The Two Questions That Diagnose Any Business

April 23, 2026

People think diagnosing a business is complicated. After 30+ years, I’ve narrowed it to two questions. If I can get honest answers, I can tell you what’s wrong.

Question 1: Where does the money come from?

Not revenue. Profit. Which customers, which products, which channels actually make you money? Most CEOs know revenue by segment. Almost none know profit by segment. The gap between the two answers tells me everything about the discipline of the business.

Question 2: Where does the money go?

Fixed costs are easy. What I want to know is variable: the customers who cost more to serve than they pay, the SKUs that lose money at standard cost, the channels with negative unit economics at scale. The honest answers here usually find 10-20% of EBITDA no one was looking at.

Why these two questions

Together they tell me where to invest and where to cut. That’s 90% of middle market strategy. The rest is rhythm and discipline.

The test you can run today

Pull the margin-ranked list of your top 20 customers and top 20 products. If you can’t generate it in 30 minutes, that’s your first problem. If you can generate it and it surprises you, that’s your strategy for next quarter.

Ready for a direct conversation about your business?

Bill Canady takes a limited number of strategy coaching calls each month with middle market CEOs, founders, and owners who want a direct read on where their company stands and what to do next. No pitch. No fluff. One honest conversation about growth, profitability, and exit readiness. Book your strategy coaching call at billcanady.com.

About the Author

Bill Canady

Bill Canady is a national best-selling author, Founder & CEO of The 80/20 Institute, and a global business leader known for transforming companies into high-performing, profitable enterprises. Over the course of his career, Bill has led multibillion-dollar organizations through their most critical challenges—navigating complex regulatory, investor, and media environments—while consistently delivering profitable growth.

Drawing on decades of executive experience, Bill created the Profitable Growth Operating System (PGOS), a proven framework designed to help leaders cut complexity, focus on the critical few, and accelerate growth. Through The 80/20 Institute, he and his team partner with CEOs, executives, and entrepreneurs worldwide to apply the 80/20 methodology in real-world settings, unlocking revenue growth, margin expansion, and shareholder value.

As both an operator and advisor, Bill’s mission is clear: to give leaders the tools, systems, and confidence they need to achieve sustainable, profitable growth — without sacrificing focus, culture, or execution.

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