Business adviceAt Initiative, we know business.
We know how daunting Australian tax and accounting regulations and compliance requirements can seem, we know what it’s like to be time poor and under cost pressure, and we know how key support functions and processes can divert your attention from critical activities. We know because we’ve helped countless businesses overcome these challenges. And we can help you too.
Meet our clients…
This particular client is a small family business that has achieved great things in a very short timeframe under our guidance. The husband and wife team operate a successful motor mechanic and gas conversion business on the Sunshine Coast, Qld.
Previously, we assisted this client to establish their new business from scratch. This included providing comprehensive advice in relation to the feasibility of the proposed business and initial financial requirements, and of course the correct structuring and establishment of the operating entity.
Following the initial phase of getting the business operational, we sat down to learn more about this couple’s objectives and financial goals and learned that the following areas were very important factors:
- Benchmarking current performance against industry standard
- Establishment of Key Performance Indicators (KPIs)
- Implementation of budgets and other financial controls within the business
After communicating the above recommendations to our client, we were engaged to assist in not only these three key areas, but also to provide ongoing financial monitoring and accountability sessions.
The use of benchmarking identified that our client’s existing gross and net profit margins were under the typical industry standard. We were also able to identify several other areas where significant overhead cost savings could be made.
After analysis of the existing operations, we were able to advise on various ways to improve this client’s margins and overheads, with negligible impact to the business and its existing customers and suppliers. These recommendations were then translated into KPIs and agreed on by our client. The financial effect of achieving the KPIs were then incorporated into a 12 month budget, and aligned to our client’s internal accounting system.
We now meet with our client monthly and review financial performance for the preceding period/s. Regular financial monitoring and meetings with our client enable us to identify any reporting anomalies as they become evident, and also to identify any changes to our clients needs and goals, and suggest refinements as needed.
Since being engaged to work regularly with this client, the business turnover has increased by 82.6%, and the net profit has increased by 157.9%. Our clients are now feeling less of the pressures of running a small business, are confident of their success and are more motivated than ever to continue growing their business. After some further recent enhancements to our growth strategies, we have forecasted a further increase in turnover for this business of 78.9%, and a further increase in net profit of 104.6%, within the next 12 months.
By the way, did we mention this business was started from scratch, less than 2 years prior!
