Taking the mystery out of profitability

Monitoring business profitability is notoriously difficult for business owners and managers.

There is no shortage of accurate data but extracting the key information can be time consuming and tends to be neglected on a day to day and week to week basis.You won’t have to chase us for deadlines.

 

You don’t need to worry that we’ll phone in sick. We don’t need you to buy us software. Or hardware. Or anything else for that matter.

We are able to take a look at your business from outside and develop simple tools to give you day to day indicators of true performance.

This will be invaluable in making it easier for you to make the timely decisions that can make a real difference to the future performance and profitability of your business.

Our aim is to summarise the key measurements on a 'postcard' and drill down for anything bucking the trend rather than hiding data, intentionally or unintentially, in a mass of information.

The Postcard - Tim Hill

In 1974, as financial controller of Club Caribbean in Jamaica and after qualifying as a chartered accountant with KPMG, I received advice from Robert Salm, who had retired three times after making in excess of £1m each time. He told me: "You can run a company, even the size of Marks and Spencers on the information you can fit on a postcard".

This is just as true today, as anyone who has been given reams of financial information weighing several pounds before a board meeting can testify. The more data presented the harder it is to know what is happening. By looking at the 7 or 8 Critical Success Factors on a regular basis it is easy to see the trends and, as soon as a blip appears, the cause can be quickly ascertained.

Eliminate the surprises before they become shocks!

Human beings are creatures of habit and familiarity can breed complacency, with important changes over time going unnoticed. In business, monitoring can be critical to success and deviations away from trends need to be explained. It could be positive; for example, a product has been presented in a different way or new benefits have been shown arising from an existing service that has caused an unexpected increase in turnover. On the other hand, the trend might have gone the wrong way, perhaps because additional costs are being incurred. Whichever way the effect manifests itself, effective monitoring of key indicators will help eliminate the surprises before they become shocks.

This, of course, will be different for every company and will comprise hard and soft issues. Knowledge of some items will be critical to all businesses e.g. sales, cash, aged receivables (debtors), payables (creditors), staff morale. There are likely to be 7 or 8 key factors that every company should be measuring on a daily / weekly basis, such as - orders, Right First Time, staff turnover, repeat customers, levels and quality of stock and work in progress.

Once it has been decided what needs should be measured, simple systems can be created so that the data "falls out" with minimum effort. This is done by finding ways to obtain the Key Performance Indicators easily. It may simply require the tweaking an existing piece of software to produce the required report or the addition of an extra column to a record sheet.

In the current economic climate, especially for those running and managing businesses, there is no doubt that "times are hard". However, most companies will survive and some sectors will thrive. What will make the difference between success and failure is not just hard work and being exceptionally good in a specialised field, but also knowing how well different areas of the business are performing so that the right decisions can be made at the right times.

Remember the maxim: Measure what you manage and Manage what you measure to maximise profitability.

Introducing The Financial Game - improving numeracy while increasing profits and productivity

ACCOUNTING IS AN ART RATHER THAN A SCIENCE AND BY PLAYING THE FINANCIAL GAME THERE WILL BE A COMMON UNDERSTANDING

The Financial Game

Developed by Tim Hill of TH Consulting, The Financial Game is an app that will revolutionise the understanding of finance. Rotary Great Britain and Ireland are partnering up with the Financial Game.

Rotary Great Britain and Ireland

Finance Made Fun

Enjoy easy understanding of numbers in a fun way through experiential learning in a friendly environment.

Intuitive Understanding of Finance

What seemed impossible, such as swimming or riding a bike, becomes second nature. You’ll look at a page of figures and they’ll be sending back messages about financial performance.

Better Teamwork

In an organisation each department fights their own corner. After playing the Financial Game there will be a common understanding of performance and employees will more readily recognise the challenges everyone else is facing.

Greater Understanding

By having a grasp of figures there will be a much greater understanding of one of the cornerstones of business. Whereas sales are needed to exist making losses is a short term luxury.

Increase Profits and Cash Flow

By understanding gross margins and the bottom line everyone throughout the organisation will know how they contribute to the financial success of the company.

A Life Skill for All Ages

Children of 12 will be able to talk intelligently about finance rather than regurgitating notes to pass exams at the age of 16 or 18. The black art of ‘accountants terminology’ is removed.

Get in Touch

For further information about our services and how we can help you or to arrange a free consultation fill out this form and we will call you back.




Don't just take our word for it

Testimonials

I would like to thank you for your much appreciated input over the last five years. When I was first introduced to you I had only been trading for about a year, you came in and quickly identified things that I could be doing better, your sound advice and systems that you put in place allowed me to put more effort and time out on site. Since then we have had further meetings and the business has now grown from a sole trader into a limited company with 5 employees. I would like to thank you again for your support and influence and would highly recommend TH Consulting to any business as I am sure all businesses would benefit.

thumb Pete Bransby
PMB Landscapes Ltd

I have recently enlisted Tim's help in setting up systems to record my financial transactions as my business grows. This has not only helped me have a much clearer picture of how the business stands financially but also saved me a considerable amount of time each month to concentrate on other important aspects of my business. I estimate this to be in the region of 5 days per month by doing things in a different way. I have no hesitation in recommending the services of Tim Hill at T H Consulting to any businesses who wish to grow or have more control over their profitability and financial records. Thank you very much Tim for your help and guidance.

thumb Mark Holdcroft
Lake District Lodge Holidays

Latest News

Jul 14, 2017 |
Latest News

After a fantastic weekend at the 92nd Annual Rotary Conference in Manchester this April ‘The Financial Game' was launched to 1,600 Rotary delegates.

Apr 19, 2017 |
Latest News

Over 1,500 delegates joined 2016/17 Rotary International in Great Britain & Ireland President Eve Conway in Manchester, April 7th – 9th 2017 for a fantastic and memorable Rotary Conference which was full of fun, friendship and inspirational speakers.

See some photographs from the event.

Feb 28, 2017 |
Latest News

The Rotary Foundation is to benefit from a new game that teaches financial literacy to non-financial people.

The Financial Game will receive its worldwide launch at the Rotary conference in April.