After 6 months, cashflow forecasts indicated an inventory challenge. This was tackled with new contracts put in place and “dead” stock cleared. The conversion rate was now better than 80%. A 10% increase in profit per month became our target. A new key team member was employed when an existing salesperson was promoted to General Manger, freeing up the owner. 500 people were enrolled in the VIP program.

They then secured the distribution rights for Brioni and Paul Smith suits, and introduced Made To Measure in Milan and Zegna suits. Turnover increased by 10%, with profit up 40%.

After 12-months Tim is able to go on holidays whenever he wants to. The business now only services A-grade clients and does not cater for price-shoppers or discount hunters at all.

The store has a fun, happy and professional atmosphere. Revenue (turnover) is up by 12%, and profit is up by 600%.

The business is now cashflow positive. Business systems are in place and the owner is looking at multiple outlets.

This is a result of a business owner realizing he or she needs help, and being willing to change and being held accountable.

It is a great case study in how business coaching can guide an owner to great success.

All the best.

Brad Sugars

To begin with, he found the initial telephone coaching call not as effective as a face-to-face meeting (he’s a real people’s person) but soon realized that personalized, one-on-one business coaching was more focused and productive.

Tim’s turned out to be great client. He’s willing to be open to new ideas and to be held accountable. He is also very eager to learn, has an open mind and a desire to do whatever it takes. No matter how arduous the task or weird the suggestion, he would grab it with both hands and give it a go.

Tim’s core values are aligned with those of ActionCOACH, especially concerning rewarding customers and the team. Consequently, all strategies were painlessly implemented.

Tim’s ActionCOACH started with the basics. This included preparing a cashflow forecast and developing a plan of action to swing this into positive territory. Then, together they increased prices and stopped all discounting, and in turn reduced costs, including the inventory.

ActionCOACH then helped Tim negotiate better terms with suppliers. Then, a team incentive plan was instituted. Simple routines were systemized. ActionCOACH measured various business activities and taught sales skills. Conversion rates (from prospects to clients) were monitored and measured. Scripts were introduced.

ActionCOACH then established exclusive lines, created package deals, started a VIP program and established events that we marketed to our VTP’s every month. The first was a highly successful closed-door sale.

ActionCOACH helped Tim run an off-premises old stock clearance, and set up numerous strategic alliances. Critical non-essentials were introduced. ActionCOACH then began training the team to build Raving Fans, and introduced programs to keep customers for life. A new recruitment system for new team members was also introduced.

I’m pleased to report that Tim is now able to spend 1 full-day a week working ON the business (developing strategies and systems, etc.) and has prepared clear budgets and targets, both monthly and weekly, that the team are monitored against.

It all changed one fateful night in September. The centre management had invited a representative from ActionCOACH do a free seminar on sales and marketing to show us how we could improve our businesses.

I thought I would go along just to see what these “consultants” were on about and what ideas they might have.

I thought it was all very weird when one of their representatives started trying to balance about ten helium balloons all at once.

I was actually going to get up and leave.

Then it all changed.

One of the ActionCOACH Business Coaches stood up and started to pull my strings. He asked the group how many of us were truly free of our businesses. How many of us, he asked, could take days, weeks or months off whenever we wanted to? How many of us could be assured our businesses would run efficiently and effectively whether we were working or not? How many of us truly valued the concept of time, and how many of us were spending our time doing things we enjoyed, or would rather be doing something else?

The coach proceeded to tell us all about ActionCOACH and the options that were available in their ActionPLAN. I took the information home and told Natasha about my evening.

I remember going to sleep thinking, “I dare you to give it a try.”

The very next day, I did.

I gave ActionCOACH a call and the rest, for me, is history.

On my first meeting with ActionCOACH, the Business Coach asked, “What is it that you want most of all from your business?”

At that stage my sights were limited. I knew Natasha wanted our backyard landscaped, so I replied, “I want the business to earn enough money so we could get our backyard landscaped.”

The coach smiled wryly and asked, “OK, so we are in September, what do you want from the business in October?”

I’d never really thought about it before, but the Business Coach kept asking questions, delving deeper and deeper. It all really came down to one thing: time.

I began to realize this was the commodity I wanted most.

I wanted to spend time with my family; time to do whatever I wanted, when I wanted. I didn’t want to feel trapped and full of worry.

