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Internet retailer of dance music
“He makes us make decisions... What we are getting is a whole world of advice. The cost has paid for itself 100 times over. ”
Background:
A team of three young people used their passion for dance music and knowledge of IT to establish an on-line retail business offering vinyl records to DJs and dance music enthusiasts. They were very good at what they did and after seven years their turnover had grown to £5m, distributing over 40,000 items each week to a global market-place from a London warehouse operated by 90 staff.
Issues:
The business was profitable but the team's bank manager sensed that there was even greater potential to be un-locked and suggested that they should meet Secantor.
Actions:
A Secantor FD joined the team on a part-time basis and introduced the following changes:
Regular management accounts & KPIs were established to aid decision making as part of structured monthly Board meetings.
Strategic planning was introduced incorporating a marketing plan and financial projections & budgets were prepared to provide direction and to monitor & control future growth, resulting in the establishment of the music download side to the business.
The fulfilment operation was streamlined with labour resource planning and productivity measures as well as automation and systems development for charging & despatch.
Market research was introduced by Secantor to assess and track customer satisfaction and monitor changes in market trends.
Outcomes:
Profitability quickly increased from 5% to 15% of turnover. The client is now the world's largest specialist on-line retailer of dance music and the value of the business has been significantly enhanced.