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Sample Audit
Strategic Audit · Sample

Northshore Coastal Plumbing

Industry
Service trade · NSW
Stage
$1.8M → $3.5M target
Prepared by
Studio Farrelli

Strategic Audit · Northshore Coastal Plumbing

Prepared by: Studio Farrelli
Business: Service trade · NSW · 11 years operating
Revenue: $1.8M FY24-25 · Goal: $3.5M in 12 months
Team: 6 (founder + 2 leading hands + 3 apprentices)


Stage Diagnosis

Northshore is mid-plateau at $1.8M — a classic stage 2 service business. The model is proven, demand exists, and the founder is the operational ceiling. Revenue per head is healthy ($300k/employee) but founder is still on tools 60% of the week. This isn't a lead-gen problem. It's a money model + delegation problem.

The stated goal ($3.5M in 12 months) requires a 95% revenue jump, which is realistic — but ONLY if the constraint shifts from "founder bandwidth" to "system bandwidth." Without that shift, this business will plateau at $2.1-2.4M no matter how many leads are added.

Constraint Identification

Primary: Conversion-constrained AND Capital-constrained (compound)

  • 30+ qualified leads/week arriving, but the founder personally quotes ~70% of them. Quoting backlog = 4-6 days = lost jobs to faster competitors.
  • Average ticket size is $1,200-$2,400 (one-off jobs). No recurring revenue. No upsell path. Money model timing is wrong: full cost paid upfront, profit recovered over months of single jobs instead of compounding contracts.

These two are linked: founder is the bottleneck because the offer requires founder-level diagnosis. Fix the offer structure → founder no longer needed in every quote → conversion ceiling lifts.


Framework Matches

1. The Money Model Reframe — Win Back Attraction Offer

Most plumbing businesses sell on price per job. Northshore's competitor average is a $99 callout. Northshore charges $145 and wins on quality — but loses 40% of cold-traffic quotes on price alone.

Apply: Win Your Money Back attraction offer. Offer a $250 "complete plumbing health check" — drain camera, pressure test, water-quality reading, 18-point report. Customer pays $250 upfront. If they book any subsequent job >$1,000 within 90 days, the $250 is credited to that job.

Why it works: the $250 isn't a discount — it's a deposit. You get cash on day one. You're now the only operator in their home with diagnostic data. Conversion rate on the follow-on job goes from cold-lead 22% to warm-lead 60%+. Cash collected upfront triples first-30-day revenue per lead.

Expected impact: $40-60k additional cash in the first 90 days, plus a 30-40% conversion lift on big-ticket follow-on jobs. Cleanly fixes the capital-constrained loop.

2. Founder Delegation — Red/Yellow/Green Task Audit

Run a 2-week time study at 15-minute intervals. Categorise every block:
- Red — only founder can do (high-stakes diagnostics on $20k+ jobs, hiring, business strategy)
- Yellow — founder does it but a senior tradie could with a script (standard quotes, customer callbacks, supplier negotiation)
- Green — anyone with training can do this (admin, scheduling, parts ordering, basic site quotes)

Expected outcome from operators who've run this exercise: 50-65% of founder time is currently spent on Yellow or Green tasks. Building a quote checklist + handing 80% of quotes to your two leading hands removes the conversion bottleneck immediately. Founder time reclaimed should be redirected entirely to high-margin commercial jobs and recurring service contracts (see Action 3).

3. Recurring Revenue Layer — Service Contracts

The single biggest LTV unlock for a trade business is moving from one-off transactions to annual service contracts. Recurring revenue is also what acquirers pay a premium for — shifting even 20% of the base from one-off to contracted materially lifts what the business is worth at exit.

Apply: Annual Service Membership. $480/year, billed monthly at $40. Includes one priority callout per quarter, 10% off all paid work, drain camera inspection annually. Sell at the end of every successful job — "lock this in so next time you need us, you go to the front of the queue and save 10%."

Expected impact: 25-30% of existing customer base will convert if sold properly. With ~800 active customers, that's 200 × $480 = $96k recurring revenue in year one, compounding annually. Membership revenue is 95%+ margin and drops directly to bottom line.