I’m sure you have all heard the saying, “Spend more time working ON the business, not IN it.” I never really understood that until I started working with ActionCOACH. For the first 3 months, that’s what ActionCOACH taught me to do. I systemized everything in the business, from opening up the shop, to how to measure up a client for a suit, to how to manage the computerized Point of Sale System.

This seemed at the time an extremely tireless job, however, I absolutely loved it. I could see that it was the first step toward building a better business.

It wasn’t long before I could afford to spend a day at home each week working on the business.

This totally re-energized me and I began to think, “Hey, this can really work for me.”

ActionCOACH taught me that consistency was the key to a successful business. It was also the key to releasing myself from working IN the business and spending more time working ON the business.

You see, if a customer were to come into the shop, he or she must experience the same level of help and service no matter who helped or served them. And they must have exactly the same experience every time they came in.

This was my first step to making the business less reliant on Ray, and also on me.

We started a VIP program and set about signing up our key A-grade clients. We then began holding special events every month. But what we needed most, at the time, was advice on how to make some quick cash.

In October of 2001, I had my first taste of a successful marketing campaign, and what an absolute eye opener it was.

Once we had our new stock in for that season, we experienced our first success.

ActionCOACH suggested we hold a closed-door sale for my loyal customers. So I invited them to an event to celebrate the arrival of our new season’s stock. We served refreshments and gave anyone who spent in excess of $1,500 a dinner at one of Sydney’s most exclusive Italian restaurants.

I must admit that I did have certain expectations and hoped for a good turn up, but never in my wildest dreams did I think I’d get the turn up we did.

In one weekend we took more than what we typically would in 10 days of trading. After the event, Ray said, “In my 37-years in this business, I have never ever experienced anything quite like it!” What was even better was the fact that our takings were on full margin; there were no discounts given and nothing was “on sale.”

That day we gave out 13 dinners to the value of $150 each.

I had started. I was now really hungry for more.

All of a sudden, instead of just plodding along and wishing for customers to come through the door, I proactively went after them. I started a frequent buyer’s program that rewarded customers every time they bought, with points that could be redeemed at a later stage for goods from the shop.

I began to compile specific customer lists that grouped people together according to their likes and dislikes. This helped me plan promotions for each individual group and to make contact with them specifically. For example, I organized a “Made to Measure” suit and jacket promotion and was able to reach my target market because I had a list of people who had an interest in “Made to Measure” articles.

When we received new merchandise from particular labels such as Polo Ralph Lauren, I had a list of people whom I knew wanted to be told about it.

I also helped organize an agreement with Lavazza Coffee whereby I would serve their coffee to our customers, if they supplied me the coffee and an espresso machine free of charge.

I also had wine and whiskey for those customers who had had a particularly difficult day at work. And do you know what? Some customers began coming in just to say hello and to have a cuppa. It was great!

I even recently invited the local Harley-Davidson dealer to put a bike on display in the shop. It was great to see these “shopped-out” husbands dragging their wives into the store to see the Harley, and to hear their wives say, “Yeah sure, but you need some new clothes!” Work was becoming really fun.

ActionCOACH warned me that other shop owners would think I was a bit weird. I remember once when centre traffic was slow, the other shop owners were complaining how slow business was. I was booming. They kept asking me how I did it, and I always said, “Get an ActionCOACH.”

It amazed me that no one took my advice.

In the first 6 months of working with ActionCOACH, business coaching helped our turnover increase by 18%, but more importantly, our profit increased by nearly 40%. I was hooked. I have never enjoyed working so much.

When it came time for our next season’s launch, I wanted to try something a little different. However, I didn’t know what. One day I was speaking to ActionCOACH about the latest James Bond movie and my Business Coach said, “Wouldn’t it be great if we could get James Bond into the store for the promotion?”

Well, unfortunately Pierce Brosnan was busy that weekend, but I organized for an Aston Martin DB7 to be on display in the shop instead. I also organized complimentary dinners at the MG Garage Restaurant for our customers.
Needless to say, that promotion was even more successful than the first.

What I really enjoyed most of all was hearing compliments from our customers like, “There is no other store that offers me as much as what you do,” and “You know you are ruining my overseas shopping experiences, because I just come here for everything now.”

Then there was this: “My husband keeps telling me to ask you to stop having promotions, because he enjoys coming here for them and always spends too much money.”

I love these comments! It makes me think I’m doing something right. I mean I love communicating with my customers, and if they leave feeling happy, then I know I have done something right.

