003e\u003cspan class=\"fml-owner-tag\"\u003eOwner income output\u003c\/span\u003e\u003cdiv class=\"fml-owner-metrics\"\u003e\n\u003cdiv class=\"fml-owner-metric is-primary\"\u003e\n\u003cspan class=\"fml-owner-metric-label\"\u003eOwner Income\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Monthly take-home after tax and reinvestment reserves.\"\u003ei\u003cspan role=\"tooltip\"\u003eMonthly take-home after tax and reinvestment reserves.\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003cstrong data-owner-output=\"monthlyOwnerIncome\"\u003e$56,229\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-metric\"\u003e\n\u003cspan class=\"fml-owner-metric-label\"\u003eNet Margin\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Owner income divided by monthly revenue.\"\u003ei\u003cspan role=\"tooltip\"\u003eOwner income divided by monthly revenue.\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003cstrong data-owner-output=\"netProfitMargin\"\u003e27%\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-metric\"\u003e\n\u003cspan class=\"fml-owner-metric-label\"\u003eRevenue for Target Pay\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Monthly revenue needed to support the target owner pay.\"\u003ei\u003cspan role=\"tooltip\"\u003eMonthly revenue needed to support the target owner pay.\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003cstrong data-owner-output=\"revenueNeeded\"\u003e$151K\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-metric is-target-gap is-positive\"\u003e\n\u003cspan class=\"fml-owner-metric-label\"\u003eTarget Pay Gap\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Owner income minus target owner pay. Negative means the target pay is not covered.\"\u003ei\u003cspan role=\"tooltip\"\u003eOwner income minus target owner pay. Negative means the target pay is not covered.\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003cstrong data-owner-output=\"targetPayGap\"\u003e$36,229\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdl class=\"fml-owner-result-list\"\u003e\n\u003cdiv\u003e\n\u003cdt\u003eAnnual owner income\u003c\/dt\u003e\n\u003cdd data-owner-output=\"annualOwnerIncome\"\u003e$674,748\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003cdiv\u003e\n\u003cdt\u003eProfit before reserves\u003c\/dt\u003e\n\u003cdd data-owner-output=\"profitBeforeReserves\"\u003e$80,327\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003cdiv\u003e\n\u003cdt\u003eTax + reinvestment reserve\u003c\/dt\u003e\n\u003cdd data-owner-output=\"reserveAmount\"\u003e$24,098\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003cdiv\u003e\n\u003cdt\u003eTarget pay gap\u003c\/dt\u003e\n\u003cdd data-owner-output=\"cashAfterTargetPay\"\u003e$36,229\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003c\/dl\u003e\n\u003cdiv class=\"fml-owner-bridge\"\u003e\n\u003cdiv class=\"fml-owner-bar-row\" data-owner-bridge=\"revenue\"\u003e\n\u003cspan\u003eRevenue\u003c\/span\u003e\u003cdiv\u003e\u003ci style=\"--fml-owner-share: 100%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-owner-bridge-value\u003e$211K\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-bar-row\" data-owner-bridge=\"grossProfit\"\u003e\n\u003cspan\u003eGross profit\u003c\/span\u003e\u003cdiv\u003e\u003ci style=\"--fml-owner-share: 86%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-owner-bridge-value\u003e$181K\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-bar-row\" data-owner-bridge=\"operatingCosts\"\u003e\n\u003cspan\u003eOperating costs\u003c\/span\u003e\u003cdiv\u003e\u003ci style=\"--fml-owner-share: 48%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-owner-bridge-value\u003e$101K\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-bar-row\" data-owner-bridge=\"reserveAmount\"\u003e\n\u003cspan\u003eReserves\u003c\/span\u003e\u003cdiv\u003e\u003ci style=\"--fml-owner-share: 11%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-owner-bridge-value\u003e$24,098\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-bar-row\" data-owner-bridge=\"ownerIncome\"\u003e\n\u003cspan\u003eOwner income\u003c\/span\u003e\u003cdiv\u003e\u003ci style=\"--fml-owner-share: 27%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-owner-bridge-value\u003e$56,229\u003c\/b\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cbutton class=\"fml-owner-export\" type=\"button\" data-owner-export\u003eEXPORT XLSX\u003c\/button\u003e\u003c\/aside\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-note\"\u003e\n\u003cspan class=\"fml-owner-note-icon\" aria-hidden=\"true\"\u003e!\u003c\/span\u003e\u003cp\u003e\u003cstrong\u003ePlanning note:\u003c\/strong\u003e Research-based planning estimate only. Actual owner income depends on project mix, staffing, taxes, reserves, and timing. It is not guaranteed salary, tax advice, or owner distribution advice.