Though the current economic climate is less then favourable, the good news is that even in bad times, there are businesses that emerge from the recession stronger and more profitable than before. At the time Business Strategist Ian Matthews joined property management company WRS, the business was in the process of decline. Cash flow problems, litigation issues and an increasingly saturated market, hinted at an future instability. However, Matthews recognised the potential of the company and advised a period of financial and operational restructuring which, ultimately, resulted in WRS emergence as a profitable more streamlined entity.
“We went back to basics; I reviewed every aspect of the business and its outgoings to try and isolate a reason why it was in difficulty.” says Matthews. “We came to the conclusion that, though the sector was becoming increasingly hostile, fundamentally, WRS’s business model was sound and if changes were made swiftly, the company could be profitable.”
The major problems were at a managerial and administrative level. So, on joining the company, Matthews set out a few key objectives and areas of change. In tomorrow’s post we will identify these points and review how best to apply them to the SME sector.