Value / Effort Matrix and the pursuit of Revenue

When starting a business and chasing sales every new client or customer is a win and comes with unbounded excitement for what the future growth of your business could look like. Once that growth is achieved, revenue streams which were once your bread and butter can start holding your business back with low profit margins or the type of work which does not align with your goals and values. That's why it is important consider your overarching strategy even when you are overwhelmed with the day to day hustle of making operational decisions and just getting the work done!

Below is a simple matrix to consider when making decisions related to revenue generating activities. Always plan for the future and consider how the jobs / client / customers fit your long term strategy.

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Low hanging fruit - This is the glorious work which is perfectly suited to your business, as it is low effort, meaning your business if perfectly geared to handle it. An abundance of this type of revenue could suggest your company has a strong competitive advantage over others. Pursue!

Delegate or Dump - Your business is perfectly suited to handle this work, but it may take away key resources which could be used to participate in higher yielding activities. Either delegate to lower levels of the organisation or dump!

Blood Sweat & Tears - This is the kind of revenue source which comes with great costs and risks but may pay off ten fold if the final product / service offers great utility and is marketed correctly. Pursue if your business is about innovation and not just 'safely getting by'

Dead Ducks - This is type of revenue stream that no one wants. High effort activities which drain resources and offer little return. Having and abundance of this work suggests that your  business is at a competitive disadvantage in its field or has not made a conscious effort to acquire higher yielding revenue sources.

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