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003c\/section\u003e\u003cbr\u003e\u003cdiv class=\"container_new_design_blog\"\u003e\n\n\u003cdiv class=\"text-section_blog text-2_new_design_blog\"\u003e\n\n\u003cdiv class=\"line_top_blog\"\u003e\u003cbr\u003e\u003c\/div\u003e\n\n\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eWant to see the owner income forecast?\u003c\/span\u003e\u003c\/h3\u003e\n\n\u003cp\u003eThe dashboard in the \u003ca href=\"\/products\/time-and-motion-study-financial-model\"\u003eTime and Motion Study Consulting Financial Model Template\u003c\/a\u003e ties \u003cstrong\u003e$113M\u003c\/strong\u003e Year 1 revenue, \u003cstrong\u003e86%\u003c\/strong\u003e gross margin, \u003cstrong\u003e$625k\u003c\/strong\u003e payroll, \u003cstrong\u003e$1.446M\u003c\/strong\u003e fixed overhead, and \u003cstrong\u003e$82k\u003c\/strong\u003e EBITDA to owner take-home. Open it.\u003c\/p\u003e\n\n\u003ch4\u003eOwner-income model highlights\u003c\/h4\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eOwner take-home output\u003c\/li\u003e\n\u003cli\u003eRevenue and margin\u003c\/li\u003e\n\u003cli\u003eConsultant utilization\u003c\/li\u003e\n\u003cli\u003ePricing by service line\u003c\/li\u003e\n\u003cli\u003eScenarios and reserves\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003c\/div\u003e\n\n\u003cdiv class=\"image-section_blog image-2_new_design_blog\"\u003e\n\n\u003cdiv class=\"preview-card\" data-preview-src=\"\/cdn\/shop\/files\/time-and-motion-study-financial-model-dashboard-financialmodelslab_c4dd5f05-3099-4db7-bdf1-e70d8183a79e.webp\"\u003e\n\u003cimg class=\"preview-img\" width=\"100%\" height=\"auto\" src=\"\/cdn\/shop\/files\/time-and-motion-study-financial-model-dashboard-financialmodelslab_c4dd5f05-3099-4db7-bdf1-e70d8183a79e.webp?width=500\" alt=\"Time and Motion Study Consulting Financial Model dashboard summarizing key KPIs, runway and cash position with a dynamic dashboard to track utilization, billable hours and consulting performance, investor-ready.\"\u003e\n\u003cdiv class=\"preview-overlay\"\u003e\n\u003cbutton class=\"preview-btn\" type=\"button\" style=\"align-items: center; vertical-align: middle; display: inline-flex; justify-content: center; gap: 6px; line-height: 1;\"\u003e\nPREVIEW \u003csvg fill=\"#fff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" aria-hidden=\"true\" focusable=\"false\" role=\"presentation\" viewbox=\"0 0 448 512\" width=\"14\"\u003e\u003cpath d=\"M416 176V86.63L246.6 256L416 425.4V336c0-8.844 7.156-16 16-16s16 7.156 16 16v128c0 8.844-7.156 16-16 16h-128c-8.844 0-16-7.156-16-16s7.156-16 16-16h89.38L224 278.6L54.63 448H144C152.8 448 160 455.2 160 464S152.8 480 144 480h-128C7.156 480 0 472.8 0 464v-128C0 327.2 7.156 320 16 320S32 327.2 32 336v89.38L201.4 256L32 86.63V176C32 184.8 24.84 192 16 192S0 184.8 0 176v-128C0 39.16 7.156 32 16 32h128C152.8 32 160 39.16 160 48S152.8 64 144 64H54.63L224 233.4L393.4 64H304C295.2 64 288 56.84 288 48S295.2 32 304 32h128C440.8 32 448 39.16 448 48v128C448 184.8 440.8 192 432 192S416 184.8 416 176z\"\u003e\u003c\/path\u003e\u003c\/svg\u003e\n\u003c\/button\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\n\u003c\/div\u003e\n\u003c\/div\u003e\n\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eHow much can a solo time and motion study consultant make?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003eA solo \u003cstrong\u003eTime and Motion Study Consulting\u003c\/strong\u003e owner can show about \u003cstrong\u003e$257k before taxes\u003c\/strong\u003e in Year 1 only if the owner is the \u003cstrong\u003e$175k principal engineer\u003c\/strong\u003e and keeps \u003cstrong\u003e100% of the $82k EBITDA\u003c\/strong\u003e; see \u003ca href=\"\/blogs\/profitability\/time-and-motion-study\"\u003eHow Increase Profits In Time And Motion Study Consulting?\u003c\/a\u003e for the profit levers. But the base case is not truly solo because it includes \u003cstrong\u003e6 roles\u003c\/strong\u003e, so pure solo income is not provided.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eOwner economics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003e\n\u003cstrong\u003e$175k\u003c\/strong\u003e principal engineer pay\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e$82k\u003c\/strong\u003e EBITDA, before non-cash and financing items\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e$257k\u003c\/strong\u003e potential pre-tax owner economics\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e100%\u003c\/strong\u003e EBITDA capture assumed\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eSolo limits\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eSenior consulting capacity must be replaced\u003c\/li\u003e\n\u003cli\u003eAnalysis work must still get done\u003c\/li\u003e\n\u003cli\u003eTravel and proposals cut billable time\u003c\/li\u003e\n\u003cli\u003eQuality drops can hurt premium pricing\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhat profit margin can a time and motion study consulting business make?