Gap Analysis

Pillar Score (1–10) Gap
Offer 5 One-dimensional. No tiered offers, no upsell path, no recurring. Strong delivery, weak monetisation structure.
Lead Generation 7 Solid Google Maps + word-of-mouth flow. Could add 30% more through paid Google Ads, but not the binding constraint.
Sales / Quoting 4 Founder-dependent, 4-6 day backlog, no documented quoting playbook for staff. Biggest single bottleneck.
Retention / LTV 3 No CRM, no follow-up sequence, no membership offer. Customers are won and forgotten.
Team / Systems 5 Skilled team but no documented systems. Founder is single point of failure for every quote >$1,500.
Brand / Reputation 7 Excellent Google reviews (4.8★, 240+), strong local reputation. Underutilised for compounding referrals.

Strategic interpretation: the business has a 7/10 front end (leads + brand) bolted onto a 4/10 monetisation engine. Every gain made by the strong half is bled out by the weak half. Fixing the back half (offer, sales, retention) is 3x the leverage of fixing what's already working.


90-Day Action Plan

Priority 1 — Launch the Plumbing Health Check Offer (Weeks 1–2)

  • What: Build a $250 prepaid health-check offer with structured 18-point report deliverable.
  • Why: Solves the capital + conversion problem in one move. Customer pays upfront, founder gets to diagnose without the pressure of "free quoting," and conversion on follow-on $1k+ jobs increases dramatically.
  • How: Design a printable PDF inspection report template (1 day). Train both leading hands to perform the inspection (1 week shadow + 1 week solo with founder review). Push the offer via existing Google Ads + a Facebook lead form ($30/day budget). Sell to existing customer base via SMS first ("free upgrade to health check on your next call").
  • Expected result: 15-25 prepaid inspections in the first 30 days = $3,750–$6,250 cash collected upfront. Follow-on conversion target: 12+ paid jobs averaging $2,500 = $30k. Total 90-day revenue impact: $35-50k incremental.

Priority 2 — Implement Quoting Playbook + Handoff (Weeks 3–6)

  • What: Document the quoting process in a 1-pager: how to listen, what to ask, how to price, how to present, how to close. Train both leading hands. Founder reviews each quote for the first 2 weeks, then signs off only on quotes >$5,000.
  • Why: Eliminates the 4-6 day quoting backlog that's currently losing 25-30% of jobs to faster competitors. Returns ~20 founder hours per week to high-leverage work.
  • How: Use Loom-style screen recordings of the founder doing 5 real quotes to capture tacit knowledge. Build a Google Doc playbook with photos and scripts. Set up a shared inbox so leads route directly to whichever leading hand is available, not always the founder.
  • Expected result: Quote turnaround drops from 4-6 days to <24 hours. Win-rate on cold leads should rise 30-40%. Founder reclaims ~20 hrs/week. Equivalent revenue lift: $80-120k over 90 days from won jobs that previously timed out.

Priority 3 — Launch the Annual Service Membership (Weeks 7–12)

  • What: $480/year recurring service membership, billed monthly at $40 via Stripe or Xero subscriptions. Sold at the end of every completed job by the tradie on site.
  • Why: Unlocks the recurring revenue gap (LTV pillar scored 3/10). Doubles customer lifetime value, smooths cash flow, and dramatically improves business saleability if/when an exit is considered.
  • How: Build the offer one-pager. Train every team member on the 30-second sales pitch ("lock yourself in for priority bookings and save 10% — most regulars take it"). Track conversion weekly. Target: 20% of completed jobs convert to membership within first 90 days.
  • Expected result: Conservatively, 30 new memberships × $480 = $14,400 annualised recurring revenue added by day 90, compounding. Year-1 trajectory: $80-120k ARR.

One-Line Strategic Summary

Northshore doesn't have a lead problem. It has a money-model problem wearing a lead problem's clothes.

The leads already arrive. What's missing is a model that captures more from each one — and a founder freed from the quote queue to build the recurring layer that compounds.

The same business, 90 days out:

Today Day 90
Quote turnaround 4–6 days (losing ~25–30% of jobs) Under 24 hours
Founder's week ~60% on tools ~20 hrs/week reclaimed for high-margin work
Cash per new lead $0 — quoting is free $250 collected upfront
Recurring revenue None $14.4k ARR by day 90 → $80–120k trajectory
Monetisation engine 4/10 Structurally rebuilt

Execute these three actions in order over 90 days and the path to the $3.5M goal becomes structural, not heroic.


This audit synthesises 40+ proven operator frameworks distilled from 500+ real-world business case studies. Frameworks evolve — revisit annually.

Sample report only. All business details are illustrative.

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