Robert’s seventh book, Grow Your Digital Agency will be released soon, in the meantime, here is a little taster of what to expect around FINANCE:
Here’s an example of a quick ‘n’ dirty plan adopted by a recent client (an agency employing 16 people) – this activity turned the business around.
It is a series of small changes which, when combined, has a massive impact. No one activity on its own would have a great impact but when put together you can see that there is a huge benefit to the business.
Here’s the first list:
- Increase pricesby 3%
- Decrease direct costsby 3%
- Increase number of leadsby 3%
- Increase quality of sales conversations by 3%
- Increase quality of proposalsby 3%
- Increase quality of closes/asking for the business by 3%
- Increase number of purchases by each customer by 3%
- Decrease overheads by 3%.
They used my special calculator/excel spreadsheet and saw that the impact of these calculations was massive. I do not exaggerate.
For instance, the basic changes suggested above take a £500,000 a year business from £50,000 net profit to £121,900, an increase of over 100%! And that’s before you adjust the figures for sacking under-performers or for the impact of sorting the cash-flow. (To be honest, these additional changes had not been put into the worksheets as they make the spreadsheet too complex – it would be easy for you to design a spreadsheet that reflects your specific business.)
And of course you would also want to do the following (which we have not included in the calculators):film Despicable Me 3
- Sort under-performing clients, products, suppliers, staff (sack 5%?)
- Pull in cash10 days faster.
- Spend cash10 days slower.
As I said, small changes but massive impact.
What are you going to do to improve the profitability and cash-flow of your business?
To get your hands on Roberts forthcoming book, email GYDA@robert-craven.com to be made aware of its release date.