These clients have been reasonably successful in the concrete industry but, as they could see retirement looming, they wanted to increase their pension fund options. Jerome worked with them to significantly upgrade their whole business operations resulting in a 241% increase in nett profits which means their business is now a much more valuable asset when they come to sell it on.
The initial scenario
The husband and wife company operates in various aspects of the concrete industry including concrete cutting and grinding, core drilling, decorative overlays, polished floors, block honing, floor coatings, acid wash, grouting, slurry control, and waterproofing.
They were operating out of their home which added pressure domestically but also constrained their business growth opportunities. They simply did not have the space to bring in additional staff.
Sales and admin systems
As with many small businesses, the operations were quite “seat-of-the-pants” with few efficient systems in place. This meant that they were constantly repeating actions and tasks which made their operating costs much higher than they needed to be.
Together Jerome and the couple identified the key processes and built systems around those so that the costs were significantly reduced. Operational management time and costs were slashed dramatically. This was especially so with the sales processes.
A CRM system was implemented to track sales leads, enquiries, and sales conversions so that valuable leads were not wasted and the sales process became far more efficient.
Better customer service through ongoing staff development
One of the key aims from their work together was to raise the standard of customer service. The industry is very competitive but fragmented so increasing the service levels to a consistent standard was one way to elevate their business above its competitors.
This resulted in the team having a focus on raising their own standards which in turn means that the customer satisfaction levels were much higher. This was not a one-off task as the standards improvement is an ongoing process which all of the staff are involved in.
The attention on both sales and operating systems have produced some significant results. Firstly, due to the CRM system with the better monitoring and measuring of the sales pipeline, more leads were followed-up and converted into sales. This gave an increase in revenue of 33% over the previous year. Gross profit was up 28%.
Secondly, the admin systems and operational management improvements we implemented made a massive difference to the business. These significantly lowered the operational costs so that nett profit rose 241%.
What it means for your business
While most businesses focus on growing their sales, few businesses realise how expensive and inefficient their operations are. In this case study, we can see that a focus on sales produced a nice 33% increase in revenue but the time and effort we placed on the operations paid off with a more than doubling of nett profit. For this couple looking forward to their retirement, that is hugely important as the sale value of their business is based on a multiple of the profits. They can now look forward to a much more enjoyable and profitable retirement.