Our business advice service offers business owners a long-term supportive environment to develop their business. Greenway works with the business owner to build structures and procedures that will increase profitability, sales and turn your business into a powerhouse.
We operate as virtual managing directors. Giving you the benefit of our years of experience working in multiple industries and businesses with 5 to 500 employees. This business growth case study is applicable to a number of the construction businesses we work with.
STAGE 1
Costs, market, sales, capital.
STAGE 2
3 legs to a stool, pivot, no ego.
STAGE 3
Systems & scale.
Year 1: Company Issues
Small construction business with 3.5 employees. The business owner works on-site doing work themselves with 2 employees helping. There is a part-time office admin staff member who handles accounts and answering the office phone.
The company has 2 x 10-year-old vans that have no financing. The business owner has leant the company money every year to keep the business in operation. There are directors loans totalling €40,000. The business had posted losses for the last 3 years. The owner struggles to manage the business and find the time to plan a future for the business.
Year 1: Company Issues
Problems
Pricing jobs.
Organising work.
No coherent plan for growth.
COVID hit 2 months into working with the business.
This delayed some actions by 2 or 3 months.
What we did
- Took the current business and carried out a financial analysis to find all costs.
- Created a pricing model to allow them to know what they needed to charge on each job.
- Created a construction marketing plan to scale their sales & marketing efforts. This involved new website & a construction SEO plan.
- Margin flexibility lets them charge different prices depending on the type of customer.
- Found the work that was the most profitable and focused on building those sales pipelines.
- Put in place a job management program to ensure jobs are being managed proactively instead of reacting all the time.
- Advised on staff changes and hiring of new staff.
- Made adjustments to their online profile to increase inbound sales calls.
- Started using a lead generation tool to increase sales.
- Gave the business weekly sales targets in values and the number of days work they needed to book each month.
Result
- The business is on track to make a net profit of €85,000 this year.
- The business owner was able to increase their salary by €25,000 per year.
- Growth structure in place for 2021 to make €139,000 net profit.
- Growth structure in place for 2022 to make €210,000 net profit.
- Business is working efficiently. Costs are 10% less than budgeted.
