TCFBO #014: The Income Matrix - Part One

Read Time: 2.5 minutes

Recently we wrote about the importance of using some of your resources to find additional income streams and likened it to being a gold miner, digging holes to find new seams of gold for you to mine. (If you missed it, you can read it here).

But are you extracting as much gold as you possibly can from your existing mines?

Do you know how much gold each existing mine is producing?

Do you know which mine is producing the most?

Do you know which mine has the greatest untapped potential?

Well, if you’re not sure, the Income Matrix is a simple yet powerful framework that will not only answer those questions but will show you how to unlock untapped revenue that may currently be hidden away.

So today and next week we’re going to give you the step-by-step guide on how to use it to extract that untapped revenue.

Step 1: Open up a new spreadsheet

Step 2: In the first column, list out all your customers.

If you’ve been trading for a number of years and have a lot of customers, begin by focusing on those customers who have bought from you in the last two years.

Step 3: Across the top, list out all your products and services.

If your range of products and services is large or complex, start off by grouping things together to get a high-level view.

Avoid getting over analytical the first time you use this framework.

It’s the theme of the information which is important.

Once you’ve completed the first three steps you should have something that looks like this…

Step 4: Take each customer in turn and enter the total amount they spent on a particular product or service over the last two years.

In the example below, Anne bought Product B for £50, Product C for £500, Product D for £100 and Product F for £5,000.

In the next image, the total amount each customer spent on each product has been added to the spreadsheet.

Mary bought Product B twice at £50 a time, so her total for Product B was £100. It’s the total expendinture we put in the spreadsheet.

Mary also bought Product A for £27, Product C twice for a total of £1,000, Product D twice for a total of £200 and Product F twice for a total of £10,000.

Step 5: Total up each column.

You should now be able to see the total revenue generated by each product or service.

Which of your products or services generated the most revenue?

Step 6: Total up each row.

You should now be able to see the total revenue generated by each individual customer.

Which of your customers spent the most with you?

So now you know how much gold each existing mine is producing and which mine is producing the most.

You also know which customers spent the most with you.

Next week we’ll show you how to use this information to discover how much money you may be leaving on the table and what you can do about it.

Let us know how you get on and we’ll see you next week.

Paul & Philly

Whenever you’re ready, there are two ways we can help you:

1. Discover how to create a life and business you truly love with your copy of “Backwards Planning - A Simple Method to Move You and Your Business Forward” from Amazon.

2. To work with us through the entire “Backwards Planning” process outlined in the book, you can apply to join The Clear Focus Business Academy.

The first step is to book a facilitated Life Vision Session which we conduct one to one over Zoom. This session will not only give you clarity on what you want from your life but will give you the opportunity to experience how we work and ensure we're a good fit for each other before deciding whether The Clear Focus Business Academy is right for you. It comes with a 100% money back guarantee, so if you're not entirely satisfied, simply let us know at the end of the session and we'll issue a full refund.