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003eTime and Motion Study Consulting can earn a very high margin, but it isn’t fixed. Year 1 gross margin is \u003cstrong\u003e86%\u003c\/strong\u003e, and it rises to \u003cstrong\u003e90%\u003c\/strong\u003e by Year 5; for the operating levers, see \u003ca href=\"\/blogs\/kpi-metrics\/time-and-motion-study\"\u003eWhat Are The 5 KPIs For Time And Motion Study Consulting Business?\u003c\/a\u003e. Contribution margin reaches \u003cstrong\u003e795%\u003c\/strong\u003e by Year 5, so client location, plant access, analyst support, and subcontracted engineering work can move owner take-home fast.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eYear 1 margin mix\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eGross margin starts at \u003cstrong\u003e86%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eTravel and lodging sit at \u003cstrong\u003e10%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eCloud and analytics licenses add \u003cstrong\u003e4%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eReferral commissions are \u003cstrong\u003e5%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eYear 5 margin shift\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eGross margin improves to \u003cstrong\u003e90%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eTravel falls to \u003cstrong\u003e8%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eSoftware falls to \u003cstrong\u003e2%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eContribution margin reaches \u003cstrong\u003e795%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eCan a time and motion study consulting business scale beyond the owner?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003eYes—\u003cstrong\u003eTime and Motion Study Consulting\u003c\/strong\u003e can scale beyond the owner, but only if \u003cstrong\u003epipeline\u003c\/strong\u003e, \u003cstrong\u003equality control\u003c\/strong\u003e, and \u003cstrong\u003eutilization\u003c\/strong\u003e stay tight. In the model, revenue grows from about \u003cstrong\u003e$113M\u003c\/strong\u003e in Year 1 to \u003cstrong\u003e$711M\u003c\/strong\u003e in Year 5, while payroll rises from \u003cstrong\u003e$625k\u003c\/strong\u003e to \u003cstrong\u003e$204M\u003c\/strong\u003e, and EBITDA rises from about \u003cstrong\u003e$82k\u003c\/strong\u003e to \u003cstrong\u003e$368M\u003c\/strong\u003e before taxes and reserves. More consultants add capacity, but they also add supervision, rework risk, payroll pressure, and sales demand.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eWhy it can scale\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eMore consultants raise billable capacity\u003c\/li\u003e\n\u003cli\u003e\u003cstrong\u003eYear 1 revenue: $113M\u003c\/strong\u003e\u003c\/li\u003e\n\u003cli\u003e\u003cstrong\u003eYear 5 revenue: $711M\u003c\/strong\u003e\u003c\/li\u003e\n\u003cli\u003e\u003cstrong\u003eEBITDA: $82k to $368M\u003c\/strong\u003e\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eWhat can break the model\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003ePayroll climbs to \u003cstrong\u003e$204M\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003cli\u003eSupervision gets heavier fast\u003c\/li\u003e\n\u003cli\u003eRework risk rises with headcount\u003c\/li\u003e\n\u003cli\u003eSales demand must keep pace\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e\n\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhat drives owner take-home most?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-main-income-drivers\" aria-label=\"Accessible label for the Main Income Drivers card grid.\"\u003e\u003carticle class=\"driver-option is-cards\"\u003e\u003cdiv class=\"main-driver-grid\"\u003e\n\u003carticle class=\"main-driver-card is-primary\"\u003e\u003cdiv class=\"main-driver-heading\"\u003e\n\u003cspan class=\"driver-rank\"\u003e1\u003c\/span\u003e\u003ch4\u003eProject Pricing\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cstrong\u003e$20.9K\u003c\/strong\u003e\u003cp\u003eThe Year 1 blended rate is about $20.9K, so pricing each project well lifts owner take-home fast.\u003c\/p\u003e\u003c\/article\u003e\u003carticle class=\"main-driver-card\"\u003e\u003cdiv class=\"main-driver-heading\"\u003e\n\u003cspan class=\"driver-rank\"\u003e2\u003c\/span\u003e\u003ch4\u003eBillable Utilization\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cstrong\u003e45h\/mo\u003c\/strong\u003e\u003cp\u003eAt 45 billable hours per customer per month, every unused hour is lost revenue, so utilization drives profit.\u003c\/p\u003e\u003c\/article\u003e\u003carticle class=\"main-driver-card\"\u003e\u003cdiv class=\"main-driver-heading\"\u003e\n\u003cspan class=\"driver-rank\"\u003e3\u003c\/span\u003e\u003ch4\u003eClient Mix\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cstrong\u003e86%\u003c\/strong\u003e\u003cp\u003eA shift toward higher-scope implementation and retainers supports the 86% gross margin and raises cash to the owner.