Most businesses expect work to come through the door. They rely on referrals, repeat customers, and a bit of luck.

But hope is not a strategy.

Take John, for example. He runs a construction company and had ambitious plans to grow by 30% this year. The problem? He had no real strategy to make it happen.

Like many business owners, John assumed that doing more of the same would lead to higher revenue. But when we took a closer look, we found that his approach wasn’t just inefficient—it was limiting his profits.

What Gets Measured, Matters

Revenue is great, but profit is what really counts. Let’s break down John’s numbers:

🔹 Revenue: £450,000
🔹 Gross Profit: £220,000
🔹 Overheads: £65,000
🔹 Net Profit: £165,000

At first glance, things seemed fine. But when we applied Pareto’s 80/20 rule (where 20% of clients generate 80% of the profits), the picture became clearer.

Where Was the Real Money Coming From?

John’s business was split into two areas:

✅ Public Property Maintenance – High volume, low margin (30% gross profit)
✅ Commercial Construction – Lower volume, but higher margin (63% gross profit)

Here’s the breakdown:

🔹 Public Work: £360,000 revenue → £108,000 profit
🔹 Commercial Work: £90,000 revenue → £57,000 profit

The real issue?

John had 312 public clients—each one taking up time with admin, queries, and support.

Meanwhile, his commercial work came from just 10 clients—and made him significantly more money per job.

It didn’t take long to realize where John needed to focus.

The Plan for Bigger Profits

1️⃣ Shift Focus to Commercial Clients – These projects were more profitable and required less client management.
2️⃣ Raise Prices for Public Work – If he continued doing it, it needed to be worth his time.
3️⃣ Improve Marketing & Networking – Attract more of the right type of clients instead of taking on low-value work.

If John transitioned fully to commercial projects, his profit could jump from £165,000 to £285,000—without working harder.

The Takeaway?

💡 Revenue is vanity. Profit is sanity.

If your business isn’t growing the way you want, ask yourself: Are you focused on the right type of clients?

If you want a commercially focused accountant who can help you analyze your numbers, improve profitability, and build a real growth strategy—drop me a message.

Need Expert Accounting Advice?

At Adaptive Accountancy Ltd, we help businesses like yours make smarter financial decisions. Get in touch today and take control of your growth.

🚀 Book a free consultation now! https://calendly.com/adaptiveaccountancy/initial-chat