Grow your subscription model business to £1 million in annual turnover
How the business maximised the subscription model to create sustainable growth
The problem was that their accountant was only interested in them when they started to grow, not from the very beginning.
They couldn’t see how their current accountant could help them scale their business as they entered their next phase of growth.
Before a business enters a phase of growth, it needs to have solid financial foundations. Foundations that are easy to scale as you take on more customers and employees.
You need to be equipped with the right insights, at a time when you need them, to make decisions confidently. It’s hard work making a decision based on something that keeps changing, like a moving target.
This business wanted to become a leader, an influencer in a niche industry and grow profitability in a very sustainable way. As a company with a subscription business model they didn’t want to have profit one month, and a loss the next, they wanted to see profits moving upwards month after month.
They charge a small amount of money for a fantastic product and service and have always stayed true to their core purpose of providing affordable, but high quality website and marketing services to a niche industry with a variety of loyal clientele.
They appreciated that the finance function was going to be a key part for understanding how their business’ subscriptions were growing and contributing to turnover each month.
By building a 3-way forecast that modelled profits, business value and cash now and in the future, they could see how the business would look as it’s subscription base grows.
By creating a dashboard, where all their key business metrics could be accessed at the click of button helped bring all the insights together.
By helping them to analyse different remuneration strategies and packages for their team meant that they could rely on everything being delivered to a high standard.
Within 1 year the business grew it’s turnover by 69%
The business operates at a >39% operating margin (bottom line profit)
The business continues to grow, month on month, has > £1 million in annual fees and is well on track to forecast > £1.3m for next year.
“Outstanding accountancy firm. They’ve helped our business grow beyond expectations year on year and we wouldn’t have been able to do it without them. Can’t recommend them highly enough!”
Michael Schumacher, Director of HMDG
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