Rapid business turnarounds - Team Business Rapid business turnarounds
COVID putting your profits under pressure? Do you need a positive cash flow now? Here is how to create a rapid business turnaround
business rescue,business recovery,
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Rapid business turnarounds

Is COVID squeezing your profit? Do you need positive cash flow now?

 

Here is the fast way to get you back on track.

 

Right now, the COVID outbreak may well be forcing a new business reality on you. Perhaps you even need to rethink your business model. If so, then our rapid business turnarounds service will help you. This briefing describes how we work with firms like you to immediately stabilize the business and then:

 

      • Avoid capital restructuring and loss of control
      • Build back strategic capability fast.
      • Double or treble profits within twelve months
      • Improve employee productivity by an average of 35%

 

Typically, TBD helps you achieve these seemingly ambitious goals:

 

      • Regardless of what is going on in your marketplace
      • Without relying on a huge hike in sales revenue
      • Without using extra capital expenditure
      • With no extra employees
      • In a matter of a few weeks
      • And without eye watering fees. In fact our work is always self-funding

 

The secret to our rapid business turnarounds is our integrated approach

 

The key factor to a rapid business turnaround is to take a highly integrated approach. This means instead of depending on a few ambitious ideas, we help you plan and orchestrate multiple practical and realistic improvements everywhere all at once. In practice this means that in just a few days you identify, plan, and synchronize between thirty and fifty improvement projects so that:

 

      1. Sales increase without extra overhead costs such as salaries and advertising spend.
      2. Prices improve without losing out to the competition.
      3. Costs reduce without spoiling quality and harming customer satisfaction.
      4. Overheads shrink without creating chaos, bottlenecks and extra stress trying to do too much with too little.

 

TBD’s secret is to make all of the above four profit drivers (Sales, price, costs and overheads) work for you – at the same time. And we start this process using our unique diagnostic methods. These help you and your team uncover all those hidden constraints, waste, bottlenecks and missed opportunities that hold you back. The next step uses a powerful team planning system that orchestrates the multiple countermeasures needed to improve your productivity and profit. Importantly, the planning does this in such a way as to avoid unintended consequences, and duplication of effort. You also avoid provoking heated conflict about the way forward. The result every time, is that productivity climbs and profits soar as a result.

 

Rapid business turnarounds mean making the best of what you already have

 

In essence, we help you overcome your current challenges by combining the talents and energy of your entire enterprise to maximize the use of your existing resources. In other words the objective is to achieve more with less. How do we do this?

 

Learning through action

 

You can’t solve a problem with the same thinking that caused it. So, part of our role is to get you and your team to think and problem-solve differently. This way, we help you come up with the appropriate countermeasures to each and every one of your problems. Although major improvements may take time to plan and implement, it is amazing what you achieve in just a few weeks, or in many cases just days.

 

A cascade of improvements trigger the multiplier effect

 

A key factor, in rapid business turnarounds, is to improve productivity across the board. First and foremost that means comprehensive productivity improvements to each and every profit driver. But also the team planning mobilizes and integrates every business process, sub-system, function and department in alignment with your survival or growth strategy. As a direct consequence you save time, money and energy getting you where you want to go. Generally then, we see that this improved productivity stimulates:

 

      • Large numbers of small improvements in all four profit drivers at the same time
      • Maximization of all existing resources
      • Minimal disruption to everyday operations.
      • Development of a fully aligned long term strategy

 

When done simultaneously, there is an added bonus in growing all four-profit drivers at the same time. And that is, you trigger the multiplier effect. This is where a large number of small incremental improvements accumulate to realize a disproportionate increase in net profit. The example below shows you how.

 

Four profit driver profit multiplier example

 

Print company increases business value from £290,000 to £2.46 million. A company with a £5 million sales turnover sets up 25 different performance improvements across the organization. These projects improve each profit-driver simultaneously, without harming any of the others. The result? increased net profit from £72,000 to £548,000.

 

New capital value: The management action plan orchestrated increased sales, a more self-sufficient management team, and a coherent growth plan. Importantly, the impact of all of these coming together at once, improved the company valuation multiple from 4 to 4.5 times net profit. The result was a new capital value of £2.46m – By the way, that’s eight and a half times the previous value.

Rapid business turnarounds

Here is how the firm multiplied their profits Seven times

 

Sales impact: A number of improvement projects improved quality and delivery. These had two major benefits. First the projects stopped so many sales draining away through customer attrition. Second they allowed the sales team to stop troubleshooting jobs through the system. Instead sales people started spending about 25% more time generating new sales. Result: 7% organic growth in sales to £5,350,000.

 

Price impact: Several improvement projects combined to improve data inputting, pricing, quoting and invoicing. Also, there were less discounts for late deliveries or rejections. Result: 2.5% increase in prices. This added £133,750 directly to the bottom line.

