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Stop Those Leaking Profits!

Is your business leaking profits? Find out--and get more of the revenue stream back in your company.

This story appears in the September 2003 issue of Entrepreneur. Subscribe »

Many entrepreneurs can tell you how hard it is to grow sales revenue these days, but few can tell you how much of the revenue they generate disappears before it reaches the top line of their income statement. According to experts in the arcane art of finding and fixing revenue leaks, entrepreneurs may be missing out on 2 to 20 percent of their revenues-revenues that, in many cases, will drop right down to the bottom line if recovered.

Revenue leakage occurs when a salesperson neglects to send an invoice, when a billing computer rejects a bill that has a comma in the wrong place, when a customer's change order is implemented but never charged for, and countless other reasons. "Sometimes things just drop out and get lost on the floor," says Randy Browning, a PricewaterhouseCoopers partner and co-author, with Sameer Kumar, of To the Max: Revenue Maximization-Capturing the Opportunities Within (PricewaterhouseCoopers).

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