See where profit actually comes from and where it leaks, so you act on the real picture instead of a blended average.
Break profitability below the whole-business number, by offering and by customer wherever you can. For each row, enter revenue, direct cost, the profit left, and the margin as a percentage. The blended whole-business number hides everything that matters.
| Product, service, or customer | Revenue | Direct cost | Profit | Margin % |
|---|---|---|---|---|
Look for the pattern almost every business has and few have ever seen: a handful of offerings or customers producing most of the profit, and some actively losing money. Those two lists, your profit engines and your profit drains, are the entire point.
Your answers stay in your browser on this page and are never sent anywhere. Revisit this regularly; the mix and costs shift, and profitability ages quickly.