 

Unit cost impact: Reduced job set-up times, job turnaround times, less scrap, procurement savings all added up to a healthy reduction in variable costs: Result: 5% reduction in unit costs to 35% of new sales volume – £1,837,500.

 

Overheads: Several projects improved sales order processing and office systems efficiency. Result: 1.7% reduction in overheads to £2,850,000 despite and increase in sales.

 

“Instead of having departmental rivalry, each department can now see that what they are doing may be causing a problem for other departments. Hence, they are now far more supportive of altering their own ways of doing things to assist the needs of other departments.” Martin Daniel, production director, BAS Fine Art Printers.

 

Contact us for immediate help

 

Want to learn more about rapid business turnarounds and how they can help you? Then, contact Jeremy Old today on 0845 0945 819 for a no obligation informal chat. Or email now Jeremy@teambusinessdevelopment.co.uk

 

You are in safe hands

 

Jeremy Old has twenty-five years experience as an independent management coach to small and mid-sized enterprises and non-profit organizations. During this time, he has facilitated 56, rapid business turnarounds, strategic change or business improvement assignments. These have been across a broad range of industry sectors. Furthermore, using the Hoshin Kanri approach he yields an estimated average 33 : 1 ROI for clients. He is qualified to MBA level, with a post-graduate diploma in psychotherapy.

What our clients say about rapid business turnarounds…

 

Fast company turnarounds in the printing industryPrinting firm saves £584,000 on £3.8 million turnover

 

“It was a nightmare. We had doubled our sales by acquiring a fine art printing firm. That was OK, but in so doing we created a huge conflict in work culture between the two firms.

 

Unfortunately, this led to all kinds of problems. Profits slumped and the sheer stress and time wasting sorting everything out was immense.”

 

“TBD’s powerful techniques really got to the root of our inefficiencies, ironing out any number of wrinkles and getting us to work as a team at last.”

 

Result: “£584,000 estimated savings and benefits, equivalent to 15% of our turnover. About 16 times the investment in the TBD programme.” MD, Wiltshire printing firm.

 

Rapid business turnaround doubles capacity without extra investment in concrete batching plant firm

 

“We’ve achieved more changes in six weeks with your team planning processes than I’ve seen in twenty years of my time here.” Dave Medhurst, Project manager, concrete batching plant manufacturer, Kent

 

Result: 37 improvement projects being put into action simultaneously removed bottlenecks, drastically reduced waste, helped capture new sales and introduced a number of efficiencies that collectively doubled production capacity and enabled the firm to operate above breakeven point after a run of five years of losses.

 

rapid business turnarounds in window frame manufacturingWindow manufacturer – Back into profit in one day.

 

I was amazed how one single group problem-solving session uncovered the causes of so many mistakes, waste and bottlenecks, both in our factory and on site. It was fantastic! Just as important we were able to immediately identify effective remedies.”

 

Result: I estimated the countermeasures saved us an amazing 14% of our turnover in scrap, rework and time-wasting. This neatly put us back into the black after a year of hefty losses. MD window manufacturer, Kent

 

rapid business turnarounds in Diamond drill bit manufacturingDiamond drill bit manufacturer reverses losses in one year

 

“It works! Although, I have to admit that at the start I was skeptical. In fact I was worried that we could run so many improvement projects without the whole place grinding to a halt. But, TBD has turned productivity improvement planning into an art form. Apart from an initial extra effort by everyone we found that the team methods meant that all the many different improvement projects more or less fell into place.”

 

Result: “It has certainly freed up a lot of my time. I now spend a good third of my day on business expansion. I am not troubleshooting all the time.” Tony Chapel, MD, diamond drill bit and saw manufacturer, Kent

 

rapid business turnarounds in the plastics industryPlastics injection moulding factory saves £258,000 

 

We used TBD to help us cope with a whole list of problems including pressure on prices, rising material costs, automation of production runs, increasing energy costs and stagnant sales.”

 

Result: “The effect of the Team Business Development programme has been brilliant. The process has instigated a real culture change. There is a lot more motivation throughout the business. Generally I find that people are thinking for themselves more about what needs to be done rather than waiting for someone to tell them what to do. In fact, we now have a number of fresh ideas being implemented that originated from staff concerns and suggestions.

 

The improvement projects set up by the planning team have introduced a range of initiatives. We already have 50% reductions in scrap and 25% savings in the despatch department and there is a lot more on the way. Basically the whole place just seems a lot more organised.” Phil Williams, operations director, plastic injection moulding factory, Basingstoke

 

rapid business turnaroundsAgricultural contractors business development

 

“… The most exciting thing to have happened since I set up the company… Not only do we now have a much clearer overall direction, but the planning process disciplines us to focus on exactly how we will fulfill our aims.” Clive Elliott, Elliott and Hayward Partnership.

 

 

Download rapid business turnaround success stories now

 

What if you could increase your exit value by five times in two years  – Read the case study