Cabling Business Profits Soar
Cabling Business Profits Soar…
Annual Sales up 101% to 765K in 12 months
Costs down 20% in 12 months
Profit up 184% in 12 months
When I met my Business Coach, little did I know that through the business coaching we would soon achieve a title ‘cabling business profits soar’. My company NM Cabling Solutions was in reasonably good shape. We were making a profit but I was beginning to become frustrated that my good intentions were being wrecked by competitors undercutting me and taking shortcuts in their work. So it was really with this specific challenge in mind that I asked my Business Coach to coach me.
“I haven’t worked a weekend on site since starting with my coach
and I make 95% of my children’s bath, dinner and bedtimes.”
Early on, my Coach encouraged me to understand in detail the types of customers I had so that I could appreciate the different buying methods involved. This was a real eye opener – I realised that by educating existing and potential customers I could eliminate a lot of obstacles in the process.
I also understood that different customer types mean different buying needs, whereas previously I had treated every customer in the same way.
Once I had understood our perfect target client base, my Coach quickly moved me onto taking control of the financial side of the business. After I was introduced to the ‘5 Ways’ I became very focused with increasing margins, average sales, leads, transactions and conversion rate to the extent that the turnover and profits would take care of themselves.
All this has resulted in very focused marketing which is tested and measured constantly. As we know each element of our business regarding margin, leads, conversion rates, average £ sale and number of transactions we are able to target every one of our marketing strategies based on these figures, adjusting with testing and measuring to suit.
The main result is that all the financial success has been achieved at the same time as creating more time with my family. I actually work less time in the business even though it is growing rapidly.
What The Business Coach Has To Say…
When I first met Gary he was having quite a difficult time with price based competition and was getting very frustrated not being able to win jobs he knew he could provide the best service for. As we talked this challenge through it became evident that customers were not aware of the common shortcuts that plagued his industry. So we developed an innovative ‘Buyers Guide’, a simple booklet that educates customers on how to evaluate cable installation companies and what questions to ask them.
This straightforward approach has resulted in a substantially increased conversion rate, as Gary no longer needs to compete on price, which is only an issue in the absence of value. By looking in detail at all his customers, Gary has been able to identify his best target markets – the specific customers who buy more and buy more often.
Subsequently, we didn’t have to develop lots of strategies because we got our target markets right. Financially, NM Cabling was in a stable position with a consistent turnover. However, the turnover began to increase as a result of our marketing strategies, so it was the right time to now look at the figures.
By introducing Gary to the ‘5 Ways’ he has been able to stop those clients and services that don’t provide a good ROI.
By leveraging his accountant, he now knows the exact figures for every job and every sale which, in turn, has meant that he has been able to cut costs by 20%, and increase his margins, profits and cash flow.
NM Cabling has achieved nearly 200% increase in net profit in less than 12 months, – ‘Cabling business profits soar’ by seeking to understand the customers in all their forms and using that understanding to maximise profit and eliminate price-based competition.
Gary has worked smarter, not harder. With systemised lead generation and repeat business his projected order book value is equivalent to 70% of his previous years total sales.