Wednesday, November 04, 2026

Revenue's up but your own pay still isn't? Mike Michalowicz's Profit First method flips the order so growth finally reaches your pocket.

You know the feeling. Half your customer list drains you — the haggling, the late payments, the "can you just" emails at 6pm — and you genuinely can't tell, without pulling up the spreadsheet, which ones are actually worth the trouble. So you treat them all the same, because singling anyone out feels unfair, and your best hours go to your worst-fit customers by default.

Here's the number that usually ends that guessing game: for most SME owners, somewhere between five and ten per cent of their customers generate close to half their revenue. You don't need more customers. You need to know which ones you already have are worth building the whole business around.

I've coached 200-plus businesses one-on-one across 30-plus industries, and the grading conversation is almost always the one that changes the most, the fastest.

The Enemy: Treating Every Customer As Equally Worth Chasing

"Be nice to everyone" is good manners and bad sales strategy in the same sentence. Sales trainer Chet Holmes, who built his reputation running sales systems inside major US corporates before writing The Ultimate Sales Machine, put it bluntly: you can't be all things to all buyers and expect to dominate any one group of them. Spreading your best effort evenly across a customer base that isn't evenly valuable is how good owners end up exhausted and underpaid.

One Client, 123 Customers, 8 That Mattered Most

A client of mine had 123 customers on the books. When we graded them properly, eight of those customers — the top tier — were generating $266,240 of the business's $630,220 in revenue. Not half the customers. Not a third. Eight, out of 123.

Nothing changed about those eight customers that week. What changed was that the owner finally knew who they were, and started protecting that relationship on purpose instead of by accident.

Grading Your List: The First-Hour Version

  • Pull last year's revenue by customer, sorted highest to lowest — a basic export, nothing fancy.
  • Mark your top 10%. That's your A list. Work out what they actually have in common: the work, the margin, the referral behaviour.
  • Mark the bottom 20% by drain, not revenue — the ones costing you time, goodwill or margin out of proportion to what they pay.
  • Redesign your week so your best hours go toward finding more of your A list, and your worst customers either get a price rise, a boundary, or a polite exit.

"Kevin doesn't just present — he electrifies the room and drives massive, real-world value! He drops game-changing insights and actionable shortcuts that show businesses exactly how to turn everyday customers into raving, loyal fans — and acquire new ones faster than ever thought possible."

— Gareth Bayliss, Sales Manager, The Icehouse

Why Owners Who Know Their Numbers Still Chase Everyone

Most owners who see this grid immediately know which of their customers belong where. The obstacle is rarely insight — it's that saying no to a paying customer, even a draining one, feels like turning down money. It isn't. It's redirecting the same hours toward the version of this business that's actually profitable to run. That redirect is easier with someone outside the business holding you to the decision once you've made it.

Key Takeaways

  • Pull last year's revenue by customer and sort it today — it takes under an hour.
  • Identify your top 10% and what they genuinely have in common.
  • Flag your bottom 20% by drain, not just by revenue.
  • Redirect your best hours toward finding more customers like your A list.

This isn't for you if you'd rather keep every customer happy than find out which ones are actually worth keeping happy. It is for owners ready to see the grid, even when it's uncomfortable.

You could spend next quarter chasing more leads. Or you could spend one afternoon finding out you already have the customers worth building around — and start treating them that way.

If you've never graded your customer list by what it actually earns you, that's the first thing we'd fix together.

Wednesday, September 30, 2026

Most leadership teams spend less than an hour a month on strategy, and half spend none at all. Here is the protected-time system that fixes it, and why accountability is the missing ingredient.

Wednesday, September 30, 2026

93% of small business owners expect growth this year — but 75% no longer trust their own bank to fund it. Here's the Cash Flow Runway Check to close the gap.

Friday, September 25, 2026

Most strategic plans die quietly by March — not from a bad plan, but from no system to keep it alive. Here's the 90-minute review that fixes it.

Friday, September 25, 2026

Nearly half of buyers already ask AI platforms to recommend a business like yours. Here's how to make sure you're the one they mention.

Friday, September 25, 2026

Most SME owners discount before the buyer even objects — and call it good negotiating. Here's the sequence that stops you giving margin away for free.

Friday, September 25, 2026

Your Q4 plan will likely be forgotten by February unless something forces it back into view every week. Here's the 15-minute ritual that keeps it alive.

Friday, September 25, 2026

The smartest owners often have the biggest blind spots, because nobody around them dares to point them out. Here's how to find yours before they cost you.

Friday, September 25, 2026

Growth is supposed to make winning customers cheaper. For most SMEs it does the opposite. Here's the audit that catches it before it erodes your margin.

Friday, September 25, 2026

97% of entrepreneurs grew through a new partnership this year — but half can't see what's actually happening inside it. Here's the 3-step Partner Visibility Audit that closes the gap.

Friday, September 25, 2026

Most SME strategy fails not from bad ideas but from changing course before the last one had a chance to work. Here's the 90-day commitment framework that fixes it.

Friday, September 25, 2026

85% of marketers feel confident about ROI — only 32% actually measure it. Here's the simple source-tracking system that tells you which marketing really works.

Friday, September 25, 2026

Existing customers are 60-70% more likely to buy again, yet most SME sales teams never ask the second question. Here's the add-on framework that fixes it.

Friday, September 25, 2026

Most SME owners plan Q4 revenue without planning the capacity to deliver it. Here's the one-hour Capacity Reality Check that catches the gap before October does.

Friday, September 25, 2026

Waiting to hire a coach until you're "big enough" doesn't save money — it delays the point where the advice starts compounding. Here's the payback framework.

Friday, September 25, 2026

Fewer than 0.5% of businesses ever reach $10M. Here's why growth stalls again at $5-10M, and the infrastructure audit that breaks through the second plateau.