Agricultural Services Company – Restructuring & Turnaround
A leading agricultural services company had diversified into non-core business activities and was losing money. It’s overheads had grown substantially higher and its business processes were not fit for purpose. The owners were beginning to losing control of the business. Day-to-day issues were taking precedence over pushing the business in the direction they had originally intended.
GLT Business carried out a full evaluation of the organisation. We identified that the business had diversified into high volume services with low gross margin. The gross margin did not cover overheads and the company was losing money in these areas. The company could not distinguish itself from competition which lead to margin being driven down even further. GLT further indentified that other services, where the business had a clear competitive advantage and higher margin were under-developed. The company had built-up a large Irish customer base through one core service, however, up-selling of other business services was almost non-existent. Also, the UK market where valuable customers existed, remained untapped.
The business needed to grow revenue of higher margin services, delist unprofitable services, strengthen team performance and improve responsiveness for customers.
GLT Business worked with the business owners, developing strategies to target customers with the higher margin services. We engaged the services of a digital marketing firm which substantially increased the awareness of the business and its services. We helped to secure a grant from the Local Enterprise Board which greatly aided the cost of expansion. Sales to the UK were quickly established and sales of high margin services increased rapidly.
Two major units which were unprofitable were closed down. This freed up substantial time for the business owners who could now focus on strategic direction. A clear direction was established for the business and is being implemented through planning, targets, performance measurement and regular team meetings.
GLT Business helped to ensure that the decision making process was streamlined to allow staff to manage the operational business functions. We established a staff performance system which rewards staff and department efforts.
The company now stores all customer data on a CRM system which aids promotions and the up-selling of services. All leads can be easily followed up. Project completion times have fallen substantially.
The businees has taken on 12 additional staff in the last two years. It now operates in an environment where staff are highly motivated and are focused on delivering a high quality service to their customers.
How GLT Business Created Client Value:
• Defined most valuable services & customers.
• Helped develop overall strategies and team goals.
• Helped secure funding from the Local Enterprise Board.
• Established real sales and business targets
• Developed staff reward structures.
• Strong business in place, with sales & financial reporting at its core.
"For the last 3 years I have used the services of GLT Business Consulting Ltd. Since working with my business they have put in place a wide ranging accounts system that has relevance for any SME. The systems now in place include such things as sales orders, purchase orders, formal quotations, debtors & creditor reports, bank reconciliations etc. These are primarily carried out on the accounts program called Sage. All staff are now in a position to use Sage for their own relevant areas within the business due to clear training provided.
Once the accounts system was installed our contact with GLT did not end there. Follow up support is vital with any new accounts system. We engage with GLT on a regular basis every month which helps our systems improve on an ongoing basis. Reports like monthly management accounts are now a reality for our business as opposed to looking at a set of annual accounts months after a final year end. These reports give great clarity & confidence to make important decisions.
Apart from the accounts system that GLT has introduced, he brings further value to a business in areas such as;
- Strategic Planning
- SWOT Analysis
- Developing GOALS for a business
Employing the services of GLT has proved to be a great decision for the development of our business in recent times. I would highly recommend the services that GLT offers."