When you invoice millions but profit is ridiculous
And almost all family income depends on this
When you invoice millions but profit is ridiculous
And almost all family income depends on this
There's a type of company that looks solid from the outside.
Seven-figure revenue. Employees. Clients acquired over the years. Enterprise software sold to SMEs.
But the reality of the numbers is brutal.
The trap of revenue without margin
The numbers look good.
You invoice millions. You have a team. Enterprise software, ERP, HR. Important clients.
From the outside, everything seems to work.
But reality is different.Profit is ridiculous compared to revenue. Almost non-existent net margin.
Meaning that for every euro you invoice, you're left with crumbs. The rest goes to costs.
What happens when margins strangle you
High revenue but non-existent profitability. Each unexpected event affects the already minimal reserve. Impossible to save or invest in growth.
Total dependency. Almost all family income comes from here.
A negative year means personal disaster.
You work to keep the machine running, not to create value. Each sale generates costs almost equal to revenue.
And the team? Demotivated.
"We work hard but where does the money go?"
Why it happens
You've built a business with structurally low margin.
You're a reseller, not a producer. You sell software you don't own. You pay licenses, renewals, commissions to the vendor. You provide installation, configuration, support.
But most of the value stays with the software producer. You do the heavy work. But take the crumbs.
And without margins you can't invest in team training. Can't hire dedicated salespeople. Can't do structured marketing. Can't innovate or differentiate.
Result: you run to stay still. You invoice, but don't earn.
On the team front
Widespread demotivation. Owner who doesn't invest in training because has no margins. Staff who feel their efforts are trivialized. Disputes and lack of communication.
Constant worry: "I'm losing leadership".
On the commercial front
Difficulty getting past initial filters. Low conversion. Reduced prospecting because you're buried in operations. Need to acquire clients but without defined strategy.
Competing on par with other resellers on the same software. No strategy to acquire ideal clients.
The wrong path many try
Apparent solution: "Let's increase revenue, so the percentage becomes more too"
But if margins stay ridiculous, growing just means: more work, more stress, more costs.
Same problem, amplified.
Growing at negative margins sinks you, doesn't save you.How Private Community helps
Brutal model analysisIdentify where you're losing. Which clients or services generate negative margin. Which activities devour profitability. Map real value flow.
Strategic decision: ownership or partnershipDevelop proprietary IP. Negotiate more favorable partnerships with vendors. Change vendors for software with better margins. Exit from reselling, focus on high-value services.
Repositioning on high-margin servicesNot just sales and installation. But strategic consulting, customization, advanced training. Recurring services: maintenance, optimization, evolution. Value-based pricing, not cost-plus.
Ferocious operational efficiencyAutomate everything automatable. Standardized processes to reduce support costs. Cut courtesy services that erode margin. Unprofitable clients: renegotiate or let them go.
Team as partnersTransparency on numbers: "Here's why we can't invest". Involvement on solutions: "How do we increase margins?". Incentives tied to profitability, not just revenue. Invest in training when margins allow it.
What changes after
You're no longer a slave to revenue.
Profit grows faster than revenue. Each sale generates real value, not just cash movement. You can invest in team, sales, innovation.
And above all: almost all your family income no longer depends on a company that doesn't earn.
You have room to maneuver, options, breathing space.
You no longer work to keep the machine running. You work to build wealth.
Are you in a similar situation?
Fill out the Preliminary Analysis Module (MAP). We'll help you transform revenue into real profit.
→ Start Preliminary AnalysisTags: #SME #SoftwareHouse #TightMargins #RidiculousProfit #DemotivatedTeam #Resellers
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