We’re all met with challenges at some point.
But it’s how we handle them that defines our success.
Here’s the story of our client who had strong revenue and interest from other firms wanting to be acquired but was struggling with low profit, a whole lot of ‘no’, and burning out.
No leaders.
No job descriptions.
No team meetings.
No trust.
No processes.
No accountability.
No capacity or inspiration.
No energy.
Initial Challenges
This client faced all these issues while the founder teetered on the edge of burnout. Despite a market teeming with potential acquisitions, the internal turmoil threatened to derail any chance of success. The founder, frustrated and uninspired, couldn’t see a clear path forward. And with their landlord wanting to sell their space at a higher price than promised, the looming threat of losing their office space compounded their troubles.
The Transformation Journey
Thankfully, they came to us in time to turn it all around. In just one year, under our strategic guidance, the client underwent a profound transformation that touched every aspect of their business. Here are a few of the highlights of how the transformation was accomplished.
✅ 4W’s Action Plan:
We established an online document that listed all aspirations, improvement projects (What), the benefit of each (Why), who would be the staff person to co-lead with us (Who), and when we would start and complete the project (When).
✅ Role and Responsibility Clarity:
We had each person, including the owner, draft their life career mission statement (LCMS™) to include roles, responsibilities, career and personal goals and more. We matched this with team meetings to white board responsibilities and acknowledge mismatched skills, expectations, or capacity. We then recalibrated responsibilities to match skills and passions, trained where possible, and hired to fill gaps. This transparent effort brought the team closer together, in the right seats, doing the right things, and heading in the right direction for themselves and the business.
✅ Profitability Projection:
We took the latest P&L, extrapolated for the rest of the year, added potential new revenue and improvement/change expenses, and continued to update as we shifted priorities. We matched this with a 5 year projection based on a 5 year revenue goal and calculated the number of new revenue and clients needed to reach the goal. Lastly, we added the staff and operations improvement expenses needed to support that growth and adjusted the 5 year goal until the plan seemed doable.
✅ Shedding with Grace:
We documented the client experience for each segment, which was determined by revenue and core services provided. This document validated that a segment of clients no longer fit or could become profitable without drastically lowering the quality of service. We then co-designed and implemented a plan to shed or sell the clients, which had them thanking the firm for matching them with a better fit provider.
Jump to Today
✅ Leadership Revitalized:
The founder not only found renewed joy in leading the team but embraced tough conversations when necessary. This shift became the cornerstone for the entire organization.
✅ Cultivating Trust:
Trust became the bedrock of the team. Mutual respect and understanding flourished, fostering a collaborative environment that propelled the organization forward.
✅ Shed Gracefully:
The shedding of not fit clients resulted in higher revenue as the revenue that departed also took 70% of the client servicing work. This massive win energized the team and they attracted and onboarded several new right-fit clients.
✅ Structured Roles and Accountability:
Each team member now has a clearly defined role with a comprehensive job description and a defined career path. This clarity has resulted in enhanced accountability and increased productivity.
✅ Financial Stability and Office Ownership:
The team not only saved their office space, they became the proud owner of a newly renovated, larger-than-expected office and with very little financing due to experiencing net profits of over $500,000.
✅ Incentivized Team:
Market-rate compensation and being given best-fit responsibilities has the team motivated, more productive, and forward-looking.
✅ National Brand Reinvention:
Our client now boasts a national brand with purpose and meaning, attracting motivated professionals and interns eager to contribute to the company’s success.
✅ Strategic Acquisitions:
The acquisition pipeline is not just filled but thoughtfully curated, with right-fit firms lined up to join at a healthy pace.
Takeaways
With strategic guidance, dedication, and a commitment to growth, our client not only weathered the storm but emerged stronger, clear on the vision, more profitable, and poised for sustained success. They leaped from $1.8 million revenue and 670 clients to $3.1 million revenue and 450 clients and from a team of 8 to 10 aligned, skilled, and energized people.
With the right mindset and strategic approach, any organization can navigate the challenges and come out on top. And we can help get you there.
Will You Be Next?
At My Virtual COO, we help service-based Health, Wealth, and Advocacy business owners optimize talent and systems to accelerate business success by improving the most important parts of the business, including:
- Finances
- Organizational Design
- Lean Processes
- Tech Optimization
- Client Experience
- Team Work through Change
- C-Suite Strategic Operations Training
Ready for your own success story? We would love to speak with you.
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