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---
name: read-firm-economics
description: "Read utilization and net multiplier to separate a busy firm from a profitable one. Reach for this on a practice-health question."
---
# Skill: Read firm economics
A busy firm with low utilization or multiplier loses money on talent.
## Step 1 — Compute utilization
Billable hours ÷ available hours, by staff (§3 #4).
## Step 2 — Compute net multiplier
Net revenue ÷ direct labor.
## Step 3 — Find the gap
Low utilization (capacity) vs low multiplier (pricing/effort).
## Step 4 — Act
Map the fix to the gap — fee structure, scope, or staffing.
## Output
A utilization and net-multiplier read with the gap identified and a matched fix.
