Business Improvement Programme

A new client taken on by CRM, a successful consulting company specialising in communications software. Although profitable, the business had no structure or systems in place, and was totally reliant on the continued involvement of the founders on a day to day basis.

CRM worked with the client, using the business improvement programme, to put structures and systems in place such that the founders could step back, and spend more time working on rather than in the business.

A system of financial controls were put in place, including key business performance indicators, which were incorporated into a business dash board and monitored on a monthly basis. Forecasts were prepared for the first time, the actual results monitored against these.

The impact of putting systems in place and the founders reducing their day to day involvement was carefully monitored through the business dash board. Where necessary, systems were modified to keep the actual results in line with the forecast.

An exit strategy was built into the planning, such that a trade sale would be possible without over reliance on the founders. Business valuations were made on a regular basis to assess how the value of the business was moving, and give a realistic view on a possible sale.

Two years after CRM became involved a trade sale was achieved for a significant sum.

CRM were introduced to a start up engineering business. The business did not have a proper financial system in place, mainly ‘firefighting’ on a day to day basis to keep running.

The eight step structure of the business improvement programme was used by CRM to put a financial system in place that included monthly management reports, cash flow management systems, a debtor control process, and sensible business budgets.

The monthly management reports including graphical representation of the key business metrics, to help understand the significance of these numbers better. Each month the key performance indicators were reviewed, and the results put into actions for the next month to keep the business on track in line with its budgets.

Measures were introduced to incentivise the team, and ensure key members were retained. These measures included a simple bonus scheme based on monthly results, and also a share option scheme under the enterprise management incentive scheme (EMI).

Eighteen months since the introduction of CRM the business is in a much stronger position, with good visibility of its financial future.

An established business and existing client of CRM, who provided agricultural services, had an opportunity to expand into a new trade.

CRM helped to put together a business plan for the new trade, making good use of the infrastructure of the existing business to maximise efficiency.

As part of this planning CRM set a group structure for the companies to operate within, with a view to one of them being sold off in the next five years.

CRM used its network of advisors to introduce specialist consultants for the new business, and obtain specialist taxation advise for the international aspects.

The eight steps of CRMs business improvement programme were already being applied to the existing business, and it was a logical step to apply them into the new one.

This allowed the business to develop with a proper structure, and good systems in place, which greatly enhanced its value. After four years the company that held the new trade was sold for a significant price.