Profit Inc’s Pi.Q Analysis
– the most powerful tool to immediately increase
Profitability
Pi.Q Analysis
The Automated Solution for Advisors to Stand Out, Sell More, and Earn More.
STAND OUT
Stand out from the crowd and sell more clients with our high-impact software
- Pi.Q Analysis is the all-in-one profitability analysis tool that can help you and your clients succeed.
SELL MORE
Profitability improvement is a compelling value proposition.
Identify hidden costs and profit sources to increase your clients’ profitability.
EARN MORE
Save time and money with our automated profitability analysis solution.
Earn a higher income by helping your clients achieve their business goals.
Simple and Efficient
The Profit Inc Process
1. Access
Securely share only the specific data we require.
2. Analyze
Get crystal-clear insight into the profitability of each customer and offering.
3. Act
Implement specific, prioritized actions for dramatic improvement.
4. Achieve
Track profitability and business value over time.
Who We Serve
Advisors…
…land more clients and add more value
Use our automated solution as an initial diagnostic to land new clients and as a recurring analysis to help existing clients continuously improve their profitability and business value
Get Started Now
Managers…
…dramatically improve performance
Empower your teams with the insight to focus on what they do best… driving profitable strategy
Get Started Now
Roundtables…
…increase membership value and retention rates
Take the value of your roundtable to a new level with an insightful recurring analysis that provides a common view of benchmarked profitability performance for all members’ businesses
Get Started Now
Investors…
…improve due diligence and post-transaction performance
Understand “quality of earnings” at a product and customer level during diligence and drive significant returns after investing with a sharper focus on growth and profitability improvement initiatives
Get Started Now
Lenders…
…mitigate your risk and add value to clients
Understand “quality of earnings” at a product and customer level during diligence and help clients focus their growth and profitability improvement initiatives with recurring analysis to improve their business and strengthen your relationship
Get Started Now
Who We Serve
Advisors…
…land more clients and add more value
Use our automated solution as an initial diagnostic to land new clients and as a recurring analysis to help existing clients continuously improve their profitability and business value
Managers…
…dramatically improve performance
Empower your teams with the insight to focus on what they do best… driving profitable strategy
Roundtables…
…increase membership value and retention rates
Take the value of your roundtable to a new level with an insightful recurring analysis that provides a common view of benchmarked profitability performance for all members’ businesses
Investors…
…improve due diligence and post-transaction performance
Understand “quality of earnings” at a product and customer level during diligence and drive significant returns after investing with a sharper focus on growth and profitability improvement initiatives
Lenders…
…mitigate your risk and add value to clients
Understand “quality of earnings” at a product and customer level during diligence and help clients focus their growth and profitability improvement initiatives with recurring analysis to improve their business and strengthen your relationship
Client Testimonials
Got Questions?
How much training is required to use your analysis?
After a trial run with one or two clients, an advisor will be equipped to deliver a Pi.Q analysis on their own.
- First analysis: we gameplan the readout with the advisor before we present to the client with the advisor’s input.
- Second analysis: again, we gameplan the readout with the advisor before the advisor presents to the client with our input.
- Third analysis: we gameplan the readout if needed, but the advisor is all set to present on their own.
The Pi.Q analysis is built to be extremely straightforward, and showing actionable steps for upselling other services and consulting. At the same time, the analysis consistently uncovers new insights for business owners, which makes the advisor look smart.
- First analysis: we gameplan the readout with the advisor before we present to the client with the advisor’s input.
- Second analysis: again, we gameplan the readout with the advisor before the advisor presents to the client with our input.
- Third analysis: we gameplan the readout if needed, but the advisor is all set to present on their own.
The Pi.Q analysis is built to be extremely straightforward, and showing actionable steps for upselling other services and consulting. At the same time, the analysis consistently uncovers new insights for business owners, which makes the advisor look smart.
How do I make money with this?
Advisors have been most successful when offering the Pi.Q analysis not as an end in itself, but to drive follow-on engagements.
The Pi.Q Analysis is uniquely able to drive follow-on consulting because it provides:
- A view of the company that business owners have not seen
- Motivation for the client to improve (with the help of an advisor)
- Clarity for the advisor on the areas to work on
- An initial service to impress prospective clients
- Talking points for upselling additional advisory services
- A “productized” analysis with high potential return on the time invested
The Pi.Q Analysis is uniquely able to drive follow-on consulting because it provides:
- A view of the company that business owners have not seen
- Motivation for the client to improve (with the help of an advisor)
- Clarity for the advisor on the areas to work on
- An initial service to impress prospective clients
- Talking points for upselling additional advisory services
- A “productized” analysis with high potential return on the time invested
What does follow-on consulting look like?
Here are a few effective strategies we have seen advisors and companies adopt based on their
Pi.Q Analysis results:
- Pricing configurator: if jobs are not consistently profitable, the pricing process may be to blame. You can use an existing software tool or build your own spreadsheet to calculate the price required to make a profit on each new job based on the details of that job.
- Flat fee: if small jobs are losing money, consider implementing a threshold. This may look like a minimum order size or requiring that customers purchase less profitable services as part of a package that includes more profitable services.
