Revenue is for vanity, profit for sanity.
Most blindly chase the former. The mighty hockey-stick – it fuels VC money, market-share and media attention.
But context is everything. Revenue can we weighed differently and is not all equal.
Is it time to look at the quality of your revenue?
1) Can client-concentration risk become a weapon?
If ~20%+ of revenue is from one client, embed yourself with every stakeholder, account and use-case possible. The probability of selling to an existing customer is ~50% higher.
2) Who is tracking the quality of your revenue?
This should be tracked by client type, market, product, use-case & individual. Mapping this vs your year-end ambition is key to how you will scale.
3) How can you get the most out of your current customers?
A 5% increase in retention can increase profits by 25 – 95%.
What is your plan to get your current customers to double their spend?
A focus on growth alone is temporary – what is the one action you will take to 10x your profit?
