What impact would working 1-2-1 with a business growth expert with a proven track record of success do for your business?
Most successful business owners recognise the importance of expert advisory and consultancy. In fact, every single major business seeks external expert advice and support to help with business growth. Expert advisory can range from simple budgeting and forecasting to strategic development and profitability analyses. Of course, at this level of complexity and specificity, all projects are entirely tailor-made and bespoke. We listen very carefully to you, determining a brief based on your exact requirements, which allows us to produce the precise outcomes and outputs you were searching for; adding only the highest possible value to your business.
Below we have detailed just a few examples of the types of consultancy and advisory projects we do with our clients.
Are some of your customers costing you money? You might be surprised to learn that a recent study by Harvard Business School found that 15% of all customers are unprofitable.
Moreover, around 20% of customers are responsible for 80% of a company’s profits. And worse still, on average the unprofitable customers cause more problems, make more complaints, take up more management time and have less loyalty. In turn, this means that you have precious little time left to focus on keeping your profitable clients happy. And it should be the other way around; but this is a very common story for a great many businesses today.
So, how do you determine what are your most (and least) profitable customers, products and services? And more importantly, what do you do once you do know?
With our Profitability Analysis, we’ll establish which customers make you the most profit – and the business owners we work with are very often surprised to learn which clients are actually profitable and which aren’t. It’s often counter intuitive and key facts can be lost in the detail.
Once we know, we’ll help you to gear your business around these high-value clients; identifying ways to keep these clients happy, build customer loyalty, increase average spend and increase the frequency of spend. Moreover, we’ll show you how to attract more clients just like these – imagine the impact having twice as many of this high-value clients would have?
Using our system, your business is focused on the 20% who make you the vast majority of your profit. That’s exactly how a business should run.
What’s more, we’ll also show you how to turn the unprofitable clients into profit over the short- to medium-term, using a series of proven management and accounting techniques.
If you’re unsure if a profitability analysis is right for you, a few quick questions to ask yourself are:
Statistics show that less than 10% of businesses have up-to-date, accurate sales figures. But such information is critical to a business owner – sales are the lifeblood of your business. You must know on a regular basis – ideally either weekly or monthly – what sales have (or haven’t) been made, allowing you to stay in total control.
What’s more, it’s vital to know your net margins – that is to say, after all costs have been taken into consideration, how much profit do you make on each product, service or client type. It will most likely vary from each product, service or client. And as so many businesses have variable pricing, often used to clinch the deal, this information is even more important. What if the big discount you gave to clinch that big deal is actually costing your money?
Surely it would be better to know your break-even point on all products and services – so you know exactly how much of a discount you can give before you stop making money. You see, if you don’t know exactly how many sales you need to make each month to break even, or at what price you need to sell to make a profit, then your sales and pricing becomes a guessing game.
This might sound complex – and that’s why most business owners shy away from having a clear sales and pricing strategy. However, without it – well, we’re back to the guessing game. And do you want to leave your business success down to a guess?
We can work with you and very quickly and easily determine how much profit you make per product or service. We can show you the different potential price brackets and what this does to your bottom line. So this way, you know exactly how many products you need to sell, and at what price, to make your sales target for that month.
We’ll produce these figures and present them on a single page of A4 – sometimes half a page. This way, you have arguably the most important piece of information – how much profit you will really make with each sale – with you at every sales meeting, ensuring that you never sell at a loss again, but instead ensure that you get maximum profit out of every sale.
The road to a solid, sustainable and highly profitable business starts with budgeting and forecasting. However, while most of us appreciate the importance of budgeting and forecasting, we just don’t quite know how to conduct such tasks. Yes, we know the basics, but for some reason our budgets and forecasts always seem to be inaccurate, sometimes alarmingly so.
That’s where we can help you. But unlike most accountants, we won’t try and bamboozle you with accounting jargon. No, we’re hands-on, practical and we come with solutions. We don’t try and confuse you by asking if you’d rather activity-based accounting or whole-based costing; and what are your views on opportunity costing?
Instead, we take the time to really get to know you and your business – and from these solid foundations we produce budgets and forecasts and present this in a language and style that you understanding. We take the time to explain things to you. And we’ll work with you on either a quarterly or monthly basis to review progress and update the forecasts; all for one fixed investment.
This way, you know exactly where you are up to – and if there are any problems, you can overcome these straight away. Ask yourself, when do you want to know about a problem in your business – after one month, when you have time to correct it, or after 12 months, when it’s become a systemic problem? And what about opportunities – do you want to identify these early and beat your competitors, or await 12 months to discover an opportunity missed?
Contact one of the team today to discuss your needs and we can determine the best possible approach for your business.
If you would like to discuss anything you have read on this page or if you would like to discuss how we can help you and your business, then please get in touch.
You can do this by completing the form below (scroll down to the end of the page and look on the right hand side), calling us during office hours on 0845 658 6949 or sending an e-mail to firstname.lastname@example.org