\u003c\/p\u003e\u003c\/article\u003e\u003carticle class=\"main-driver-card\"\u003e\u003cdiv class=\"main-driver-heading\"\u003e\n\u003cspan class=\"driver-rank\"\u003e4\u003c\/span\u003e\u003ch4\u003eDelivery Labor\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cstrong\u003e$625K\u003c\/strong\u003e\u003cp\u003eThe $625K payroll base is the main delivery cost, so staffing moves profit up or down quickly.\u003c\/p\u003e\u003c\/article\u003e\u003carticle class=\"main-driver-card\"\u003e\u003cdiv class=\"main-driver-heading\"\u003e\n\u003cspan class=\"driver-rank\"\u003e5\u003c\/span\u003e\u003ch4\u003eRepeat Pipeline\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cstrong\u003e$45K\u003c\/strong\u003e\u003cp\u003eRepeat work lowers sales friction, and the $45K marketing budget has to keep the pipeline full.\u003c\/p\u003e\u003c\/article\u003e\u003carticle class=\"main-driver-card\"\u003e\u003cdiv class=\"main-driver-heading\"\u003e\n\u003cspan class=\"driver-rank\"\u003e6\u003c\/span\u003e\u003ch4\u003eOverhead Control\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cstrong\u003e$1.45M\u003c\/strong\u003e\u003cp\u003eThe $1.446M overhead base burns cash fast, so travel, software, insurance, and reserves need tight control.\u003c\/p\u003e\u003c\/article\u003e\n\u003c\/div\u003e\u003c\/article\u003e\u003c\/section\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eTime and Motion Study Consulting Core Six Income Drivers\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eProject Pricing and Average Project Value\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"container_new_design_timeline\"\u003e\n  \u003cdiv class=\"left-row1\"\u003e\n    \u003ch3\u003eProject Pricing\u003c\/h3\u003e\n    \u003cp\u003e\u003cstrong\u003ePricing\u003c\/strong\u003e sets revenue before cost control matters. Year 1 service math is \u003cstrong\u003e$43,500\u003c\/strong\u003e across four offers: diagnostics at \u003cstrong\u003e60 hours × $220 = $13,200\u003c\/strong\u003e, implementation at \u003cstrong\u003e120 hours × $190 = $22,800\u003c\/strong\u003e, retainers at \u003cstrong\u003e20 hours × $175 = $3,500\u003c\/strong\u003e, and workshops at \u003cstrong\u003e16 hours × $250 = $4,000\u003c\/strong\u003e. The owner’s take-home rises when higher-rate work fills more of the mix.\u003c\/p\u003e\n    \u003cp\u003eFixed-fee projects need tight scope. A few extra site visits or report revisions turn billed hours into unpaid labor, so profit drops even when revenue looks steady. Here’s the quick math: every \u003cstrong\u003e10 unbilled hours\u003c\/strong\u003e on a \u003cstrong\u003e$220\u003c\/strong\u003e diagnostic removes \u003cstrong\u003e$2,200\u003c\/strong\u003e from gross profit before overhead.\u003c\/p\u003e\n  \u003c\/div\u003e\n  \u003cdiv class=\"right-row1\"\u003e\n    \u003cdiv class=\"tips-box\"\u003e\n      \u003ch3\u003eControl Scope and Rate Cards\u003c\/h3\u003e\n      \u003cp\u003eTrack \u003cstrong\u003ehours sold\u003c\/strong\u003e, \u003cstrong\u003ehours used\u003c\/strong\u003e, and \u003cstrong\u003echange requests\u003c\/strong\u003e on every project. Price by deliverable, set revision limits in writing, and flag any extra site visit before work starts. That keeps the billed rate close to plan and protects cash for owner pay.\u003c\/p\u003e\n      \u003cp\u003eWatch the mix by offer. A \u003cstrong\u003e$250\u003c\/strong\u003e workshop pays more per hour than a \u003cstrong\u003e$175\u003c\/strong\u003e retainer, but long implementation work can still lift revenue if delivery stays tight. If revisions run past scope, the owner funds extra labor out of margin instead of earning more profit.\u003c\/p\u003e\n    \u003c\/div\u003e\n  \u003c\/div\u003e\n  \u003cdiv class=\"timeline\"\u003e\u003c\/div\u003e\n  \u003cdiv class=\"step-circle step1\"\u003e1\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eBillable Utilization and Owner Capacity\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"container_new_design_timeline\"\u003e\n\u003cdiv class=\"right-row2\"\u003e\n\u003ch3\u003eBillable Utilization\u003c\/h3\u003e\n\u003cp\u003e\u003cstrong\u003eUtilization\u003c\/strong\u003e is the share of available time that gets billed to clients. In this model, Year 1 assumes \u003cstrong\u003e45 billable hours per month per active customer\u003c\/strong\u003e, rising to \u003cstrong\u003e60\u003c\/strong\u003e by Year 5, so owner income depends on sold hours, not on being busy. Proposals, travel, plant walkthroughs, data cleanup, reporting, sales calls, and admin all cut billable capacity, and project gaps can squeeze cash flow even when the hourly rate looks strong.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"left-row2\"\u003e\n\u003cdiv class=\"tips-box\"\u003e\n\u003ch3\u003eTrack Sold Hours, Not Busy Hours\u003c\/h3\u003e\n\u003cp\u003eUse a simple capacity sheet: active customers, billable hours delivered, nonbillable hours, and realized utilization. One clean rule matters: \u003cstrong\u003erevenue = sold hours × rate\u003c\/strong\u003e. If utilization slips below the model’s \u003cstrong\u003e45 to 60 hours per month per client\u003c\/strong\u003e path, owner pay falls fast because fixed time stays fixed. Protect margin by blocking admin time, batching site work, and pricing project gaps into the forecast.