Here’s how we helped one of our clients find the freedom to travel using strategic planning in their business.
A long established business with Turnover between $500k – $1 million, 3 employees and the business heavily reliant on the owners to operate. The business had been generating good profit but wasn’t sufficient to meet business cashflow requirements or the owners personal needs. The owners wanted the ability to travel regularly and have the business continue to operate with the same level of customer service and financial results.
We started with developing a Business Budget based on current performance to identify where the business would be at in 12 months’ time if no action was taken. Armed with where the owners wanted to be personally we identified what profit was required and therefore the gap that currently existed. Key strategies were implemented to reach the target profit, some of these included:
- Increased pricing to bring the business in line with the current market
- Selling more services to existing customers by educating team members and putting systems in place to be more proactive instead of reactive to customer needs
- Implementation of marketing initiatives through formalisation of a customer database and direct marketing
- Development of internal business systems to streamline processes, make employees more accountable and bring cohesion amongst team members to achieving business KPI’s and target
The above was not all done all at once but over a period of 6 months and is a continual work in progress. Key to the success of the strategies was having someone to be accountable to in hitting targets and to bounce ideas off along the way. This was done in the form of monthly accountability meetings with the outcome of each meeting being a project list for implementation in the next month.
In 6 months the owners have achieved the following key outcomes:
- Increase in Revenue by 13%
- Increase in Net Profit by 29%
- All Tax Office debts have been repaid and adequate cash provisions set aside for future tax
- The owners recently went overseas for 2 weeks and the business continued to operate smoothly and the team achieved the set KPI’s