Each section names the problem, the idea in one line, what you will be able to do, and the method from the book.
1. Write a sharp problem statement
The problem: You keep fixing the same problems again and again.
A problem written clearly is half solved; a vague one cannot be solved at all.
By the end of the chapter you can:
- Write a one-sentence problem statement with a number and a deadline
- Agree what is in and out of scope
- Get your whole team working on the same problem
The anatomy of a sharp statement
| Part | Ask yourself | Watch out for |
|---|---|---|
| What | What exactly is going wrong? | Words like “poor”, “bad”, “issues” |
| Number | How big is it, and how is it measured? | Numbers nobody can check |
| Since when | When did it start or get worse? | “Always” or “recently” |
| Where / who | Which products, places or customers? | Treating everything as one |
| Cost | What does it cost in ₹, time or customers? | Skipping this step |
| Solved | What result, by when, means success? | Goals with no date |
2. Read your industry: the five forces
The problem: You compete on everything and win on nothing.
Look at who can take value from the business, and which pressures your position can reduce.
By the end of the chapter you can:
- Tell industry pressures apart from one rival
- Back each judgement with an observation
- Turn the strongest pressures into choices
Five pressures around the business
| Force | Plain question |
|---|---|
| Rivalry | How fiercely do similar sellers compete for this business? |
| Buyer power | Can customers push prices down or demand more service? |
| Supplier power | Can essential suppliers impose worse terms? |
| New entrants | How easily could another capable business enter? |
| Substitutes | Could customers meet the need in a different way? |
3. Ten ways to earn
The problem: Sales grow, but profit doesn't.
Choose a payment pattern that follows customer value and covers the work you promise.
By the end of the chapter you can:
- Explain who pays and for what
- Match recurring revenue with recurring value
- Compare a fee with the work it funds
Five familiar ways to earn
Begin with what the buyer receives. These patterns can be combined: a service firm may sell a job, a monthly plan and separately charged parts. Try two patterns against the actual buying cycle before choosing.
| Pattern | What the buyer pays for | Illustrative example |
|---|---|---|
| 1. Product sale | Ownership of an item | A retailer sells a light fitting |
| 2. Service fee | A job, outcome or block of time | A designer prepares a catalogue |
| 3. Subscription | Continued access or a defined recurring service | An office pays for monthly equipment care |
| 4. Usage charge | The quantity actually used | A print centre charges per page |
| 5. Rental | Temporary use of an asset | A business hires a camera for a day |
The first design choice
Ask whether the customer needs ownership, a completed result, continued readiness or occasional access. That answer narrows the payment patterns worth considering.
4. Three ways to set a price: cost, competitors, value
The problem: You're unsure what to charge, or you discount too often.
Cost tells you the lowest price you can accept; value tells you the highest you can ask. Competitors show where customers will compare.
By the end of the chapter you can:
- Use cost, competitors and value together
- Avoid the markup-versus-margin mistake
- Choose a price inside a sensible range
Cost-plus, and the markup trap
Cost-plus is the most common method because it is simple: add up what one unit costs, add a markup, and that is the price. It makes sure no sale loses money, as long as the cost figure is right.
Markup is not margin
Many businesses mix these up and earn less than they think. Markup is profit as a share of cost. Margin is profit as a share of price. They are never the same number.
| Markup on cost | Price of an item costing ₹100 | Margin on price |
|---|---|---|
| 25% | ₹125 | 20% |
| 33% | ₹133 | 25% |
| 50% | ₹150 | 33% |
| 100% | ₹200 | 50% |
5. Customer interviews that reveal the truth
The problem: You're deciding on guesses about customers.
Ask people what they did, not what they would do; their past tells the truth their opinions hide.
By the end of the chapter you can:
- Write questions that get honest answers
- Run an interview without leading the person
- Turn 15 conversations into clear findings
Questions that work, and questions that mislead
People are polite, hopeful and bad at predicting their own behaviour. Ask “would you buy this?” and many will say yes to be kind. Ask about the past and about specifics, and you get facts.
6. Sell more to the customers you have
The problem: You're choosing where to grow next.
The cheapest growth comes from customers who already know and trust you.
By the end of the chapter you can:
- Measure your share of each key customer's spending
- Work out what losing customers costs you
- Plan cross-selling and repeat buying without pushiness
Share of wallet: the growth hiding in plain sight
Share of wallet is the part of a customer's total spending in your category that comes to you. A dealer who buys ₹2 crore of tiles a year, ₹70 lakh of it from you, gives you a 35% share. The other 65% is growth you could win without finding a single new customer.
- Estimate each key customer's total spend. Ask them, ask your salespeople, or estimate from their size.
- Work out your share. Your sales to them divided by their total.
- Ask why the rest goes elsewhere. Range gaps, price, credit, delivery, a relationship with a rival.
- Fix the reasons you can fix. Fill range gaps, improve delivery, agree a yearly plan with the customer.
- Track it every quarter. Share of wallet rising is a sign you are winning trust.