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eTrack billable hours by client.\u003c\/li\u003e\n\u003cli\u003eLog nonbillable work weekly.\u003c\/li\u003e\n\u003cli\u003eSeparate proposals from delivery.\u003c\/li\u003e\n\u003cli\u003eForecast gaps between projects.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003eWhat this estimate hides is simple: if a week fills with travel, reporting, or sales calls, the owner still works but does not bill. That is why utilization should be reviewed monthly, alongside cash collected, so take-home pay reflects actual sold hours instead of raw effort.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"timeline\"\u003e\u003c\/div\u003e\n\u003cdiv class=\"step-circle step2\"\u003e2\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eClient Mix and Scope Complexity\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"container_new_design_timeline\"\u003e\n  \u003cdiv class=\"left-row3\"\u003e\n    \u003ch3\u003eClient Mix and Scope Complexity\u003c\/h3\u003e\n    \u003cp\u003eClient mix shifts both \u003cstrong\u003erevenue size\u003c\/strong\u003e and \u003cstrong\u003eowner take-home\u003c\/strong\u003e. In Year 1, the mix is \u003cstrong\u003e40%\u003c\/strong\u003e operational diagnostics, \u003cstrong\u003e30%\u003c\/strong\u003e process implementation, \u003cstrong\u003e15%\u003c\/strong\u003e improvement retainers, and \u003cstrong\u003e15%\u003c\/strong\u003e training workshops. By Year 5, process implementation rises to \u003cstrong\u003e50%\u003c\/strong\u003e and retainers to \u003cstrong\u003e30%\u003c\/strong\u003e, so more revenue comes from repeat work, not one-off jobs.\u003c\/p\u003e\n    \u003cp\u003eLarger manufacturers, distribution centers, process-heavy operations, and multi-site clients can support more hours and repeat engagements. The tradeoff is scope complexity: extra site visits, revisions, and cross-site coordination can push labor up and squeeze margin if the work is not tightly controlled.\u003c\/p\u003e\n  \u003c\/div\u003e\n  \u003cdiv class=\"right-row3\"\u003e\n    \u003cdiv class=\"tips-box\"\u003e\n      \u003ch3\u003eTrack Scope, Not Just Sales\u003c\/h3\u003e\n      \u003cp\u003eMeasure \u003cstrong\u003ehours per client\u003c\/strong\u003e, repeat-client share, and rework hours by service line. Retainers mean recurring monthly support, so they usually improve cash flow more than workshops or diagnostics. If multi-site work starts adding unbilled travel or redraws, price the complexity upfront or owner pay will fall even when revenue grows.\u003c\/p\u003e\n      \u003cul class=\"lst_crct_blog\"\u003e\n        \u003cli\u003eTrack mix by service type monthly.\u003c\/li\u003e\n        \u003cli\u003eLog change-order and rework hours.\u003c\/li\u003e\n        \u003cli\u003eSeparate multi-site pricing from single-site work.\u003c\/li\u003e\n        \u003cli\u003eLimit free revisions and extra visits.\u003c\/li\u003e\n      \u003c\/ul\u003e\n      \u003cp\u003eUse clear sign-offs, weekly status checks, and fixed deliverables on implementation jobs. That keeps the \u003cstrong\u003e30%\u003c\/strong\u003e to \u003cstrong\u003e50%\u003c\/strong\u003e mix shift from turning into hidden labor, and it protects gross margin before it shows up in the owner’s draw.\u003c\/p\u003e\n    \u003c\/div\u003e\n  \u003c\/div\u003e\n  \u003cdiv class=\"timeline\"\u003e\u003c\/div\u003e\n  \u003cdiv class=\"step-circle step3\"\u003e3\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eDelivery Model and Subcontractor Cost\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"container_new_design_timeline\"\u003e\n\u003cdiv class=\"right-row4\"\u003e\n\u003ch3\u003eDelivery Mix and Subcontractor Cost\u003c\/h3\u003e\n\u003cp\u003eOwner-only delivery keeps \u003cstrong\u003egross margin\u003c\/strong\u003e high, but it caps capacity. Team delivery adds billable hours, but it also adds payroll, subcontractor cost, and supervision time. In this model, \u003cstrong\u003eYear 1 payroll is $625k\u003c\/strong\u003e across the principal, senior consultant, analyst, junior engineer, business development, and admin roles.\u003c\/p\u003e\n\u003cp\u003eThe key inputs are \u003cstrong\u003eheadcount\u003c\/strong\u003e, \u003cstrong\u003esubcontractor rates\u003c\/strong\u003e, \u003cstrong\u003eutilization\u003c\/strong\u003e, and \u003cstrong\u003ebillable hours\u003c\/strong\u003e per role. If direct labor gets ahead of sold hours, owner take-home compresses fast. The model shows \u003cstrong\u003eYear 5 payroll at $204M\u003c\/strong\u003e, which makes labor productivity the main control on profit and cash.