This is why using profit trees is so important in your business. They provide clear visual representations of the cost and revenue drivers, helping you discover the best path to increasing revenue or cutting costs.
What Are Profit Tree Worksheets?
Why Should You Use Profit Trees?
How Are Profit Trees Structured?
Branch 1: Revenue
Branch 2: Costs
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Fixed costs:These are expenses that remain consistent regardless of changes to production or sales (e.g., salary, rent, insurance, etc.)
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Variable costs:These are expenses that change proportionally with your production level (e.g., software fees, material costs, sales commissions, etc.)
Profitability Improvement Ideas
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Cost Improvements:These are your ideas and business goals that will increase profitability. This could include optimizing production costs, reducing operational costs, or managing labor costs.
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Revenue Improvements:Here, you should evaluate your revenue streams and highlight areas for improvement, such as upselling to existing customers, increasing prices, or expanding into new markets.
Profit Tree Prioritization
The Step-by-step Guide for Creating a Profit Tree Worksheet for Your SMB
Embracing sales pipeline automation will utterly transform your business. According to Gartner Research, companies that automate sales management see a 10% increase in revenue in as little as six months.
1. Get a Proven Template from StackPlan
At StackPlan, we specialize in helping our clients create effective, well-planned profit trees that pinpoint the best areas for growth and improvement. We’ll give you our proven template and help you tailor it to your business perfectly.

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But in this case, we’d love to have your email because we worked pretty hard on this particular worksheet and we know it’ll be a great resource for you!
2. Brainstorm Critical Components
3. Discuss Potential Profitability Improvements
It’s difficult to know how to improve areas without expert help, which is why our software advisors at StackPlans are invaluable. With key industry experience, we can advise you on the best areas for growth and improvement, and our software advisors can recommend the best digital transformation upgrades to get you on the path to success.
How Profitability Tree Analysis Informs Strategic Decisions
Get Expert Help Building Your Profit Tree
Whether you’re planning a large-scale digital transformation for your small business or simply want to uncover hidden opportunities to boost revenue and cut costs, creating a profit tree is an essential investment.
However, building a profit tree takes time, diligence, and experience. When it’s time to build your profit tree, consider talking to one of our consultants for expert advice and an objective eye that can see the whole picture of your profitability. Get started today!