The Client
A Painting and Decorating Contractor with sixty skilled professionals had built a solid reputation for quality work. The business experienced some challenges scaling its operations, improving internal systems, and maximising profitability. Recognising this, the company engaged with the external expertise of Andrew Morley Business Consultancy to help them improve efficiency and business performance.
The Challenges
Scaling the Business:
The contractor had a steady stream of projects but lacked the expertise to scale effectively. Their business model was not optimised for growth, and the management team was unsure how to expand their operations to meet customer demand.
Inefficient Systems and Processes:
The company’s internal processes, including project and cost management, were at times inefficient, leading to delays and cost overruns, which impacted project timelines and customer satisfaction.
Profitability Concerns:
Despite healthy revenues, profit margins were shrinking due to rising costs and inefficient resource allocation. The company needed to optimise operations to boost profitability and a plan to maximise the opportunities of their future pipeline of contracts.
Our approach
Business Growth Strategy:
Following fully analysing the contractor’s market, AMBC helped develop a strategic plan to expand the business, refine the company’s service offering, meet current demands and grow the customer base.
Systems and Process Optimisation:
AMBC identified some system inefficiencies and implemented new best practices in planning and project management. The aim was to optimise time management and work practices in the painting and decorating team. The improvements made helped to reduce material waste and improved workforce optimisation. `The team have been supportive of the new ways of working.
Profitability Enhancement:
Following analysis to identify cost-saving opportunities, the team at AMBC explored some new costing tools with the contractor to improve the management of costs and their billing cycle. This improved productivity and the overall cost and debt management of the business, having a positive impact on profitability.
The Results
Business Growth: Within a year, the company expanded into two new markets, resulting in a 30% revenue increase.
Improved Systems and Processes: Streamlined processes led to a 25% reduction in project delays and improved client satisfaction.
Increased Profitability: Profit margins increased by 15% due to better resource management and reduced operational costs.
The customer commented: “Our engagement with AMBC was a great success and has helped us to scale the business more effectively than we thought was possible. With the experience and knowledge of AMBC, we have optimised our systems, and as a result improved our bottom line profitability. Our aim is to build on this strong foundation we now have in place to continue and to secure more successful contracts while keeping a high level of customer satisfaction”.