A boutique Public Relations firm in business for over 15 year approached GPI due to the negative impact the GFC was having on business.
The business had grown steadily until the onset of the GFC, but was now struggling. This was due not only to existing clients reducing their PR budgets, but new clients were becoming increasingly difficult to find.
The client approached GPI for specific assistance addressing the following;
- Improve business cash flow
- Identify new or untapped opportunities in the market
- Adapt to the new post GFC market conditions
- Maintain key staff/employees
GPI undertook a detailed review of the business, including a study of industry best practice and prevailing market conditions. The following actions and solutions were identified and implemented to improve business performance;
- Review of client contracts and the selective renegotiation of better terms
- Broaden the range of services and pricing structure of the business
- Increase the use of a of a retainer fee model to ensure consistent cash flow
- Reprice project costing and fees to bring in more cash
- Repackage staff contracts and remuneration to improve cost input management
- Targeting specific clients for new business
As a result of these activities, cash flow improved and the clients business stabilised and subsequently rebounded strongly. While key financial measures of business performance fell 20% during the GFC, they subsequently recovered to grow by more than 10% p.a. over the most recent period.
Similarly, though client numbers initially dropped during the GFC, the strategies implemented saw client numbers also rebound to be 40% higher than pre GFC levels.
And importantly, the business was able to retain staff with no requirement to restructure and have subsequently seen the number of employees grow since the new strategies have been implemented.