IDENTIFIED CHALLENGES
- Turnover, gross margin and net profit were all declining
- The bank had recently declined additional lending and now required a marked reduction in the overdraft
- The operations manager was no longer able to handle the business’ complexities
- Manual systems did not allow business Key Performance Indicator (KPI) reporting
- Staff productivity could not be measured and jobs were not back-costed; profits were being forfeited as a result
- The business was over-stocked tying up cash reserves
- Staff were making unauthorised purchases rather than ensuring they had all necessary parts with them before starting a job.
Our consultant quickly concluded that the business owners were open to change, the company’s product was valuable in the market, proven opportunities existed for expansion, and the staff were loyal and generally competent.