Mistake To Avoid
- Author:
- Simon Pearson
- Business:
- Pearsons
- Published:
- 10/11/2008 11:14:00
In the mid/late ‘90s we experienced rapid growth. In six years we’d grown from a turnover of £7m to £23m but we got carried away about the growth in itself and didn’t manage control of the costs. By 2003 we’d become the eighth biggest recruitment communications company in the UK which was a huge ego trip. We’d got so engrossed in managing that growth and maintaining client delivery, quality and reputation that we neglected a fundamental part of our business plan to generate good profits. We were certainly profitable but nowhere near our targets.
Our turnover has fallen recently from £23m to £16m in two and a half years, but our profit margins have more than doubled. We’ve managed to go beyond the vanity of turnover. We’re actually forecast to go down to a c£14m business, but by that time our profit margins will treble. By managing costs effectively as well as maintaining strong client loyalty we’re a far more profitable business now than we ever could have been at £23m.