For business owners starting their innovation journey, establishing traction through a small initial project can have a big impact.
We worked with a property business that had experienced considerable growth. However, the owner was planning to retire and wanted to lower risk, drive revenue, and boost profits to improve his potential sale price and saleability. To achieve this, he needed a greater focus on business management and innovation.
Unfortunately, lack of planning and inadequate systems were holding the business back. It was outsourcing bookkeeping and accounting to service providers solely focused on meeting compliance obligations. There was no performance measurement in real time, so the business wasn’t spotting opportunity or threats, or making informed decisions.
Together, this resulted in missed revenue, lower profits, and an increased perception of risk – which lowered sale value and saleability.
We recommended the business owner implement new management practices and systems to facilitate new revenue and profit generation opportunities, while remaining compliant and lowering risk. It needed to:
- Review and refine its business strategy, as opportunities that kept him from honing his core value proposition often distracted the owner
- Set new goals based on the revised business strategy and the desire to sell the business
- Plan and manage the required changes to execute the revised plans effectively
- Measure progress and undertake corrective action as required.
The solution was readily available, but not on the owner’s radar – the business simply needed to commit some resources to innovation and seek support for its implementation. Its new management system provided:
- One central accounting package to establish effective management reporting and decision-making while meeting legal compliance requirements, without duplication or increased costs
- A platform for integrating additional systems and tools into one business-wide reporting and management system that helped manage staff performance, job profitability and customer relationships
- A high degree of automation to reduce costs while providing real-time business information for analysis and decision-making. This helped to spot new opportunities and threats early.
The business began developing its innovation competencies with little risk. The owner achieved more robust and efficient business systems, and the information needed to focus actively on:
- Generating new revenue
- Improving profits
- Reducing risk
- Increasing business’ value and saleability
He successfully achieved his goals – a relatively small innovation with a significant benefit.