Find the profit pool, not the revenue pool
Map profit pools across a business system instead of assuming revenue concentration equals profit concentration.
The reframe: revenue pools show activity; profit pools show economic power. Profit-pool thinking asks you to locate where profit is actually earned across a business system. This may be by product, channel, customer type, lifecycle stage, geography, or value-chain activity. The method is useful when leaders are tempted to chase the largest revenue line without checking whether it is structurally attractive. Map the chain List the major stages or segments where money moves. Include after-sale service, renewals, add-ons, financing, and support because profit often hides outside the headline product. Size both revenue and profit Put revenue share and profit share…
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