Profit

Maximising business profit and cash flow

Measure and manage financial performance.

The aim of any business is to generate sustainable profit and positive cash flows consistently. If a business is unprofitable or isn’t cash positive, it can’t survive. It isn’t a viable business.

Ensuring profit requires understanding and management on the part of the business owners and managers. And that is only possible with measurement tools and the ability to decipher the data put in front of you. You have an accountant, but do you know how to use your numbers to drive business performance?

Financial statements combined with relevant key performance measures are essential tools that provide the basis for any review. These tools enable owners and managers to identify and manage the main drivers of profitability and cash flow. As a result they are better able to keep improving financial performance and meet the challenges of today’s competitive landscape.

We make sure you have the right measures and review processes in place so you can take informed action when you need to and keep your business on track.

Call us today to find out how Gibsons can help you maximise and measure the profitability and cash flow of your business.

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How we can help you

Financial Analysis

Review and analysis of your Profit & Loss Statements to identify the profit drivers in your business and areas of strength and weakness. This highlights the key areas of focus for the business in terms of financial performance and what needs to be measured and monitored.
Analysis of your balance sheet to assess your financial sustainability; levels of return on the investment in the business; solvency;liquidity;and working capital effectiveness.

Financial Reporting

Review of your financial reporting structure to ensure that your financial reports provide effective management information that will guide your decision making.Often we see that reports are structured only for tax purposes. Tailoring financial reports to enable ease of measurement and management of the business can often provide insight into improving the financial results of the business.
Training of key staff in how to read financial reports and use the information that they contain.

Cashflow Management

Understand the difference between cash and profit.
Identify the areas in the business that impact on cash flow and how to manage them effectively.
Develop forecasts of cashflow to identify where action will need to be taken before it is too late.

Product Costing and Pricing

Develop a costing and pricing model for your products or services that takes into account all the costs that are attributable to them. You can then implement a pricing strategy knowing exactly how profitable each product or service is.

Profit Strategies

Everyone has heard the common profit strategies of “spend money to make money”, “follow the 80/20 rule” and “focus on sales out the door”, but what is your profit strategy, and is it the right one for your business needs? A good profit strategy will take into account:
- Strategic Marketing principles including Pricing, Distribution, Product and Promotion,
- HR –is your culture or People Framework driving high turnover rates or poor performance?
- Process improvements.
It looks at the way your whole business operates, from end-to-end.

Key Performance Measures

Key Performance Indicators (KPIs) are critically important when used correctly. In their simplest form a handful of measures can provide incredible focus and lead to very positive change within a business.

To be effective these measures need to be:

Easy to measure. Systems and processes, report structures and other functions may need to be adjusted to ensure that measures are easy and timely to produce. The easier it is to produce, the more timely and the more timely and relevant it is to current decisionmaking and strategy.
Charted. Key Performance Measures are sometimes relevant and useful as one-off measures. However, they gain much more relevance when presented visually as trends over time and comparisons year-to-year.
Limited to a number that are directly related to the key drivers of your business. Too many measures lead to atrophy in terms of their effectiveness in influencing decision making and in formulating strategy.
Reviewed and acted upon. Key Performance Measures create the need to investigate and then act. An active review and follow up process is essential.

Gibsons Consultants can customise your measurement processes and techniques to suit your business so that you end up with a manageable, actionable set of initiatives that can really take you forward.

Feasibility Studies

Feasibility Studies require a full understanding across all areas of business from marketing, financial, operational, people and regulation etc.

Some recent examples of Gibsons Feasibility Studies:

Developing innovative food processing facilities in an agricultural business.
Developing a second manufacturing facility in another state.
Establishing a factory operation in China.
Expanding facilities into a new product range for a food processing business.

Gibsons Consultants are business specialists that can provide an experienced perspective to any feasibility study.

For a guiding hand with your business, speak to our experienced consultants.

