The five profit leaks
Sales are up. Where did the money go?
Most businesses lose money in five small places that never show up on the P&L.
How five small leaks add up
Price drift$118,000
Unbilled work$96,000
Money-losing accounts$64,000
Slow collections$41,000
Idle paid time$142,000
Leaking each year$461,000
Illustrative example: an $8M specialty contractor, annualized figures.
Where to look
Five leaks, and the first thing to check for each.
Run these checks yourself this month. A Profit X-Ray puts a dollar figure on each.
1
Prices that fell behind costs
First check
Compare your last price increase with how much costs have risen since.
2
Work delivered but never billed
First check
Compare quoted, invoiced and done on ten recent jobs.
3
Customers that cost more than they pay
First check
Rank your top twenty customers by what they leave you.
4
Slow collections
First check
Total everything owed for more than 60 days.
5
Paid time that isn't productive
First check
Compare hours paid with hours billed for one month.
The Blackex 3× Commitment
If we can't find three times our fee, you don't pay the balance.
Every Profit X-Ray must identify documented, annualized profit opportunity worth at least three times its fee.
See how a Profit X-Ray worksStart here
Want to know which leak is yours?
The BOI Snapshot is free: a short conversation, an assessment and a readout.