To measure capacity, you can focus on either inputs or outputs. Inputs are the resources you put into your business, such as staff hours and raw materials. Outputs are the products or services you provide to your customers.

If you just make a single, standard product, it’s relatively easy to measure your capacity for that output. The greater the range and variation of your outputs, the harder it becomes to measure capacity. In this case, it might be better to focus on inputs – for example, the maximum number of hours your staff are available each week to make products or provide services. Only measure the inputs and outputs that make sense for your business.

Input or output measures for different business types

Type of business	Input measures of capacity	Output measures of capacity
Craft brewery	Amount of ingredients Volume of vats to brew beer Length of time to brew a vat of beer	Bottles of beer produced each week
Plumbing business	Number of hours any master plumbers can work each week Number of hours any apprentice plumbers can work each week Number of jobs that can happen at the same time	Billable hours each week Amount of downtime each week (for example, rain days, travel time, holidays)
Café	Number of seats Number of wait staff Number of meals the chef can prepare at once	How long seats are occupied for Customers served each lunchtime Meals served each day

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