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"left-row4\"\u003e\n\u003cdiv class=\"tips-box\"\u003e\n\u003ch3\u003eKeep Labor Productive\u003c\/h3\u003e\n\u003cp\u003eTrack \u003cstrong\u003ebillable hours per consultant\u003c\/strong\u003e, direct labor cost, and supervision time on every project. Separate employee payroll from subcontractor spend so you can see which delivery mix creates margin and which one just adds cost. One clean rule: if a role cannot stay productive, it should not scale first.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eMeasure billed hours by role.\u003c\/li\u003e\n\u003cli\u003eSplit payroll and subcontractors.\u003c\/li\u003e\n\u003cli\u003eCap unpaid supervision time.\u003c\/li\u003e\n\u003cli\u003eCompare owner-only vs team delivery.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003eTest each project against the question: does added staff raise revenue more than it raises labor cost? If not, cash flow weakens and the owner’s draw gets squeezed. The goal is enough team depth to sell more hours, without letting direct labor outrun profit.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"timeline\"\u003e\u003c\/div\u003e\n\u003cdiv class=\"step-circle step4\"\u003e4\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003ePipeline and Repeat Engagements\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"container_new_design_timeline\"\u003e\n  \u003cdiv class=\"left-row5\"\u003e\n    \u003ch3\u003ePipeline and Repeat Work\u003c\/h3\u003e\n    \u003cp\u003ePipeline matters because this model lives on project flow, not steady subscriptions. With \u003cstrong\u003e$45k\u003c\/strong\u003e in Year 1 marketing and a \u003cstrong\u003e$4,500 CAC\u003c\/strong\u003e (customer acquisition cost), that implies about \u003cstrong\u003e10 customers\u003c\/strong\u003e; by Year 5, \u003cstrong\u003e$140k\u003c\/strong\u003e at a \u003cstrong\u003e$3,500 CAC\u003c\/strong\u003e implies about \u003cstrong\u003e40 customers\u003c\/strong\u003e. More repeat studies, multi-site rollout work, follow-up implementation, and measurement retainers can smooth owner income and reduce pay swings between projects.\u003c\/p\u003e\n    \u003cp\u003eThe catch is simple: repeat work is not guaranteed. If clients buy one diagnostic and stop, cash flow drops fast, so the owner’s take-home depends on how many customers convert to a second or third engagement and how much of the book turns into retainer work. That means pipeline quality affects revenue stability, gross margin, and the size of reserves needed before distributions.\u003c\/p\u003e\n  \u003c\/div\u003e\n  \u003cdiv class=\"right-row5\"\u003e\n    \u003cdiv class=\"tips-box\"\u003e\n      \u003ch3\u003eTrack Repeat Rate and CAC\u003c\/h3\u003e\n      \u003cp\u003eMeasure \u003cstrong\u003enew customers\u003c\/strong\u003e, \u003cstrong\u003erepeat engagement rate\u003c\/strong\u003e, \u003cstrong\u003eCAC\u003c\/strong\u003e, and \u003cstrong\u003eretainer share\u003c\/strong\u003e each month. Here’s the quick math: \u003cstrong\u003e$45k ÷ $4,500 = 10 customers\u003c\/strong\u003e, and \u003cstrong\u003e$140k ÷ $3,500 = 40 customers\u003c\/strong\u003e. If repeat work lags, the owner should plan for lower draw, because project gaps hit cash before the next study starts.\u003c\/p\u003e\n      \u003cul class=\"lst_crct_blog\"\u003e\n        \u003cli\u003eTrack first-to-second project conversion.\u003c\/li\u003e\n        \u003cli\u003eForecast multi-site rollouts separately.\u003c\/li\u003e\n        \u003cli\u003ePrice follow-up work before delivery\nends.\u003c\/li\u003e\n        \u003cli\u003eHold reserves for gap months.\u003c\/li\u003e\n      \u003c\/ul\u003e\n    \u003c\/div\u003e\n  \u003c\/div\u003e\n  \u003cdiv class=\"timeline\"\u003e\u003c\/div\u003e\n  \u003cdiv class=\"step-circle step5\"\u003e5\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eOverhead, Travel, Software, and Reserves\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"container_new_design_timeline\"\u003e\n  \u003cdiv class=\"right-row6\"\u003e\n    \u003ch3\u003eLean Overhead and Cash Reserves\u003c\/h3\u003e\n    \u003cp\u003e\u003cstrong\u003e$12,050\u003c\/strong\u003e a month in fixed overhead sets a hard floor on profit, before any owner draw. That is \u003cstrong\u003e$144,600\u003c\/strong\u003e a year from lease, insurance, IT, accounting, legal, utilities, internet, and memberships. In Year 1, travel and lodging take \u003cstrong\u003e10%\u003c\/strong\u003e of revenue, software \u003cstrong\u003e4%\u003c\/strong\u003e, referral costs \u003cstrong\u003e5%\u003c\/strong\u003e, and documentation \u003cstrong\u003e15%\u003c\/strong\u003e, so take-home shrinks fast if scope or travel drifts.\u003c\/p\u003e\n    \u003cp\u003eOne clean rule: build reserves before distributions. Payroll and travel cash needs can hit before some client payments, so cash flow can tighten even when revenue looks fine. The key inputs are revenue, travel days, software seats, referral volume, documentation time, and collection timing.