- Sales effort realignment: if the best salesperson in the world is promoting an unprofitable product, they will be losing the company money. Don’t fire the salesperson; have them sell something valuable.
- Sales incentive realignment: the easiest customers to sell are the unprofitable ones because they are getting the best deal. If salespeople are incentivized based on revenue or even gross margin, they may be increasing those metrics to the detriment of the company’s overall profitability.
- HR improvement: payroll is one of the biggest expenses for service companies, so profits increase when a company implements HR best practices for recruiting, training, and retainment.
- Pricing configurator: if jobs are not consistently profitable, the pricing process may be to blame. You can use an existing software tool or build your own spreadsheet to calculate the price required to make a profit on each new job based on the details of that job.
- Flat fee: if small jobs are losing money, consider implementing a threshold. This may look like a minimum order size or requiring that customers purchase less profitable services as part of a package that includes more profitable services.
- Sales effort realignment: if the best salesperson in the world is promoting an unprofitable product, they will be losing the company money. Don’t fire the salesperson; have them sell something valuable.
- Sales incentive realignment: the easiest customers to sell are the unprofitable ones because they are getting the best deal. If salespeople are incentivized based on revenue or even gross margin, they may be increasing those metrics to the detriment of the company’s overall profitability.
- HR improvement: payroll is one of the biggest expenses for service companies, so profits increase when a company implements HR best practices for recruiting, training, and retainment.
Will Profit Inc sign an NDA?
Yes. We have a standard two-sided NDA, or you can provide a custom one.
Why should I use Profit Inc instead of (competitor)?
Other financial dashboard tools and services are helpful, but we provide a unique view of a business’s profitability. We don’t just throw data at you. We deliver clarity and elicit improvement. No other tool is as simple and actionable.
Costing is a common concept, but it is usually laborious and is only applied to parts of the business. For example, one of most detailed methods of allocating expenses is time-driven, activity-based costing, but this requires a degree of ongoing effort and systems management that is untenable for most small- and middle-market businesses.
Profit Inc allocates 100% of business costs to provide the best picture of customers and jobs at the net profit line. And we make the process quick and easy.
Costing is a common concept, but it is usually laborious and is only applied to parts of the business. For example, one of most detailed methods of allocating expenses is time-driven, activity-based costing, but this requires a degree of ongoing effort and systems management that is untenable for most small- and middle-market businesses.
Profit Inc allocates 100% of business costs to provide the best picture of customers and jobs at the net profit line. And we make the process quick and easy.
How do I get started?
We have a two-step onboarding process:
- Share financial data: We have a direct integration with QuickBooks (online and desktop) and NetSuite. If you are using different or additional tools, let us know and we can give you a list of extracts to upload.
- Allocation questionnaire: This is currently an input form, but we are building a platform where you can adjust the allocations and run scenarios in real time.
- Share financial data: We have a direct integration with QuickBooks (online and desktop) and NetSuite. If you are using different or additional tools, let us know and we can give you a list of extracts to upload.
- Allocation questionnaire: This is currently an input form, but we are building a platform where you can adjust the allocations and run scenarios in real time.
What format does the data need to be in?
We’re used to working with “messy” data. For the most part, if the data exists and you can get
it to us, we can make it work. Just let us know so we can discuss.
What data do you need?
While the format depends on how the company keeps its records, what we need is simple:
- P&L
- Invoice detail to break down the Revenue into relevant “demographics”
- Cost breakdown at the GL level, with a way to match up any costs that have already
been assigned to Revenue - Input from advisor or company to fine-tune cost allocations
- Invoice detail to break down the Revenue into relevant “demographics”
- Cost breakdown at the GL level, with a way to match up any costs that have already
been assigned to Revenue - Input from advisor or company to fine-tune cost allocations
What size company can benefit from this? What's too small? What's too big?
We typically work with companies between $1M and $100M in revenue, with the sweet spot
being the middle of that range.
A good candidate is big enough to have standard accounting rhythms in place and a number of demographics (such as customers, product types, sales reps, locations) that make the report informative. Usually, businesses that are too small either don’t have the data, or else the owner micro-manages the business’s workings and will not learn much from the analysis.
Businesses that are too large tend to resist change. A large finance department often resists an external analysis, and the operations team needs to be aligned with the results in order to implement improvements.
A good candidate is big enough to have standard accounting rhythms in place and a number of demographics (such as customers, product types, sales reps, locations) that make the report informative. Usually, businesses that are too small either don’t have the data, or else the owner micro-manages the business’s workings and will not learn much from the analysis.
Businesses that are too large tend to resist change. A large finance department often resists an external analysis, and the operations team needs to be aligned with the results in order to implement improvements.
What timespan of data is needed?
We recommend a trailing 12-month analysis, with quarterly updates. If the company takes
more than 6 months to complete the average job, we may suggest running at a 24-month
analysis instead.
We recommend companies have at least 2 years of historical financial data helps to ensure that the data is consistent.
We recommend companies have at least 2 years of historical financial data helps to ensure that the data is consistent.
What happens if I source a client, but then they want to buy analyses directly from Profit Inc?
We know advisory engagements don’t last forever, but we want to be fair to you as the advisor
and the referral source of your clients. We have a lead generation revenue share program to
ensure you still receive value from sourcing the client. Talk with us for more details.