7. Map a process step by step
The problem: The business only runs smoothly when you are there.
Draw the process as it really runs, not as it should; the waits and loops you find are where time and money go.
By the end of the chapter you can:
- Map a real process with the people who do it
- Separate work time from waiting time
- Spot handovers, loops and approvals that slow things down
Map a process in 60 minutes
- Choose one process, with a clear start and end. “From order received to goods dispatched”, not “production”.
- Bring the people who do the work. One person from each step. Managers can join, but should listen first.
- Walk it, or follow one real case. Pick an order from last week and trace exactly what happened to it.
- Write each step on a sticky note. Verb and object: “approve price”, “cut timber”. Put them in lanes, one lane for each role.
- Add times. How long each step takes, and how long work waits before it.
- Mark problems in red. Waits, rework loops, missing information, double entry.
- Agree three fixes and owners. Before anyone leaves the room.
If the team works across sites, do the same on a shared screen: one column per role, one row per step, and the real order open beside it.
8. Big bets vs reversible choices
The problem: A big, hard-to-reverse decision is coming.
Spend your care on decisions that are hard to undo, and make the rest quickly.
By the end of the chapter you can:
- Sort decisions by how hard they are to undo
- Stage big bets so you can learn before committing
- Speed up reversible decisions
How to tell them apart
Ask four questions. The more “yes” answers, the more the decision behaves like a one-way door.
| Question | Example of a “yes” |
|---|---|
| Would undoing it cost a lot? | Selling a specialised machine at a large loss |
| Would undoing it take a long time? | Exiting a lease with three years to run |
| Does it lock us in with others? | A long contract with penalties, or a joint venture |
| Would it change how customers or staff see us for years? | A brand change; closing a branch; a public promise |
Many decisions are mixed: the first step is reversible, but later steps are not. Find the point of no return, and make sure you have learned what you need before you reach it.
9. From strategy to 3–5 priorities
The problem: Plans are forgotten after the first month.
A business can pursue only a few priorities well; choosing them means saying no to good ideas.
By the end of the chapter you can:
- Turn a strategy into three to five priorities
- Choose between good ideas with a simple filter
- Write a not-now list and stick to it
Turning a strategy into priorities
- Write the strategy in one sentence. Where we are going, and how we will win. Sanjeevani: “Indore's first choice for planned surgery and heart care.”
- List every candidate initiative. From the strategy session, department heads and customer feedback. Aim for a long list.
- Ask which ones move the strategy most. Drop anything that doesn't clearly serve the one sentence.
- Score the rest on impact and effort. Use the grid on the next page.
- Choose three to five. Check you have the people and money for all of them at once.
- Write the not-now list. Every good idea you are deliberately not doing, and when you will look again.
- Test it with the people who must deliver. Ask: what would stop this? Adjust before announcing.
10. Know your walk-away point
The problem: You're about to negotiate with a supplier, client or boss.
Your power in a negotiation comes from your best alternative; know it, improve it, and set your walk-away point before you start.
By the end of the chapter you can:
- Work out your best alternative and your walk-away point
- Estimate the other side's limits
- Strengthen your position before the meeting
Work out your walk-away point
- List your alternatives. Everything you could do if this deal fails: other customers, other suppliers, doing it yourself, waiting.
- Pick the best one. Realistic, not ideal. What would you actually do next week?
- Put a value on it. In rupees where possible: what would it earn or cost over a year?
- Set your walk-away point. The least attractive deal you would accept rather than take the alternative.
- Write it down before you meet. In the heat of the meeting, a written limit is far easier to keep.
If several people negotiate for your side, agree the walk-away point together, and decide who alone may approve a deal close to it.
11. The first 72 hours of a crisis
The problem: Something has gone wrong, or sales are slowly sliding.
In the first hours of a crisis, protect people, contain the damage, get the facts and take charge, in that order.
By the end of the chapter you can:
- Act in the right order in the first hours
- Set up a small crisis team with clear roles
- Make sound decisions before all the facts are known
The first four hours
- Make people safe. Evacuate, stop machines, call emergency services, look after anyone hurt.
- Stop the spread. Halt production of the faulty item, hold shipments, pull stock, isolate systems, secure the site.
- Tell the leader. The owner or nominated leader hears within the hour, with whatever is known.
- Start a log. Time, what was seen, what was done, by whom. You will need it for customers, insurers and authorities.
- Preserve evidence. Keep samples, records, footage and documents; don't tidy up the scene.
- Contact the people most affected. A short first call to the customer or people affected: we know, we are acting, we will update you by a set time.
| Crisis | First containment step |
|---|---|
| Faulty product | Hold all affected stock and shipments |
| Fire or accident | Evacuate, make safe, call emergency services |
| Data or system breach | Isolate affected systems; call your IT support |
| Key customer walking out | Senior call within hours; protect the other accounts |
This article is adapted from the book. Examples marked “Example” use invented names and numbers; company stories are based on public sources listed in the book. For general learning; use your own judgement for your situation.
