TIP: For most service business, the bottom 5-10% of your customers are not ‘breakeven’.

Illustrated in what’s known as the ‘whale curve’, 80% of customers generate around 170% of your profit, while the last 20% reduce profit to 100%.

Knowing this can help you pursue changes to your Business and Profit Model that’ll help strengthen its position and brighten its future.

We were recently reminded of the mind-expanding, 6-minute video, “I, Pencil: The Movie”, based on the essay by Leonard E. Read.

From the opening frames: “We are perishing for want of wonder, not for want of wonders." - G.K. Chesterton

If you haven’t seen it before, or it’s been awhile, take a moment to appreciate the wonder of the pencil and what it signifies about modern commerce & human interaction:

I recently heard a small business owner share the insight quoted below …

Is it time for you to pull aside and look at the big picture?

Our mission here at ElementsCPA is to help you design your business & your finances

A business’ cost structure as it scales typically mirrors more stair steps than upward sloping line

If you’re not deliberate, you could get caught with a cost structure of one stair matched with the revenue structure of the previous stair 😕

So decide on your optimal size & don’t get stuck between steps