Climb Business provides general advice to optimise the return to you from your business or project from commercial, financial and operational management perspectives.
As a general rule, the approach to assessing an under-performing business would be:
- Examining the key operational drivers in your business, consideration of the internal and external factors and assessing the management processes in your business and the people engagement relative to those drivers and processes;
- Assessing commercial, financial and operational management effectiveness;
- Assessing the progress of the initiatives or projects undertaken as part of your business plan and understanding any gaps;
- Removing and rectifying obstacles to your success;
- Adapting your business to suit evolving market conditions and incorporating new directions where appropriate; and
- Monitoring progress against the plan.
We can provide advice in these areas
The design of a business should reflect its purpose. What is the business value proposition (or unique selling point or point of difference) of your business over the competitors? A compelling unique selling point describes how the business will compete in the market and implies the activities it will undertake to do so. Is your point of difference low cost sourcing or manufacturing, highly customised technical expertise or systems or technical innovation? A clear understanding of how this will be done is the foundation for the design of your business.
Which of your activities will deliver on that value proposition? Those activities crucial to delivering on the value proposition should attract your narrow focus and be cultivated and resourced carefully.
Which leadership culture and practices will reinforce the business intent on this value proposition? The leadership to be practiced and the culture to be fostered will need to reflect that intent and be woven into the policies and practices of how people work. Imperatives may include how performance measures are set, scorecards for success/failure, the types of people to recruit and how they are trained. Business practices over time may in fact evolve to suit relevant environmental factors which in turn require the business design to be adapted (and additional resourcing to be allocated).
Regulatory and compliance issues aside, good governance is all about having the most appropriate process in place for decisions to be made in the best interests of the business and its owners. Good decision making processes enhance transparency and accountability and provide trust and comfort to people at all levels of the business. Good governance means decisions made are consistent with the law, responsible and effective.
Good governance guides operations the internal controls in place, oversight of risk and financial integrity.
At the heart of every business are the numbers and the performance they reflect. An analysis of the financial statements can provide an understanding of the risk and profitability of a business and provide clues to key cost drivers and shed light on cost vulnerable areas of operations.
Noting there may be conditions which will impact direct year to year comparisons, material differences provoke discussion and investigation, a positive and proactive exercise in financial management. Key ratio analysis can be used to pinpoint strengths and weaknesses from which plans can be formed. Climb Business will work with you to perform the analysis and develop these financial management plans which can include maximising the use and value of assets, project cost modelling, a focussed lens on project profitability/return, cost management and working capital (accounts payable and receivable, supply chain, wages).
Climb Business can assist you review the effectiveness and efficiency of your HR, IT, marketing, legal, insurance etc. functions based on long term management responsibility experience. As support functions to operations, it is critical that these areas function at their best to allow the full focus on the business value proposition to maximise your return.
Climb Business will work with your staff at all levels and key stakeholders to determine the optimal operational management process through a process of refining your existing processes from start to finish. The goal should be to deliver your product at the best price in the most efficient and cost effective manner.
There may be a range of issues which are obstacles in the process which will be reflected in customer complaints, loss of accounts and contracts, jumps in production costs etc.. Obviously, this topic is interwoven with management processes and people connectivity.
Culture is how individuals connect the work they do every day with the mission of the business. Are the management processes in place to enhance the ability of staff to perform their jobs efficiently? Do they know what they do matters and does the business care what they are doing? Do they understand and feel empowered to get that work done?
Businesses need to figure out what is important to their customers and owners and find ways to establish buy-in from employees to support those goals. If employees believe that they are on a mission with the business and have the necessary systems in place to help them (through recognition and responsibility), they are more likely to want to see the job through. Accessing your team members experience and skills from the “coal face” is critical to the information gathering and decision-making.
Climb Business want to enhance the experience for both your business return and for your people’s working enjoyment.
Climb Business can perform an objective review of a business being considered for purchase prior to entering a contract.
The review can confirm the assertions made by the seller about their operations, assets and liabilities, critical client contracts and revenue streams, key technical registrations and qualifications, cost base, supply chain, historical racing results generally, premises lease conditions, regulatory compliance status, commercial aspects such as legal, HR and insurance and other obligations. Climb Business can also provide a sounding board for the potential purchase value based on financial performance, industry type, historical and future sustainable performance, adaptability to evolving market conditions etc.
Climb Business has substantial experience in insolvency and close to insolvent circumstances and can provide advice in developing sustainable solutions and assist in monitoring progress against an agreed plan. These circumstances can be stressful and complex where good decision making is difficult. We will look to provide and practical knowledge and advice to navigate through the process.
The steps will include an assessment of the business position and construction of a plan moving forward to include, where necessary, consultation with relevant creditors and stakeholders, protection of your personal assets where possible, personal liability and other environmental conditions. Note that pre-insolvency advice is for the benefit of the directors whereas the insolvency practitioner has an obligation to a range of creditors.
While turnaround strategies will have a lead time involved prior to positive indications arising, insolvency actions can be implemented immediately for timely results. Consultation with registered insolvency practitioners may be required and can be arranged with our known and highly regarded contacts.
Are you suffering any of the following issues?
- your business/project operation is not making the progress or have the “flow” you anticipated;
- you would like to expand an existing business/operation or investigate a new market;
- you are not winning tenders;
- you are looking at buying another business;
- you would like to create or improve your online presence or an online store;
- you do not seem to be making as much money as you thought you would;
- you never seem to have much cash in the bank;
- customer complaints are regularly received;
- you are losing customers; or
- staff turnover is higher than you would like.