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How we work

The Profit Tree Method: Talk, Walk, Weigh, Rank, Run.

Five steps from a first conversation to results counted in dollars. Steps 2 to 4 are the Profit Audit. Step 5 is implementation support.

At a glance

First step
A free 30-minute call
The audit
Two to three weeks from the day we receive your records, with one to two days on site
Fee
Fixed, stated up front [From $5,000: draft price, to be confirmed]
You get
A scorecard, an opportunity register and a 90-day roadmap
From you
About six hours of the owner's time and about five hours from whoever keeps the books

The five steps

Each step has a set length, a list of what you receive and a list of what we need from you. There are two points where you decide whether to go on, and one where either of us can stop.

First conversation 30 minutes, no charge

Step 1: Talk

Talk it through

30 minutes, no charge. Proposal within two business days.

We ask how the business makes money, how work flows and where you think profit leaks. We explain the audit and tell you straight if we doubt it is worth commissioning. If it looks worthwhile, we send a one-page proposal with the scope, a fixed fee and dates that avoid your peak weeks.

You receive

  • A straight answer on whether an audit looks worth commissioning
  • A one-page fixed-fee proposal [From $5,000: draft price, to be confirmed]
  • A confidentiality agreement and a one-page records list

We need from you

  • 30 minutes of the owner's time
  • Rough figures: yearly sales, number of employees and the software you use

The Profit Audit Fixed fee, two to three weeks

Step 2: Walk

Walk the business

Week 1, with one to two days on site.

We spend one to two days on site. We follow real jobs from first call to paid invoice and ride along with a crew or stand at the machine. We talk with the people who quote, schedule, do, bill and collect. We follow your safety rules and plan visits around your busy hours. We gather the records on the one-page list. A missing record is a finding, not a failure: we note it and move on.

You receive

  • A kickoff agenda and visit schedule
  • A one-page call-to-cash map: how a job moves from first call to paid invoice, with the points where work waits, repeats or is re-typed
  • A list of the records received and those still missing

We need from you

  • About three hours of the owner's time for kickoff and the walk-through
  • 30 to 45 minutes each with three to six key people
  • About four hours from whoever keeps the books, to export reports
  • Read-only access or exported reports; we never need bank logins
  • Payroll and customer exports can leave out names; we need roles, hours and amounts

Step 3: Weigh

Weigh each lever

Week 2. Thin or missing records can push it into week 3.

We score all 30 checkpoints from 1 to 5 against your own records. We size each opportunity with low, base and high annual values under the booking rules. Midweek we hold a 30-minute findings check with you, so facts are corrected early and nothing in the report is a surprise.

You receive

  • A draft scorecard
  • A short list of questions and missing records
  • Early sight of the largest findings

We need from you

  • Answers to follow-up questions within two business days
  • A 30-minute findings check
  • Any records still missing

Step 4: Rank

Rank the opportunities

One 90-minute session. The audit ends here, two to three weeks after we receive your records.

We rank the opportunities by value, effort, speed and risk, and pick the few to start with. We build a 90-day roadmap that says who does what by when. We present it in person to the owner and anyone the owner wants in the room.

You receive

  • The scorecard: 30 checkpoints scored 1 to 5, each with its evidence
  • The opportunity register: every opportunity with low, base and high annual values, one-time cash, cost and evidence grade
  • The 90-day roadmap
  • All three are yours to keep and use, with or without us

We need from you

  • 90 minutes in person with the owner and key managers
  • Decisions on which opportunities to pursue
  • A named person to own each one

Implementation support Your choice, after the audit

Step 5: Run

Run the plan

90 days, then month to month.

We work alongside your team on the chosen opportunities for 90 days, with a 30-minute check-in each week. We build the tools, such as a price book, a checklist, a report or an automation, and coach the people who will own them. At day 90 we count delivered dollars against the register, using the same booking rules. After that, a monthly review keeps score and picks the next items from the register.

Billed monthly. [Monthly fee: not yet set]

You receive

  • A weekly action list
  • The tools and written procedures built during the sprint
  • A results tracker showing delivered dollars against the low, base and high values
  • A 90-day results report, then a one-page monthly review

We need from you

  • A named owner for each action
  • 30 minutes a week during the sprint
  • Monthly numbers by an agreed date: the short list of metrics tied to the roadmap

What you receive

The audit ends with three documents, presented in person: the scorecard, the opportunity register and the 90-day roadmap. All three are yours to keep and use, with or without us.

The sample report shows all three for a fictional business. It is labeled illustrative throughout. Read the sample report

How we score

Each checkpoint is scored 1 to 5 against evidence from your own records. Three tests decide the score.

