More than double profit: Software Services 50+ people
Problem:
The CEO wanted to improve the profits of a 50+ person software services business with three offices in New Zealand and one in Australia. The profits were in single digits.
Solution:
Jerome pointed out that they were earning 30% of their gross from annual license royalties but losing on services. He suggested that they analyse royalties below the line, and see clearly that they were losing 20%+ on software services. As a result they made some changes in management and personnel in the services team.
Results:
This worked so well that they promoted the new services manager to General Manager in charge of services and marketing. This freed up the CEO to grow the business by acquisition nationally and internationally. As a result, the business more than doubled its profit and grew rapidly. And the CEO was having a dream lifestyle as he expanded into Europe.
Profit up by 70% Plumbing and Gas Business
Problem:
- The Owner had just gone through a divorce, and with settlement payments he was just making ends meet. His business had a good reputation both with residential and commercial markets. With a team of 21. He was making 10% profit on turnover and it wasn’t enough.
Solution:
- Jerome suggested an immediate 10% price increase across the board. The Owner settled on a 10-15% increase for residential and increases where feasible in the commercial space. He also improved his collections especially in the residential space. And stopped doing work for poor paying categories such as builders he did not know well.
Results:
With coaching support: The Owners profits were up by 70% within a month. The next year he bought his own premises. Then he also invested in several residential rentals. Then he acquired 2 more businesses for zero money down. The Owner has developed his administration team to provide a seamless offering. This ensures profitability and results in word-of-mouth referrals from happy customers.