We were contacted by a heavyside merchant owner that was experiencing a decline in sales and profitability. The company was battling changes in branch employees, all of which followed a business acquisition and a previous period of sustained growth.
The owners recognised the need to act, but were uncertain how to address the issues, and were looking for help and support in evaluating where the business was currently at, and what was causing this sudden downturn in fortunes.
Solution delivered
We listened to the merchant owner and then undertook a timely review of the business to identify problematic areas and provide solutions that would help improve the business. This involved a detailed examination of commercial, operation and financial aspects of the business, including understanding the issues being experienced by both customers and employees.
We also produced a profitability analysis of customers, products and for each division of the business, to understand where the losses arose, along with an analysis of cashflow and rolling 13-week cash forecasts to provide visibility of the cash runway.
Having identified these areas, we created and executed a timelined plan to address the issues causing the decline, and identified how to re-grow the business. This plan focused on the need for immediate action to reduce losses and source working capital, before embarking on a return to growth plan, that would improve like-for-like sales and profitability, building on the business’ inherent strengths.
Results achieved
Following the implementation of the plan, the owners experienced a return to growth in both like-for-like sales and profitability.
We worked closely with the merchant’s employees to re-motivate and empower them, resulting in engaged teams all focused on profitability. Thanks to these energised employees, the owners are now able to focus less on the day-to-day running of the business, and more on growing the branch network.
If you would like to talk to us, informally and in confidence, to understand how we can help you and develop your business, please contact info@moorgatemanagement.com or call Chris Maityard on 07767 291379.