Background:
One of our clients is in the Information Technology Industry. They specialise in providing IT Solutions to businesses.
Issues:
This client required assistance with increasing their turnover, improving profitability and improving cashflow. The business had been growing slowly, but their gross profit and net profit was reducing.
Process:
We worked with the client to target three areas which were of the greatest concern to them:
PJT recommended changes to the roles of some team members. This allowed the Director to have more time to spend diagnosing problems which would generate more sales and leads and use the sales expertise of key staff. We set Key Performance Indicators (KPI's) to ensure clients were nurtured. This would increase the sales of new and existing services to their customers. The sales manager was also provided with the tools to sell existing products to new clients.
PJT monitored their financial performance on a quarterly basis and used the information to highlight areas that could be improved. We tracked the profitability of individual product and services lines, allowing the client to target growing high profit areas of the business.
PJT recommended changes to their pricing structure and that their debtor's policy be overhauled to increase cashflow to meet business expenses as they fell due. We also arranged for refinancing of their short term debt.
Results:
While the director and the team were keen to implement the recommended changes, they were sluggish to implement actual changes. After seeing the financial impact of some of the changes on the bottom line, they were then quick to implement further recommendations. Our recommendations have currently increased the turnover by 188%. This increased their gross profit by over $580,000. Net profit increased by over $300,000.
Comments from the client:
“Before PJT, we felt we were running blind. PJT provided us with more tools to measure our performance. We were given the key to monitor the business and in turn better ourselves and the business. The recommendations to change the structure and roles of team members allowed us to move forward and provide capacity to grow. We now have more time to grow the business. We are actively out looking for business and growing our client base. The reporting system provided by PJT was also great. It gives us a snapshot of how we are performing at any time.”
If you would like us to help you improve your business so that you can achieve your business and lifestyle goals, please call us on 5413 9300.