From a struggling business to a THRIVING business
After a couple of years running a business in the Construction and Building industry, Fred was struggling to pay bills on time, stressed to the max and juggling way to many jobs at once.
Even though business was ‘booming’ with increased revenues, Fred’s business was still financially falling apart.
There are many things we looked at when deciding how best to help Fred. Given the business’ financial position, we decided to make his previous 2 years worth of expenses visible by plotting them on a graph along with the revenues. This is what we found.
We then categorised these expenses to see where the ‘big-hitters’ were.
Doing this made it apparent that under-quoting and hidden costs were driving the business’ finances down.
Under-quoting meant they won more work, but those extra jobs made managing the business more complex. Things were slipping through the cracks and expensive rework and double handling followed. The money lost per job was increasing as the number of jobs was increasing.
We reduced the number of active jobs from 7 to 5 and introduced a range of systems and processes which were reletively easy to implement.
Many business owners believe an increase in sales is what’s needed to increase profits or make their business ‘successful’. This is not often the case.
Fred is a great example of this. Increased sales only accelerated the businesses financial hurdle. Without ensuring all aspects of your business are properly in order, increased sales is likely to create challenges you might not catch until it’s too late to do anything about.
To help as many businesses during these trying times, we’ve put together a FREE Short Course to teach you how to improve your business without relying on extra sales. After doing this course you’ll be able to pull your business apart and start introducing systems and processes, enabling you to do more with less.
If you’re interested, enter your details below and we’ll send you the course over the coming days.