\u003c\/p\u003e\n  \u003c\/div\u003e\n  \u003cdiv class=\"left-row6\"\u003e\n    \u003cdiv class=\"tips-box\"\u003e\n      \u003ch3\u003eFund the reserve before paying yourself\u003c\/h3\u003e\n      \u003cp\u003eTrack these costs as a share of revenue each month, then compare them to plan. If travel, software, referrals, or documentation rise, owner pay should wait until the reserve is topped up.\u003c\/p\u003e\n      \u003cul class=\"lst_crct_blog\"\u003e\n        \u003cli\u003eWatch \u003cstrong\u003e34%\u003c\/strong\u003e of revenue in Year 1.\u003c\/li\u003e\n        \u003cli\u003eSplit travel from client work.\u003c\/li\u003e\n        \u003cli\u003eBill documentation time when allowed.\u003c\/li\u003e\n        \u003cli\u003eHold cash for payroll timing gaps.\u003c\/li\u003e\n      \u003c\/ul\u003e\n    \u003c\/div\u003e\n  \u003c\/div\u003e\n  \u003cdiv class=\"timeline\"\u003e\u003c\/div\u003e\n  \u003cdiv class=\"step-circle step6\"\u003e6\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eCompare owner income scenarios without confusing revenue with pay\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-scenario-table\" aria-label=\"Time and Motion Study Consulting Owner Income Scenarios\" data-site-name=\"Financial Models Lab\" data-site-url=\"https:\/\/financialmodelslab.com\" data-source-title=\"Time and Motion Study Consulting Owner Income Scenarios\" data-note-label=\"Planning note\" data-note-text=\"Scenario ranges are researched planning assumptions, not guaranteed earnings, salary promises, tax advice, or distributions.\"\u003e\u003cdiv class=\"fml-scenario-table-card\"\u003e\n\u003cheader class=\"fml-scenario-table-header\"\u003e\u003cdiv\u003e\n\u003cp class=\"fml-scenario-table-eyebrow\"\u003eOwner income scenarios\u003c\/p\u003e\n\u003cp class=\"fml-scenario-table-description\"\u003eUtilization, hiring, travel, and pipeline depth drive owner take-home in this consulting model. Low cases lean on salary; base and high cases add distributions as EBITDA scales.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-scenario-table-actions\"\u003e\u003cbutton class=\"fml-scenario-table-export\" type=\"button\" data-scenario-export\u003eEXPORT XLSX\u003c\/button\u003e\u003c\/div\u003e\u003c\/header\u003e\u003cdiv class=\"fml-scenario-table-wrap\"\u003e\u003ctable class=\"fml-scenario-table-grid\"\u003e\n\u003ccaption\u003eLow, base, and high planning cases for owner take-home.\u003c\/caption\u003e\n\u003cthead\u003e\u003ctr\u003e\n\u003cth class=\"fml-scenario-table-stub\" scope=\"col\" data-export-value=\"Scenario\"\u003eScenario\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"Low Case\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eLow Case\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003ePipeline risk\u003c\/span\u003e\n\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"Base Case\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eBase Case\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eUtilization load\u003c\/span\u003e\n\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"High Case\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eHigh Case\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-warning\"\u003eHiring strain\u003c\/span\u003e\n\u003c\/th\u003e\n\u003c\/tr\u003e\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Launch model\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-launch\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-launch-model.svg\" alt=\"Launch model icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eLaunch model\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Owner income stays salary-led because utilization and new work come in slower than planned.\"\u003eOwner income stays salary-led because utilization and new work come in slower than planned.\u003c\/td\u003e\n\u003ctd data-export-value=\"Owner income improves as the model reaches positive EBITDA and the practice can fund modest distributions.\"\u003eOwner income improves as the model reaches positive EBITDA and the practice can fund modest distributions.\u003c\/td\u003e\n\u003ctd data-export-value=\"Owner income lifts when revenue scales faster than headcount and more EBITDA is left after reserves.\"\u003eOwner income lifts when revenue scales faster than headcount and more EBITDA is left after reserves.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Typical setup\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-setup\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-typical-setup.svg\" alt=\"Typical setup icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eTypical setup\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Year 1 revenue is $795k, EBITDA is -$236k, and owner income stays tied to salary while the business absorbs travel and payroll.\"\u003eYear 1 revenue is $795k, EBITDA is -$236k, and owner income stays tied to salary while the business absorbs travel and payroll.\u003c\/td\u003e\n\u003ctd data-export-value=\"The model's Year 2 step reaches $1.669M revenue and $142k EBITDA, with 45 monthly billable hours per active customer and a mix of diagnostics, implementation, retainers, and workshops.