A few tenants:
- Every business needs a strategy, large or small.
- No product needs to be a commodity.
- You can’t be everything to everyone.
- Everyone needs to be able to answer the question, “Why me?”
The Profit Leak Assessment will help you identify gaps in your business.
Score each question on a scale from 1 to 5.
1 is the worst. (Rarely/Never)
5 is the best. (Always/Constantly)
At the end, you can add up your score. Then, we can see whether you are winning or losing in a specific area.
- How often did you start a new project/initiative without sunsetting projects that no longer served your business?
- How often do you spend time focusing on projects/tasks that fall outside of your core strategic value?
- How often do your teams lack resources because they are spread too thin?
- Do you clearly define ‘stop doing’ criteria for products or market segments?
- How much business are you getting from outside of your ‘must win’/key target areas?
- How often do prospects challenge your prices as “too high”?
- How easily can your competitors replicate your core offerings?
- How often are you giving discounts to win business?
- How differentiated is your offering from your number 1 alternative?
- How often do you lose business based solely on price?
- How often does your sales cycle slow because you are talking to the wrong person or a non-decision maker?
- How clearly defined is your ideal buyer?
- Do you find yourself investing in segments or targets that you haven’t validated with research?
- How often do you target “logo” businesses that aren’t a good fit?
- How much revenue comes from your top customer segments?
- How consistently are sales/marketing sharing your unique value across channels?
- How often do your prospects struggle to understand what you are best at?
- How aligned is your messaging with your customer’s biggest frustration(s)?
- How often are you changing your positioning based on “win/loss” rates/interviews?
- How well do you “repel” bad-fit prospects/customers?
- Are you consistent with your upsells and cross-selling opportunities?
- How often are you looking for opportunities to expand your revenue with current clients?
- Do you consistently identify expanded offers for your clients?
- How often do you lose customers to ‘solution gaps’ that you could fill?
- How often are you designing new products/services to solve unmet needs?
Scoring System:
Add the score of questions 1-5.
0-10: Overextended. You are likely trying to do too much.
11-15: Danger Zone. Be careful, you are close to being stretched too thin.
16-20: Stable. You are balanced in creation and sunsetting.
21-25: The Best. You follow the rule of “Good marketers create products. Great marketers kill products.”
This is your “Strategic Overextension” Score.
Add the score of questions 6-10.
0-10: Race to the Bottom. Commodity danger zone.
11-15: Vulnerable. You have some pricing power, but you can lose it easily.
16-20: Pricing Power. You have moved out of discounting to win.
21-25: Price to Win. You have pricing power.
This is your “Don’t Be a Commodity” Score.
Add the score of questions 11-15.
0-10: Off target. Refocus.
11-15: Spraying. You are hitting some of the time, but it could just be luck.
16-20: Coming into Focus. You can see, but things are still fuzzy around the edges.
21-25: Seeing Clearly. You know where your focus is.
This is your “Hit the Target” Score.
Add the score of questions 16-20.
0-10: One of the Gang. You are likely interchangeable.
11-15: Still Crowded. You have the makings of a position, but you don’t stand alone.
16-20: Premium Tier. You are part of the conversation.
21-25: Alone at the Top. You stand out compared to the alternatives.
This is your “Why You?” Score.
Add the score of 21-25.
0-10: Burning Cash. You are missing opportunities.
11-15: Jumping over Dollars. You are leaving money on the table.
16-20: Dining Out. You are expanding sales.
21-25: Caviar & Champagne. You don’t miss an opportunity to expand your market.
This is your “Hidden Profit Pool” Score.
Add up the scores for all 5 sections:
0-50: Critical Condition. Your strategy isn’t a strategy.
5-69: At Risk. Attention is necessary.
70-84: Competitive. Good, but not great.
85-100: Elite. You are dominant in your market.