A Profit Increase Client Case Study: From 20% Margins to 75% in One Shocking Leap

The no-fluff look at a client's REAL success.

About the Business:

• Web design agency owner, was struggling with a 20% profit margin on most client projects after paying her team.
• She had a solid business plan but was barely keeping up overhead.
• She decided to partner with an operations and team strategist to transform her business.

The Painful Problem:

• Low profit margins of 20% were threatening the financial risk of the business.
• Market risks and operational risks were impacting business growth.
• The business had untapped potential that wasn't being realized due to inefficient processes.

The Creative Solution:
We implemented four key risk management strategies:

1. Selective Automation:
   • Automated routine administrative tasks
   • Preserved high-touch, personalized aspects of customer service
2. Offer Refinement:
   • Distilled core offer to address market demand
   • Created a compelling value proposition for the target audience
3. Team and Process Optimization:
   • Leveraged technology to mitigate technology risk
   • Aligned tasks with team members' strengths
   • Reduced inefficiencies to lower operational costs
4. Timeline Compression:
   • Redesigned project workflows to improve key performance indicators
   • Cut delivery times in half, enhancing competitive advantage
   • Effectively doubled capacity to launch new products or services

The Ripple Affect:

Often times is the money that hooks us. Its what we want to see – We love a ROI! But there is so much more you gain! See below.

1. Financial Impact:
   • Profit margins skyrocketed from 20% to 75% (EVEN AFTER team expenses!)
   • Significantly reduced financial risk and improved the financial plan
2. Team Impact:
   • Enhanced team dynamics, reducing operational risk
   • More empowered and engaged employees
   • Improved ability to work independently and in a fast-paced environment
3. Market Position:
   • Better equipped to handle market risk and competitive risks
   • Improved price, marketing, and distribution strategies
   • Enhanced reputation, mitigating repetitional risk
4. Business Growth:
   • Potential for expanding services and product lines
   • Opportunity to grow from a small business to a larger enterprise
   • Positioned to make a bigger impact in the industry
5. Strategic Outlook:
   • Implemented robust SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis
   • Developed a more comprehensive approach to risk management
   • Better prepared to adapt to changing market trends and technology risks

This chart is based on real numbers but is a depiction of averages over 9 months.

This transformation not only boosted this client's profit margins but also enhanced her business's resilience to the risks of entrepreneurship, setting a strong foundation for sustainable growth and success. Her first order of business was to take those new profits and save up a larger emergency fund in her business.

If you're wondering how to make the same shift and achieve similar wins? Start by taking the business health score quiz!