Companies which are profitable and cash positive can still be under performing their potential and have substantial room for profit improvement.
Icknield has worked in a number of situations where substantial profit improvement is possible. Our approach to each situation varies but the standard steps usually involved comprise:
• Undertaking a short review to produce a high level assessment of the extent of profit improvement which is feasible
• Comparing performance against key competitors
• Reviewing the key drivers of profit in each segment of the business focussing on:-
– Revenue – how can it be increased?
– Gross margin – what steps can be taken to improve margins?
– Overheads – what costs can be eliminated without affecting revenue?
• Creating an action plan and timeline for each activity required to improve profitability
• Bringing the various initiatives into an overall Profit Improvement Plan
