The approval limit is £5,000. It was set when the average job was £3,000.

Approval thresholds are usually calibrated once and then left to drift, until the founder becomes the slowest step in the sales process without catching anything.

By Steve 5 min read
Abstract bridge artwork for The approval limit is £5,000. It was set when the average job was £3,000.

A signing threshold is a piece of arithmetic frozen in time. Somebody decided, at a particular moment, that quotes above a certain value carried enough risk to justify a second pair of eyes, and that quotes below it did not. The number made sense against the deal sizes, the team, and the margin tolerance of that year. Then prices rose, the average job got bigger, the estimators got better, and the number stayed exactly where it was. The result is a control that has quietly changed function. It was designed…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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