Records
Can the metric be calculated from the business's own records?
Routine
Does a named person look at it on a schedule and act on it?
Result
How does the metric compare with the business's own target, or with its own best crew, month or supplier?
  1. 1Not managedNo usable records and no routine. The metric cannot be calculated.
  2. 2Recorded, not usedRecords exist and the metric can be calculated, but nobody looks at it.
  3. 3Managed in partThe number is known and someone is responsible. The routine is informal, and results fall short of target or vary widely between people or months.
  4. 4Managed, with gapsA written routine runs on a schedule and results are near target. One area, crew or period still lags.
  5. 5Well managedMeasured on a schedule, owned by a named person and acted on. Results at or better than target for 12 months, with records to show it.
  • No record, no high score: a checkpoint whose metric cannot be calculated from records scores no higher than 2.
  • Every score cites its evidence: the report, the period and the sample size.
  • A checkpoint that does not apply to the business is marked not applicable and left out of the averages.
  • Scores and dollars are separate: the score says how well a checkpoint is managed, and the register says what fixing it is worth.
  • A score describes the checkpoint, not the owner or the staff.

How a range is built

Every opportunity gets a low, a base and a high annual value. We start from a result the business has already reached, such as its own best crew, estimator or month, or one it holds in writing, such as a supplier quote. The three cases close a quarter, a half and three quarters of the gap. We never size on the full gap.

Annual value = Base × Change × Margin − Running cost

Base
The yearly dollars the opportunity acts on. From: the client's records for the last 12 months.
Change
The share of the base we expect to move. From: three cases: low, base and high.
Margin
The share of each added dollar that becomes profit. From: gross margin for added sales; 100% for cost savings.
Running cost
What the fix costs each year to keep going. From: quotes or current prices; one-time cost is shown separately.

Worked example, checkpoint 1.2 Turning leads and quotes into sales

Illustrative

An HVAC company: follow up every open quote on a schedule. It quotes 400 leads a year and wins 34% of them. Its best estimator already wins 46%. An average job is worth $6,000, at a gross margin of 40%. Keeping the follow-up going costs $2,400 a year, and setting it up costs $1,500, once.

CaseGap closedAdded jobsAdded salesGross profitAnnual value
Low25%12$72,000$28,800$26,000
Base50%24$144,000$57,600$55,000
High75%36$216,000$86,400$84,000
Illustrative example. The business and every number are invented to show the arithmetic. It is a different invented business from the one in the sample report. Annual value is gross profit less the running cost, rounded to the nearest $1,000. We book the profit a change leaves, never its sales value.

How strong is the evidence

Grade A
Calculated from 12 months of records
Grade B
Calculated from a sample and scaled up
Grade C
From interviews, with no record yet; listed as to confirm. Left out of the headline total

What we need from you

Across the audit we plan for about six hours of the owner's time and about five hours from whoever keeps the books.

  • Read-only access or exported reports. We never need bank logins.
  • Payroll and customer exports can leave out names. We need roles, hours and amounts.
  • Exports in spreadsheet or PDF form are fine. We do not ask you to build new reports.
  • Please leave out protected health information, Social Security numbers and full card numbers.

The one-page records list

This is the list we send after the first conversation. We ask for the records before the kickoff call, so that week 1 can start on time. Beside each record are the checkpoints it feeds.

  1. Profit and loss by month, last 24 to 36 monthsFeeds 4.3, 8.1, 8.2, 8.3, E2.
  2. Balance sheet, latest month and last year-endFeeds K1, K2, K3, 8.3.
  3. Aged receivables and aged payablesFeeds K1, K3, 7.3.
  4. Purchases by supplier and item, last 12 monthsFeeds 5.1, 5.2, 5.3, K3.
  5. Payroll register by week, with regular and overtime hoursFeeds 6.2, 8.2, E3.
  6. Job or order list with revenue, cost and hoursFeeds 2.1, 2.3, 6.1, 7.1.
  7. Invoice line detail, with credits and refundsFeeds 2.2, 7.2, 7.3.
  8. Customer list with purchase historyFeeds 1.3, 3.1, 3.2.
  9. Quote or estimate logFeeds 1.2, 2.1.
  10. Lead sources and marketing spendFeeds 1.1.
  11. Schedule or dispatch historyFeeds 4.1, 4.2, 6.3.
  12. Agreements and recurring billing listFeeds 3.3.
  13. Stock list, last count and truck stock listsFeeds K2, 7.1.
  14. Leases, insurance policies, loan and card processing statementsFeeds 8.1, 8.3.
  15. List of software, subscriptions and written proceduresFeeds E1, 8.2, E3.

The fee

One fixed fee for the audit, agreed before we start.

The Profit Audit
A fixed fee, written into the proposal before any work starts. [From $5,000: draft price, to be confirmed] Half is due on signing and half on delivery. [Draft terms, to be confirmed]
The week-one checkpoint
Once the records have been reviewed, either side may stop. We keep 20% of the fee for that review and refund the rest of what you have paid. [Draft terms, to be confirmed]
Implementation support
A 90-day sprint, billed monthly, then monthly reviews if you want them. [Monthly fee: not yet set]
The first call
Free. 30 minutes.

What the Profit Audit is not

The Profit Audit is a management consulting review, not an audit of financial statements, and gives no assurance on financial information.

It is not a review or compilation of financial statements either. We are a management consulting firm, not a CPA firm or a law firm. Nothing in our work promises a result: every opportunity is an estimate, shown as a range with its assumptions.

Start with a free 30-minute call

The call is with the consultant who would lead your audit. If an audit does not look worth commissioning, we say so and stop there.

Book a free 30-minute call

Prefer the phone? Call [Business phone]. Or write to [Business email].