Review: In his book Islands Of Profit In a Sea Of Red Ink, Why 40 Percent of Your Business Is Unprofitable and How to Fix (Click Here) it. Jonathan Byrnes from MIT,
makes the bold statement that 40 percent of every company is unprofitable by any measure and 20 to 30 percent is so profitable that it is providing all the reported earnings and cross subsidizing the losses so the rest of the companies is only marginal!
And you know what the picture of this description is?
It’s called a Whale-Curve.
A Whale-Curve made by RapidBusinessModeling goes exactly with the 20/80 percent Pareto and shows you the customers most profitable and in many cases, 40 percent of customers in any companies we have seen, are exactly that unprofitable and you can view and picture it best in a Whale-Curve , a wonderful visual!
At RBM we use two y axes: on the left side, the sales and on the right side, the accumulated profitability versus the green, blue and red line- for the customers or for the orders or for the products- on the x-axe. You name it, you make it and we can do it all for you. We do it in a multidimensional manner and it’s very easy. Simply leave a message and we can show you how that would look for your company.
See the Whale-Curve of your company-at least close to the parameters you have delivered and on the other button you can have a look how your customer profitability potentially could look like. When going through our Potentializer approach, showing what kind of potential you can expect.
Typically and conservatively one can expect to have 5% increase of your company’s profit based on your revenue. And so it’s that easy. We would like to invite you to go to our Performance Management Suite and have a look for yourself! Easy to do nothing special besides pressing a few buttons Like on here:
At our online meeting the demo of your company might trigger the question: why is nobody working on profitability in my company.
When are the accountant’s telling me what is all wrong! But they don’t and nobody else’ is. So make sure you have a team round you, which is eager to help you to change the status quo. You know,
“Good Decisions Require Good Models”.
And RapidBusinessModeling’s core competence lies exactly here. Those detailed business models are made out of a few data like: Occupations, transactional data, revenues, total Cost, i.e. income statement we build you a detailed business model of your company. And we would like to invite you to leave your name and email and we could arrange an online meeting showing you the business model coming close to your company.