When Offlimit Communications faced its first downturn after ten profitable years in business, its leadership team didn’t even question that they would turn things around and make them better. With resilience and determination, they analysed the business, made some tough choices and took action. Within six months they took the business from massive losses back to profitability, and a year later doubled their pre-losses turnover — all in the middle of a recession.
Here’s how Lisa Cohen, Jerome Cohen and Garon Bloom took lemons and made lemonade, building a R130-million sustainable business in the process.
ALWAYS LOOK for the next opportunity. Never take for granted that what you have today will be there tomorrow. This is the mantra that Off limit Communications’ (OLC) owners live by, and it’s one they’ve earned the hard way.
In February 2015, Jerome Cohen, Garon Bloom and Lisa Cohen called their 40-strong employees into the boardroom to have the toughest conversation of their lives. The business was losing R500 000 a month, and it was time for serious and radical changes, beginning with salary cuts.
“We’d gone from a R500 000 profit in December 2014 to hemorrhaging money in January,” says Jerome. “70% of our business came from one big client, and their strategy had changed. The result was a major dip in cash flow while they restructured and a new team took over, but we still had overheads and salaries to pay. It was a huge wake up call. The business was in trouble, and we had allowed it to get to that point because we’d become reliant on one big client.”
Jerome, Lisa and Garon hadn’t been blind to the dangers of so much of their business resting with one client. They’d seen what could happen, and had started strategising around it, but not quickly enough. Suddenly the realities were there, and they needed to be adressed.
“There was no time for over thinking it,” recalls Lisa. “We needed to make decisions and run with them; it was time for action. We had to address our situation.”
And so, the partners scrutinised every aspect of the business, evaluating where they were losing money, where they could make money, and where they could save money. With a ten-point profitability plan in hand, they called the entire company in to share what was happening in the business, and what it would take to turn things around.
Diese Geschichte stammt aus der August 2018-Ausgabe von Entrepreneur Magazine South Africa.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der August 2018-Ausgabe von Entrepreneur Magazine South Africa.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Prepare For The Worst
The stronger your business is, the more you stand to lose. Here’s how to spot hidden weaknesses within your operation and steel yourself for unexpected battles.
Start Planning Today For Future Wealth
Q&A Budgeting is by far the biggest threat to wealth planning, says wealth coach Nelisiwe Masango. If you’re part of the majority of people who don’t have a monthly budget or who have one, but don’t adjust it regularly, you could be hindering your financial progress.
Beyond Banal Business Travel
Twenty-five-year-old South African automotive drivetrain repair company Rex Diff and Gearbox found a perfect match for its business travel needs when it joined kulula work’s client base, and never looked back. Dennis McLachlan of RDG’s Consumer Affairs and Marketing division explains why.
The Next Level Beckons
Rudolf Goosen is an ex-professional rugby player, entrepreneur, author, TV presenter and motivational speaker. Entrepreneur recently spoke to him about his new book, Taking Your Life to the Next Level.
Diversity Drives Board Performance
The composition of your board of directors can help you drive your company value and increase shareholder and other stakeholder returns.
Invest And Save 100% Of Your Tax Payable To SARS
Section 12J funds were created in response to the South African Government offering tax incentives for private investors to support funds that support SME growth in South Africa. Three experts unpack the benefits of investing in 12J funds — particularly for high net worth individuals.
Following Your Dreams? Nailed It!
Sorbet franchisee Kate Holahan went from corporate employee in 2015 to owning two franchise locations in just over two years. By September 2017, she had launched a new location, acquired new clients and was learning something new every day. It took a few learning curves and partnering with the right bank to lead her to successfully running her Sorbet and Sorbet Man stores at Benmore Shopping Centre in Sandton.
How To Build A Community Around Your Brand
There’s a way to build your market without spending a fortune on advertising and marketing — and it’s called community building. Here’s why this should be the cornerstone of your growth strategy.
Sealing The Deal
If you want to close more sales, you need to understand the three phases of the customer buying cycle.
No Limits
When Offlimit Communications faced its first downturn after ten profitable years in business, its leadership team didn’t even question that they would turn things around and make them better. With resilience and determination, they analysed the business, made some tough choices and took action. Within six months they took the business from massive losses back to profitability, and a year later doubled their pre-losses turnover — all in the middle of a recession.Here’s how Lisa Cohen, Jerome Cohen and Garon Bloom took lemons and made lemonade, building a R130-million sustainable business in the process.
