Generator & Pump Supplier - Case Study
Background:
Our Client is in the industry of supplying and modifying diesel generators and pumps to the mining industry, farmers, councils and other companies. They started as a small husband and wife business in 1990 and today have grown into a medium size business involving 8 members of the family.
Issues:
They had no business structure or plan and they wanted to grow but weren't sure how to go about this. They wanted to work out how they could create jobs for additional family members they would like to employ.
Process:
We met with the Clients on a quarterly basis to work with them on setting their goals and timeframes which lead to the development of their 10 year business plan.
They wanted to ensure they provide employment and a stable income for all the family. We guided them in management of HR to ensure roles and duties were defined.
Guidance was needed in branding and marketing the business and development of in-house accounting procedures.
Results:
- Due to the owners taking on board our advice and fully implementing our recommendations they have also grown in their exposure in the industry.
- Our Clients are seeing that their goals are being met and that future generations of the family (Succession Planning) is being realised. The employees/family members are being comfortably remunerated from the business ensuring their long-term commitment to the business.
- We have saved the Clients money by establishing a self-managed super fund so maximum contributions are made each year which enabled the super fund to purchase the building from the owners. The owners are also able to draw fully-franked dividends from the business.
- They have done a health and safety accredited policy for their workshop. They have refined and developed their product and services to improve profitability. They terminated the employment of non-family staff and restructured internal roles and procedures. They then went on to develop new markets in the mining industry and that in turn resulted in a dramatic increase by doubling their sales turnover.
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.