Where Could Profit Be Leaking From Your Business?
Revenue can grow while the business underneath it becomes less profitable, less efficient, or more dependent on the owner. The Profit Leak Pyramid™ provides a simple lens for examining five areas that can influence whether growth is actually creating greater profit, capacity, freedom, and long-term business value.
Apex: owner dependence · Base: foundation
Owner Dependence
Can the business perform without everything running through the owner?
A business becomes harder to scale, transfer, and manage when too much depends on the owner personally.
Productivity
Are people, processes, and technology producing results efficiently?
Productivity examines workflows, labor effectiveness, operational efficiency, wasted time, bottlenecks, and how well the business turns effort into results.
Retention
Are we maximizing customer value after the first sale?
Retention examines repeat business, customer relationships, renewals, referrals, and lifetime value.
Conversion
Are we turning qualified opportunities into paying customers?
Profit can leak through weak follow-up, low conversion rates, unclear offers, and ineffective sales processes.
Foundation
Are the financial fundamentals strong and understood?
Foundation includes revenue, pricing, margins, costs, and cash flow. Strong businesses understand the economics underlying their performance.
The objective isn't merely more revenue
Where Might Profit Be Leaking Inside Your Business?
Choose the next step that fits where you are today.