Tell us about your business

Or call us on (07) 3025 3220

Download the Gibsons takeaway on Profit

For the first time we have a robust plan

“LifeFlight is more an agile operation than a typical organisation. It doesn’t fit the standard definitions, yet it is highly capable and very successful. Not being able to explain our business quickly and easily to third parties that support us has been a barrier. Helen Morgan from Gibsons helped us to distil our core capabilities with a clarity that has ‘broken the back’ of a communications challenge we have had for some time. For the first time we have a robust plan to promote our capability with great effect, including digital transformation.”

Scott Kessell - Director Commercial Projects and External Relations, LifeFlight Australia

Gibsons Consulting saved my business

“I had all the ingredients but could not make the cake!”

Adam Sanders - Owner, Pro Powder Powdercoating

Wisdom, clarity and a hands-on approach

“My company has been working with Gibson’s over several years to improve our business operations and management. Gibson’s have helped my company become a better employer and to be more aware of our growth potential and client experience. Akela Constructions has benefited from the wisdom, clarity and hands-on approach Gibson’s have provided through mentoring and working closely with my company.”

Ian Furber - Managing Director, Akela Constructions Pty Ltd

One of the key benefits was the development of a Succession Plan

“We initially recruited Gibsons to assist us with developing a comprehensive strategic business plan. Working with Steve and Jock to develop our plan, the journey, though not always smooth, has always been practical and insightful and the benefits have been of great value. One of the key benefits was the development of a Succession Plan, which can be a very personal and challenging area. I would happily recommend Gibsons to assist anyone looking to put structures in place in order to control and grow their business, and even act as Board Advisory Members.”

John Morgan - Finance Director - Selected Seeds Group

Gibsons have supported us through every phase

“We engaged with Gibsons Consulting over two years ago. At the time we were successful and profitable – market leaders in the markets we operate. However, we wanted to grow significantly over a short period of time and we needed to transition our business from a successful medium-sized enterprise to a highly successful, well managed corporate enterprise. We recognised that we needed assistance to achieve that…Gibsons have supported us through every phase and continue to do so. We are in the early stages of a long journey of constant improvement. However, our vision is now starting to emerge. Change is beginning to shape our business and Gibsons have made a real difference in that transition.”

Paul Sheehan - Operations Manager, Atlas Heavy Engineering

Gibsons have guided us continuously into growth

“From the strategic review and analysis of the business to implementation of the essential recommendations and changes, Gibsons have guided Trackspares continually and consistently into growth. We initially engaged with Gibsons to assist with the company’s future growth and ongoing direction. As a result, we redefined our entire approach. Gibsons “one on one” approach with our small management team is one of reasons for our continued success. We believe this personal approach separates Gibsons from many other such consulting services.”

Brad Oats - Managing Director, Trackspares

Gibsons first started by listening…

“Unlike many consultancies, Gibsons Consulting started first by listening to our journey and our needs. Working side by side with Steve to deliver our strategic plan, this journey, though not always smooth, has always been practical in its objective. Each Gibsons Consultant could be considered an adjunct board member – showing commitment to their advice and our result, seeing both through to our satisfaction. Gibsons seek to bring alternate perspectives to the process to actually help us to deliver on our strategic plan. They do this by challenging the underperforming aspects and working with us to lift our game to achieve better. I would happily recommend Gibsons to anyone wishing to take their business to the next level.”

Rob Newton - Managing Director, Laser Central

Gibsons brought our staff into the process and helped them understand

“One of the good things that we found about working with Gibsons is that they could quickly grasp the technical issues involved with our products and markets and how they impacted on our choice of strategy. They were also able to constructively bring our staff into the process and help them understand that we needed to change our direction. Gibsons helped me turn my business around. We are very satisfied with the work that Gibsons has done for us and are happy to recommend them to others.”

Lorraine Murray - ATL Composites

Gibsons gained the trust of all our key people

“Gibsons have provided us with assistance in our marketing and sales, our factory processes, workplace health and safety and administrative processes. They have also overseen a major project to install a new costing system that will provide us with better management controls over our manufacturing operations. Gibsons helped us to crystallise our thinking into a concise business plan. I think that one of their strengths has been the ability to work closely with, and gain the trust of, all our key people who now see them as a valuable extra resource.”

Myra Berzins - Cable Laying Products Pty Ltd

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