Success story - Services Company

Problem

The client was referred to me by his bank who had lost patience with him. His bank account was a mess – constantly exceeding his overdraft limit and he was not able to adequately explain how his business was doing.

Solution

I reviewed the situation and supported him in implementing monthly management accounts. We changed the layout of his Profit and Loss Account so that it gave information on profitability by business. Immediately he identified the more profitable business he should focus on. Routines were implemented whereby he reviewed profitability by contract on a monthly basis. This let him take action earlier on under-performing contracts. Cash Forecasts were prepared, submitted to the bank and adhered to. In implementing all of this, new staff members were hired and an existing staff member was redeployed.

Results

The clients profitability went from breakeven at the half year point to 10% net profit for the full year. The clients turnover has doubled and workforce has doubled. The client moved to a new bank and now finds himself being courted by rival banks.

Return to main Success Stories page