Angela, an ambitious consulting business owner, was determined to sell her company for $5 million in three years.
Despite her goal, her profits were too low, and she felt lost on her path forward. Lacking concrete steps to reach her target, Angela partnered with Insight Matters to develop a proven cash flow strategy. This personalized approach helped her set Financial Goals for business growth, resulting in clearer direction and increased profitability, bringing her dream within reach.
Challenge
01
Angela had previously grown and sold a consulting company. This time, however, she faced more obstacles.
Her team of ten consultants didn’t produce enough billable hours. Operating costs felt overwhelming and hard to manage. High staff turnover added to her growing stress. Despite her increased sales role, profits stayed low. She knew she needed a 15% EBITDA. Yet, she struggled to find insights in financial reports. Angela felt stuck and powerless without a clear direction.
Solution
02
Insight Matters devised a three-step action plan to restructure Duotz’s cash flow and support sustainable growth. This approach included:
Setting Financial Goals and Metrics
- Insight Matters began by understanding Angela’s vision to sell her business for $5 million. After assessing her finances, they established financial targets: Angela would need a 20% EBITDA, or $700,000 annually, with revenue hitting $3.5 million.
- Insight Matters also identified three key metrics to help her boost revenue, focusing on high-margin services: Number of tenders, tender win rate, average tender size per service type
Creating a Roadmap to Achieve $5 Million
To reach her goal, Insight Matters designed a roadmap with specific, time-bound actions:
- Systematize Sales Tracking: Implement new reporting flows to monitor key sales metrics.
- Expand the Sales Team: Hire a new salesperson to reduce Angela’s sales involvement, alleviating her bottleneck role.
- Optimize P&L Reporting: Shorten report availability from 20–25 days to 10 days, ensuring timely insights.
- Adjust Pricing Strategy: Increase prices by 5–8% on high-end services to support a 20% EBITDA.
Ongoing Discipline and Accountability
- To ensure Angela stayed on track, Insight Matters provided a customized dashboard with color-coded financial data for easy tracking.
- They also held monthly check-ins, giving Angela support and accountability beyond the numbers. This system empowered Angela to make informed decisions, freeing her from her past struggles with black-and-white P&L data.
"Insight Matters provided the clarity and support I needed. Now I’m confident in reaching my $5 million goal!"
Results
03
Angela is now back on track to achieve her $5 million goal. With a clear financial strategy, she has regained control of her business, increased profits, and reduced stress. Her path to success is now well-defined, with support from Insight Matters.
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