How to Stop Revenue Leaks with Clair Kim
On today's podcast, we have Claire Kim talking about how to stop revenue leaks. She is a business architect for small businesses. She focusses on uncovering revenue leaks.




What are revenue leaks?
First things first, when talking about 'revenue leaks', what are we actually talking about?

What it means is an unintentional loss of revenue. We usually hear this term talked about in finance and accounting. Often we think of revenue leaks happening due to human error. However, unintended loss of revenue itself can mean anything - it can mean money that we are sitting on, expenses that are way too much, or any ticking time bombs that need addressing. This is as well as accounting discrepancies and finance.
How does Clair begin to help stop revenue leaks?
http://thenext100days.org/wp-content/uploads/2019/11/Small-Businesses.mp4

 


C - consumer


A - allocation


S - systems


P - projects/prioritisation


These are the four pillars you need to look at in order to figure out the business' projected profitability. They also help to figure out if these small businesses are going to make money in the first place. Clair looks at how small businesses are losing OUT on money due to poor decisions. This is not because small businesses are bad - not at all. It is usually because small businesses are still balancing what does work and what doesn't. Clair offers a nudge in the right direction by looking at revenue leaks.
CASP in business
So, which is the one section that businesses miss out on most?

Clair says that, from businesses that sit between 40-120k, the biggest mistake is the consumer aspect. This is specifically regarding the fact that organisations that are being targeted doesn't meet the buyer criteria that businesses need to meet. Additionally, they are not concise and specific about how their offer or services can make a difference; they are not clear about the outcomes of buying into a service or product.

Finding that out in a company takes real thinking and real brains. If the business themselves don't understand it, it's amazing that Clair can walk in and suss these things out. Nonetheless, she is trained to ask the awkward questions and probe into the business in detail.

Kevin finds that what the easiest thing or a small business to do is keep doing what it's doing; what it did yesterday, what it did last week, what it did last month. They often know what they're doing wrong but are wrapped up in repeating it. What Kevin suggests is that small businesses often need someone from outside the company to come in, highlight what they're doing wrong and make them take action.
Another process Clair uses is MISC...
This is a comprehensive way of looking at the company as a whole.


M - metrics


When Clair looks at metrics, she means the numbers of the company; the accounting, finance, marketing costs for leads or acquisition, etc. It is everything a small business needs to track. If you're not tracking these things - if you're not aware of it - then you cannot expect your business to grow.


I - infrastructure


This is something Clair has a passion for and goes 'geeky' on. A lot of small businesses have multiple meanings for systems - central operating systems, software, etc. There is divided thinking. Infrastructure are all the systems of the business, as a whole. In other words, infrastructure is anything related to process, software, or other systems - it is an umbrella term.


S - staff


This one is self-explanatory: anything to do with employers and employees.


C - capacity


This one is often a problem for service-based owners. A lot of small businesses look at how to get more customers. But, if you ask them how things would be if you increased customer-response by ten, it's likely their business is going to break or be overwhelmed.

To deal with more business and customers,

Ver todos los episodios