CONSIDER THIS
Every £1 bottom line saved, can be the same as generating £10 top line revenue
Businesses over time tend to amass pockets of their book to bill (order to invoice) where services are being charged to customers out less than they should be (Revenue Leakage) or un-necessary costs being occurred (Cost Avoidance), A £10,000 order should have the same focus as £500 revenue collected and £500 costs saved (at 10% EBITDA)
Revenue Leakage typically occurs in many ways. If you are in the service business, an historical offer (25% off for the first year) may still have 25% discount applied in years 2,3 etc. Buy one get one free bundles was a specific one month promotion, but 6 months later still being applied. Customer has upgraded, but billing engine charges old price.
Cost Avoidance typically occurs when either the book to bill process has weaknesses (maybe through re-organisations) and/or sales & marketing have made changes at the front end without the back end operations and billing being fully engaged. Cost centre managers for suppliers have moved on, their replacements not being aware of services no longer required. Contracts out of date, suppliers not being managed all contribute.
Maximise Your Margins
Stop revenue leakage and avoid wasted costs
Percentage margins don't matter. What matters always is dollar margins: the actual dollar amount. Companies are valued not on their percentage margins, but on how many dollars they actually make, and a multiple of that.
Jeff Bezos
THOUGHT PROVOKING ANALOGY?
You may have had good intent at the outset, but some pieces of a jigsaw may now be in the wrong place. Looking carefully you realise that action needs to be taken and the incorrectly placed piece is removed - like and old promotional bundle that was applied and now should be removed.
You would get frustrated if pieces of the jigsaw keep breaking up/falling off the table, it slows you down from completing the big picture. If costs are leaking out the business, your "fill rate" from new revenue generated will be diminished by 10:1
Having help to you avoid parts of your puzzle breaking up, or to ensure that the pieces you think are correct os like someone helping you avoid costs and ensuring you are collecting the correct cash owed, with underlying root causes being highlighted