Positive Action Club Success Stories

Independent Financial Advisors - Improving profitability

The business had been running for 10 years with a staff of ten providing IFA services to independently wealthy and asset rich people in the East of Scotland. The proprietor had a very strong set of values and didn’t believe in taking commissions from products bought by customers and was intent on building a new model where this could be achieved. The problem was the lack of profitability and wealth creation.

Working in the group persuaded the owner to explore the possibility of increasing fees to clients who would then gain from the sharing of commissions. Due to the standard of service provided nearly all clients were agreeable and the business moved on to a profitable basis for the first time in its ten year existence.

Scaffolding Contractor - Business Growth

Typically for an SME, the proprietor was responsible for all management tasks including marketing and sales, pricing, contract management, personnel issues et al. This was preventing the business from growing and the owner was reluctant to employ a senior manager and delegate any of the important tasks. His peers in the Programme identified the need to seek a manager who shared his own value set and was able to bring professional competence and industry experience to the business. The owner gained sufficient confidence from the group and employed a contracts manager. The increased management resource has allowed the business to grow from £500k to £1500K in 2 years.

The business was developed by two brothers after the demise of their employer in the same sector. They were experienced installers but with no experience of running or developing a business. Business Gateway was approached for help and they provided a business mentor. Unfortunately this was unsuccessful as the mentor could not relate to the sector the company was operating in and the same happened with a second mentor. Working with their group their issue was identified as a lack of marketing focus. An action plan was introduced and the business was able to double turnover within two years with a greatly reduced marketing effort.

Architects - reorganise ownership to motivate senior management team

The managing director entered the programme looking for ways to improve the profitable growth of the business and to increase the involvement of the three associate directors in the business development process. The questioning process identified that the ownership was split between the MD and two ‘sleeping’ directors who took no active part in the business. This had been an important consideration at the inception of the business but was now proving a major handicap. The action plan involved exiting the two sleeping partners from the business and the redistribution of the shareholding to the associate directors with the MD retaining a controlling interest. This has now revitalised the business with all directors successfully involved in developing the business.

Contractor- delegating operational responsibility to become more strategic

The business has experienced significant growth and the time pressure on the MD was extreme. He gained the confidence and knowledge from the support of the programme to delegate significant responsibilities to the other directors and senior managers. This has released him from many day-to-day and fire fighting issues, allowing him to concentrate on the strategic direction of the business and gain some thinking time for himself.

Flooring Company - opened up new market

The managing director developed a real focus to his business.  He recognised that demand for high quality hardwood flooring in new construction was declining in Central Scotland.  This resulted in him looking further a field where his expertise was in demand.  He has subsequently opened a supply only business in Dubai and he is now chasing lucrative contracts there.