Prune revenue to grow faster

Who this is for

Founder led lower middle market companies with 5 to 50 million in annual revenue.

The quick answer

Score each offer on margin, strategic fit, and strain. If an item drags margin and blocks growth of the core, plan a clean exit. Replace revenue through price and mix rather than volume alone.

The framework in six steps

  1. Build the offer list
    Units, revenue, gross margin, and delivery strain.

  2. Score and rank
    Red for below target, green for strong.

  3. Design the exit path
    Substitutions, last order dates, and account notices.

  4. Lift price and mix
    Tune core pricing and bundle high margin add ons.

  5. Track results
    Margin, capacity freed, and account health.

  6. Share the win
    Show the team how pruning helped.

Example

After retiring eight long tail SKUs and raising price on two core lines, a light manufacturer gained one point of margin and freed capacity for faster shipments.

Pitfalls and fixes

  • Quiet write downs. Communicate the plan.

  • Sales surprise. Give tools and substitutions.

  • Service gaps. Keep spares for support windows.

Checklist

  • Offer scorecard

  • Exit plan with dates and owners

  • Price and mix actions defined

  • Customer communication ready

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