Increasing GPM to 41% and NPM by 8% with operations & delivery improvements

Company Overview

Uptech is a service outsourcing company with 100 employees, primarily targeting US market clients, particularly startups. The CEO initially handled operations, sales, and strategic initiatives. Starting in 2023, the company’s growth began to stagnate. This prompted the CEO to seek ways to secure existing revenue and drive further business growth. To facilitate this, the CEO planned to split operational responsibilities into a dedicated COO role and restructure the organization’s processes for future growth.

Challenges Faced

•Revenue Underperformance: The company wasn’t earning as much as it could.

•CEO Overextension: The CEO was overly involved in operations.

•Process Transparency Issues: Lack of transparency in processes and organizational management.

•Unstructured Delivery Processes: Unstructured delivery and SDLC processes.

•Insufficient Business Development Focus: Insufficient focus on business development, which was crucial for revenue growth.

•Ineffective Presales Approach: A templated presales approach impacting conversion rates and overall sales efficiency.

Advising Objectives

•Release CEO from Operational Duties: Free the CEO to focus on strategic initiatives.

•Identify and Implement Quick Growth Opportunities: Pinpoint areas for immediate improvement and growth.

•Enhance Business Manageability: Improve overall business processes and management.

•Identify and Implement Further Growth Opportunities: Continue to find and act on opportunities for growth.

Advising Roadmap

1. Release CEO from Operational Duties:

•Role Definition: Clearly define roles, job descriptions, responsibilities, and authority for both the CEO and the new COO.

•Organizational Restructuring: Review and adjust the organizational structure to support the new COO role.

•Promotion: Promote the existing Head of Engineering to Head of Operations to leverage internal expertise.

2. Identify and Implement Quick Growth Opportunities:

•Financial Review: Analyze the P&L statement to identify revenue gaps.

•Operations Audit: Conduct a comprehensive audit of current operations to pinpoint inefficiencies.

•Process Optimization: Streamline delivery and SDLC processes to enhance efficiency.

•Business Development Focus: Increase emphasis on business development activities to drive revenue growth.

•Presales Strategy Overhaul: Revise the presales approach to improve conversion rates and sales efficiency.

3. Enhance Business Manageability:

•Process Standardization: Develop and implement standardized processes across the organization.

•Performance Metrics: Establish clear KPIs to monitor and manage business performance effectively.

•Management Training: Provide training for management to improve oversight and decision-making capabilities.

4. Identify and Implement Further Growth Opportunities:

•Market Expansion: Explore new markets and client segments to diversify revenue streams.

•Service Diversification: Consider expanding service offerings to meet a broader range of client needs.

•Strategic Partnerships: Seek partnerships that can provide access to new clients and markets.

Results Achieved

•Gross Profit Margin (GPM): Increased from 31% to 41% within one year.

•Net Profit Margin (NPM): Improved by 8% over the same period.

•Revenue Growth: Achieved a 30% increase in revenue within one year.

These improvements were driven by strategic operational enhancements, process optimizations, and a renewed focus on business development and presales strategies.