Free Training
Extracting more value from what already exists
12 min · Interactive
Barbara runs a specialty food distribution business in Charleroi. A B2B operation supplying restaurants and delicatessens with regional products. A solid business. Loyal clients. A team she had built over nine years. Revenue had grown steadily and she was proud of what the business had become.
But the profit never quite reflected the effort. When a finance partner reviewed her business for the first time, the picture that emerged was uncomfortable. Two of her five largest clients were barely profitable once you accounted for the actual cost of serving them. One product line that felt busy and productive was generating almost no margin. A significant portion of the team's time was absorbed by accounts that delivered volume but not value.
None of this was visible in the monthly accounts. The accounts were accurate. They showed overall profitability. What they did not show was where that profitability was coming from, and where it was being silently consumed.
Barbara was not running an unprofitable business. She was running a business where a handful of decisions, made with better information, would release significantly more value from the same resources. That is a very different conclusion.
One question before we continue.
A business has stable overall profitability. What does this tell you about performance at the product, client, or team level?