Case Study - Generating turnover but growth proving difficult by Peter Heath

Problem: The client has a business generating turnover of around £400k a year, but growth was proving difficult.

An AugMentor Partner case study

Problem:

» The client has a business generating turnover of around £400k a year, but growth was proving difficult.
» Although basically sound, the business had an immediate cash-flow issue. which was becoming critical: he needed cash urgently to cover outstanding debts.
» There was limited clarity of purpose and no prioritising evident in the client’s activity.

Action:

AugMentor partner Peter Heath after an initial free session, worked over a 2-day period on the following:

» Key priority areas for the owner were identified for him to focus on and clarity on other areas given to his staff.
» An historic cashflow statement covering the last 12 months was generated to show business performance.
» An initial forecast for the next 12 months’ cashflow was also produced.
» A 12 month business plan was generated, covering financials, customers/markets, operations/resources and processes/systems.

Results:

» The owner took the plans to his bank, and supported by Peter Heath, was able to demonstrate a credible business position and future.
» A business loan was agreed to resolve short-term cash-flow issues.
» The business owner, with new clarity of purpose, has been able to grow business with the larger clients that he is now concentrating on.
» During 2009, his business grew by over 20% from 2008.
» He now conducts monthly business reviews with AugMentor, to ensure the business stays on track, to modify the plan in light of new developments, and to ensure he meets the expectations of his clients and his bankers.