Case Study - Rapid Growth for Family Business
How they benefitted from the introduction of cashflow and key performance monitoring systems plus succession planning.
Established for over 35 years in Perth our client is a leading player in the corporate audio visual field. They hire and install audio visual equipment, staging equipment, and provide event support delivering technical services to hotels and venues staging high profile events and functions.
Like many of our clients, this is a family business and after years of hard work has grown to employ a team of 45 people. One of the issues with family businesses is they can often experience periods of rapid growth that is very hard to control. One of the challenges is to manage this growth in a practical way. Sometimes businesses can expand too quickly with increasing debt and overheads running ahead of cash flows.
Our client experienced just this sort of rapid growth when they almost doubled their turnover in the three years between 2005 and 2008. Our answer? Accurate cashflow forecasting and Key Performance Indicator monitoring systems are vital tools for growing businesses. These were introduced for our client to help control costs and improve their bottom line.
Working in partnership with our clients is a key issue for us. It means we can form a working relationship enabling us to become almost like a Chief Financial Officer for them. A Chief Financial Officer who is on tap whenever you need them. It’s a great resource for our clients to have.
Like so many family businesses, succession planning and exit strategies for the owners are crucial. The original founder of the business now has family members heavily involved in the running of the operation. Over time this will ensure a smooth transition from a passionate business entrepreneur to motivated family members who have the structure and management tools in place enabling them to take the business to new heights.
McGillivrays have a number of ideas we are exploring with our clients to ensure they can achieve the best result. We regard this kind of work for our clients very highly. It isn’t always about the money we can save but about the peace of mind we know it gives our clients. Life is for living!
Do you run a family business? Wouldn’t mind having your own Chief Financial Officer on call? Call McGillivrays. We know we can add Fresh Expert ideas to your business.
Back
