This business organises events for key speakers on strategies for wealth creation, lifestyle improvement and success. They are highly regarded through the industry, and have held some amazing events. They are constantly booked out and have an extensive waiting list. People from all over the world attend their events and last year the company's turnover was just over $12 million.
Mike, had received a series of emails from Twelve Chartered Accountants, including Case Studies on "How a simple change in business structure saved our client over $95,000 per year" and "How our client increase their profit by $292,000 is two simple steps". These case studies really made him think about his business and he wondered if there was something he could be doing differently in his business to really improve his bottom line, and particularly the amount of cash in his bank account.
Mike called his own accountant to find out if there was anything he should be doing, but as usual his phone call wasn't returned.
A recent email that Mike received from Twelve Chartered Accountants included a link to a "Business Improvement Questionnaire". While he was waiting for his accountant to get back to him, he thought he might have a closer look at the questionnaire, it was free to do and it promised not to ask for any confidential information.
The questionnaire took Mike about 20 minutes to complete.
Mike was asked a series of questions about his business, specifically in the areas of:
- Cashflow & Budgeting
- Asset protection and Risks associated with being a business owner
- Increasing Revenue
- Improving profitability &"what-if" scenarios
- Internal systems and streamlining procedures \
- Key ratios and business trends
- Retirement planning
- Reducing the amount of Tax
- Mike answered the questions truthfully. The process was very revealing and Mike found himself looking forward to receiving his report.
Soon after completing the questionnaire, Mike received from Twelve Chartered Accountants a detailed assessment of his business.
The report gave an executive summary of the important findings, it was clear and concise. It also included a detailed analysis of Mikes responses to the questions and most importantly the necessary actions needed to be taken now to improve the key areas of his business. Mike was impressed!
Mike was even more impressed that it hadn't cost him anything.
Mike was so excited about his report he wanted to show it to his accountant, but unfortunately his accountant still hadn't returned his phone call, so Mike had to start work on the action plan himself.
Not long after getting the report, Mike's excitement dwindled. The daily demands soon drowned his plans to improve his business and it wasn't long before Mikes good intentions were all but forgotten about. Mike continued to struggle with his cash flow and wondered if there would ever be an easy solution.
Fortunately for Mike, he received a follow up call from Twelve Chartered Accountants asking about the report he received and more importantly enquiring how his action plan was going. Mike offered a number of excuses as to why things were not progressing, but soon realised that if anything significant was to be achieved in his business he was going to need expert assistance.
Twelve Chartered Accountants showed Mike how working with us he would be able to remain focused on achieving his goals. We sat down with Mike and together we developed a plan for the key recommendations in the report, including a timeline and key measuring metrics to ensure the strategies could be met and actually achieved.
It was identified that Mike's biggest problem was his cash-flow. As his business grew, cash became more of an issue and although he appeared profitable on paper, he was always "cash poor".
With Twelve Chartered Accountant's help, Mike was able to finally understand where his cash was going and was able to make some key changes to the way his business was run.
Some of the major changes Mike made included partnering with a finance company that offered his customers "interest Free" payment terms but allowed Mike to receive the entire payment of the ticket at the time it was sold. This was a big Win-win for both Mike and his customers.
Twelve Chartered Accountants also showed Mike, through a series of "What-if" scenarios, the benefits of offering significant discounts to customers who purchase future events (up to 12 months in advance). Mike receiving payment for events well in advance was not only good for his bank balance, it made it much easier to plan and manage his schedule, it also allowed him to negotiate discounts on venue hire by paying in advance.
The overall effect to Mikes business within only 7 months of these changes, was an additional $1,000,000 in his bank.
Mike was very impressed!
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