We have considerable experience of providing advice and consultancy services to clients. Our approach is to work alongside clients as part of an extended team to help build their business and its value. Much of our work centres on supporting owner-managed businesses. We feel we understand the opportunities, threats, pressures and excitements that surround the mid-size private business. Typically, as the relationship develops, we might end up working closely with you over a number of years and through different phases of growth.
The majority of businesses grow in an unstructured manner and this can lead to operational and financial issues. McDougall Johnstone provides an operational review service, working with clients to understand how their business operates and provide advice on how to maximise profitability as well as ensuring the business grows and has adequate financial resources to allow for this growth. We also look at the management structure of the business as the lines between leadership and management can become blurred as a business grows. An external experienced pair of eyes will help identify these issues and make suggestions for improvement.
Cost reduction review
Cutting costs is not difficult and is often the advice given by advisors who have not taken time to understand your business or your plans for the business. Cutting costs that will affect the long term viability of the business does not make financial sense and will only create greater problems when the business seeks to grow. McDougall Johnstone's cost cutting review will initially focus on waste, and then will focus on any efficiency savings that can be made.
Maximising revenue review
One of the single biggest mistakes new businesses make is not charging enough for their products, usually due to a need to gather revenue quickly to pay bills for example. McDougall Johnstone's revenue review concentrates on pricing, positioning, product proposition and then winning new business.
Many business plans are ineffective. Whether for internal management use or for external fundraising purposes it is imperative that the business plan is an accurate reflection of goals and objectives.
McDougall Johnstone provide added value beyond the traditional number-crunching role usually performed by accountants. We actively challenge assumptions made in the plan and ensure that all aspects of the business plan is considered. If the purpose of the business plan is purely for funding we will ensure management is aware of likely questions and challenges that will be raised by potential funders.
The financial projections that are prepared with the business plan should be consistent with the contents of the business plan itself. We will prepare detailed monthly cashflow projections and reconcile these to a profit and loss account and balance sheet. The financial projections will usually be prepared for a 3-5 year period to demonstrate the long term viability of the business as well as identifying the short term funding requirement.
A business needs a clearly-articulated strategy in order to attract funding, to focus resources and to align the efforts of all staff. McDougall Johnstone can support and advise you through the lifecycle of your business, funding, buying, growing, floating and selling.