We basically changed the business from being a passive one (waiting for customers to turn up) to one that is a real fun place; one that is an incredible experience. This concept is breathtakingly simple, yet difficult for owners who are store-blind to see.

It’s simply about the being able to “go the extra mile.” That is what ActionCOACH keeps telling me.

We do things that I can guarantee nobody else does. Like sending new customers thank you gifts for coming into our shop, whether they buy anything or not.

Or even sending our good customers gifts like pen sets or calculators.

I remember one instance when a lady came into our store and began looking around. I introduced myself and struck up a conversation. She had never been into our store before, even though she was a local. She told me that her husband shopped at one our competitors about 20 km away. I took her address and her husband’s name. When she left, I boxed up a pen and pencil set that we had purchases for our good customers and promptly sent it to her.

That weekend she and her husband came into the shop and spent over $6,000. They are now dedicated customers.
“If you have to make a decision, make it in favor of the customer,” my Business Coach would say to the team. My team were becoming so good, it did not matter who served our customers. What a change!

I was able to promote my young salesperson to general manager. I then recruited another team member to train. In turn, Ray was able to semi-retire, and I got to spend time with my family. In short, we were all progressing towards realizing our own dreams.

One of the advantages of having a more successful business was that I managed to afford to increase the size of our store by 30 square meters, and I spent $50,000 fitting it out. Needless to say during the refit, (funny how it always seems to take longer than expected) our turnover was not good.

Consequently I decided to get in some ties for a promotion. Once the refit was completed, I sent out a letter to all our customers offering them a free tie just for coming to have a look at the new shop. Over a 3-day period I gave away 23 ties (at the value of $11 each) and I took in over $23,000.

I still have a very long way to go in the business. In fact, I feel I have only just begun. My next step is to build the business to a stage where I could franchise it to begin making some passive income.

I am currently not only enjoying working in my business, but I also absolutely love the extra time I have with my young family. If that’s all I ever achieve in life, then my time with ActionCOACH has been worthwhile.

I have gone from a position of negative cashflow, negative profits, working long hours, and questionable customer loyalty to owning a company that is thriving.

Oh, and ActionCOACH managed to get our backyard make-over money in one weekend! I am so glad I got into ACTION!

When I left school in 1989, I never in my wildest dreams thought I would end up in retail, let alone owning a business that sells menswear. In fact, before I bought The Club Shoppe in 1999, I knew absolutely nothing about menswear.

I actually started out as a school teacher and although it’s a noble profession, I discovered real early that it was not for me, and that it would not take me to where I wanted to go.

So with the help of my family, I decided to buy a business. In fact, it was a small music store that just happened to be situated next door to the menswear store that I would eventually buy. I was relatively successful with my music store, but had developed a passion for menswear, so I decided to go for it.

It would also be fair to say that prior to being introduced to ActionCOACH, I knew very little about how to run a business effectively and profitably, although I never realized that at the time.

In the 14-months that I followed ActionCOACH, I have turned The Club Shoppe into a viable and profitable business that is now a lot of fun, an integral part of my life and a business with huge potential.

But I’m jumping ahead here. Let me start at the beginning …

The Club Shoppe was established in 1959 by the then minister for the Environment, the Honourable Mr. Barry Cohen. Soon thereafter, Barry employed Ray Jacomb to manage the business while he pursued his political ambitions.

In the 35 years that followed, Ray turned The Club Shoppe into one of the finest menswear stores in the country, selling only the finest clothing available anywhere in the world.

When I bought the business, The Club Shoppe was operating just as it always had; very smoothly and generating good profit – or so I thought.

The shop is based on the north side of Sydney in an affluent suburb, and stocks the very top-end of men’s fashion.

When I bought the business, I knew nothing about menswear. I didn’t even know how to read a tape measure. However, I had an extremely good mentor in Ray, who, fortunately for me, had decided to stay on for another two years to teach me every aspect of the business.

I dedicated myself to learning the basics during the first 12-months. I was so determined to learn the business that I could not think of anything else. I lived and breathed the business, everything from how to sell a suit to ordering clothing for the new season. I literally drained Ray of information. You see, I was thirsty for information, and he was more than happy to give it to me.

After the first 12-months, however, I began to realize the business had a lot of flaws, and I noted that they were very serious flaws.

