Case Study – Client Results – Business One

November 5th, 2010

The next few articles are going to look at some specific client examples and how they have increased the profitability and efficiencies in their business by taking a more managed approach to their activities and working closely with PlanA Consulting and other key advisors.

We’ll call the business in this case study Business One and its characteristics are:

  • Owner(s) work in business
  • Full-time staff and casuals
  • Operating in local market for about 20 years

After the initial planning session a number of immediate issues were identified and they were:

  • No process to follow up leads/quotes
  • Some staff causing issues
  • Employment agreements out of date
  • Skills not transferable so roles at risk if key staff left
  • No key metrics to monitor activity
  • Financial info only analysed annually (even though they have their own general ledger)
  • Missing sales opportunities
  • No planning process
  • Current sales not been maximised

Over a period of time work was completed in the following areas:

  • Process put in place to make sure that leads/quotes were followed up on. This lead to an increased sale conversion rate of about 30%
  • Client referred to Grow Human Resources for assistance with employment issues
  • Commenced outsourcing work which removed risk factor
  • Ongoing work with their accountant (Black and White Accounting) to ensure that general ledger is accurate and client able to produce monthly financial accounts for review
  • Review of all pricing structures which lead to immediate increase of sales $
  • Process put in place to more effectively deal with debtors that assisted cashflow
  • Reviewed rosters to ensure employee productivity maximised

Financial Information for Business One

  • Sales$ increased by 7%
  • GP% increased by 14%
  • Net profit on turnover increased by 14.5%

How did the business achieve more?

  • Identified any immediate issues that needed resolving
  • Put process in place to deal with issues
  • Regular review of activity
  • Intense focus on increasing sales, reducing cost of sales
  • Used outside advisors to assist
  • Had structured plan and process to guide daily activity
  • Regularly reviewed financial information
  • Implemented key activity

If you would like to find various ways to increase both profitability and efficiencies in your business then contact John at PlanA Consulting

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