Whether your business is relatively new, or well established and expanding, the challenges facing business growth can be considerable. Effectively managing your strategies for growth can help you succeed.
There are many ways to look at expanding or improving your business model depending on what you hope to achieve. You may need advice ranging from procedures for streamlining business processes and improving productivity to developing detailed strategies and plans for expanding into new countries.
The ideal place to start is with a full review of your business effectiveness to ensure you are operating at peak performance, and this process can include:
- Conducting a full operational business review
- Reporting on maximising profitability and return on investment
- Developing a strategic plan and direction for your business
- Assessing organisational effectiveness and restructuring a group of businesses
- Optimising cash flow and researching access to new avenues of funding
- Business valuations
- Advising and assisting with business entry strategies
Over the last few years we have prepared growth options reports for many of our clients who found this service to be very worthwhile and beneficial. A growth options report looks at the “big numbers” in a business and helps to identify areas within the business where change can/should be made. It does not provide answers, but highlights areas requiring some attention.
Once a report is prepared we work with you to form an action plan to implement the changes.
Example of success
A client approached us for help with their business. While the business was highly profitable it really struggled with cash flow and relied heavily upon their overdraft facility – the directors could not understand where there money was going. We prepared a growth options report.
The report showed that the key contributing factor to the cash flow issues were debtor days – the projections from the report showed that by reducing debtor days from 52 to 45, cash flow could increase by $100k.
By converting the 7 day reduction in debtor days into a dollar value it helped our client see the issue.
The suggested action plan was to focus on reducing debtor days by reviewing terms of trade and having an increased focus on overdue accounts.
Within 3 months the client debtor days were 34 and they had nearly $300k in the bank.
Needless to say the business is thriving even more than before!
Of course every business has different needs and will respond to different drivers and this is just one example of what can be achieved