\"\u003eThe model's Year 2 step reaches $1.669M revenue and $142k EBITDA, with 45 monthly billable hours per active customer and a mix of diagnostics, implementation, retainers, and workshops.\u003c\/td\u003e\n\u003ctd data-export-value=\"By Year 5, revenue reaches $5.651M and EBITDA reaches $1.834M, so the owner can pay salary and still leave room for distributions after reserves.\"\u003eBy Year 5, revenue reaches $5.651M and EBITDA reaches $1.834M, so the owner can pay salary and still leave room for distributions after reserves.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Cost drivers\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-drivers\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-cost-drivers.svg\" alt=\"Cost drivers icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eCost drivers\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Utilization gaps; slower client wins; travel burden; fixed payroll; referral costs\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003eUtilization gaps\u003c\/li\u003e\n\u003cli\u003eslower client wins\u003c\/li\u003e\n\u003cli\u003etravel burden\u003c\/li\u003e\n\u003cli\u003efixed payroll\u003c\/li\u003e\n\u003cli\u003ereferral costs\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003ctd data-export-value=\"Billable hours; service mix; overhead control; stable marketing; principal salary\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003eBillable hours\u003c\/li\u003e\n\u003cli\u003eservice mix\u003c\/li\u003e\n\u003cli\u003eoverhead control\u003c\/li\u003e\n\u003cli\u003estable marketing\u003c\/li\u003e\n\u003cli\u003eprincipal salary\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003ctd data-export-value=\"Higher hourly rates; retainer growth; headcount growth; travel burden; stronger pipeline\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003eHigher hourly rates\u003c\/li\u003e\n\u003cli\u003eretainer growth\u003c\/li\u003e\n\u003cli\u003eheadcount growth\u003c\/li\u003e\n\u003cli\u003etravel burden\u003c\/li\u003e\n\u003cli\u003estronger pipeline\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Owner income range\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-range\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-planning-range.svg\" alt=\"Owner income range icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eOwner income range\u003c\/span\u003e\u003cspan class=\"fml-scenario-row-subtitle\"\u003eBefore owner reserves\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Salary only, no distributions\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003eSalary only, no distributions\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eThin pipeline\u003c\/span\u003e\n\u003c\/td\u003e\n\u003ctd data-export-value=\"Salary plus small distributions\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003eSalary plus small distributions\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003ePositive EBITDA\u003c\/span\u003e\n\u003c\/td\u003e\n\u003ctd data-export-value=\"Salary plus larger distributions\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003eSalary plus larger distributions\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-warning\"\u003eCapacity stretch\u003c\/span\u003e\n\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Best fit\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-fit\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-best-fit.svg\" alt=\"Best fit icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eBest fit\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Use this to stress-test a slow sales funnel or weak billable-hours ramp.\"\u003eUse this to stress-test a slow sales funnel or weak billable-hours ramp.\u003c\/td\u003e\n\u003ctd data-export-value=\"Use this as the main planning case for a steady ramp with normal hiring and travel.\"\u003eUse this as the main planning case for a steady ramp with normal hiring and travel.\u003c\/td\u003e\n\u003ctd data-export-value=\"Use this to test upside if demand stays strong enough to keep senior staff busy and the pipeline full.\"\u003eUse this to test upside if demand stays strong enough to keep senior staff busy and the pipeline full.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\u003c\/div\u003e\n\u003cdiv class=\"fml-scenario-table-note\"\u003e\n\u003cspan class=\"fml-scenario-table-note-icon\" aria-hidden=\"true\"\u003e!\u003c\/span\u003e\u003cp\u003e\u003cstrong\u003ePlanning note:\u003c\/strong\u003e Scenario ranges are researched planning assumptions, not guaranteed earnings, salary promises, tax advice, or distributions.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003c\/section\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49304341774579,"sku":"time-and-motion-study-owner-makes","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/time-and-motion-study-owner-makes.webp?v=1782693927","url":"https:\/\/financialmodelslab.com\/products\/time-and-motion-study-owner-makes","provider":"Financial Models Lab","version":"1.0","type":"link"}