We often meet business owners who don’t monitor their figures and team performance accurately.
It is important to track the top line but it is not what goes into your pocket at the end of the day.
Being willing and motivated to increase your business value is great but it is critical that you are able to track your progress.
When one business makes $100 of turnover and $10 of profit while another business providing the same products or services in the same market makes $70 of turnover and still $10 of profit, there are obvious signs that the first business is not efficient even though it is making money.
|Company A||Company B|
Given that Company A and Company B are in the same market, which one would you rather operate?
As a business owner you want to make sure that you are reducing your inefficiencies and waste, but to do so you need to be aware of those ineptitudes, Ratios & Key Performance Indicators (KPIs) are a big part of the solution.
- Do you know where you stand compared to your competitors?
- Do you have a precise view of your gross profit margin – not only for your whole business but per project/client?
- Do you know your monthly break-even point?
- Do you have cash flow issues linked to a lack of reporting?
- Do you know how your team is performing?
It is crucial to have the right allocation of costs per activity. After our intervention, some of our clients closed down one or more of their activities because they realised they were no longer profitable. Prior to engaging with us, these businesses were unaware that profitability issues existed in these areas at all.
You also want your people to be accountable. For instance, if you realise that all the call backs from your clients concern the work of one particular technician, you might take some action to correct these types of issues.
We can provide you with means to make sure that your business can increase in value, we will accompany you in the set-up of proper financial reporting and Key Performance Indicators (KPIs) including: Sales, Quality, Cost, Delivery and Safety.