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Keep the Plates Spinning: Managing Growth Whilst Improving MarginsExplore how project-based ERP software can help you simultaneously manage growth and margins.

Keep the Plates Spinning: Managing Growth Whilst Improving Margins

It’s a fact: consulting firms are bullish about the future and are looking to grow. The IDC survey Managing Your Consulting Firm for Growth interviewed more than 250 Professional Services firms across North America and Europe and found that:

• Revenue is up 41%• Profits are growing

Rapid growth brings fresh opportunities and challenges.

Keep the Plates Spinning: Managing Growth Whilst Improving Margins

So, how can you take advantage of this positive business climate to grow your company whilst focusing on improving your margins?

Keep the Plates Spinning: Managing Growth Whilst Improving Margins

Profit marginEnsure all business units understand the importance of profit margin. Different offices or teams will have varying ideas of costs for particular types of work which will have an effect on how profit margin is reported. Make sure these become aligned so you can achieve consistent and meaningful reporting.

1.

Keep the Plates Spinning: Managing Growth Whilst Improving Margins

Expected, actual and total margin on completionUnderstand what the expected, actual and total margin on completion will be. By getting a good idea of these early on, using consistent data, your forecasting will be much improved.

2.

Keep the Plates Spinning: Managing Growth Whilst Improving Margins

More accurate bidsMake and win more accurate bids. A thorough understanding of the margin on each billable employee and project will help you to ensure you’re not under or over-valuing your services

3.

Keep the Plates Spinning: Managing Growth Whilst Improving Margins

The right toolsGet the right tools. Project-based ERP software is crucial in providing precise, real-time data to allow you to forecast for future profit margins and growth.

4.

Keep the Plates Spinning: Managing Growth Whilst Improving Margins

Project-based ERP software is undoubtedly the best tool for the job as it offers:

• Complete transparency of each project in your company and the associated costs.

• Accurate reporting from all areas of your business with numbers that you can have confidence in for forecasting.

• A central point of communication for all business units to ensure a shared understanding of profit margins.

Keep the Plates Spinning: Managing Growth Whilst Improving Margins

How can your business capitalise on the growth in the industry?

• Act now to increase your number of clients and the depth of your relationship with existing clients.

• Use detailed project analytics taken from your ERP software to optimise your service portfolio to provide the most profitable and highest demand services.

• Understand metrics/business drivers such as customer lifetime value, project profitability and revenue growth and capitalise on them to outpace the competition.

• Build a metrics-driven business using an integrated system with a single, trusted version of the truth.

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Find out more about optimising your financial management by downloading:

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