CFO TIPS #59 How to do a Customer Analysis

Some customers make you rich and some bleed you dry. Here's how to tell the difference. If you're running a services business, you might be losing thousands of dollars because you don't have the right customers. Most business owners never check which customers are actually worth your time. Let me show you in the next 30 seconds. This is what we call a customer analysis. You should list out all of your customers in each row and your columns will need to be the time period. This lets you see how much revenue you've generated per customer over time. Let's not stop there. Next, you want to bring another table that shows how much time you've spent or how many deliverables you created for each customer. This shows which customers are actually the best match for your business. So, the key takeaway is focus all of your marketing and your resources on servicing and finding customers that are best fit for your current operation. I would suggest doing this customer analysis every 6 to 12 months to make sure that you're bringing the right clients on. And that's how you scale your company without burning