Andrew Free
Newcastle Partner
If you want to grow your business but are struggling with profit and cash flow, I can help. I’ve worked with clients to help them get the fundamentals correct, ensuring their business is sustainable and prepared for taking their business to the next level. What are some of the fundamentals?
- Understanding the true cost of your product or service is vital to ensure a good profit margin.
- Controlling variable costs and overhead costs to keep profits on track.
- Managing cash flow to utilise the peaks and survive the troughs in the cash flow cycle.
- Ensuring that financial reporting is not only accurate, but provides the information relevant to the successful operation of the business.
- Proper planning including meaningful budgeting and long-term strategic planning.
These are examples of a couple of businesses I’ve helped in the past to achieve great outcomes:
Health Care Call Centre After 5 years of operation, the business had only managed to achieve a breakeven result.
The key issues I identified and addressed:
- Pricing - created an accurate pricing model, which protected the business when it grew substantially.
- Contracts - helped negotiate and win a large contract with fair pricing and reasonable clauses.
- Operational KPIs - introduced daily reporting to ensure ‘variable costs’ were managed.
- Overhead
Costs - Implemented precise budgeting and authorisation controls. As a result revenue increased from $35m to $70m in two years and profit increased to 9% of revenue.
EFTPOS Equipment Supplier, The business was growing rapidly across the Asia Pacific Region and struggling to manage the growth.
The key issues I identified and addressed:
- Cost Structure – analysed the costs and implemented controls, which protected the business as it expanded into new countries.
- Pricing – introduced a model that was accurate and easily transferrable to new markets.
- Debtors – implemented strict credit control and collection procedures.
- Stock – ensured procurement was controlled in line with known requirements.
- As a result savings of $350k p.a. were identified and the business managed to maintain an annual growth rate of 25% pa. without requiring additional borrowings.
If you have an aspiration to grow your business and would like to discuss your goals and plans, I would love to hear from you.
Discover the Power of an Hour with Andrew Free