These included the following:

• At the beginning of every season, the business experienced very severe cashflow problems, which were impacted by the introduction of the GST (Goods and Services Tax). These problems arose from trying to find the cash for the duty/freight and GST on imported goods. Every season this amounted to over $100,000 – and it always materialized during the quietest times of the year (that is at the beginning of a season). Although we were making good profit, all of it was tied up in excess stock.

• Because The Club Shoppe was established in 1959 it had a very dedicated clientele … the problem was they were getting older. Many of the customers whom the shop was built around were retiring and no longer needed the expensive suit or a new range of casual clothing every season. I could see that for ten or so years the shop’s turnover was stagnant, and did not rise or fall by more than thirty of forty thousand every year. I was worried that in ten years time I would not have a business left.

• For 40 years, the shop had been built around Ray, who would work more than 50-hours a week. Customers would come into the store looking for him and some would only come back when he was there. I was absolutely petrified of what would happen to the business when he decided to retire. Even though I had learnt extremely quickly and knew I could do everything he could, people still wanted Ray to look after them.

• The shop had developed something of a discount culture; we regularly gave discounts to our VIP’s and we had numerous sales, which tended to attract the wrong type of customer – price shoppers – so our profitability was heading in the wrong direction.

• Although I did not know it at the time, I had become reliant on the “old ways” of doing business. For the first 15-months I had a bookkeeper that looked after everything from paying bills to doing the banking. She was also, you might say, my own secretary. This was a big mistake. Although this bookkeeper did her work well, I never had a handle on the company’s finances. I never knew the impact my cashflow problems were having on the business. I didn’t even know how much I owed suppliers or how much I had in the bank at any one time. I realize now how silly I was at that time, but in hindsight, I was spending all my time in the shop concentrating on the physical aspects of selling.

After the first 12-months, the excitement of a new business was well and truly wearing off. The GST had been implemented and the Sydney Olympic Games was looming. Business was down, cashflow was pathetic and I felt absolutely trapped. What’s more my wife Natasha had just delivered our first child and her maternity leave was about to run out. We had two choices: either she would go back to work or I’d have to build a place for her in the business. We chose the latter.

Natasha took charge of computerizing all our accounts in the business. This turned out to be the first of many steps we took to turn the business around. And it was the first time that I could see every dollar being spent, and earned. I started to gain control of the business, and I really started to feel that it was mine. Our current bookkeeper decided to leave, and this gave Natasha and I real scope as far as the accounts were concerned. I could see that we were ordering too much stock. I also realized we had far too many suppliers.

Things began to improve, and by the end of that financial year, we actually made a nice little profit. I put this solely down to the fact that we had better financial management. However, I still felt trapped. I wanted to spend more time with my family, yet I felt tied to the shop. I was constantly under pressure to be there more.

You can only cut your expenses so far before you have to start growing to make a profit.
- Brad Sugars –

The Business
Name: The Club Shoppe, New South Wales, Australia
Director/Owner: Tim and Natasha Roberts
Business Sector: Apparel and Fashion

The Challenge
When Tim and Natasha Roberts bought their business, they set themselves a few goals that they thought were reasonable.

First, they wanted to make the business profitable, and to increase turnover by 50% and profit by 70%. To put this in perspective, they thought that if they could make a total profit of $150,000, they’d be more than happy.

They also wanted to pay $150,000 off their business loan and to be in a position to hire a new team member.

Of course, they also set themselves some personal goals such as being able to spend more time with the family, to earn enough to landscape the backyard, and to get focus and direction back into their lives.

So how did they feel on purchasing the business?

Instead of feeling elated, they felt lost, and instead of feeling self-satisfied, they felt trapped – hardly what they expected on achieving their dream of owning their own business.

To make matters worse, the business had a severe cashflow problem when they bought it. It had too much inventory tied up. Profitability was low and discounting normal.

Like many, they decided to keep the original owner on in an effort to make a smooth transition, and they felt reluctant to try anything new. There was no loyalty program in place and no real communication with clients. It became blatantly obvious that their best marketing efforts had not worked.

It was not a fun place to be, and the atmosphere could be described as dull, at best. They spent their days just waiting for clients to walk in.

Now that you have a basic understanding of the situation facing Tim and Natasha, let’s hear the details from Tim.
This will give you a very good understanding of what he went through in facing-up to the challenges that lay before them.

It will also give you an idea of how important it is to take responsibility for your situation, in being able to recognize the signs and to take positive steps to put things back on track, so you can meet your longer-term goals.