Internet retailer of dance music
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| "He makes us make decisions... What we are getting is a whole world of advice. The cost has paid for itself a hundred times over." |
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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.
Outcome
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.
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