A local wholesale paint supplier had been a client of their accountant for eight years. The relationship had traditionally been around year end tax and compliance. Two years ago, the accountant discussed the idea of business growth with her client. She said she had been thinking about the business and had run some numbers to take a look at the potential in terms of profit and cash flow improvement. She demonstrated to the client that by achieving some small improvements in a range of different areas, sales could be increased by 20%, the majority of which would drop straight to the bottom line, taking the business to the next level.
The client was excited about the opportunity and decided to work with the accountant to make it happen. Each month, they focused on the following key performance indicators:
- Number of transactions
- Average transaction value
- Days in inventory
- Days in receivables
- Shortening reorder times.
The client was the implementer; the accountant helped set up the systems, monitored the results, compared actual results to budgeted targets and held the client accountable.
Ultimately, the accountant facilitated a workshop with the client’s sales team to help come up with a sales ‘playbook’ – one, best practice way of selling the business’s product. By measuring sales conversion rates (by person), constantly raising the bar on targets and being the sounding board and accountability ‘buddy’ that the client needed, the sales potential growth of 20% was overachieved in year 1. The client is delighted and considers his accountant as an integral part of his business’s advisory team.
Because of our strength with numbers, we can work with you to put together a similar plan. If you’re interested in taking your business to the next level, contact us to discuss how we might help you with our professional business structure advice.