When a business embarks on a mission for sales growth and successfully achieves it, it’s cause for celebration – particularly when that growth is a staggering 361%!
We’d like to share a story about how our Melbourne-based CFO On-Call, Michael Granek, worked with a business to achieve just that.
The wholesale business grew sales from $18m to $65m over 11 years, through organic growth and two successful acquisitions.
Through a combination of strong cash flow, profitability management, process improvements and shareholders taking low dividends, Michael helped the business to grow without significant bank or other debt funding and reduced net debt.
As a result, the business was able to achieve a number of key milestones, including:
- Relocating and renovating offices and a showroom complex
- Centralising three warehouses, including purchasing racking for 14,000 pallet spaces
- Moving once again to a larger 28,000 sq meter warehouse, including purchasing of racking for 28,000 to 30,000 pallet spaces
- Applying over $1m of IT hardware and software enhancements
- Successfully undertaking two business acquisitions
- Achieving the working capital to grow the business without significant outside debt
- Growing administration staff levels at much lower levels than the 50% customer growth achieved – customer care staff numbers grew from 6 to 7 and finance admin staff grew from 3 to 5!
Of course, growth like this does not happen accidentally. To show how it was achieved, we’ve compiled a useful growth strategy guide.
You’ll learn how Michael worked with the business to implement a range of projects to reduce administrative processes, keep staff numbers low and harness IT processes, and implement an extensive and companywide reporting program to all key stakeholders, including Shareholders, Directors and Banks.
If you have growth aspirations for your business and would like to tap into the wealth of knowledge and experience of a wholesale expert, why not book in a time to have a free chat with Michael about your business goals and challenges?